How to Read The Proper "Setup" for a Trade

Solar/Lunar reversal dates function optimally when a proper trading setup exists. A setup occurs when an isolated low or high forms within the solar/lunar reversal dates.

1. Weighted Value Score Assessment

A weighted value score of 138 or higher is most desirable for trading. The scoring categories are:

Higher than norm: Minimum consideration threshold

Above 114: Should be considered

Above 138: Designated as "high"

Above 150: Classified as "very high"

Higher scores correlate more frequently with reversals producing price movements of 2.5% or greater within 1-7 trading days.

Timing Note: The MMA Solar Lunar Forecasting App calculates dates based on noon Eastern Time for the DJIA and 11:00 AM Greenwich Time for Gold/Silver. Since futures trade nearly 24 hours, reversals may occur late the previous day or early the following day.

2. Identifying the Trigger

After entering a high weighted value period, observe whether price takes out the low or high of the previous day. This action represents the "trigger":

High breakout: Signals potential top reversal

Low breakout: Indicates potential bottom reversal

3. Setup Confirmation

The setup confirms when the next day's price is lower than the prior day's high (isolated high) or higher than the prior day's low (isolated low).

An isolated high occurs when the day's high exceeds both the preceding and following day's highs. An isolated low occurs inversely. However, don't wait for full confirmation; significant moves complete before that point.

4. Trade Entry Strategy

Once the trigger activates, prepare to enter immediately. Select reasonable entry prices using:

Support/Resistance Levels

Reference MMA Daily or Weekly Subscription Reports. Buy at support zones; short at resistance zones.

Momentum Indicators

Monitor 30-60 minute timeframes. Look for stochastic or RSI readings below 20%. Watch CCI indicators below -200. Confirm with 5-minute stochastic or RSI below 10%.

Divergence Signals

Bullish oscillator divergence (lower price with higher oscillator reading) signals strong buy opportunities in solar/lunar reversal zones with weighted values exceeding 138. Apply same divergence analysis to RSI and CCI studies.

5. Stop-Loss Management

Once the setup confirms, move your stop-loss appropriately. For isolated lows (long positions), place your stop just below the move's low. For isolated highs (short positions), place your stop above the move's high.

6. Profit Taking

Exit when reaching price targets or when technical studies indicate overbought (for longs) or oversold (for shorts) conditions using entry parameters. Target minimum movements of 2.5% or greater, though oscillators may signal earlier reversals.

Additional Context

The solar/lunar analysis measures 3% swings in DJIA and Gold, and 4% swings in Silver. Ideally, reversals follow 3-4% declines (for buys) or rallies (for sells) before the high weighted value day, and the reversal subsequently moves at least 3-4% from that day.

However, these exact percentages don't always materialize. Realistically, even simple isolated lows during high weighted value zones typically generate 2-3% rallies, regardless of preceding decline magnitude.