Timothy Morge, CTA and President Blackthorne Capital, Inc.

www.marketgeometry.com www.medianline.com

How to Mine Energy Coils for Trading Opportunities in the Bond & Notes Markets

Internet Presentation Sponsored by Interactive Brokers June 14, 2012

All Material and Images are the Property of Timothy Morge and are protected under the United States and International Copyright Laws.

©Timothy Morge 1991-2012

FOREX and Futures Risk DisclaimerTrading in the off exchange retail foreign currency market or futures markets is one of the riskiest forms of investments available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose. Nothing in this presentation is a recommendation to buy or sell currencies or futures and Timothy Morge is not liable for any loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from the use of Timothy Morge’s tools or reliance on such information. ResultsPast performance does not guarantee future results.This is one persons experience, your experience may differ.Results are not guaranteed, individual experiences may vary.Market VolatilityIn volatile market conditions, substantial losses may occur.In volatile market conditions, orders may not be filled as placed.LeverageThe leveraged nature of FX trading and Futures trading means that any market movement will have an equally proportional effect on your deposited funds. This may work against you as well as for you. The possibility exists that you could sustain a total loss of initial margin funds and be required to deposit additional funds to maintain your position. If you fail to meet any margin call within the time prescribed, your position will be liquidated and you will be responsible for any resulting losses.

This webcast is dedicated to my two early mentors:

Dr. Alan Andrews, a Newtonian Physicist that developedAction/Reaction Lines and the Median Line in the mid-1920’s.

And Amos Hostetter, the best ‘Campaign Trader’ in the last 300years. He was the master of risk reward and moneymanagement.

Let’s start with a CBOT Bond Futures chart.

These are all Tick Based charts. It takes ‘Time’ out of the bars and makes the overnight sessions much more readable.

Let me diagram my favorite way to trade Bond futures.I developed this idea in 1999 after 18 months of researchand it continues to work well for me. It relies on theconcept that when Price forms tight Energy Coils or tradingranges, Price is restoring its spent Energy. Once it hasrestored its Energy, it breaks out of the Energy Coil andmakes a nice run. By combining this concept and rigidMoney Management rules, I developed this concept, theCorner Trade, for trading Bonds.

Now let’s use a tick based CBOT Bond futures chart from a recent session and see if we can find a potential Corner Trade in the Bond futures.

Now that we know the concepts involved in a Corner Trade, let’s see if we can spot another. Remember, we are looking for tight Energy

Coils that are forming where Price should reverse direction – Support or Resistance based on Market Structure and or Median Lines.

Let’s look at one more Corner Trade in the Bond futures. This one is based on much more advanced and complex Market Structure.

Hang on! We’re going to go into extremely advanced Market Structure and see if we can ‘Mine’ a trade in the Bond futures.

Thank You for taking the time to attend this session. Questions?

“Master your tools, master yourself.”®Timothy Morge

www.marketgeometry.com www.medianline.com

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Blanketing the Yield CurveCME Group interest rate

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