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Mikula Forecasting
Company: Strategy #26:
Using The Square of 9, Chapter 3
Method
====================
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
identifying price tops and bottoms with the Square of Nine.
To each chart I have applied the Square of Nine method
described in Chapter 3 of the book ,
The Definitive
Guide to Forecasting Using W.D.Gann's Square of
Nine. See Chapter 3 for the
calculation details of this method. On the chart below the
Chapter 3 method has been applied to the July 2005 Soybean
contract. The starting date used for the Square of Nine
indicator is the February 2005 bottom. Notice that this
up-move in soybeans has moved almost exactly 2 cycles of 360
degrees on the Square of Nine. I have drawn an arrow from
the low to the Square of Nine value showing the distance
identified by the Square of Nine in relation to the chart
top. You can see that this market made a top very close to
the price identified by the 2nd 360 degree cycle.
The chart below shows the Square of Nine chapter 3 method
applied to EBAY stock. Notice that the recent down swing
moved very close to 360 degrees around the Square of Nine.
On the chart below I have drawn an arrow identifying the 360
degree price move. The 360 degree move around the Square of
Nine is a very important place to watch for market
pivots.
The chart below shows IBM. The Square of Nine chapter 3
method has been applied starting from the January 2005 top.
From this top the market fell almost exactly 270 degrees
around the Square of Nine. I have again drawn an arrow
showing this price move as identified by the Square of
Nine.
The chart below shows GM stock and again shows the Square of
Nine chapter 3 method. From the December 2004 top this
market fell almost exactly 240 degrees around the Square of
Nine. It is very common to see the major stock rise and fall
amounts the correlate with the major degree divisions around
the Square of Nine. The increments of 90, 180, 360 and 120
240 are the most common increments seen in the major
markets.
MORE:
To see the final two charts showing Gold futures,
read the version of this article on the MarketWarrior
owners page.
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Mikula Forecasting Company