Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Gold & Silver Begin New Advancing Cycle Phase - 6th May 21
Vaccine Economic Boom and Bust - 6th May 21
USDX, Gold Miners: The Lion and the Jackals - 6th May 21
What If You Turn Off Your PC During Windows Update? Stuck on Automatic Repair Nightmare! - 6th May 21
4 Insurance Policies You Should Consider Buying - 6th May 21
Fed Taper Smoke and Mirrors - 5th May 21
Global Economic Recovery 2021 and the Dark Legacies of Smoot-Hawley - 5th May 21
Utility Stocks Continue To Rally – Sending A Warning Signal Yet? - 5th May 21
ROIMAX Trading Platform Review - 5th May 21
Gas and Electricity Price Trends so far in 2021 for the United Kingdom - 5th May 21
Crypto Bubble Mania Free Money GPU Mining With NiceHash Continues... - 4th May 21
Stock Market SPX Short-term Correction - 4th May 21
Gold & Silver Wait Their Turn to Ride the Inflationary Wave - 4th May 21
Gold Can’t Wait to Fall – Even Without USDX’s Help - 4th May 21
Stock Market Investor Psychology: Here are 2 Rare Traits Now on Display - 4th May 21
Sheffield Peoples Referendum May 6th Local Elections 2021 - Vote for Committee Decision's or Dictatorship - 4th May 21
AlphaLive Brings Out Latest Trading App for Android - 4th May 21
India Covid-19 Apocalypse Heralds Catastrophe for Pakistan & Bangladesh, Covid in Italy August 2019! - 3rd May 21
Why Ryzen PBO Overclock is Better than ALL Core Under Volting - 5950x, 5900x, 5800x, 5600x Despite Benchmarks - 3rd May 21
MMT: Medieval Monetary Theory - 3rd May 21
Magical Flowering Budgies Bird of Paradise Indoor Grape Vine Flying Fun in VR 3D 180 UK - 3rd May 21
Last Chance to GET FREE Money Crypto Mining with Your Desktop PC - 2nd May 21
Will Powell Lull Gold Bulls to Sweet Sleep? - 2nd May 21
Stock Market Enough Consolidation Already! - 2nd May 21
Inflation or Deflation? (Not a silly question…) - 2nd May 21
What Are The Requirements For Applying For A Payday Loan Online? - 2nd May 21
How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part1 - 1st May 21
INDIA COVID APOCALYPSE - 1st May 21
Are Technicals Pointing to New Gold Price Rally? - 1st May 21
US Dollar Index: Subtle Changes, Remarkable Outcomes - 1st May 21
Stock Market Correction Time Window - 30th Apr 21
Stock Market "Fastest Jump Since 2007": How Leveraged Investors are Courting "Doom" - 30th Apr 21
Three Reasons Why Waiting for "Cheaper Silver" Doesn't Make Cents - 30th Apr 21
Want To Invest In US Real Estate Market But Don’t Have The Down Payment? - 30th Apr 21
King Zuckerberg Tech Companies to Set up their own Governments! - 29th Apr 21
Silver Price Enters Acceleration Phase - 29th Apr 21
Financial Stocks Sector Appears Ready To Run Higher - 29th Apr 21
Stock Market Leverage Reaches New All-Time Highs As The Excess Phase Rally Continues - 29th Apr 21
Get Ready for the Fourth U.S. Central Bank - 29th Apr 21
Gold Mining Stock: Were Upswings Just an Exhausting Sprint? - 29th Apr 21
AI Tech Stocks Lead the Bull Market Charge - 28th Apr 21
AMD Ryzen Overclocking Guide - 5900x, 5950x, 5600x PPT, TDC, EDC, How to Best Settings Beyond PBO - 28th Apr 21
Stocks Bear Market / Crash Indicator - 28th Apr 21
No Upsetting the Apple Cart in Stocks or Gold - 28th Apr 21
Is The Covaids Insanity Actually Getting Worse? - 28th Apr 21
Dogecoin to the Moon! The Signs are Everywhere, but few will Heed them - 28th Apr 21
SPX Indicators Flashing Stock Market Caution - 28th Apr 21
Gold Prices – Don’t Get Too Excited - 28th Apr 21
6 Challenges Contract Managers Face When Handling Contractual Agreements - 28th Apr 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Demystifying WD Gann’s Square-of- 9

InvestorEducation / Technical Analysis Jun 09, 2014 - 11:18 AM GMT

By: Submissions

InvestorEducation

Pauline Novak-Reich writes: 1. The Square-of-9 is a spiral of consecutive numbers unfolding counterclockwise, in the direction of the Milky Way, hurricanes, whirlpools and all other known spirals in nature. When pulled from the number 1 at the centre, the Square transforms into a voluminous pyramid. The Square-of- 9 served as blueprint for the construction of the Great Pyramid.


2. Graphs:   
Given that the X axis of a graph represents time, and the Y axis represents price, and given that X and Y are interdependent, tracking the forward procession of time is less challenging than tracking price changes.

3. While Gann spoke of a “time factor”, he never factored price.

4. The Square-of-9 is an apparatus originally designed to track the up and down intervals of inundating rivers. Gann discovered that the ups and downs of markets are essentially the same.

5. The termination of any two adjacent time-intervals (one with price rising and the other with price falling) map onto the Square at 180° or 360° angles. No other angular configuration will trigger a market turnaround.    
 
6. The dominant trend’s intervals must always be longer in duration than their corrective counterparts. The image below captures the S&P500 Index’s decline from 2007 to 2011 and the recovery that followed.
 
Emotive waves, being the longest, often result in two separate peaks for an uptrend, or lows for a downtrend. In an uptrend, the “price peak” always comes first and is then followed by a secondary “time peak”, which often terminates at a lower price level, but its duration is longer (check the S&P’s two Peaks of October 2007 on your daily chart and you will find that the interval leading to the October 31 peak was longer is duration than the decline that preceded.

7. Correctly identified swings map onto the Square-of-9 geometrically at 180° or 360° angles. Swings based on price ranges do not.

8. Intervals are subject to “time dilation”. When a swing falls short, or extends beyond the Square’s geometrical values, it must be “adjusted” to the nearest cardinal or diagonal value.

9. All swings are consistent with the Elliott Wave pattern. Wave I of a new cycle forms a 360° angle with the preceding Wave C ― the bear market’s final downswing.

10. Impulse Waves I, III, V & A form 180° angles with respective Waves II, IV and B. Impulse Waves V and A terminate at a 360° angle. Waves A and B terminate at 180° angle. 

Chart Key:
NC = Northern Cardinal      
SC = Southern Cardinal      
WC = Western Cardinal
SE D = South-eastern Diagonal
NW D = North-Western Diagonal 
NED = North eastern Diagonal
South western diagonal
Total cd = Total calendar days   

                

The schematic pictures the S&P’s intervals from October 31, 2007 to May 27, 2014. Major Wave A of the decline (Oct. 31.07 ― Mar. 9, 09) spanned 496cd and terminated upon the Square’s eastern cardinal.
Major Wave B (Mar.9, 2009 – May 27, 2014) is now 1015cd-long and is touching upon the Square’s southern cardinal’s 1915, where it is expected to terminate at an 1800 angle with the 2007 peak of 77cd (NC) and at 3600 with the Jun. 6 ― Mar. 9, 09 swing .

Major Wave B is irregular in that it exceeded the peak of wave V ― the point at which the bull market ended and the GFC (Global Financial Crisis) kicked in. Overall, it gained 161.8% of the 2007 – 2009 drop.

If Elliott was right, than the 2007 peak terminated a 150 year-long bull market of which Wave I began to unfold in 1857 and terminated in 1929 – marking the first twentieth century share market crash. Wave II ended in 1942, Wave III in 2000 and Wave V in 2007.   

******
The key to the S&P’s 2009 – 2014 advance is in the lesser scale-order components (Apr.29, 11 ― Dec. 19, 11):  

  • April 29.2011 marks the termination point of intermediate wave ‘a’ (Mar.9 - Apr. 29. 2011 = 781 cd (784 SE D)
  • Dec,19 marks the termination point of intermediate wave ‘b’ (194cd = SC)
  • May 28 – June 5, 2014 is (more or less) the termination point of intermediate wave ‘c’ (886cd = SC = 3600) with the bottom of Dec. 19, 2011.
  • The first minor a-b-c correction (Apr. 29 ― Jun 15 ― Jul 8 ― Oct.3) yielded 47cd (NC), 22cd (NC) and 117cd (NC) – three 360 degree northern cardinal alignments. Their span measured 186cd (190cd = SC).
  • Intermediate wave ‘b’ (Oct.3, 11 ― Nov. 11, 11) measured 39cd (40= SC & 1800 given that waves ‘a-b’ aligned at 180 degrees on the Square). 
  • Intermediate wave ‘c’ (Nov. 11 ― Dec.19) spanned 38cd which yielded a 3600 termination of minor waves ‘b & c’ upon the Square’s SE D and another 3600 angle alignment between intermediate waves “a & c”  (781 and 37cd = SE D).
  • Dec. 19, 2011 – Jun. 6 = 892cd (SC = 3600 between intermediate waves “b & c’). At this point major wave B is anticipated to terminate on the Square’s southern axis on day 1915.

This material is a copy right excerpt from Pauline’s upcoming book Mystifying Square, Divine Proportions, the Black Box of Mother Nature.

By Pauline Novak-Reich
(Former Manager Research FX at the Australia New Zealand Banking Corporation,now author)
Contact: https://www.facebook.com/pauline.novakreich
Email:   pauline.reich@optusnet.com.au

© 2014 Copyright Pauline Novak-Reich - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in