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more complicated tasks. The first thing a professional athlete does when his performance

is not up to par is to return to the basics. The K.I.S.S (Keep it Simple Stupid) rule applies

to the Square of Nine as well.

Price Targets for Support & Resistance

Calculating price targets for support and resistance is a very simple task. As stated

earlier, the Square of Nines number arrangement is such that the numbers have a simple

square root relationship to other numbers on the wheel. I will illustrate the basic square

root calculations, but if you prefer to use the chart itself, I have provided a clear plastic

overlay that you can place on top ofthe Square of Nine to see the geometric

relafionships. Just simply place the 0° line of the overlay so that it runs across your price

number and also through the center "1" of the Square of Nine chart. For example, if the

market you were trading had an important low at \$2.23, you would place the overlay so

that the 0° line coimects the number 223 to the center "1". Now you can quickly see the

other numbers that are square (90° & 270°), trine (120° & 240°), semisquare (45°, 315°),

sextile (60° & 330°), etc. As discussed earlier, these "pressure points" can be

mathematically calculated using simple addition or subtraction to the square root of the

price. To calculate what a geometric relationship is equal to as a square root increment,

we simply divide the number by 180 as illustrated below. The numbers in bold print are

considered as more important for support or resistance than the numbers in regular print.

45° = 45/180 = 0.25 2 = 270/180 = 1.50

60°-60/180 = 0.333 300° = 300/180 = 1.666

90 = 90/180 = 0.50 3 J 5° = 315/180 = 1.75

120° = 120/180 = 0.666 360° = 360/180 = 2.0 135°= 135/180 = 0.75 180= 180/180 = 1.0 225° = 225/180= 1.25 240° = 240/180 = 1.333

Taking our example of \$2.23, we would first treat this as the number 223 on the Square of Nine. This is because the Square of Nine tends to work better when you float the decimal point on prices, making all prices either a three or four digit whole number. We will first assume that 223 is a low price, and that we want to calculate future resistance levels. We simply take the square root of 223, which is 14.93 and add the increments we calculated on the previous page to this root number (14.93) and re-square.

 45 = = 45/180 = 0.25 14.93 0.25 = 15.182 = \$230.43 60° = = 60/180 = 0.333 14.93 0.333= 15.2632 = \$232.96 90° = = 90/180 = 0.50 14.93 0.50 = 15.43-2 = \$238.08 120° = 120/180 = 0.666 14.93 0.666= 15.59-2 = \$243.23 135° = 135/180= 0.75 14.93 0.75 = 15.682 = \$245.86 180° = 180/180= 1.0 14.93 1.0 = 15.932 = \$253.76 225" = 225/180= 1.25 14.93 1.25 = 16.182 = \$261.79 240° = 240/180= 1.333 14.93 1.333 = 16.2632 =\$264.48 270° = 270/180= 1.50 14.93 1.5 = 16.432 =\$269.94 300° = 300/180= 1.666 14.93 1.666= 16.5962 =\$275.42 315° = 315/180= 1.75 14.93 1.75 = 16.682 =\$278.22 360° = 360/180 = 2.0 14.93 2.0 =16.932 = \$286.62

If our \$223 price was a high instead of a Low, we would have subtracted the square root increments from 14.93 and then re-square the difference to calculate support. If you build a table of important price highs & lows, similar to what was illustrated with dales and do the above calculations, you can determine if certain prices have a cluster of geometric relationships to previous significant prices, thus making that specific price or circular degree more important for support or resistance. A simple way to do this is to determine what degree of the circle your price is on using a Square of Nine Table.

Using A Square of Nine Table

To determine the exact angle or degree of the circle a particular number or price is W on is a relatively simple process. If you want to know what angle the number 3281 is on, you look for the closest number you can find on the table, which in this case is 3278 on the 0° angle. This number is in cycle U29, which means that there are 29 cells or digits between each 45° angle, 29/45 0.6444. This means that every 1° grows by 0.6444 in this cycle. I show these fractional numbers in the deg-rafio column of the table. The number we want is 3281, which is 3 digits larger than our zero angle number 3278. If we divide 3 by the 1° fraction amount 0.6444. we get 4.655°. This is the amount of degrees past the 0° angle. Thats all there is to it. If we wanted to find the number 3680, we first find the closest number to it on the table, which is 3661 on the 225° angle of cycle #30. This means that there are 30 digits between each 45° so our fraction is now 30/45 = 0.666. Taking the difference between the numbers is 3680 - 3661 = 19 and this divided by 0.666 = 28.53°. Add 28.53 to the angle of 225° gives 253.53° as the angle for the number 3680. Practice this technique, its really simple. By the way, the number "1" comes out on the 315° angle with the rest of the "odd squares". 2-1 = 1 divided by 0.0222 = 45. The 0° angle is also the 360° angle and 360° - 45 = 315°.

The Square of Nine Table

 Anqle> deq-ratio iO : ; 135 r cvc#1. 0.022222 0.044444 0.066667 0.088889 0.111111 V 0.133333 0.155556 0.177778 0.2 ; 0.222222 0.244444

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