THE MONEY FLOW
TRADING SYSTEM
@fullauto11
SEPTEMBER 5, 2019 EDITION #2
BY GERALD PETERS
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Authors Note: I want to say at the beginning of this book that I believe in buy and hold
investing. I believe in the power of dividends to compound and build massive wealth over time.
I own many stocks that I have owned for many years that I do not trade or sell shares. I just
accumulate shares. This book can help you do that. It can help you pin-point the perfect buying
opportunity. The majority of this will discuss trading, but don’t limit The Money Flow Trading
System to just trading.
The Money Flow Trading System is Fractal:
A fractal is a never-ending pattern. Fractals are infinitely complex patterns that are self-similar
across different scales. They are created by repeating a simple process over and over in an
ongoing feedback loop. Driven by recursion, fractals are images of dynamic systems – the
pictures of Chaos. Geometrically, they exist in between our familiar dimensions. Fractal
patterns are extremely familiar, since nature is full of fractals. For instance: trees, rivers,
coastlines, mountains, clouds, seashells, hurricanes, etc. Abstract fractals – such as the
Mandelbrot Set – can be generated by a computer calculating a simple equation over and over
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Contents
Introduction to.............................................................................................................................................. ..
The Money Flow Trading System................................................................................................................14
Chapter One ....................................................................................................................................................
Building a Complete Trading System.........................................................................................................21
Chapter Two....................................................................................................................................................
Moving Averages -The Foundation of the Money Flow Trading System ..................................................29
Chapter Three..................................................................................................................................................
True Strength Index (TSI) and MACD.......................................................................................................70
Chapter Four ...................................................................................................................................................
The Average Directional Index / Directional Movement Indicator ............................................................89
Chapter Five....................................................................................................................................................
Support and Resistance or…Supply and Demand ....................................................................................100
Chapter Six………………………………………………………………………………………………………………………………………………..
tops, Exits and Pivot Points.......................................................................................................................114
Chapter Seven .................................................................................................................................................
Position Sizing and Risk Management .....................................................................................................124
Chapter Eight ..................................................................................................................................................
Locking in Profits – Putting Money in Your Pocket & RSI .....................................................................127
Chapter Nine ...................................................................................................................................................
Putting it All Together ..............................................................................................................................138
Chapter 10…………………………………………………………………………………………………………………………………………………
The Four Stages of Price Movement.........................................................................................................142