A Simple Update

 

It has been a few months since I have updated this blog. Behind the scenes, I have aggressively pursued several litigants but there is only one or two that I am truly troubled by – let’s call them Simple-dee and Twerpee-dumb!  You know them – see prior posts!

Due to legal restraints, I am no longer able to directly comment on the individuals that I am pursuing litigation against. These are bad actors in the world of harmonic patterns and I will not stop until it is resolved. For the other 99.99999%, you guys are great! However, I will not let these bad actors continue to degrade the value of this work nor will I let them continue to profit on their plagiarism. So, let us redress one of the worst actors – no I’m not talking about Keanu Reeves – I’m talking about the Simple man and his Internet-siphon plan. You know him. He’s the guy who pretends to be a Harmonic Trader and claims to have substantially improved harmonic patterns with the change of one number. He shamelessly continues to plagiarize my work but I have made significant legal gains to the point where my legal action can now begin. Due to the state of my legal affairs, we will refer to him as Mr. Simple or just Simpleton.  “Simple” because he believes his marketing schemes are smarter than the trading community.  He believes that he can continue to market his garbage and leave a trail of losing traders in his wake.
Here are two recent responses from Mr. Simple’s dissatisfied “students.”

  1. Hi there,
    a great article, especially I’m one of those, who lost a lot of money buying software that was not accurate. For two years I was serious with trading education and I did everything to become a profitable trader, but at some point after I had backtested the systems over and over again I realized that the whole thing was a hoax. I’m talking here about the people at T#@d*-Less*ered. All in All I lost 5000 Dollars buying their software. Today I’m really thankful for not going LIVE with their Systems. So I really hope that this website will expose these scamers!

    Like

  2. T#@d*-Less*ered just announced their rolling their new pattern recognition software soon. Even though they “rolled it out” several years ago. LOL. They’re trying to bank off the software before Scott gets them.

    Like

I GOT TO THEM AND I WILL GET THEM! It is not my desire to chase people down but if someone is stealing something from your house and reselling it on your front yard, of course you are going to call the cops or just go out to your front yard protect your property!

From the very beginning, I promised to see this through. However, a legal settlement or resolution does little to help those that are going to follow and continue to lose money to Simple’s business. So, I am asking for everyone to communicate, share and make the community aware of the number of shysters selling products and services in the name of harmonic patterns. I will continue to update this blog from time to time. I will update the other bad actors very soon, including an entire review of every harmonic scanner on the market today – some good, most are garbage!

I want everyone to benefit from my decades of research that I freely share. However, I will continue to pursue those individuals that lay claim to my work and plagiarize my intellectual property. I am not going away. I’ve been here for 20 years and I’m here for at least another 20!  By the end of this year, I will release a few new offerings – including strategies, software and new insights that are the result of the past 10 years of research.

Let me conclude by saying that Harmonic Trading and Harmonic Patterns must be applied as uniform measurement strategies as presented and standardized by my four books. As long as individuals abide by the standardized measurement rules, the patterns will provide an accurate framework to assess trading opportunities.  Furthermore, all I ask is that individuals cite my work appropriately and abide by “U.S. Fair Use” Copyright/Trademark laws.  I have no problem with anyone that can abide by this SIMPLE consideration.  In fact, I would gladly help people to promote their work.  We have done just that by partnering with a number of outfits over the past year to expand the scope of Harmonic Trading and promote a proactive, positive community that instills proper skill sets to understand market movements and capitalize on the opportunities that this methodology presents.

We can help each other and support this fantastic community of traders .  At the same time, WE CAN police bad actors and make sure that the crooks in the industry do not succeed on marketing prowess alone. Again, thanks to all Harmonic Traders for your support and help  by spreading the word of how to trade harmonic patterns the proper way. Get started at this link with a free book, free software and free videos. Thank you.

FREE SOFTWARE:http://www.harmonicanalyzer.com www.formationseeker.com 

Free book:http://www.harmonictrader.com/theht.pdf

Free videos:https://www.youtube.com/user/HarmonicTrading

ALL FREE DIRECT LINKS! ENJOY

FXGroundTwerps

FXGroundTwerps – The Weakest Harmonic Traitor of Them All!

I want to thank all the people that have supported what this blog is about. I have received three negative responses and they were all from fake accounts. So, I consider the hundreds that have liked the posts, shared them or even the direct emails from others thanking me for exposing these bad actors as a genuine response that there has been some awareness to counter the misinformation currently being promoted.  For me, I have been resolute since committing to this cause 1000% from the beginning. For a very long time, I excused the bad behavior and outright contractual violations that many of these people have inflicted upon me.   Indirectly, some of these individuals have created awareness but at the cost of thousands of individuals losing money that they really don’t have to lose.

The (Harmonic) Trading Learning Curve

The common experience for a new trader typically involves a process of educational discovery to learn some type of trading strategy where they spend $5-$10,000 in courses, software and other events. After investing anywhere from a weekend to a few weeks, they take the remaining $10-$15,000 that they have for this endeavor and blow out the account within 30 days. By the time they contact me, most of these people are down $20,000 or more but then get my FREE book to learn the correct measurements and process.  I want that to happen where people can access a basic information for free in my attempt to disrupt this tainted learning curve in the world educational trading programs and mentors. Last year, I finally reached a point where enough was enough, as too many people were contacting me on a regular basis with this same exact “learning curve” story. Therefore, I am now responding and I will continue until I have thoroughly addressed this stain.

“The Harmonic Trader” (1998) FREE PDF Download

I want people to know that I’m a reasonable man and I have tried to address each of these individual situations personally for quite some time. I must say that it is uncanny the number of people and companies that have tried to manipulate the entire methodology of harmonic patterns and Harmonic Trading for marketing gain. As they say, “Truth is Stranger than Fiction” and in this case, there are too many REAL bad characters.  This is not how I really want to spend my time but it is all from a point of necessity.  I have made progress with certain individuals immediately following the initiation of this blog.  I reiterate that I offer each of these individuals a public opportunity to defend themselves and rectify the situation. I do know personally that each one of them has become aware of my complaints. Many of them have indirectly responded by beginning to cite me or they have directly contacted me. Unfortunately, it has come to this point where I need to go “rogue” to thwart the expanding glut of misrepresentation and deceit.

For me, this is about preserving the quality of the work. I don’t care about my name on the business, being on TV or wanting people to think I’m some kind of a hotshot. I’ve been through too much crap in my life to have any attitude.  I am grateful to so many people who helped me recover my life after my accident that the only way I can pay them back is to offer help to others. This is my personal goal, an important  value within the mission of Harmonic Trading, and this is what this blog is all about.  I will continue to update the situation as progress is made but I must now address the weakest, spineless and most ineffective Harmonic Traitor of them all. His name is Chris Hall of FXGroundWorks.com.

FXGroundTwerps

Back in 2010 after Financial Times republished my “Harmonic Trading: Volume 1 & Volume 2,” Chris Hall contacted me to discuss the opportunity of developing extensive web resources and an adaptation of my Harmonic Analyzer software for other platforms such as Ninja Trader. Chris and I held to class sessions in 2011 and 2012 where we began to reach out to the developing Harmonic Trading community in an effective manner. I really thought this was a guy I could work with. Although it was my intention to eventually meet him, I was living in Brazil at the time and he was living in Canada. Therefore, we collaborated online and via phone to initiate this larger Harmonic Trading project for the better part of a year.

After the second class, Chris was about to finish building the website, software for Ninja Trader (named “Harmonic Auto Trader”) and other harmonic pattern resources. I was the primary contributor of all of this content. After nearly a year working together, I started to trust him more and we even signed a Non-Disclosure Agreement that secured our discussions – or so I thought?  Here is the signature page of the NDA link:  http://www.screencast.com/t/JicpZlTLdX

After more than 15 months of collaboration, Chris was ready to launch the website services and set up the third-party harmonic pattern software program. This was based on the algorithms that I supplied to him including specific ratios. Although I did not give more than what is already in my books, he clearly was not able to understand any of this information to be able to develop the code for the program. Regardless, we were ready to launch the entire project. We were so close to launching that we even had a product revenue split agreement of how we would mutually benefit from the business.
The document can be viewed at this link: http://www.screencast.com/t/Wi43eGHH6  At the last minute – literally a few days before launch – he says to me that our 50-50% partnership would now have to be 90-10%!  I fumed, “Are you serious?”  He replies: “I have been working really hard for the past 15 months so I believe this is fair.”  I said a few expletives and reminded him that I had been already working on Harmonic Trading for 15 years!

What to Do with the Twerp?

I want everyone to know that this is 100% truth. Although it is always been my intention to address his contractual infractions legally, I now want him to know that this is personal. Me and my attorney are focusing our efforts on his business to shut down his website  based out of Toronto, Canada. He knowingly violated my intellectual property rights, broke a legal NDA and has literally made $2 million over the past five years illegally selling stolen content. How do I know this? Because I have been tracking his company, products and services for the past year and a half.  His website, software and content come directly from me. You know this is true Chris and it’s a shame that you could not have the integrity to do the business right. I now have partners all over the world and we are expanding immensely month over month. However, you thought you could steal it for yourself and somehow rewrite the history of Harmonic Trading.

If you are a member of Chris’s website or subscribe to a software, you are supporting a thief. It is that simple. This spineless little bitch has no integrity and scams the trading community for marketing gain. He does not trade. He does not understand harmonic patterns. His research is completely inaccurate and borders on fraud. Despite his outrageous claims, his efforts are paper thin and have no substance. You are going down my friend. People will learn to avoid you and your business will slowly erode over the next year to 18 months. I will make sure of that. Also, when my Canadian legal representative begins proceedings, I will come for whatever is left and take it all. I’ve had enough of you. If you were a man, I would ask you to step outside because even from a wheelchair I could kick your ass. But, you’re a gutless twerp who manipulates people online for your financial gain. You have no business in this industry and your days of using my intellectual property are over. If you want to make this right, I would respond immediately. Oh wait, you did respond to me. After a few very nasty emails that I sent, including am email reminding him of what he did, he sends me the following letter that basically admits that he knows he has been trafficking in my intellectual property domain for years.  Chris Hall officially announces that he will no longer reference “Harmonic Trading”:  http://www.screencast.com/t/wsd86jM2e

I think he did this mostly because I own the trademark to “Harmonic Trading” but more because I have been able to remove dozens of his videos from YouTube and block him from future engagement with Ninja Trader.  HEY CHRIS – I could not believe that you sent me that letter. My attorney thinks it’s the perfect piece of evidence that will seal your fate and shut down your website for blatant and knowing abuse. Either way, FXGroundworks.com is finished!  I look forward to seeing you in court later this year in Toronto. I always wanted to visit and see my cousins from Ontario. Now, I will have two reasons to go to Canada – see family and pick up a big check from you. I just want be in front of you when you sign it and see the look on your face. Have a nice day Chris because tomorrow is going to suck.

Sincerely,

Scott M. Carney

P.S.  Say hi to Chris :  You can cut n paste: “Scott Carney says: ‘Have a Nice Day’ Traitor”

Send to: ChrisH@FXGroundWorks.com

The Harmonic Trader Challenge

I challenge any of the Harmonic Traitors to a 30-day $10,000 harmonic pattern trading challenge where proceeds go to the charity of the winner’s choosing.

Any of these characters qualify:

https://harmonictraitors.wordpress.com/2016/03/16/top-5-harmonic-traitors/

I doubt any will accept but I am serious in this challenge.  If any of these guys respond, I will post an update.  If any “harmonic” financial educator can not show how to trade in advance, they need to get out of the industry or simply tell their students they do not trade what they teach.  Me and my partners make it a point to do so.  Please check my most recent social media post to sell the Bearish Gartley on the Daily chart.

https://www.facebook.com/harmonictrading/posts/914613481971182

In my attempt to confront bad actors in the “harmonic” financial analysis world, I want to be clear that I am seeking a means of resolution.  I encourage feedback and input but it must be from a real account/verified person not some anonymous B.S. from one of the Harmonic Traitors.  99% of the feedback has been overwhelmingly positive and I feel that despite the sharp tone, my posts have made a dent in the misinformation and misrepresentation.  I WILL NOT STOP UNTIL I HAVE SATISFACTORILY ADDRESSED ALL HARMONIC TRAITORS!  This will take some time but I have made a commitment to see this through no matter what!

I will be soon addressing the next Harmonic Traitor who I think is about as weak as they come.  His name is Chris Hall of FXGroundworks with whom I partnered with several years ago.  After 15 months of collaboration, he cut an ran with all HT info that I supplied.  He signed a Non-Disclosure Agreement yet still pulled this move.  Nice Chris.  Pay back is a bitch and you’ve got it coming.  If you are a member of his website or use his garbage software, you are supporting a thief!  He does not and can not trade, and his harmonic pattern “statistics” are flawed.  It’s only a matter of time until you are eroded from the industry.  Me and my legal team are moving forward on this one too with our Canadian representative.  See you in Toronto this summer?

Also, I will present a full review of the Harmonic Scammer Software programs who try to code my pattern rules but DO NOT EVEN HAVE THE CORRECT RATIOS AND MEASUREMENTS.   Some of these programs just “repaint” a pattern when the structure does not fit one level so the algorithms just presents the next level.   I have spent the better part of the past year investigating with limited success.  They have little regard for intellectual property nor do they even have the understanding to program the proper ratios for each pattern.  Most only measure random ratio combinations with no regard of the other elements that make patterns harmonic!  There are a few outfits whom have software programs similar to mine.  These individuals took the time to cite the source of the information and were typically the people who responded to my first round of email requests.  Although there might be some degree of conflict/competition, this industry has plenty of opportunity.  I want to promote “good actors” and help people teach these strategies the right way.  This entire blog became necessary because harmonic patterns were getting hijacked by a bunch of clowns where people could not tell who was a real market professional and who was just an internet marketer solely.

Now, we have launched The Harmonic Trader Partnership Network.  I will continue to put forth quality materials, software options and free resources that present the proper measurement rules.  If the ratios are not correct, the STRUCTURAL SIGNAL IS FALSE in most cases leading to less desirable performance results.  For example, a 5-0 Pattern employs a precise 61.8% measurement as the make-or-break respect for support/resistance.  Some harmonic patterns have clear situations where a critical measurement is superior to all others in the Potential Reversal Zone (PRZ).  A better example would be the 88.6% Retracement in the Bat Pattern.  These preferences are vital to trade optimization.  I am horrified when I see most of these programs that are not even close to proper basic identification principles.  A HARMONIC PATTERN IS MORE THAN RANDOMLY ASSEMBLED CONVERGING RATIO POSSIBILITIES!

There are a few critical elements that make patterns harmonic!  The power of the patterns involve a measurement of ratios, an AB=CD Pattern component and other analytical skill sets that define a trading plan in advance.  This is no easy task but the automation of these measurements by myself and  other Harmonic Traders has expanded possibilities.  So, there is hope beyond the Harmonic Pattern Scammer software vendors.  I will review these outfits next week.

In 2001, I created the first Harmonic Pattern program – the Harmonic Analyzer, which can be downloaded at the link and has recently been made available for FREE for the end-of-day version with FREE DATA too.  I have spent the past few years building upon the foundation of the code built for the Harmonic Analyzer and translated these powerful algorithms in partnership with www.FormationSeeker.com and  www.HarmonicPatternCollection.com

www.FormationSeeker.com: The most amazing Harmonic Pattern platform ever built!  For me, a dream come true!  Web-based with FREE Trial access. Mostly, FX, Futures, Indices, Commodities and Bonds real-time streaming FREE and incredible auto-feed match alerts.  I click a few on Monday’s and Thursday’s but I am mostly in and out throughout the rest of the week.

www.HarmonicPatternCollection.com: The Harmonic Pattern Collection (HPC) is the official Third-Party Add- On for Harmonic Patterns software developed by myself and a variety f developers depending upon the company.  The extent of the HPC capabilities are not the same as FormationSeeker.  THERE MAY EVEN BE DIFFERENCES BETWEEN THE TWO.  I am investigating case by case.  This may depend upon the Broker/Software Vendor’s platform and I will likely have a full scale update by June.  Also, we are about to launch HPC for Ninja Trader 7/8 (NT7/NT8) within ten days!   These are Third-Party Add- programs are usually not free but they do offer discounted trials.  It is important to note that these programs are all based upon the Harmonic Analyzer logic from the original version released in 2001, preserving the foundation of correct geometric proportions that define the system of harmonic pattern measurements.  Go to http://www.HarmonicAnalyzer.com for a FREE End-of-Day version with FREE Daily and Weekly data.  More on these and other software in the next week.

I will be updating this blog periodically.  It is my hope that positive change can occur despite the degree of misrepresentation unfolding with harmonic pattern information.  I am willing to offer Harmonic Traitors the opportunity to respond to me directly (unless I’m pursuing litigation against the company) or take me up on my HARMONIC TRADER CHALLENGE.  By the way, the primary charity that I support is The Miami Project-the largest non-profit raising money, conducting research and funding initiatives to cure neurological disorders including Spinal Cord Injury, MS, Parkinsons and other related conditions.  For me, I have a long-standing relationship with them going back nearly 20 years when they invited me to participate in a unique study to advance my initial improvement as I recovered from a serious Spinal Cord Injury .  I will explain this situation as well but for now, I ask that you consider donating to The Miami Project at the following link: http://www.themiamiproject.org/donate/donation/

If/When a Harmonic Traitor wants to do the 30-Day HT Challenge, I will donate all profits to The Miami Project.  Thanks again for the feedback and shares.  I look forward to finishing the major concerns of the worst actors within the harmonic pattern domain.  I am rolling out several education programs to help Harmonic Traders learn the right way.

Much more to come!

Jason Simpleton and the Siphon Pattern

I now finally bring my attention to an individual who has attempted to attach his name to the Harmonic Trading legacy. Jason Stapleton of Trade Empowered and various other outfits  (The Syndicate, Forex Preview, TripleThreatTrading) that he has created and have attempted to attribute his “discoveries” as improvement upon my work. First of all, since I own the trademark on Harmonic Trading and all related terminology including all patterns, you have no authority to include any strategy within my domain. You have presented what you call the Cypher but it lacks the necessary elements that make patterns harmonic. THE CYPHER IS NOT A HARMONIC PATTERN! Go ahead and try to trade this, people will realize that it is a CONTRARIAN SIGNAL at best!  Personally, I think it should be called the SIPHON PATTERN because you have drained the money of good folks who are trying to learn the Harmonic Trading methodology.

No doubt, you are a shrewd Internet marketer but that’s all you are. I will no longer allow you to traffic illegally in my domain and continue your operations. You claim to uphold the values as a Constitutional Libertarian on that little show that you record from your parents’ basement but when it comes to other people’s personal rights you have no regard. Despite my attempts to contact you and Akil – your P.I.P (Partner in Plagiarism) – over the past 6 months, your lack of response to my communication demonstrates your disregard for anyone but yourself. You both have profited immensely from teaching my work and have failed in every regard to even remotely cite any source of your information. I have noticed that you recently have given me a passing reference as a response to my recent legal actions but you fail to follow the United States Fair Use statutes, especially for copyrighted material. Maybe you should consult the following post if you’re going to continue to promote ideas as your own that come from other sources:
https://harmonictraitors.wordpress.com/2016/03/18/legal-fair-use-rules-for-harmonic-trading/

I think Akil can spot the pattern that happened two days ago pretty well. However, your lack of ability to understand Harmonics (yes, I own the trademark on that term as well) or even care enough for your students to demonstrate any abilities in real trading conditions substantiates my concern that you are abusing my intellectual property for marketing gain. Of all the people I have reviewed during my legal discovery, you are by far the most egregious violator and I will prove to a federal court that your business has knowingly plagiarized my material.

I have been able to remove hundreds of your videos from YouTube due to my intellectual property rights for the pattern names and copyrights of illustrations that were registered 10 years ago or more. I will continue relentlessly to remove any and all content that violates my domain. I notice that you have been reposting this content under a new YouTube channel named Fabian. Don’t worry, I will get to that account very soon as well. Due to the ability of my legal team to affect your Youtube videos, you finally responded to me and I would like to post this exchange for all to see.        _________________________________________________________

MON 9:35PM
Scott: I removed your videos, now u try to cite me, PESAVENTO DID NOTHING TO INVENT PATTERNS, He is a bankrupt loser and you are about to be sued and removed from NINJA TRADER..

TUE 10:44AM
Jason:
Brother I have no idea where this vitriol comes from but I’m not a bad guy. I would really appreciate it if you would stop posting negative things about me.
Is there a reason you have never reached out to me? I have been teaching for going on 7 years. I’ve never spoken to you. Not in email or on the phone.
If you had a problem with me a simple way to address it is to contact me directly.

WED 6:27PM
No way. I tried to contact you for the past six months and you guys ignored me. I am not going to rest until you are fully addressed. Do you even admit the fact that you plagiarize all of my material in your courses? Are you kidding me? You took my perfect pattern alignments as your definition of improving the patterns themselves? It is very disappointing Jason to have to deal with such B.S. I love the seminar that you sell that is entitled “Crab pattern” where someone asks you where you learned all of the stuff and all you had to say was that you studied 200 books? The vitriol comes from my 30 years of work where I have shared this information to help people. Meanwhile, people like you who are Internet marketers do not have the full understanding to be in business to teach this stuff. If you think you do, why don’t you and I have a little trading challenge, put up $20,000 each and winner take all. Then you can prove to people that you actually understand my work. You say you are a Libertarian but you have no regards for other people’s intellectual property rights. I own the trademark, copyrights and I now have a patent pending on the entire process. I would check yourself my friend and make sure that you get in alignment with me or you will not be doing harmonic patterns much longer. People know about you now and I will not stop until the situation is resolved. If you got the guts, send me your phone number and we can have a talk. Maybe now that you know that I’m serious you will finally respond to this message. Never giving up, Scott Carney

Jason: What is it you want? Do you want me to cut you in on a piece of my business? Are you telling me I either let you give the orders or you’re going to try and shut me down? I am one of 100 guys who work with patterns and they are only a small part of our curriculum. Is there a reason you’re singling me out?
WED 9:50PM
Scott: I want the DOZENS of your former students whom have contacted me over the past year to stop losing money due to your lack of understanding…they ALL TELL ME you present this as your own, jack them for thousands and end up in worse shape than they started. I WANT NOTHING FROM YOU BUT TO GET OUT OF MY PATTERNS SELLING FOR PROFIT. Keep your Cypher and stop calling it a harmonic pattern because it lacks the elements that make structures harmonic. I’ve seen your course and materials…”set and forget” – are you insane? or how about the ADV Pattern Course with entire modules named CRAB, BAT…Let me direct your attention to:

BAT PATTERN Trademark Application of Carney, Scott – Serial Number 86864860 https://trademarks.justia.com/868/64/bat-86864860.html

 https://trademarks.justia.com/782/11/crab-pattern-78211394.html
…these are 2 of 20 that I own.
I DON’T GET YOU JASON…You are acting stupid and I know you are a sharp guy, great marketer but blatant plagiarizer….why? I am reasonable, sent you several emails – AKIL too – but it is clear you thought you could hijack this. We could have done insane things together as I have established a global HT Network but I have been through too much in my life to tolerate this garbage. Also, go ahead and cite Pesavento because you are aligning yourself with a lying, bankrupt loser who tried to steal from just about everyone. Ask Bryce Gilmore, Jim Twentyman and others…he was bankrupt from ’95-’02 while telling everyone he made $1million a year…he fooled me for about 1 yr until I busted him. I DEFINED ALL THE RULES THAT ARE NOW THE INDUSTRY STANDARD that tens of millions of people are discovering. I have these people with me and they are very, very tired of getting ripped off… I am now going public on all of this because I respect the fiduciary responsibility that comes with this business – as a man of faith, as a man of integrity and as a man who cares more about people than scamming a quick buck. You made the top 5 of Harmonic Traitors and it will be clear to all now.

7:11AM
Jason: Well Scott the things you are saying about me and my company online are untrue. I’ll ask you to please take them down. Regarding your claims, I will have to look into it. I claim no expertise in that area.

6:34PM
Scott: My attorney will be in touch
Chat Conversation End
__________________________________________________________________
So, I am filing legal action against you and recently my attorney sent you a Cease and Desist letter. It goes something like this:

Notice to Cease and Desist All Business Activities

Mr. Jason Stapleton
Trading Institute LLC
15700 College Blvd, Ste 301
Lenexa, KS 66219
1.8163326947
Email:
info@tradeempowered.com <mailto:info@tradeempowered.com>
Web: tradeempowered.com <http://tradeempowered.com/&gt;

Dear Mr. Stapleton,

I represent Mr. Scott Carney creator of the patterns and owner of all intellectual property associated with the terminology and illustrations protected by international Trademark and Copyright law that encompass the Harmonic Trading methodology. You are under jurisdiction in the United States to abide by the laws and procedures required to use his intellectual property through written consent and proper citation. In our opinion, you have blatantly and knowingly violated these regulations. Despite Mr. Carney’s attempt to contact you over the past six months, you have ignored his requests and your business has continued to profit from his intellectual property domain.

We hereby give you 30 days to Cease and Desist all activities related to his intellectual property, respond to this notification and prepare to come to a financial settlement related to your damage to his protected domain. We are prepared to pursue all legal action against your current and prior business entities. We will petition your Federal District court in Kansas with an injunction to seize business and personal assets of you and your related partners and employees until such financial remedy is realized. We demand that you immediately end all business operations including website services, education programs and your Constellation software damaging Mr. Carney’s intellectual property. We consider the violations that you have committed during the past six years as material and significant.

Based upon our legal due diligence to date, we estimate that you have earned in excess of $7million over the past three-year period at a minimum, selling products and services related to Mr. Carney’s intellectual property. Typically, these penalties range from 100-300% of revenues received from your business related to Mr. Carney’s domain. This would result in our initial legal claim to be filed for approximately $15-20million in civil damages. If you do not respond to this letter within 30 days to resolve these infractions, we will begin proceedings to file a motion that will prevent you from further business activities. After receiving approval of this injunction, we will move ahead with a civil lawsuit to recover financial damages for all business revenues received through your illegal activities over the past five years.

After we receive approval of our request of an injunction from the U.S. District court, we will subpoena your financial records to get exact revenue figures and apply the legal damage multiplications that are associated with such infractions. Your past and present related companies such as TripleThreatTrading.com, The Syndicate and your “Harmonic Retreats” will be investigated thoroughly to determine if more substantial damages have been incurred. Furthermore, your partners and material employees including Mr. Todd Brown and Mr. Akil Stokes will be named as co-defendants in our proceedings, as they are liable as knowing participant in these civil infractions.

As a part of this Cease and Desist request, we would like to outline a few examples that demonstrate the degree of your violations. Mr. Carney has received several variations of your webinar programs, live events and advanced pattern course from many different former students who are quite unhappy with your instruction. Many of these individuals have come forth and they are willing to testify on Mr. Carney’s behalf to substantiate our claims. Although you give Mr. Carney a glancing reference in one or two of those programs, you failed to acquire proper written consent beforehand. We will prove to the U.S. Federal Court that you knowingly omitted proper citation of his work. Your insufficient citation and misrepresentation clearly violates United States intellectual property law. We present two of many direct violations that we have identified for you and your attorney to understand the basis of these claims.

Example 1:
“Trade Empowered Advanced Pattern Course” Pattern Improvements

We have cited a blatant and material offense in your “Trade Empowered Advanced Pattern Course” presentation that clearly gives the appearance that you have created an improvement on his intellectual property but it is merely a plagiarized illustration from Mr. Carney’s “Harmonic Trading: Volume One” book (implied Copyright 2004 and Registered Copyright 2010 Financial Times Press, Pearson Education).

From Your “Trade Empowered Advanced Pattern Course” Week 7:
“NOTE: There are a wide variance of Fibonacci levels that can be applied to specific patterns that will be technically “correct”. We’re going to briefly cover those ratios but for the purposes of our training when I refer to an advanced pattern I am refer­ring to the “perfect” pattern. This will reference specific ratios that historically pro­duce the highest probability outcome. ” t2U_fxpro_190100_advanced_patterns.pdf July 2014

(We have documented evidence of this course as early as May 2011)
We bring your attention to Mr. Carney’s 2010 filed Copyright Registration April 2010 ISBN-10:0-13-705150-6 Harmonic Trading Volume One: Profiting from the Natural Order of the Financial Markets pages 119-122 Pearson Education LTD. where he defined, outlined and illustrated the perfect harmonic pattern concepts long before you “optimized” harmonic patterns. You clearly misrepresent the work and refer to the perfect pattern by stating, “…for the purposes of our training when I refer to an advanced pattern I am reffer­ring to the “perfect” pattern …“ This concept was originally created and initially presented in Mr. Carney’s Harmonic Trading Volume One which was released in 2004 with an implied Copyright and later republished by Financial Times Press with a registered Copyright dated 2010. We direct your attention to pages 119-122 of his 2010 book that outlines the exact structure he discovered while in your course you show the same material. The terminology of a perfect pattern and the exact illustrations that Mr. Carney presented are protected under international Copyright that cannot be used in business for profit under any circumstances without his express written consent and proper citation on your behalf. Furthermore, your interpretation of his perfect illustration that changes one ratio measurement does not represent a material improvement of this information and confirms your knowing violation of his intellectual property domain.

Example 2: Trade Empowered “T2 University FX Pro” Live Webinar Course

Another example of your egregious violation comes from a live webinar presentation entitled the Crab pattern. We have created a link for you to review a brief snippet from that presentation. At the 39-minute mark, an individual asks you where did you learn all of this. You respond by saying that you studied 200 books to gather this knowledge. We have edited the material for you to easily reference this infraction. Please review the following link at this location: https://www.youtube.com/watch?v=t60BGFDEWrI&feature=youtu.be 
Mind you, this presentation was entitled the “Crab Pattern” which is a term created by Mr. Carney and trademarked (No. 2,953,258) registered May 17, 2005.

Your other webinar titles including the Bat pattern, the Gartley, the Butterfly and others are in direct violation, as well. These are two examples of many infractions that you have incurred in Mr. Carney’s domain of Trademarks and Copyrights over the past five years at a minimum. Among his numerous registrations, Mr. Carney owns the Trademarks and Copyrights for all of his harmonic pattern discoveries including the Gartley, the Bat, the Butterfly, the Crab, as well as related terminology of Harmonics, Harmonic Trading, Potential Reversal Zone and many more.

We have more than a dozen specifics infractions that we will gladly present in our legal proceedings when we file an injunction against your company to stop all activities in our process to file a claim for damages. In most cases Mr. Stapleton, Copyright and Trademark violations result in triple damages of monies received as a result of your business endeavors in Mr. Carney’s intellectual property domain. Mr. Carney is very serious and he will not stop in his determined pursuit to permanently prevent you from further activities in his domain and seek financial remedy for the extensive damage incurred to his intellectual property.

Although you have recently responded to Mr. Carney after his repeated requests, he will no longer communicate with you directly. All communication must be handled through my office. You or your attorney must contact me directly within thirty days of receipt of this notice. If we do not hear from you, we are prepared to move ahead immediately with all legal proceedings. We await your response to disclose your willingness to agree to a settlement in regards to these damages and your proposal of resolution for future business endeavors in his intellectual property domain.
Sincerely,

Attorney-at-Law for Scott M. Carney
______________________________________________________________

You violate the United States Fair Use guidelines that dictate copyright usage and egregiously damage all trademarks that have been secured by me.  These examples of misrepresented pattern illustrations in your seminar material and other strategies on your YouTube videos are exactly from my books, The Harmonic Trader (1998), Harmonic Trading Volume 1 (2004, 2010 Second Ed.) and Harmonic Trading Volume 2 (2007, 2010 Second Ed.) There are numerous other of violations including your variation of the Potential Reversal Zone (PRZ) that you call the Price Reversal Zone. Classic and typical of someone who has no idea how to trade or has done the work to know where all of this originates. Your hubris will be your downfall. How could you be so obtuse ? Your offenses run far and wide. Now, you will be dealt with legally and be held to account on every violation from course material, website resources and other information that you disseminate illegally.

Sincerely,

Scott M. Carney

The Original Harmonic Traitor: Larry Pesavento

OPEN LETTER TO LARRY PESAVENTO:

Dear Larry,

Over the past 15 years, I have asked you not to connect my name with anything that you do nor were you to continue to misrepresent my work that came after our “encounter.”  You were one guy in a line of market subjects that I have investigated. Despite the fact that I had already been studying the markets for nearly 10 years, spent a summer internship at the Philadelphia Stock Exchange in 1989 and started trading 4 years before we met, you always have tried to lay claim to the work I have presented and imply attribution to the exact rules that I defined in my book, “The Harmonic Trader” released in 1998.  Having converted from fundamental analyst as an Accounting major at college to chart studies, I was already reading the past masters of Technical Analysis who preceded you. In fact, Wyckoff, Elliott, Gann were originally introduced to me years earlier by my friend Bill Sourbey, who was my true mentor.  In fact, he is the guy who referred you to me in 1996.  Sadly, you misrepresented yourself from the start.  You promoted Astrology and ratio measurements but most of your work was a rehash from Bryce Gilmore, Robert Miner and voodoo.  But had you actually done the work, you would have realized that people such as Arthur Merrill, J.M. Hurst and several others from the 1920s-1970s preceded these people.  All of your ideas came from Bryce Gilmore anyway and his Wave Trader software. You mystified people on the great Gartley 222 but no one could ever figure out how you were able to know when the AB=CD would complete at the 61.8% or 78.6% or 127% or the 161.8%. The answer is that you did not know because you were bankrupt! I have the bankruptcy report and anyone can look up your credit profile to see the truth.   http://harmonictrader.com/fraudvento.pdf

Although the bankruptcy ended in 2004, I have recordings of you saying things that are misrepresentations of what was actually happening at this time.  I have a recording that will be uploaded to the HarmonicTraitors YouTube page soon. In addition to your bankruptcy which you misrepresented to me for years, you have at least one  more civil complaint against you which you seem to never mention.  For Larry, his history speaks for itself. Check the following link of yet another unfortunate situation Mr. Pesavento has instigated among a trail of landmines. http://www.ripoffreport.com/r/larry-pesavento-tradingtutorcom/tucson-arizona-85718/larry-pesavento-tradingtutorcom-107000-retirement-money-lost-by-professional-stock-tr-68411

The truth is sad Larry because the biggest problem I still have with you is regarding the time when you invited me to the San Francisco Money Show in 1998.  I am still waiting for my apology on this one.  You misrepresented yourself and compromised my reputation by telling over 500 people that you were a successful trader when you were bankrupt.  You presented me as your student after I had written “The Harmonic Trader” which answered all of the rules you couldn’t.  Furthermore, you tried to present me and my work as some simple update of your work.  Nothing could be further from the truth, and I knew immediately after that conference that I had a major problem  with you.

My other issue with you is that you misrepresented yourself to me and dozens of people, especially  when you asked me to recommend others to your mentor program.  As soon as I figured out you were personally bankrupt at this time, I stopped!  I confronted you about it but you said it was due to a “bad tax ruling.”  Ridiculous!  Don’t you think people should know about this, especially when you are selling yourself as a successful trader?  Your problem is that you failed a basic fiduciary responsibility by not disclosing that you were personally bankrupt to the tune of a $1/2 million while still claiming to be a profitable trader.

The evidence speaks for itself, as anyone who compares my material starting from 1998 and beyond to anything that he has produced substantiates the discoveries presented in “The Harmonic Trader” from 1998.  There is little question as to where the exact rules and measurement strategies for harmonic patterns were defined. Mostly, these harmonic patterns were defined in my first book and more so in subsequent material, despite Larry’s attempted claim to be the “Godfather of the Gartley.”  What a joke!  This is the truth of where the Gartley Pattern comes from = http://harmonictrader.com/gcontroversy.htm

For all those who want to cite Larry, I recommend that you do so at your own peril and look before you leap. Do the work and see who you are actually recommending because it seems that it’s very easy in this industry for people to jump on the reputations of others in an attempt to promote themselves without proper due diligence.

This has been long overdue!  I  hereby demand that you no longer discuss harmonic patterns including all of my trademarked names and copyrighted illustrations and definitions. These patterns include the Gartley and the Butterfly. I have let you continue for far too long to traffic in my intellectual property domain, especially since your infractions and misrepresentations are egregious. Now, I’ve said enough. I have not spoken to Larry in 15 years and never will.  I have tried to contact him through email to tell him to stop using my work, my intellectual property and damaging my reputation further in any regard but he has failed to respond.  My lawyer will be in touch.

I have felt compelled to share the truth before this misrepresentation continues any further.  This is my public disclosure regarding our history and it is all true. It is not my aim to attack people however, when others do not stop infringing on my domain and continue to misrepresent the hard work that I have presented over the past 20 years, I will respond. Larry, you are the Original Harmonic Traitor. You will never be a Harmonic Trader.

Sincerely,

Scott M. Carney

P.S. I have never been bankrupt and I stand by my  work!

Legal Fair Use Rules for Harmonic Trading

This post is directed to ONLY THOSE INDIVIDUALS SELLING HARMONIC PATTERN INFORMATION FOR PROFIT!  

Attn Harmonic Traitors: Before you try to regurgitate my material anymore, I would review the following link.  It is basic but clearly outlines MY DEFENSE OF MY INTELLECTUAL PROPERTY OF ALL RELATED HARMONIC PATTERNS AND TERMINOLOGY.  This post is especially directed to JASON SIMPLETON and AKILL JOKES @TradeLESSempowered!  You guys are finished!

FOR ALL OTHER HARMONIC TRADERS: Contact me if you have a usergroup or would like to share information in your educational pursuit that falls within the realm of a free exchange of ideas.

 I WELCOME THE FREE EXCHANGE OF IDEAS AND MAKE A VARIETY OF RESOURCES AVAILABLE HERE:

 https://www.facebook.com/harmonictrading/posts/889973747768489

The following 5 RULES are from this link: 

http://www.nolo.com/legal-encyclopedia/fair-use-rule-copyright-material-30100.html

“There are five basic rules to keep in mind when deciding whether or not a particular use of an author’s work is a fair use:

Rule 1: Are You Creating Something New or Just Copying?

The purpose and character of your intended use of the material involved is the single most important factor in determining whether a use is a fair use. The question to ask here is whether you are merely copying someone else’s work verbatim or instead using it to help create something new.

Rule 2: Are Your Competing With the Source You’re Copying From?…Without consent, you ordinarily cannot use another person’s protected expression in a way that impairs (or even potentially impairs) the market for his or her work. For example, say Nick, a golf pro, writes a book on how to play golf. He copies several brilliant paragraphs on putting from a book by Lee Trevino, one of the greatest putters in golf history. Because Nick intends his book to compete with and hopefully supplant Trevino’s, this use is not a fair use.

Rule 3: Giving the Author Credit Doesn’t Let You Off the Hook …Some people mistakenly believe that they can use any material as long as they properly give the author credit. Not true. Giving credit and fair use are completely separate concepts. Either you have the right to use another author’s material under the fair use rule or you don’t. The fact that you attribute the material to the other author doesn’t change that.

Rule 4: The More You Take, the Less Fair Your Use Is Likely to Be…The more material you take, the less likely it is that your use will be a fair use. As a general rule, never: quote more than a few successive paragraphs from a book or article, take more than one chart or diagram, include an illustration or other artwork in a book or newsletter without the artist’s permission, or quote more than one or two lines from a poem.

Contrary to what many people believe, there is no absolute word limit on fair use. For example, copying 200 words from a work of 300 words wouldn’t be fair use. However, copying 2000 words from a work of 500,000 words might be fair. It all depends on the circumstances. To preserve the free flow of information, authors have more leeway in using material from factual works (scholarly, technical, and scientific works) than to works of fancy such as novels, poems, and plays.

Rule 5: The Quality of the Material Used Is as Important as the Quantity…The more important the material is to the original work, the less likely your use of it will be considered a fair use. In one famous case, The Nation magazine obtained a copy of Gerald Ford’s memoirs before their publication. In the magazine’s article about the memoirs, only 300 words from Ford’s 200,000-word manuscript were quoted verbatim. The Supreme Court ruled that this was not a fair use because the material quoted (dealing with the Nixon pardon) was the “heart of the book … the most interesting and moving parts of the entire manuscript,” and that pre-publication disclosure of this material would cut into value or sales of the book. In determining whether your intended use of another author’s protected work constitutes a fair use the golden rule: Take from someone else only what you wouldn’t mind someone taking from you. Without consent, you ordinarily cannot use another person’s protected expression in a way that impairs (or even potentially impairs) the market for his or her work. For example, say Nick, a golf pro, writes a book on how to play golf. He copies several brilliant paragraphs on putting from a book by Lee Trevino, one of the greatest putters in golf history. Because Nick intends his book to compete with and hopefully supplant Trevino’s, this use is not a fair use.

Rule 3: Giving the Author Credit Doesn’t Let You Off the Hook

Some people mistakenly believe that they can use any material as long as they properly give the author credit. Not true. Giving credit and fair use are completely separate concepts. Either you have the right to use another author’s material under the fair use rule or you don’t. The fact that you attribute the material to the other author doesn’t change that.

Rule 4: The More You Take, the Less Fair Your Use Is Likely to Be…The more material you take, the less likely it is that your use will be a fair use. As a general rule, never: quote more than a few successive paragraphs from a book or article, take more than one chart or diagram, include an illustration or other artwork in a book or newsletter without the artist’s permission, or quote more than one or two lines from a poem. Contrary to what many people believe, there is no absolute word limit on fair use. For example, copying 200 words from a work of 300 words wouldn’t be fair use. However, copying 2000 words from a work of 500,000 words might be fair. It all depends on the circumstances. To preserve the free flow of information, authors have more leeway in using material from factual works (scholarly, technical, and scientific works) than to works of fancy such as novels, poems, and plays.

Rule 5: The Quality of the Material Used Is as Important as the Quantity…The more important the material is to the original work, the less likely your use of it will be considered a fair use. In one famous case, The Nation magazine obtained a copy of Gerald Ford’s memoirs before their publication. In the magazine’s article about the memoirs, only 300 words from Ford’s 200,000-word manuscript were quoted verbatim. The Supreme Court ruled that this was not a fair use because the material quoted (dealing with the Nixon pardon) was the “heart of the book … the most interesting and moving parts of the entire manuscript,” and that pre-publication disclosure of this material would cut into value or sales of the book. In determining whether your intended use of another author’s protected work constitutes a fair use the golden rule: Take from someone else only what you wouldn’t mind someone taking from you.”

A special thank you to Getting Permission: How to License & Clear Copyrighted Materials Online & Off, by Richard Stim (Nolo).

BUY THE BOOK HERE : http://www.nolo.com/products/getting-permission-riper.html

Great Harmonic Trading,

Scott Carney

TOP 5 HARMONIC TRAITORS

I will maintain a permanent list of the top five Harmonic Traitors whom have directly or indirectly misrepresented themselves, failed to properly cite my material and failed to respond to me to address these issues.   I am focusing on only the HARMONIC educators whom are selling products and services for profit.

All of the information that I present is substantiated with detailed documentation. I offer all of these individuals the opportunity to resolve this situation with me openly. Until these offenders are dealt with, I will not stop until they cease and desist with all of the illegal trafficking in the intellectual property with which I will own.  Furthermore, I challenge each of these individuals to respond and remedy the situation. Otherwise, I will relentlessly pursue them to they are completely out of business of selling my proprietary information.

On a final note, I encourage all traders to freely share these ideas so that all can learn.  I also believe that other methodologies can be incorporated into Harmonic Trading.  It is my desire to create an open and frank discussion of the strategies. However, the days of selling harmonic pattern information by companies that misrepresent the integrity of the approach are now over. I now present to you the top five Harmonic Traitors who must be avoided, challenged and confronted once and for all to expose them for their deceptive practices.  I will be outlining each case and the documented evidence over the next few days. Please check back for updates and further commentary in regards to the state of the harmonic pattern industry.

  1. Larry Pesavento formerly of TradingTutor.com now LarryPesavento.com
  2. Jason Stapleton and Akil Stokes of TradeEmpowered, the Syndicate and  their Constellation software.
  3. Chris Hall of FXGroundWorks.com
  4. Wealth Generators and ALL OTHER HARMONIC SCAMMER SOFTWARE
  5. Ross Beck author of “The Gartley Pattern Method” and some worthless website that does not deserve mention.

OTHERS:  Although there are several other operations at the moment, I will address these other bad actors very soon.

Resolution:  It is not my goal to simply attack people with a negative attitude. Rather, I have created the public forum for people to  directly  address these bad actors while allowing them to respond to the issues at hand – but I doubt they will.  The Harmonic Traitors must make amends for these offenses and ultimately join the official community where everyone can learn the right way to prosper from this methodology.