back start next


[start] [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [14] [15] [16] [17] [18] [19] [20] [21] [22] [ 23 ] [24] [25] [26] [27] [28] [29] [30]


23

1990 (1982 + 8). 1995 982 +13 2003 (1982 + 2 . I would suggest that you examine the stock markets behavior in these years. We will have to wait for 2003.

Dow Jones Close only

870O

6700

-Dow Jones Close only

2700

m i*T (il oj

po CO

x: c:

CO CD

CO CD

Conclusion

This concludes my basic work on the Square of Nine. 1 think you will agree that it is somewhat different from the other materials available on this topic. This is not intended to be trading advice. Im only presenting techniques for the Square of Nine that I have found very useful in making an analysis of particular markets. Gann said to prove all things to yourself and hold on to that which is good. I would suggest the same. If you put in the time to study and do research, you will be rewarded.

Sincerely Yours, Daniel T. Ferrera



Ganns Pyramid. The Square of Nine

Question: How do I use the Square of 9 to trade Intraday?

Answer: You use it the same way that you do on the daily level. The smaller is to the larger as the larger is related to the next larger and so on. Or as above, so below. If you look at the Square of 9, you will see that Gann took the time to put clock time around the calculator as well. If you look at where he has March 2 P, you will see that he also wrote 6:00 AM. On the opposite side ofthe Square, inhere he has September 22", you will find 6:00 PM. This quickly tells you that the 12 hours is equal to 180°of longitude. 45° - 3 hours, 90° = 6 hours, 120"= 8 hours, etc. Now, you can use the calendar technique discussed on pages 19-22. Also, since you are using ihe outer wheel as hours the inner numbers can also be used to calculate hours or intraday time resistance. In other words, you can use the cardinal overlap technique on pages 44-45, where the cardinal numbers represent hours. In fact, because this works with days, weeks and months, you can use this technique with any bar size, whether it is 1-minute bars, 15-minute bars, etc.

When we look at the malhertiatical relationship of the calendar numbers to the Inner Square of 9 numbers, we have a pretty nice 1 to 1 relationship. The Earth goes around the Sun in 360° completing the calendar and each number inside represents a day. When you look at the hours (6:00 AM to 6:00 AM), you do not have this same relationship. You now have 24 hours = 360°. if you balance this out, you get 4-minutes oftime 1°. The calculation is as follows. First we convert 24 hours to minutes. There are 60 minutes in I hour, so we multiply 24 x 60 and get 1440. Now we divide 1440 by 360 and we get 4-minutes. This means that the Earth rotates approximately 1° on its axis every 4-minutes of clock time. If you multiply all the inner numbers by "4", you can get the same basic time relationship that we originally had with days. Now you can keep a list of intraday highs and lows and see if they come out on some common time angle. Similar to the 123° time angle measured in days from 5/17/1792 illustrated on pages 33 & 34. All you have to do is measure the time distance between swing points in minutes and find this number on the Square of 9 Table, which starts on page 25 and convert it to an angle. Based on this conversion, you can now use Ihe Nine rules on pages 40-42.

The technique on pages 30-32 can obviously be used intraday so I will not discuss it in detail. However, I would like to point out that the Gann angles that 1 drew going up from the lower left hand comer to the upper right comer should also be drawn coming down from the top iett comer to the bottom right. Also, if you draw in the 45" angles from the way point, you can see the "Circles of Conflict" that markets want to avoid. Ifyou simply turn to page 31 with a pencil and mler in hand, and draw a vertical line straight up from the May 24* low price to the dark dotted line (Square Root of the Low +2 line) and then also complete the dotted horizontal line from the low so that it is connected to the "2" 37-days" vertical line, you will have a shape that looks like a big rectangle with 4 smaller rectangles inside of it. Now simply draw in the diagonals (45" lines) of these small rectangles comer to comer. The places where they intersect darken with a circle. Notice how the market avoids these areas!

I wrote this coiu-se to illustrate how flexible the Square of Nine truly is. My intention was to stimulate the creative side of my readers so that they would also be encoiuaged to experiment and test their own ideas themselves instead of being locked into someone elses opinion. Gann said 10 "Prove all Things and hold on to that which is good" and this is what 1 am also trying to encoiuage.

Sincerely, Daniel Ferrera



Natural Squares Calculator

Because the Square of Nine is a "Natural Squares Calculator", and Gann himself said to watch the natural squares of numbers in both price and time, 1 give you the following future date to observe as a learning exercise.

Here are some natural squares of numbers (days, weeks & months) all hitting 7/12/01

1024 days from 9/22/98 top (this is the top in between the 8/31 & 10/2 double bottom) 1089 days from 7/19/98 top prior to the 1st 20% correction in lOyrs. Russian currency crisis. 1156 days from 5/13/98 top

1369 days from 10/12/97 top, top before the Asian currency mini crash 2704 days from 2/15/94 lop 3969 days from 8/30/90 low 4624 days from 11/13/88 low 7056 days from 3/18/82 low

26,244 days from 9/4/1929 top ( We are 72 years (1/2 the sqr. of 12) from 1929, i.e the 18-year cycle)

16 weeks from 3/22/01 low

144 weeks from 10/18/98 low Russian currency crisis and Long Temi Capital bailout

169 weeks from 4/22/98 top this is where most indexes lopped in 1998, i.e. Small Cap, Mid Cap,

Transports, etc.

196 weeks from 10/12/97 top before the Asian currency mini crash 225 weeks from 3/20/97 lop 576 weeks from 7/1990 top

1849 weeks from 2/1966 top (This one also matches that 18-year cycle) 3600 weeks from 7/1932 all time low

We are also 36 months from the 7/98 top, 81 months from the 10/94 low and 324 months from the 7/1974 top

Also 62 or 36 years back gives us the i8-year cycle again.

July 12th should be a Major Low! Also, this particular day has the potential of being a huge down day or mini crash. This is not trading advice, just a learning exercise for course owners.

There is also a Total Eclipse on 6/21/01. Take a look at the planetary aspects to the eclipse point on July 12th. 1 would also suggest, that you look at this in relation to the NASDAQ natal chart and the NYSE natal chart. Both give indications that July 12th & 13th are interesting days in relation to both the eclipse and the natal charts. To get you started, notice that on July 12th & 13th that the conjunction of Mercury and Jupiter take places on the Eclipse point of 0-Cancer.



[start] [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [14] [15] [16] [17] [18] [19] [20] [21] [22] [ 23 ] [24] [25] [26] [27] [28] [29] [30]