B -1

Technical Analysis Trading ForumOrlando, Florida

Friday 7 June 2002

Timing Short Term Price Swings in S&PPrecise Timing of Seasonal Patterns

By Jake Bernstein

Topic Outline and Overview

The Nature of Market Patterns

Why patterns persistExamples and Illustrations of Highly Reliable PatternsCyclical PatternsThe Friday-Monday Relationship in S&P FuturesSeasonal PatternsExamples and Illustrations of Seasonal Patterns

Indicator Patterns

How Timing and Trend Indicators Form PatternsMomentum as a Case in PointHow Momentum Patterns DevelopTraditional Use of the Momentum (Rate of Change) IndicatorMomentum DivergenceThe Power Momentum FormulaPrecise Timing with the PMF in all Time FramesExamples and Illustrations

The Jake Bernstein MAC Method

Defining the MACEssential Characteristics of the MACHow the MAC Signals Tops and BottomsTrend Determination and Timing with the MACSupport and Resistance with the MAC

Open / Close Price Patterns

The Importance of the Open/Close RelationshipHow OC Patterns Develop and WhyHow to use OC Patterns to Time TradesCombining the OC and the MAC for High Odds Trading

B -2

Timing, Trader Psychology and Discipline

Why Traders FailThe Essential Characteristics of Winning PsychologyAvoiding the TrapsMaximizing Profit PotentialHow to Know when You're About to Make an ErrorThe Importance of Contrary Opinion

The Quintessential Contrary Opinion Indicator

Small Trader SentimentAre Small Traders Always WrongA Brief History of the Daily Sentiment IndexWhy the DSI is a Leading IndictorExamples and Illustrations

Summary and Conclusions

B - 3

Figure 1

B - 4

Figure 2

B - 5

Figure 3

B - 6

Figure 4

B - 7

Figure 5

B - 8

Figure 6

B - 9

Figure 6

B - 10

Figure 8

B - 11

Figure 9

B - 12

Figure 10

B - 13

Figure 11

B - 14

Figure 12