Jim Kane – A Totally New 5-Point Pattern
A Totally New 5-Point Pattern is designed to help satisfy Critical Element number one of the ‘Plan for a Trade’, the potential trade area (PTA). This book is far more than just a book with a new 5-point pattern, though. The book introduces two brand new, never before released or discussed Fibonacci-derived numbers. These are the numbers, mentioned in the free article Some discussion about Advanced Fibonacci Trading Concepts and the Kane Trading methodology, that Jim worked on for four years.
They are the basis for the new pattern, but also have a far-ranging use beyond the pattern. The book integrates the numbers into the Kane Trading methodology, as laid out in the other books, and shows how critical they are to the process. The book makes a case for why the two non-Fibonacci-derived numbers that so many use are not valid harmonic numbers at all, and that these new numbers are the true harmonic numbers for that area. The book also delves very deeply into the formerly proprietary concepts at Kane Trading of ‘harmonicity’ and ‘layered support and resistance’.
These are concepts that are the fundamental basis for the material in Advanced Fibonacci Trading Concepts, but, as the free article mentioned above explains, perhaps weren’t explained all that well in that book. The issue is rectified in this book, in great detail. There is also some additional work on the numbers laid out in Advanced Fibonacci Trading Concepts, plus derivations of three numbers that were left out of that book.
This is not just mathematics here for the sake of ‘fun with numbers’; this is material that has been requested, time and again, since Advanced Fibonacci Trading Concepts was released. It is material that has practical significance to any Fibonacci-based ‘Trading Plan’, and the reasoning behind that is explained in very clear detail. The book then goes on to cover many new pattern concepts that have never been discussed before, from any source. There is a new idea called the ‘Pattern Stretch’ concept, which greatly aids in the visualization and understanding of how the patterns relate to each other.
The book explores many new mathematical and geometric aspects of the 5-point pattern structure, and relates these aspects to actual trading. Discoveries and conclusions of this work are summarized in tables, designed for ease of use in applying the material to actual pattern setup construction. The book also includes a chapter that continues on with the work laid out in Multiple Timeframes and ‘Context’, in the chapter entitled ‘Pattern Structure’.
All the latest information developed at Kane Trading with regard to 5-point patterns, and trading them, has been put into this chapter. And like the entire book, it puts the emphasis on the patterns in the ‘context’ of using them for real trading. All the latest ideas about the patterns, their structure, their tendencies in real trading situations, and so on, are included. In the opinion of the author, this book is the most advanced, cutting edge, innovative, and yet still practical book out there right now on the topic of advancing a Fibonacci-based ‘Trading Plan’.
Book Level: Advanced
188 pages (including front matter), 113 charts, 7 diagrams, 4 tables
Prerequisites: Advanced Fibonacci Trading Concepts, Entry Techniques, Trading ABCD Patterns, Trailing Stops, and Multiple Timeframes and ‘Context’. To fully understand the concepts outlined in this book the reader should be fully versed in 5-point pattern structure and labeling, as well as in the application and trading of these patterns. The listed books are required before reading A Totally New 5-Point Pattern. This book, like Multiple Timeframes and ‘Context’, is very specific to the Kane Trading techniques developed in the prerequisites.
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