Time and Price By Howard Arrington William William D. Gann (1878-1955) was a legendary trader who designed seeral !ni"!e te#hni"!es $or analy%ing &ri#e #harts. He deelo&ed a !ni"!e #om'ination o$ &re#ise mathemati#al and geometri# &rin#i&les whi#h are not easy to gras&. Gann analysts hae s&ent years &o!ring oer old #harts and writings in sear#h o$ Ganns se#ret and there is no end to the n!m'er o$ &eo&le who #laim to hae dis#oered Ganns insight and te#hni"!e that has el!ded eeryone else. *erha&s someone has dis#oered it. + am a m not in a &osition to a&&raise all the #laims 'e#a!se + am not a Gann e,&ert and an d hae not read Ganns Gann s writings. writings. Don Hall has &!'lished a 'oo and deelo&ed a system #alled *yra&oint whi#h seems to me to 'e well $o!nded in Gann &rin#i&les. he &!r&ose o$ this arti#le is to to tae one idea !sed in Dons wor and &resent it $rom a di$$erent a&&roa#h and yet arrie at the same !se$!l #on#l!sion. + ho&e een Don will $i nd my arti#le to 'e an original insight to s!'stantiate the alidity o$ his wor. Ganns geometri# geometri# angles are trend lines drawn $rom &rominent to&s or 'ottoms at #ertain angles. he most im&ortant angle is /5 degrees whi#h means the lines slo&e is one !nit o$ &ri#e &er !nit o$ time. (0ote De&ending o$ the #hart s#ale !sed the line may or may ma y not a&&ear to 'e &lotted at a /5 degree angle.) 2or years + tho!ght this is what Gann analysts ana lysts meant 'y the &hrase 3s"!aring time and &ri#e. Howeer Dons *yra&oint method gae me a new insight whi#h is *ri#e 4 ime s"!ared or * 4 t 6 et me tae this mathemati#al relationshi& and deelo& it in this arti#le. he a'oe relationshi& 'etween &ri#e and time #an 'e &lotted on a #hart as shown in this ill!stration. he time al!es o$ 1 6 and are mared 'y the three arrows. :ee 2ig!re 1.
2or the sae o$ ill!stration lets s!&&ose a &rominent to& or 'ottom o##!rs at a &ri#e o$ /. he theory is that this signi$i #ant &oint has a mathemati#al #o!n ter&art. :tart a new time #!re at this
2or the sae o$ ill!stration lets s!&&ose a &rominent to& or 'ottom o##!rs at a &ri#e o$ /. he theory is that this signi$i #ant &oint has a mathemati#al #o!n ter&art. :tart a new time #!re at this
&oint in time and it will gie !s an e,&e#tation $or a $!t!re to& or 'ottom to o##!r on this #!re. his &rin#i&le #an 'e stated as 3When &ri#e & ri#e meets time a #hange is imminent. his 3&ri#e 3&ri#e meets time relationshi& is shown in the $ollowing #hart. :ee 2ig!re 2 ig!re 6.
With the &rominent to& or 'ottom at * i$ &ri#e meets the #!re at &oint A it will do so in 18 'ars. he time to A is the s"!are root o$ the &ri#e at A. *ri#e at A is 6/. :"!are root o$ 6/ is 18. 18 . +$ &ri#e meets the #!re at &oint B it will do so in 6 'ars. he time to B is the s"!are root o$ the &ri#e at B. *ri#e at B is / there$ore the time to B is 6 'ars. +$ &ri#e meets the #!re at &oint ; it will do so in 66 'ars. his is a ery interesting #on#e&t<
=emem'er that &ri#e and time are related 'y the $orm!la * 4 t 6 or t 4 s"rt( * ) +n this arti#le + will deelo& the mathemati#s $or the slo&e o$ a trend line !sing the &ri#e and time relationshi& &resented in the &reio!s arti#le. ets wor with the model ill!strated in this :ee 2ig!re .
2rom the &reio!s arti#le the ne,t time #!re will 'e t 'ars away $or a gien &ri#e *. At a time t>1 &ri#e wo!ld meet the #!re at &ri#e *1. 0ow lets sole $or the slo&e o$ the trend line shown in 'l!e whi#h #onne#ts * and *1. *4t6 *1 4 (t > 1) 6 4 t 6 > 6 t > 1 4 * > 6 t > 1 :lo&e 4 (;hange in &ri#e) ? (;hange in time) ;hange in &ri#e 4 *1 - * 4 * > 6 t > 1 - * 4 6 t > 1 4 6 t > 6 - 1 4 6 @ t > 1 -1 ;hange in time 4 t > 1 here$ore slo&e o$ * to *1 is 4 (6 @ t > 1 - 1) ? (t>1) 4 6 1 ? (t>1) 4 6 - 1 ? s"rt( *1 ) +$ we normali%e all &ri#es to #onsider three signi$i #ant digits then all &ri#es will $all in the range
o$ @1 ... 1. By s!'stit!ting the &ri#e 'o!ndaries into the slo&e $orm!la we #an get a range o$ slo&es as $ollows. 2or a *1 o$ 1 the slo&e o$ the !& trend line to 1 4 6 - 1 ? 1 4 1.9 2or a *1 o$ 1 the slo&e o$ the !& trend line to 1 4 6 - 1 ? 1 4 1.99 he slo&e o$ the !& trend line at the mid&oint o$ this &ri#e range is 6 - 1 ? s"rt(5) 4 1.9C ets #all this trend line a /5 degree line 'e#a!se we deelo&ed the slo&e !sing one !nit o$ &ri#e #hange $rom * to *1 with one !nit o$ time t. 2or this /5 degree line the slo&e is 'asi#ally 6. + thin this is strong !sti$i #ation as to why Gann !sed 6 #ents as the &ri#e grid interal o$ his daily grain #harts. :!#h a s#ale layo!t wo!ld nat!rally gie Gann /5 degree angles with a slo&e o$ 6 #ents &er daily 'ar. + hae shown that 6 is the slo&e o$ the !&ward /5 degree trend line that deelo&s $rom the &ri#e and time relationshi& gien 'y the $orm!la * 4 t 6. Ene #an sole $or the slo&e o$ the downward trend line $rom *1 to * to o'tain this res!lt :lo&e o$ *1 to * 4 (-6 t - 1) ? (t-1) 4 (-6 @t - 1 - ) ? (t-1) 4 -6 - ? (t-1) 4 -6 ? (s"rt( * ) - 1) 2or a * o$ 1 the slo&e o$ the down trend line to 1 4 -6 - ?9 4 -6. 2or a * o$ 1 the slo&e o$ the down trend line to 1 4 -6 - ?99 4 -6. Again the slo&e o$ the down trend line a&&roa#hes a al!e o$ -6. here$ore -6 is a good a&&ro,imation $or the slo&e o$ a downward /5 degree trend line. 0ow + wo!ld not 'other to gie yo! the mathemati#s in the &reio!s two arti#les i$ + did not $i nd a&&li#ation o$ this theory in the #harts. + !sed the mathemati#s gien in the $i rst two arti#les to deelo& a tool in F:* whi#h draws hori%ontal lines at #al#!lated &ri#e leels and nearly erti#al time #!res at the #al#!lated time interals. his $orms a grid o$ tra&e%oids lie the &reio!s ill!stration. (Don Hall #alls them 3s"!ares.) Diagonal lines #onne#t the #orners o$ the tra&e%oids to gie s!&&ort and resistan#e trend lines. Here is a daily #hart o$ 0*= with the #onstr!#tion started on the highest high. All &ri#e leels time interals and trend lines are #onstr!#ted mathemati#ally $rom two &ie#es o$ in$ormation the &ri#e 6//.5 on the date 1-1C-6. here is more in this #hart than + hae s&a#e to e,&lain. B!t + #an &oint o!t some hara#teristi#s. he hori%ontal &ri#e lines hae a la'el on the le$t whi#h is a degree o$ rotation aro!nd a :"!are o$ 9. his is #oered in the *yra&oint 'oo '!t is 'eyond the s#o&e o$ this arti#le. 0ote that in my e,am&le the time lines are nearly erti#al. his is a slight ariation $rom the method o$ #onstr!#tion in the *yra&oint 'oo whi#h shows erti#al lines. + $eel that my &resentation is a&&ro&riate 'e#a!se o$ the theory o$ the time #!re ill!strated in my $i rst arti#le. he time #!re $orms the le$t and right sides o$ the tra&e%oid and the &ri#e leels $orm the to& and 'ottom sides.
ime ime is meas!red 'y the time #!re whi#h is related to &ri#e. i& 3As &ri#e meets time a #hange is imminent. 0ote the $irst time line la'eled 16 on the 'ottom and 1C on the to&. +$ &ri#e meets time at the -76 hori%ontal then the time $or the #hange wo!ld 'e the 16th 'ar $rom the to&. +$ &ri#e meets time at the -5/ hori%ontal then the time $or the #hange wo!ld 'e the 1th 'ar $rom the to&. At the -C hori%ontal the time #hange wo!ld 'e in the 1/th 'ar. At the -18 hori%ontal the time #hange wo!ld 'e in the 15th 'ar. At the line the time meas!red wo!ld 'e 1C 'ars. hat is why the to& o$ the time line is la'eled with a 1C and the 'ottom o$ the line is la'eled with a 16. :tarting at 1C $or ea#h 18 degree down the time #o!nt is red!#ed 'y one 'ar or $or eery 18 degree rise the time #o!nt in#reases another 'ar. 0ote that the maret did e,&erien#e a #hange when &ri#e met the time #!re la'eled 16 to 1C< he &ri#e at the 16 to 1C time line was !sed to o'tain a $ore#ast o$ the 6nd time line whi#h is la'eled 65 to 1. As the &ri#e meets ea#h time #!re a new time #!re is #al#!lated 'ased on the &ri#e. Fa#h o$ the time #!res shows e,#ellent #orrelation with maret #hange when &ri#e met the time line. *ri#es he &rominent high o$ 6/.5 is the #al#!lation 'asis $or all the hori%ontal &ri#e leels that are shown. i& he maret sees o!t these &ri#e leels and yo! #an #al#!late these &ri#es in adan#e. 0ote how the maret $ell to the -5/ hori%ontal rallied to the -18 hori%ontal $ell to the -9 leel rallied to the -5/ leel $ell to the -18 leel and rallied to the -76 leel. rend ines he downward /5 degree trend lines shown in red #reate a $low #hannel or 3&ri#e highway as Don #alls it. he !&ward /5 degree trend lines shown in green #reate a &ri#e highway going the other dire#tion. he red lines are resistan#e lines that the maret m!st #lose a'oe to #hange dire#tion $rom 'earish to '!llish. he green lines are s!&&ort lines that the maret m!st #lose 'elow to #hange dire#tion $rom '!llish to 'earish. We all hae !sed !&ward trend lines &la#ed !nderneath a#tion lows to indi#ate s!&&ort and downward trend lines &la#ed a'oe a#tion highs to indi#ate resistan#e. he 'ea!ty o$ this tool is that these diagonal trend lines are #om&!ted in adan#e and the maret seems to hae res&e#t $or them. *ri#e $l ows !& and down the #hannels. he more yo! st!dy the e,am&le the more im&ressed + thin yo! will 'e with this tool.
he *yra&oint tool #an also 'e a&&lied to intra-day #harts with good s!##ess. he si%e o$ the &ri#e interal !sed on a daily #hart seems to 'e too 'ig $or !se on an intra-day #hart. 0o &ro'lem. Don &oints o!t that there are s"!ares within a s"!are. All one needs to do is s!'diided the &ri#e interal into hales $o!rths or eighths. he time interal is determined $rom &ri#e and will not #hange. Ene "!estion that + hae dealt with is this +$ the time interal #om&!tes to 'e 11 'ars 'e#a!se the &ri#e is at 161 whi#h intra-day 'ar time $rame sho!ld + !seI +$ 1-min!te 'ars are !sed then we hae a time #!re 11 min!tes later. +$ 6-min!te 'ars are !sed then the time #!re wo! ld 'e 66 min!tes later. +$ 5-min!te 'ars are !sed then the time #!re is &lotted 55 min!tes later. 0ow do yo! see why + hae a "!estionI he sele#tion o$ the intra-day 'ar time $rame greatly a$$e#ts the time interal meas!red 'y the ne,t time #!re. Here is how + ta#led the &ro'lem and the &ro&osed sol!tion. + dis&layed a 1-min!te #hart and !sed a #y#le tool to meas!re in hindsight the #y#le rhythm $rom 'ottoms to 'ottoms to&s to to&s and?or 'ottoms to to&s. When + $o!nd a #y#le width that seems to $i t 'y #at#hing m!lti&le t!rning &oints + note the n!m'er o$ min!tes in the #y#le. + !se this $orm!la to estimate a good intra-day time $rame to !se. +ntra-day Bar ime 2rame 4 ;y#le width in min!tes ? s"rt( * ) F,am&le En the 0*= 1-min!te #hart + $o!nd a C5 min!te #y#le when the &ri#e was aro!nd 1. here$ore 'ar time 4 C5 ? s"rt( 1 ) 4 5.C min!tes &er 'ar. :o !sing a C-min!te #hart or &ossi'ly a 5-min!te #hart sho!ld show a good $i t with the *yra&oint tool. + ha&&ened to hae 'een $ollowing a 5-min!te #hart and + do $i nd e,#ellent #orrelation. + hae !sed a smaller &ri#e interal 'y s!'diiding the 18 degree interal into eighths in this e,am&le. :ee 2ig!re 5.
*lease st!dy the #hart and o'sere the $l ow o$ &ri#es in the !& and down trend #hannels. 0ote how trend #hanges o##!r on or near the erti#al time #!res and how the maret sees the hori%ontal &ri#e leels. his entire road ma& is #om&!ted in adan#e $rom the &rominent to& that o##!rred on an!ary 16th at 95 a.m. Moon Phases 'y Howard Arrington
JWe now that the moonKs e$$e#t on o!r &lanet is great--it is itally #onne#ted with the moement o$ all $l!ids. he moon is also 'elieed to e$$e#t h!man 'ehaior in strange ways es&e#ially d!ring a new or $!ll moon. J+n an e,&eriment #ond!#ted on an ar'itrary set o$ #ommodities $or the year 1976 (odd o$ton !ly 197/ writes a'o!t his o'serations) it was shown that short-term moements o$ &ri#es rea#t with some !ni$ormity with res&e#t to the &hases o$ the moon. +n $a#t the #ommodities #hosen $or o'seration--siler wheat #attle #o#oa and s!gar--showed an !n#anny a'ility to $orm a rising maret $ollowing a $!ll moon and a $alling maret a$ter a new moon.J -Commodity Trading Systems and Methods, *.. La!$man &. 65.
hat last statement Ja rising market following a full moon and a falling market after a new moonJ intrig!es me. + wondered whether it is tr!e or $alse o$ al!e or worthless nonsense. 2o!rteen years ago as + wo!ld trael 'a# and $orth 'etween Boise +daho and :alt ae ;ity Mtah one o$ my #!stomers lied near the highway at the hal$ way &oint o$ the tri&. :eeral times + sto&&ed in and isited with him. He owned seeral large $arms in so!thern +daho and traded si%ea'le &ositions in lie #attle $!t!res. His o$$i#e had large #!stom made #hart ta'les where his se#retary wo!ld man!ally !&date daily 'ar #harts on three $eet 'y $o!r $eet gra&h &a&er. he reason + mention this #!stomer is 'e#a!se his #harts were mared with sym'ols $or the moon &hases. + hae great res&e#t $or this trader 'e#a!se he has 'een trading $or a long time trades 'ig &ositions and taes trading serio!sly. + wish now + had &aid more attention to how he !sed the moon &hases that he mared on his #harts. Anyway + #anKt do resear#h !nless + hae tools to wor with. :o moon &hases were added to the ;y#les tool in Fnsign Windows. he moon &hase &arameter is sim&ly a #he# 'o, to indi#ate the moon sym'ols are to 'e shown on the #hart.
he $irst two :how o&tions are !sed to dis&lay #y#le ar#s on the #hart. 2or this resear#h + am only interested in haing Noon *hases shown on the #hart. + sele#ted a dar gray #olor $or the new moon image. 2!ll moons will always 'e shown in white. + did not go h!nt down the &er$e#t e,am&le. + am sim&ly !sing a #!rrent daily 2e' ie ;attle #hart as my e,am&le sin#e #attle was mentioned in the La!$man 'oo and my #!stomer &!ts moon &hases on his man!ally drawn #attle #harts. Here is the ;1G #attle #hart showing moon &hase sym'ols. (:ome moon &hases o##!r on weeends and holidays. +n that #ase the moon sym'ol is shown on the nearest trading date.)
;attle hae 'een in a strong !& trend sin#e their 7.5 low on :e&tem'er 1th 6 which happens to be a Full Moon date! his low t!rning &oint is not shown in the e,am&le. etKs rate the #orrelation in the #hart $or the wee $ollowing the new moons and the $!ll moons. + will in#l!de the net #hange o$ the moon day as the $irst o$ C trading days. he theory is Ja rising market following a full moon and a fa lling market after a new moonJ. :o how well does this #attle #hart #orrelate with the theoryI Full Moons (expect rising market) •
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0o 1th 6. F,#ellent - his day was a low t!rning &oint $ollowed 'y a 1.65 gain. De# 11th 6. F,#ellent - his day was $ollowed 'y a 1.15 gain in C days. an 9th 61. :!&erior - his day was a low t!rning &oint. he h!ge C-day gain is /.65.
New Moons (expect falling market) •
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E#t 67th 6. *oor - 0ot too 'ad !ntil the strong !& day on 0o rd $or an !& moe o$ .865. 0o 6/th 6. F,#ellent - =are #orre#tion in this strong !& trend. Down moe was 1.665. De# 6Cth 6. Good - Down moe in C days is ./65. Howeer 'etter down moe $ollowed.
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an 6rd 61. F,#ellent - C day down moe is 6./5. he an th #lose not shown was 77.C65.
Summary:
+ wo!ld gie the theory &retty high mars $or #orrelation on the #!rrent ;1G #hart. he low t!rning &oints on the $!ll moon dates o$ 0o 1th and an 9th !m& o!t. he high t!rning &oint on the new moon date o$ 0o 6/th !m&s o!t. he #orrelation o$ the other new and $!ll moons is &retty good as well. And to to& it o$$ the ann!al low o##!rred on a $!ll moon on :e&tem'er 1th 6< Ny &ersonal #on#l!sion is that there is al!e in the theory that the moon in$l!en#es h!man 'ehaior. i& *ay attention to the &hase o$ the moon. As a res!lt o$ this resear#h my 'rother has added the moon &hase as another in&!t to his &ersonal #attle maret ne!ral net $ore#asts. Oo! are en#o!raged to do yo! own resear#h and arrie at yo!r own #on#l!sions. he material &resented here has 'een limited to the e,amination o$ one #attle #hart $or seen re#ent moon &hase dates. horo!gh resear#h sho!ld inole eal!ating lots o$ #harts and lots o$ moon dates.
esearch: S!uare oot Theory 'y Howard Arrington
William D!nnigan did e,tensie resear#h in the early 195Ks and &!'lished in 195/ and 1955. He !sed the square root theory as &art o$ his #al#!lation o$ a &ro$it o'e#tie. He #onsidered this method a KgoldenK ey and re#eied re#ognition $or his wor in ario!s o!rnals. he square root theory is that &ri#es moe in !nits o$ the s"!are root meaning &ri#es at C/ (8 s"!ared) wo!ld moe to /9 (7 s"!ared) or to 81 (9 s"!ared). he $ore#ast &ri#e is one &oint !& or down 'ased on the s"!are root. he theory says a &ri#e may moe to a leel that is a m!lti&le o$ the s"!are root. :in#e ;1G was !sed as an ill!stration in the $irst arti#le + tho!ght yo! might 'e interested to see the s"!are root theory a&&lied to the #attle #hart. 0othing is a 'etter tea#her o$ a &rin#i&le than an e,am&le.
etKs $ore#ast a &ri#e 'ased on the :e&t 1th low o$ 7.5. he $irst ste& is to normali%e the &ri#e to the range o$ 1 to 1 'y ad!sting the de#imal &oint. 2ind the s"!are root o$ the normali%ed al!e add 1 &oint or a m!lti&le n!m'er o$ &oints and s"!are this al!e to o'tain the $ore#ast &ri#e. 1) 6) 6) ) /) 5)
0ormali%e 75 to 'e 7.5 :"!are root o$ 7.5 is 6C./C7 Adding 1 gies a al!e o$ 67./C7 67./C7 s"!ared is 75/./ whi#h is the mid&oint o$ the !& moe in the middle o$ 0oem'er. Adding 6 gies a al!e o$ 68./C7 68./C7 s"!ared is 81.7. :o 817 is a $ore#ast &ri#e. he an 1Cth high was 8175<<<<
0ow is it !st a #oin#iden#e that a maor high is within / #ents o$ a &ri#e #al#!lated $rom a maor low &ri#eI Er does that mae yo! want to loo $or this &rin#i&le in other #hartsI i& A &ri#e may moe to a leel that is a m!lti&le o$ the s"!are root. As + st!died the ;1G daily #hart some more + see that there is a signi$i#ant high o$ 75.5 on an 7th 6 (not shown in the #hart a'oe. Howeer an 7th is shown in the ne,t #hart). +t #an 'e !sed to $ore#ast the :e&t 1th low as $ollows. 1) 0ormali%e 755 to 'e 755. 6) :"!are root o$ 7.5 is 67./77 6) :!'tra#t 1 gies a al!e o$ 6C./77 ) 6C./77 s"!ared is 715. :o 715 is a $ore#ast &ri#e. he :e&t 1th low was 75 or !st a 5 #ent di$$eren#e<
esearch: "ann S!uare 'y Howard Arrington
+ did not start o!t writing this iss!e with the intent o$ $o#!sing so m!#h on the #attle #hart. B!t + !st hae to show yo! the res!lts o$ the ne,t thing + looed at. :in#e the s"!are root theory was !n#anny in $ore#asting 'oth the ann!al low and the ann!al high o$ the ;1G #ontra#t + de#ided to &la#e a Gann :"!are on the #hart with the erti#al mid&oint on the an 7th 6 high. he s"!are was &la#ed with the le$t edge on an 7th and stret#hed so the hori%ontal mid&oint aligned with the :e&t 1th low. he 'ottom o$ the s"!are was &la#ed on the :e&t 1th low. hose were my de#isions $or &la#ement o$ the s"!are. his is the image + o'tained. +Km sorry the image has to 'e so small to $it in the newsletter.
Measure Time
+ &la#ed the le$t edge on an 7th 6 and stret#hed the s"!are so the hori%ontal mid&oint wo!ld align with the :e&t 1th 6 low. What + $ind interesting is that the an 1Cth 61 high is aligned with the ?/ &oint o$ the s"!are< his time is mared 'y the red arrow a'oe the s"!are &ointing to the highest high on the #hart.
+ also noti#ed that an Cth 6 was a 0ew Noon< And my $irst arti#le &ointed o!t that :e&t 1th was a 2!ll Noon. Price Support and esistance
+ mared the #hart with arrows where + want yo! to o'sere the s!&&ort or resistan#e &roided 'y the $an lines that e,tend $rom the / #orners o$ the s"!are. Mn#anny< +t leads one to #on#l!de that there is a mathemati#al 'asis $or &ri#e moement. *ri#e moement is not &!rely random. e#erse $ngineering
he a&&li#ation o$ the Gann s"!are loos great in hindsight. B!t + want to 'e em&owered with &rin#i&les that wo!ld hae ena'led me to a&&ly the s"!are 'a# in 2e' 6 as insight$!lly as #an now 'e done. he an 7th 6 high o$ 75.5 is nown. Ene &oint !& and one &oint down &ri#e $ore#asts #an 'e made as ill!strated in the &reio!s arti#le to !se as le$t side to& and 'ottom #orner &oints aligned with an 7th. A one &oint !& $ore#ast &ri#e $rom 75.5 is 81.1. A one &oint down $ore#ast &ri#e $rom 75.5 is 7.1. All o$ that #an 'e done in 2e' 6. he $inal &ie#e o$ in$ormation needed is a way to #al#!late in adan#e the width o$ the s"!are. etKs go $ishing $or #l!es 'y reerse engineering the &resent Gann s"!are a&&li#ation. here are 65 #alendar days 'etween an 7th and :e&t 1th whi#h #an 'e #om&!ted !sing this F:* s#ri&t begin writeln(encodedate(2000,09,13)-encodedate(2000,01,07)); end;
hat wo!ld mae the s"!are width 5 #alendar days 'e#a!se :e&t 1th is the mid&oint. rading days #an 'e estimated $rom #alendar days !sing trading days 4 (#alendar days ? 7) P 5 holidays. he Gann s"!are + a&&lied is /C trading days in width. he range 'etween the $ore#ast low and the $ore#ast high is 81.1 - 7.1 4 11.. :o lets tae inentory o$ the n!m'ers aaila'le to wor with in 2e' 6 that might lead !s to a&&ly the s"!are at a /C day width whi#h wo!ld then hae 'een a wonder$!l roadma& to $ollow in trading lie #attle $or the rest o$ the year. We hae the $ollowing n!m'ers to wor with in hindsight •
An a#t!al high &ri#e o$ 75.5 on an 7th 6.
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2ore#ast high o$ 81.1 $ore#ast low o$ 7.1 and their 11. range.
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0!merology that Gann $aored /5 C 9 16 1// 18 6/ 67 and C.
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he s"!are roots o$ 811 755 71 and 11.
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ime 5 #alendar days or /C trading days.
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=atios o$ any o$ the a'oe n!m'ers.
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N!lti&les o$ any o$ the a'oe n!m'ers &arti#!larly 6 / 8 and 1C times.
ry as + might + am !na'le to #ome !& with any #on#rete reason $or sele#ting a s"!are width o$ /C 'ars in adan#e. he 'est g!ess might sim&ly hae 'een to initially #onstr!#t it !sing C 'ars sin#e C is a $aored n!m'er and the n!m'er 811 is C degrees aro!nd a Gann :"!are o$ 0ine $rom the n!m'er 71 . Being st!m&ed 'y this "!estion + s&ent seeral ho!rs 'rowsing the +nternet $or more reso!r#e material on #onstr!#ting a Gann :"!are. + did not $ind anything + did not already now. + was !na'le to $ind any hel& in determining the 1,1 slo&e to !se. Nost so!r#es i$ they did indi#ate a reason $or s"!are width said either to !se a $i,ed width o$ 9 or 1// 'ars or to !se the &ri#e as the n!m'er o$ 'ars meaning a &ri#e o$ / wo!ld !se a width o$ / 'ars. All e,am&les lo#ated the s"!are #orner on the trend to& or 'ottom. 0o one showed an e,am&le lie my e,am&le with the trend to& &la#ed at the mid&oint o$ the s"!are and the s"!areKs #orners lo#ated on #al#!lated &ri#es. +n my se#ond e,am&le + a&&lied the Gann :"!are $rom a re#ent minor to& on a 0*= 5-min!te #hart. he high &ri#e was 1C.5 on 2e'r!ary Cth 61. etKs a&&ly o!r :"!are =oot heory te#hni"!e to o'tain a $ore#ast &ri#e lie we did 'e$ore 1) :"!are root o$ 1C.5 is 1.6 6) :!'tra#t 1 gies 9.6 ) :"!are o$ 9.6 is 8C.8C Gann st!dents wo!ld o'sere that the 8C.8C &ri#e is 18 degrees aro!nd GannKs :"!are o$ 0ine $rom the 1C.5 &ri#e. here$ore 'e#a!se + hae two &ri#es that are 18 degrees a&art + will sele#t the width o$ the s"!are to 'e 18 'ars. his is the res!lt showing the 1,1 1,6 and 6,1 $an lines $rom the $o!r #orners o$ the Gann :"!are.
he to& le$t #orner is on the minor trend high at 1C.5. he lower right #orner is on the 18 degree &ri#e o$ 8C.8C and 18 'ars to the right. :eeral things !m& o!t at me $rom the Gann :"!are image s!#h as 1) he 1,6 red line $rom the to& le$t #orner sto&&ed the retra#ement at 'ar 18 at a &ri#e o$ 98.875. 6) he 1,6 red line $rom the 'ottom le$t #orner sto&&ed the #rash at 'ar 97 at a &ri#e o$ 96. ) he two 1,6 red lines in 1) and 6) also sto& the retra#ement at 'ar 18C at a &ri#e o$ 9C.75. /) he trend rides !& and down 'oth o$ the 6,1 red lines $rom the right side #orners. he e,am&le also shows the *yra&oint tool lo#ated at the same minor trend to&. he *yra&oint #onstr!#tion is the series o$ hori%ontal 'right 'l!e &ri#e leels light red and green diagonal lines and erti#al lines in #yan. he *yra&oint tool was the dis#!ssed in the an!ary 61 iss!e o$ this newsletter and + tho!ght yo! wo!ld lie to see 'oth tools woring together. Gann :"!ares are also &resented in the De#em'er 6 iss!e o$ this newsletter. + admit + do not now all the answers. B!t ho&e$!lly yo!r thining has 'een stret#hed as + hae o&enly shared with yo! some o$ my tho!ghts and yo! will $ind a re$reshing and &erha&s noel idea or two in this dis#!ssion o$ Gann :"!ares
Pyrapoint by Don Hall By way o$ introd!#tion + am Don Hall and my reason $or $orm!lating *yra&oint is to a##!rately tra# and indeed &roe#t moement o$ marets as re$le#ted a#ross the *ythagorean ;!'e. he an#estry o$ *yra&oint wo!ld date 'a# to 195C when + 'egan hedging in a ;ommer#ial Grain Fleator that + owned. + 'e#ame an ardent st!dent o$ W.D. Gann seeing to !nrael the ery a##!rate maret #y#les that were #redited to him. By $!rther introd!#tion + hae 'een a &rin#i&al in a ;ommodity rading $irm Al&ha :ystems hae held a seat on the ;BE while an a#ting *rin#i&al in a #ommodity trading $irm and hae #arried a ;A li#ense---all &ast history. E$ s&e#ial interest to me has 'een the tra#ing o$ W.D. GannKs $amo!sly s!&erised tri& to the Jtrading &itJ in ;hi#ago where he was re#orded as maing some 87Q &ro$ita'le trades on nearly 6 trades. +t 'e#ame es&e#ially im&ortant to me when + learned $irst hand $rom Ganns ne,tdes trading asso#iate =hinalto Alghini that the only tool that Gann too to the &it $or the test was a miniat!re J:"!are o$ 0ineJ. Gann #alled this his JNaster ;al#!latorJ. J=enoJ 'e#ame a &ersonal $riend as well as we were 'oth mem'ers o$ A;F (Astro-;y#le F,#hange) a gro!& o$ 5 designated $or adan#ed #y#le st!dies in ;hi#ago. Altho!gh + $ind no re#ord o$ GannKs a#nowledgment o$ it in reality the J:"!are o$ 0ineJ is a *ythagorean ;!'e (*.;.) A :RMA=F =EE ;A;MAE=. + am told (again $irst-hand) 'y my mentor in ;airo 2!ad Fl Saha'y (while + was st!dying in Fgy&t in the Nid-seenties) that it was an early Fgy&tian ;alendar a 'asi# mathemati#al tool and ery instr!mental in the #onstr!#tion o$ the Great *yramid. + had long nown the Jmysti#J a#tion o$ &ri#e 'etween the signi$i#ant diagonals lo#ated !&on the $a#e o$ the *ythagorean ;!'e. his was es&e#ially tr!e $or s!&&ort and resistan#e as !sed 'y Gann in ery e,&ensie seminars where he was tea#hing the signi$i#an#e o$ the /5 degree angle as well as the m!lti&les and diisions &er his analogy as a&&lied to the s"!are root #al#!lator. We $eel that it is es&e#ially signi$i#ant that Gann #alled 9 d egrees his J*attern ;hartJ. Ene "!i# note o$ s!&&ort when one 'e#omes #onin#ed o$ the alidity o$ the s"!are root in$l!en#e in maret moes one will reali%e the al!e o$ the s"!are o$ nine (*ythagorean ;!'e) in the &it with W.D....NA=LF: NETF +0 :RMA=F =EE +0;=FNF0:< o get a "!i# idea as to how Gann new how to !se the s"!are root #al#!lator tae A0O n!m'er on the *.;. adan#e 9 degrees on the $a#e o$ the J;!'eJ #o!nt the digits to that &oint and yo! will hae the s"!are root o$ yo!r 'eginning n!m'er. Fery n!m'er on the *.;. designates an angle $or this #al#!lation. Witho!t $!rther 'ela'oring the &oint one #an see how *ythagoras and the Hy&oten!se =!le o&ened the door $or *yra&oint on a right angle a,is where &ri#e is the erti#al angle and time is
the hori%ontal angle the relationshi& o$ *ri#e and imeKs Js"!aringJ is always e,&ressed on the hy&oten!se---and always 9 degrees. HM: B+=H E2 HF *OHAGE=FA0 D+AGE0A (*.D.) a most mysti# trend line (A0D ;HA00F<) E!r &re!di#e is re$le#ted in o!r e,&ressed ass!m&tion that the Jonly trend lines that #arry a high a##!ra#y history are those that #oin#ide with the *ythagorean ;A;MAFD trend lines---i.e. HF *OHAGE=FA0 D+AGE0A:J. his is the &light o$ *yra&oint he ;ode #o!nts time &lots &ri#e and gies o'e#ties $or ea#h---all #al#!lated (and oh yes with targets s!&&orting TF=O #lose sto&s). + &ersonally $eel that it is the only way that + #an a$$ord to enter todayKs marets. h!s WF A=F ;HA00F =ADF=: O+FD+0G M: ;A;MAFD A=GF: FUA; :E*: A0D FUA;ODF2+0FD *=+;F H+GHWAO: E +0D+;AF FUA; =F0D ;HA0GF:. A s!&&ort li'rary o$ some 1> #harts has 'een deelo&ed to &roe o!r #ommitment to the *ythagorean Diagonal ;on#e&t (the *Ds).
he #!rsor will #hange to a &en#il while in the draw mode. Noe the #!rsor to an im&ortant High or ow &ri#e on the #hart and then #li# the le$t mo!se '!tton. Hori%ontal lines re&resent &otential s!&&ort and resistan#e leels. Terti#al lines re&resent &ro'a'le t!rning &oints 'ased on ime. Diagonal lines are !sed to interse#t the Hori%ontal and Terti#al lines. he maret will o$ten $ollow the diagonal lines. *yra&oint is &lotted !sing an a&&ro&riate degree o$ rotation &arameter sele#ted 'y FnsignKs &ro&rietary arti$i#ial intelligen#e algorithm.
%d&usting =e-sele#ting the *yra*oint tool will a#tiate the a'ility to moe it to a di$$erent lo#ation. ;li# the mo!se on the Sero starting &oint to re-sele#t it. he #!rsor will #hange to a &en#il. Drag the mo!se $rom the Sero starting &oint to a new lo#ation and the *yra*oint lines will moe. ;li# the mo!se again to #om&lete the draw &hase. Properties o iew the &ro&erties window #li# the ;hart E'e#ts '!tton sele#t *yra*oint then #li# the *ro&erties '!tton to o&en the *ro&erties window $or the tool.
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Normali'e *** - *la#e a #he# mar in the K0ormali%e V 1K 'o, to &reent the *yra&oint $rom a!tomati#ally ad!sting the hori%ontal width o$ the *yra*oint s"!ares when a maret is at or near 1 in &ri#e. Normali'e + ** - *la#e a #he# mar in the K0ormali%e 1K 'o, to normali%e the st!dy on 6 digits. Price - he K*ri#eK 'o, shows the e,a#t &ri#e where the *yra&oint is an#hored. he *ri#e #an 'e edited i$ ne#essary. ,egrees - ;li# the M& and Down sele#tion arrows to #hange the Degrees setting. he Degrees setting will e$$e#t the n!m'er o$ lines that are drawn on the *yra&oint tool and how #losely they are s&a#ed a&art. When the *yra&oint tool is in a sele#ted state yo! #an also #li# the light-'l!e M& (*reio!s) and Down (0e,t) arrows on the ;ontrols ool'ar. his will also #hange the Degrees setting.
;li# the !& or down s&inner arrow to do!'le or hale the Degree o$ =otation &arameter. /5 degrees is shown in the e,am&le. ;li#ing the !& arrow will #hange it to 9 degrees. ;li#ing the down arrow will #hange it to 66.5 degrees. Also yo! #an enter any degree in the edit 'o,. Fntering a al!e greater than or e"!al to 1 will 'e treated as degrees. Any al!e 'etween and 1 will 'e treated as a &er#ent o$ 18 degrees. A al!e o$ .5 is the same as 9 degrees. A$ter
sele#ting yo!r &re$erred #olors ine hi#ness and ine :tyle #he# the Mse as De$a!lt 'o, to sae the &arameters as the de$a!lt. o $!lly !nderstand *yra&oint its mathemati#s im&lementation design !se and how to trade with *yra&oint yo! need to '!y Don HallKs *yra&oint Boo or *yra&oint ;D. he 'oo is a &ro$essionally &!'lished 6/-&age hard #oer 'oo. he mathemati#s in the $ollowing arti#les are a&&li#a'le to the theory o$ the *yra&oint tool. •
ime and *ri#e
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rend ine :lo&e
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:"!are =oot heory
Nathemati#s in the $irst two arti#les was !sed to deelo& the *yra&oint tool in Fnsign. Hori%ontal lines are &lotted at #al#!lated &ri#e leels and Terti#al time #!res are &lotted at the #al#!lated time interals. hese lines $orm a grid o$ tra&e%oids (Don Hall #alls them s"!ares). Diagonal lines #onne#t the #orners o$ the tra&e%oids to gie s!&&ort and resistan#e trend lines. Below is a daily #hart o$ 0*= with the starting &oint lo#ated on the highest high. All &ri#e leels time interals and trend lines are #onstr!#ted mathemati#ally $rom two &ie#es o$ in$ormation the &ri#e 6//.5 on the date 1-1C-6.
he hori%ontal &ri#e lines hae a la'el on the le$t whi#h is a degree o$ rotation aro!nd a :"!are o$ 9. Nore in$ormation on this to&i# #an 'e $o!nd in Don HallKs *yra&oint 'oo. 0ote that in this #hart the time lines are nearly erti#al. his is a slight ariation $rom the method o$ #onstr!#tion in the *yra&oint 'oo whi#h shows erti#al lines. Time: ime is meas!red 'y the Terti#al time #!res whi#h are related to &ri#e. i& KAs &ri#e meets time a #hange is imminent.K 0ote the $irst time line la'eled 16 on the 'ottom and 1C on the to&. +$ &ri#e meets time at the -76 hori%ontal then the time $or the #hange wo!ld 'e the 16th 'ar $rom the to&. +$ &ri#e meets time at the -5/ hori%ontal then the time $or the #hange wo!ld 'e the 1th 'ar $rom the to&. At the -C hori%ontal the time #hange wo!ld 'e in the 1/th 'ar. At the -18 hori%ontal the time #hange wo!ld 'e in the 15th 'ar. At the line the time meas!red wo!ld 'e 1C 'ars. hat is why the to& o$ the time line is la'eled with a 1C and the 'ottom o$ the line is la'eled with a 16. :tarting at 1C $or ea#h 18 degree down the time #o!nt
is red!#ed 'y one 'ar or $or eery 18 degree rise the time #o!nt in#reases another 'ar. 0ote that the maret did e,&erien#e a #hange when &ri#e met the time #!re la'eled 16 to 1C< he &ri#e at the 16 to 1C time line was !sed to o'tain a $ore#ast o$ the 6nd time line whi#h is la'eled 65 to 1. As the &ri#e meets ea#h time #!re a new time #!re is #al#!lated 'ased on the &ri#e. Fa#h o$ the time #!res shows e,#ellent #orrelation with maret #hange when &ri#e met the time line. Prices: he &rominent high o$ 6//.5 is the #al#!lation 'asis $or all the hori%ontal &ri#e leels that are shown. i& he maret sees o!t these &ri#e leels and yo! #an #al#!late these &ri#es in adan#e. 0ote how the maret $ell to the -5/ hori%ontal rallied to the -18 hori%ontal $ell to the -9 leel rallied to the -5/ leel $ell to the -18 leel and rallied to the -76 leel. Trend -ines: he downward /5 degree trend lines shown in red #reate a $low #hannel or K&ri#e highwayK as Don #alls it. he !&ward /5 degree trend lines shown in green #reate a &ri#e highway going the other dire#tion. he red lines are resistan#e lines that the maret m!st #lose a'oe to #hange dire#tion $rom 'earish to '!llish. he green lines are s!&&ort lines that the maret m!st #lose 'elow to #hange dire#tion $rom '!llish to 'earish. We all hae !sed !&ward trend lines &la#ed !nderneath a#tion lows to indi#ate s!&&ort and downward trend lines &la#ed a'oe a#tion highs to indi#ate resistan#e. he 'ea!ty o$ this tool is that these diagonal trend lines are #om&!ted in adan#e and the maret seems to hae res&e#t $or them. *ri#e $lows !& and down the #hannels. he more yo! st!dy the e,am&le the more im&ressed + thin yo! will 'e with this tool. .ntra/day 0harts
he *yra&oint tool #an 'e a&&lied to intra-day #harts with good s!##ess. he si%e o$ the &ri#e interal !sed on a daily #hart seems to 'e too 'ig $or !se on an intra-day #hart. 0o &ro'lem. Don &oints o!t that there are s"!ares within a s"!are. All one needs to do is s!'-diide the &ri#e interal into hales $o!rths or eighths. he time interal is determined $rom &ri#e and will not #hange. R!estion +$ the time interal #om&!tes to 'e 11 'ars 'e#a!se the &ri#e is at 161 whi#h intra-day 'ar time $rame sho!ld + !seI +$ 1-min!te 'ars are !sed then we hae a time #!re 11 min!tes later. +$ 6-min!te 'ars are !sed then the time #!re wo!ld 'e 66 min!tes later. +$ 5-min!te 'ars are !sed then the time #!re is &lotted 55 min!tes later. he sele#tion o$ the intra-day 'ar time $rame greatly a$$e#ts the time interal meas!red 'y the ne,t time #!re. Answer he $ollowing is a sam&le sol!tion. Mse a #y#le tool to meas!re in hindsight the #y#le rhythm $rom 'ottoms to 'ottoms to&s to to&s and?or 'ottoms to to&s. 2ind a #y#le width that $its 'y #at#hing m!lti&le t!rning &oints. 0ote the n!m'er o$ min!tes in the #y#le. Mse this $orm!la to estimate a good intra-day time $rame to !se. .ntra/day 1ar Time Frame 2 0ycle width in minutes 3 s!rt( P )
F,am&le En the 0*= 1-min!te #hart + $o!nd a C5 min!te #y#le when the &ri#e was aro!nd 1. here$ore 'ar time 4 C5 ? s"rt( 1 ) 4 5.C min!tes &er 'ar. :o !sing a C-min!te #hart or &ossi'ly a 5-min!te #hart sho!ld show a good $it with the *yra&oint tool. + ha&&ened to hae 'een $ollowing a 5-min!te #hart and + do $ind e,#ellent #orrelation. + hae !sed a smaller &ri#e interal 'y s!'diiding the 18 degree interal into eighths in this e,am&le.
*lease st!dy the #hart and o'sere the $low o$ &ri#es in the !& and down trend #hannels. 0ote how trend #hanges o##!r on or near the erti#al time #!res and how the maret sees the hori%ontal &ri#e leels. his entire road ma& is #om&!ted in adan#e $rom the &rominent to& that o##!rred on an!ary 16th at 95 a.m. ,aily 0harts
+ tho!ght yo! wo!ld lie an !&date on how 0*= has #ontin!ed to wal the *yra&oint $ramewor o$ diagonal trend #hannels hori%ontal s!&&ort and resistan#e leels and t!rns o##!rring on erti#al lines at the end o$ s"!ares.
E!r an!ary e,am&le was thro!gh the end o$ the 5th s"!are mared 'y the C6 to 59 erti#al 'l!e line. + was ama%ed at how 0*= waled down the red diagonal lines to t!rn on the -18 hori%ontal (tenth rotation o$ 18 degrees) and at the end o$ the 16th s"!are mared 'y the 11911C erti#al line on A&ril rd. he a#t!al low day was A&ril /th. Ama%ing indeed< (:orry the #loseness o$ the 'ar s&a#ing #a!ses the 16 la'el to oerwrite the 11C la'el whi#h is 'elow the low t!rning &oint.)
+n the $ollowing #hart the starting &oint is the maret high. Ferything else is &roe#ted into the $!t!re. he 'l!e hori%ontal lines are maor s!&&ort ? resistan#e $or /5 degree s"!ares $rom the high. he erti#al lines are time &eriods. 0oti#e that the maor t!rning &oints o##!r near these #yan erti#al lines.
C degrees o$ the :"!are o$ 9 is the 'ottom o$ the maret on -66-61 at a one year #y#le $rom the maret high on -6/-6. En 5-66-61 we hit the 18 degree :"!are o$ 9 $rom the maret high on -6/-6. he t!rning &oint also o##!rred at an e,a#t erti#al time &oint. his gae a ery strong sell signal along with others. Phi 2 456. 5-66-61 is /6/ #alendar days $rom -6/-6 all-time :X* 5 high. *hi #!'ed times 1 4 /6/. 5-66-61 is 6C #alendar days $rom 9-1-6 the :X* do!'le to&. *hi s"!ared times 1 4 6C6. 5-66-61 is C1 #alendar days $rom -66-61 low. 1 ? *hi 4 C1.8 7elio cycles: Synodic: M 15 $rom 11-C-6 :X* high. : 15 $rom 7-1-6 low. Sidereal: Nars 16 $rom 9-/-6 a'or Day. 6/ $rom 1-17-6 holiday (1-1/-6 Dow high). "eo: Noon-:!n-:at!rn #on!n#tion with Ner#!ry-Mran!s trine.
he $ollowing is a sam&le o$ *yra&oint De$initions =!les and F,&e#tations (written 'y Don Hall) 1. All marets res&e#t and $ollow the r!le o$ s"!are-root in$l!en#e. 6. he s"!are-root o$ eery n!m'er on the *ythagorean ;!'e has an in$l!en#e o$ 9 degrees on the *;. . *yra&oint re#ords and tra#s this in$l!en#e ia *Ds (9 degrees at a time). /. Degrees re$ers to degrees on Ganns re$eren#e to the 3Great ;ir#le o$ ime (a C degree #ir#le). 5. At the end o$ ea#h 9 degrees e,&e#t a new in$l!en#e to 'e#ome a &art o$ the maret moe. Whether leel or !&?down it will indi#ate &otential trend #hange. We mar this as 3FE: (end o$ s"!are). We e,&e#t the &osition o$ *D on the $irst 6 or 'ars to show !s the new *D dire#tion and in$l!en#e. C. We alidate the a##!ra#y o$ these ass!m&tions 'y taing any signi$i#ant &oint o$ interest (#ontra#t hi?lo o&ening hi?lo et#.) then rotate the a%im!th o$ this n!m'er (angle) 9 degrees on the $a#e o$ the *;---#o!nt the digits en#om&assed to this a%im!th and yo! M0+TF=:AO hae the s"!are root and hae en#om&assed the in$l!en#e o$ this n!m'er o$ interest. he *yra&oint tool does this $or yo!. 7. Altho!gh rend ines are the 'asis o$ most #harting o!r resear#h has indi#ated than A0O trend line traeling a signi$i#ant distan#e on the #hart will 'e on an a%im!th o$ the *ythagorean ;!'e. =esear#h has shown &ri#e to $ollow nearly a $!ll year witho!t iolation o$ the *Ds. 8. We learn that &ri#e o$ten $ollows the a%im!th o$ the *ythagorean ;!'e and when it does iolate s!&&ort or resistan#e it will see the ada#ent ne,t #al#!lated a%im!th (*D) as the ne,t target. he *yra&oint tool &roides these #al#!lations. 9. All lines targets and sto&s are e,a#tly #al#!lated. 9 degrees seres as BA:+; with 5 and 1 &er#entiles as o!r 'asi# #ode. 2or e,am&le i$ 9 degrees is o!r 'ase #onsideration (&erha&s too large $or o!r wae a#tion) then the ne,t &ri#e modes wo!ld 'e 5Q or /5 degrees 66.5 degrees 11.65 degrees 5.C65 et#. he same analogy a&&lies to the 3$itting o$ *Ds to the !&side. 1. 2or e,am&le i$ &ri#e is $ollowing an 11.65 degree adan#ing *D it will also maintain its wae moement within this 11.65 degree line and the ne,t one 'elow it whi#h *yra&oint has #al#!lated. =ight< A &er$e#t sto&. =emem'er when 'roen the &ri#e will moe to the ne,t ada#ent *D as a target.
11. An A##elerated *D is de$ined as a diagonal on the &rior e,am&le 11.65 degree s"!are. +t is !sed when &ri#e is h!gging a *D and yo! dont want to ris yo!r &ro$it while waiting $or &ri#e to &ro#eed to a sto&. By &la#ing the A##elerated *D yo! will reali%e that yo! hae geometri#ally #reated the 1 &er#entile a&&li#ation in o!r r!les or a diagonal *D o$ 66.5 degrees (witho!t the need to re-&iot yo!r *yra&oint tool). 0ote that all *Ds hae the same #hara#teristi# o$ 'eing magneti#. 16. he *ri#e Highway o$ re$eren#e in o!r #harts is the &roe#ted &ath o$ &ri#e as it $ollows the *D in !se and is trailed 'y the ne,t ada#ent #al#!lated *D as its a!tomati# sto&. =emem'er that an A##elerated *D is always an o&tion $or a higher?lower sto&.
PPP Below are some estimonials $rom *yra&oint Msers PPP J+ hae !sed many many so$tware a&&li#ations oer the years and + hae neer seen anything nearly as &ower$!l and #onsistent and as elegant in its sim&li#ity as *yra&oint. + really than yo! $or s!#h a wonder$!l #reation.J - . *ell 16--6 J+ m!st say as a former YYY slae + =FAO enoy the sim&le elegan#e o$ the Fnsign &rod!#t. + also !se *yra&oint whi#h was my introd!#tion to Fnsign and yo! really did a great o' with that too.J -W. :he&&ard 16-19-6 KOo! went waaay 'eyond< han Oo!. Ferything "!i#ly #hanged -and $or the 'etter- on#e we de#ided to swit#h to e:ignal so we #o!ld !se Fnsign Windows. We had also resear#hed *yra&ointZ read the 'oo and &!r#hased the *yra&oint Wheel 'e$ore we determined we needed to tae the &l!nge. (WeKd 'een with --- $or the last two years.) We haenKt "!ite got *yra&oint down yet '!t now eno!gh to !se it as a g!ide to hel& !s stay in a trade or get o!t. We re#ogni%ed the &otential o$ the #olle#tie a&&li#ations e:ignal Fnsign Windows X *yra&oint. Nany thans
JAs noted in my earlier e-mail the #o!nt the designation o$ degrees the on going leels o$ s"!ares the handling o$ the Kro!ndingK---all wo!ld mae any *yra&oint #!stomer KdroolK---yo!r
wor is 2A0A:+; Howard. + am es&e#ially im&ressed with the sim&li$i#ation that yo!r &rogramming &resents as o&&osed to the &ro'lems o$ the di$$erent si%ed s"!ares with o$$-sets. With yo!r a'ility to moe the oerlays (s"!ares) it wo!ld not seem to red!#e the a'ility to moe to the Kinitial $or#e &ointK a$ter a s!'se"!ent signi$i#ant iolation o$ a diagonal. his maes it show een more &er$e#tly---and it wo!ld mae a dramati# &resentation $or any st!dent in my h!m'le o&inion. Ny a&&re#iation---and my #om&liments. +t has really #ame together e$$e#tiely---with a ery *=E2F::+E0A EEL<<
Article: Time and Price William D. Gann (1878-1955) was a legendary trader who designed seeral !ni"!e te#hni"!es $or analy%ing &ri#e #harts. He deelo&ed a !ni"!e #om'ination o$ &re#ise mathemati#al and geometri# &rin#i&les whi#h are not easy to gras&. Gann analysts hae s&ent years &o!ring oer old #harts and writings in sear#h o$ GannKs se#ret and there is no end to the n!m'er o$ &eo&le who #laim to hae dis#oered GannKs insight and te#hni"!e that has el!ded eeryone else. *erha&s someone has dis#oered it. + am not in a &osition to a&&raise all the #laims 'e#a!se + am not a Gann e,&ert and hae not read GannKs writings. Don Hall has &!'lished a 'oo and deelo&ed a system #alled *yra&oint whi#h seems to me to 'e well $o!nded in Gann &rin#i&les. he &!r&ose o$ this arti#le is to tae one idea !sed in DonKs wor and &resent it $rom a di$$erent a&&roa#h and yet arrie at the same !se$!l #on#l!sion. + ho&e een Don will $ind my arti#le to 'e an original insight to s!'stantiate the alidity o$ his wor. GannKs geometri# angles are trend lines drawn $rom &rominent to&s or 'ottoms at #ertain angles. he most im&ortant angle is /5 degrees whi#h means the lineKs slo&e is one !nit o$ &ri#e &er !nit o$ time. (0ote De&ending o$ the #hart s#ale !sed the line may or may not a&&ear to 'e &lotted at a /5 degree angle.) 2or years + tho!ght this is what Gann analysts meant 'y the &hrase Ks"!aring time and &ri#e.K Howeer DonKs *yra&oint method gae me a new insight whi#h is Price 2 Time s!uared
or
P2t89
et me tae this mathemati#al relationshi& and deelo& it in this arti#le. he a'oe relationshi& 'etween &ri#e and time #an 'e &lotted on a #hart as shown in this ill!stration. he time al!es o$ 1 6 and are mared 'y the three arrows.
2or the sae o$ ill!stration letKs s!&&ose a &rominent to& or 'ottom o##!rs at a &ri#e o$ /. he theory is that this signi$i#ant &oint has a mathemati#al #o!nter&art. :tart a new time #!re at this &oint in time and it will gie !s an e,&e#tation $or a $!t!re to& or 'ottom to o##!r on this #!re. his &rin#i&le #an 'e stated as KWhen &ri#e meets time a #hange is imminent.K his K&ri#e meets timeK relationshi& is shown in the $ollowing #hart.
With the &rominent to& or 'ottom at P i$ &ri#e meets the #!re at &oint % it will do so in 18 'ars. he time to % is the s"!are root o$ the &ri#e at %. *ri#e at % is 6/. :"!are root o$ 6/ is 18. +$ &ri#e meets the #!re at &oint 1 it will do so in 6 'ars. he time to 1 is the s"!are root o$ the &ri#e at 1. *ri#e at 1 is / there$ore the time to 1 is 6 'ars. +$ &ri#e meets the #!re at &oint 0 it will do so in 66 'ars. his is a ery interesting #on#e&t< =emem'er that &ri#e and time are related 'y the $orm!la
P2t89
or
t 2 s!rt( P )
Article: Trend Line Slope +n this arti#le + will deelo& the mathemati#s $or the slo&e o$ a trend line !sing the &ri#e and time relationshi& &resented in the &reio!s arti#le. etKs wor with the model ill!strated in this $ig!re.
2rom the &reio!s arti#le the ne,t time #!re will 'e t 'ars away $or a gien &ri#e P. At a time t &ri#e wo!ld meet the #!re at &ri#e P. 0ow lets sole $or the slo&e o$ the trend line shown in 'l!e whi#h #onne#ts P and P. *4t6 *1 4 (t > 1) 6 4 t 6 > 6 t > 1 4 * > 6 t > 1 :lo&e 4 (;hange in &ri#e) ? (;hange in time) ;hange in &ri#e 4 *1 - * 4 * > 6 t > 1 - * 4 6 t > 1 4 6 t > 6 - 1 4 6 @ t > 1 -1 ;hange in time 4 t > 1 here$ore slo&e o$ * to *1 is 4 (6 @ t > 1 - 1) ? (t>1) 4 6 - 1 ? (t>1) 4 6 - 1 ? s"rt( *1 ) +$ we normali%e all &ri#es to #onsider three signi$i#ant digits then all &ri#es will $all in the range o$ @1 ... 1. By s!'stit!ting the &ri#e 'o!ndaries into the slo&e $orm!la we #an get a range o$ slo&es as $ollows. 2or a *1 o$ 1 the slo&e o$ the !& trend line to 1 4 6 - 1 ? 1 4 1.9 2or a *1 o$ 1 the slo&e o$ the !& trend line to 1 4 6 - 1 ? 1 4 1.99 he slo&e o$ the !& trend line at the mid&oint o$ this &ri#e range is 6 - 1 ? s"rt(5) 4 1.9C etKs #all this trend line a /5 degree line 'e#a!se we deelo&ed the slo&e !sing one !nit o$ &ri#e #hange $rom * to *1 with one !nit o$ time t. 2or this /5 degree line the slo&e is 'asi#ally 6. + thin this is strong !sti$i#ation as to why Gann !sed 6 #ents as the &ri#e grid interal o$ his daily grain #harts. :!#h a s#ale layo!t wo!ld nat!rally gie Gann /5 degree angles with a slo&e o$ 6 #ents &er daily 'ar. + hae shown that 6 is the slo&e o$ the !&ward /5 degree trend line that deelo&s $rom the &ri#e and time relationshi& gien 'y the $orm!la * 4 t 6. Ene #an sole $or the slo&e o$ the downward trend line $rom *1 to * to o'tain this res!lt
:lo&e o$ *1 to * 4 (-6 t - 1) ? (t-1) 4 (-6 @t - 1 - ) ? (t-1) 4 -6 - ? (t-1) 4 -6 - ? (s"rt( * ) 1) 2or a * o$ 1 the slo&e o$ the down trend line to 1 4 -6 - ?9 4 -6. 2or a * o$ 1 the slo&e o$ the down trend line to 1 4 -6 - ?99 4 -6. Again the slo&e o$ the down trend line a&&roa#hes a al!e o$ -6. here$ore -6 is a good a&&ro,imation $or the slo&e o$ a downward /5 degree trend line.
Article: Square Root Theory William D!nnigan did e,tensie resear#h in the early 195Ks and &!'lished in 195/ and 1955. He !sed the square root theory as &art o$ his #al#!lation o$ a &ro$it o'e#tie. He #onsidered this method a KgoldenK ey and re#eied re#ognition $or his wor in ario!s o!rnals. he square root theory is that &ri#es moe in !nits o$ the s"!are root meaning &ri#es at C/ (8 s"!ared) wo!ld moe to /9 (7 s"!ared) or to 81 (9 s"!ared). he $ore#ast &ri#e is one &oint !& or down 'ased on the s"!are root. he theory says a &ri#e may moe to a leel that is a m!lti&le o$ the s"!are root. :in#e ;1G was !sed as an ill!stration in the $irst arti#le + tho!ght yo! might 'e interested to see the s"!are root theory a&&lied to the #attle #hart. 0othing is a 'etter tea#her o$ a &rin#i&le than an e,am&le.
