The HotLaserTrade
Equation and the Great Crash of 1929
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After
reading our day trading guide, people often ask how far back
the HotLaserTrade Equation has been tested. The answer might surprise
you!
October
24, 1929. On this black day, prices fell so far as to
wipe out an entire year's gains. Over the next 2 weeks, more
than $30 billion effectively disappeared from the US economy.
Some stocks took twenty-five years or more to recover.
Interestingly,
the HotLaserTrade Equation had the Crash pegged. Let's
look at the prediction from the day before, using HotLaserTrade's
original HotLaserTrade Equation Calculator.
Here are
the Open, High, Low and Settlement for the Dow Jones Industrial
Average, either side of the Crash..
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| Date |
Open |
High |
Low |
Close |
| 21st
Oct |
323.9
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328.3
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314.6
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320.9
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| 22nd
Oct |
322.0
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333.0
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322.0
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326.5
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| 23rd
Oct |
326.5
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329.9
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303.8
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305.9
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| 24th
Oct |
305.9
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312.8
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272.3
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299.5
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| 25th
Oct |
299.5
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306.0
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295.6
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301.2
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| 28th
Oct |
301.2
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303.6
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296.0
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299.0
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| 29th
Oct |
295.2
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295.2
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256.8
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260.6
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So how
did HotLaserTrade's original HotLaserTrade Equation perform???!!!
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22nd
Oct - 2 DAYS BEFORE THE GREAT CRASH
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| According
to HotLaserTrade's HotLaserTrade Equation Calculator, the higher
L3 was just under 325, with a 'breakout' L4 level above it of
328 and change. A LONG would have been triggered at the L4 level,
giving a maximum profit potential of almost 5 points,
had anyone known about the equation then! |
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23rd
Oct - DAY BEFORE THE GREAT CRASH
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The day
before the great crash, the higher L3 was calculated
as 329 and a half, with the L4 above it at 332 plus change.
A SHORT was triggered going down thru the L3 level, giving a
maximum profit potential of almost 26 points, an INCREDIBLY
large win for just one day!
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24th
Oct - THE GREAT CRASH
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The higher
L3 was calculated as about 313. The high of the day was 312.8,
meaning the equation missed the high by only 10ths of a point.
As the market crashed, it hit the 'breakout' lower L4 level
at just under 299, giving a ride down to the low of the day,
for a maximum profit potential of over 26 points. In
just 2 days, the HotLaserTrade Equation picked off over 50 points,
equivalent to approximately 17% of the entire index!
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25th
Oct - DAY AFTER THE GREAT CRASH
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The market
meandered uneasily within the L3 levels, and no trades were
triggered.
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28th
Oct - 4 DAYS AFTER THE GREAT CRASH
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The lower
L3 was calculated by HotLaserTrade's HotLaserTrade Equation Calculator
as just over 298. L4 beneath it was close to 295. This gave
a maximum profit potential as the market reversed back up thru
L3 of over 5 points, a respectable gain for the day.
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29th
Oct - 5 DAYS AFTER THE GREAT CRASH
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The Calculator
gave just shy of 297 as the lower L3 level, with almost 295
below it as the L4 level. In this instance it became the 'breakout'
level, leading to a maximum profit potential of 38 points.
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| In total,
in just 6 short days, 99.95 points were available, that's
almost a third of the entire index! The Equation expresses an
internal aspect of the market's workings, and has been an incredibly
accurate tool for most of the last century. What's more,
this stock
trading system works just as well today
as it did way back in those long-forgotten times of the Great
Crash. |
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