|
|
|
Mikula Forecasting
Company: Strategy #23:
Forecasting World Sugar With the
Square of Nine / Planetary Lines Part 3
====================
Written by: Patrick Mikula CTA
Copyright (c)2003-06 by Patrick Mikula All Rights Reserved.
(Please to not copy or foreword this article).
Mikula Forecasting Company
P.O. Box 152672
Austin, TX 78715-2672
USA
www.MikulaForecasting.com
support@MikulaForecasting.com
====================
In this trading strategy we are going to discuss
forecasting price and time with the Square of Nine. The
focus of this strategy is World Sugar but any market can be
used with the same methods. This is also Part 3 in our
discussion of Planetary Lines. The first step for this
strategy is to apply the Square of Nine method described in
Chapter 4 of the book ,
The Definitive
Guide to Forecasting Using W.D.Gann's Square of
Nine. See Chapter 4 for the
details of this method as we will not restate them here. On
the chart below the Chapter 4 method has been applied to the
May 2005 World Sugar future contract. The starting date is
the long term low pivot that occurred on February 13, 2004.
This is seen on the chart below.
The Square of Nine method described in Chapter 4 is a time
cycle forecasting method. The chart below shows all the
possible time cycle alignments based on the Chapter 4
method. When using this method you are not supposed to use
every possible time cycle, you are supposed to select the
one or two time cycles that show a correlation between the
Square of Nine and the market. This is shown on the next
chart.
The chart below shows that I have selected the time cycles
from the Square of Nine's 135 degree overlay angle and the 0
degree overlay angle. These two time cycles correlate with
most, but not all, of the pivots in the World Sugar market.
There is an arrow pointing up or down at a market pivot that
lines up with the Square of Nine time cycle. These time
cycles will be used to forecast this market.
The next step for this strategy is to apply the Square of
Nine method described in Chapter 15 of the book ,
The Definitive
Guide to Forecasting Using W.D.Gann's Square of
Nine. See Chapter 15 for the
details of this method as we will not restate them here. The
Chapter 15 method is a planetary line method using the
Square of Nine. The chart below shows the planetary lines
created by using heliocentric Mars and the Square of Nine.
This is a price cycle method and is used to locate important
support and resistance prices. The chart below shows that
most, but not all, of the recent World Sugar pivots formed
near one of the Mars lines. There is an arrow pointing to
each of the pivots that formed near a Mars line.
The next step is to combined the historical pivots
identified by both the time forecasting method and the price
forecasting method. The chart below has a box around each
pivot that has correlated to both the price and time
forecasting methods. Once you have established a historical
correlation in price and time for the methods you are using,
the next step is to make a forecast based on the same
methods.
MORE:
To see the final chart, showing the World Sugar
forecast, read the version of this article on the MarketWarrior
owners page.
|
Mikula Forecasting Company