Welcome to the Valentine's Day Showcase! Today I'd like to share some of the current research that's been happening at Market Analytics, and that will soon make it's way into the software. It has to do with Gann's Square of Nine:
In case you are not familiar with this tool, it is basically a ring of numbers. You start at "1" in the center, then work your way around this number, spiraling out. This creates an interesting calculator. Notice the line of numbers moving diagonally to the lower right, starting at the center. The numbers are: 1, 9, 25, 49, 81. These are actually 1x1, 3x3, 5x5, 7x7, 9x9, or the squares of the odd numbers. The even number squares go off to the upper left.
The way that most people use this tool is to find the price of a recent turn, then move in 90 degrees to find the price of the next turn. So if we had a low at 15, we find that number on our square. Notice it's straight up. Moving within the "maze", we go 90 degrees and find 19. 180 degrees would be 23, 270 degrees would be 28, and 360 degrees would be 34. So by moving full circle, we end up in the same place but up (or down) by one ring in the square. All those numbers would be potential resistance levels as the market was moving up.
This technique works, but not spectacularly. I've always thought there was much more to the Square of Nine than that, and have spend a lot of time trying to solve it. One of the more interesting approaches is to take the positions of the planets and plot them directly onto the square. Version 1.7 will be able to do this. Here's a preview from yesterday:
This is a much bigger square, since I was watching the S&P. Those colored dots on the square are the planets. Looking at this square, I noticed two interesting things. First, Venus, Saturn, and Mars were all sitting on a straight line right through the center of the square. You can see this shown on the graphic. The other interesting thing is that the Sun and Uranus were conjunct (at the same degree), and were 60 degrees to Jupiter (the pink dot at 96) when measured on the Square.
Next turn your attention to the red square at 27. This is the New York Stock Exchange. It moves pretty fast, so during the day it will be all over this chart. What we can do is watch when the exchange acts as a trigger to the two patterns already discussed. Let's just start in the morning and write down all the times that the exchange hits our blue line. One instance of this is shown on the chart above.
Exchange 0 degrees or 180 degrees to Mars/Saturn/Venus:
823, 845, 904, 925, 957, 1034, 1125, 1233, 1400
Exchange 0 degrees or 180 degrees to Sun/Uranus:
823, 900, 920, 950, 1024, 1115, 1215, 1342
The times are shown in Mountain Time. Add two hours for Eastern. Let's take a look at a chart:
That was the Mars/Saturn/Venus line. Here's the Sun/Uranus conjunction:
So this wasn't perfect, but not too shabby. This isn't enough data to really come up with any numbers, but it looks like around 70% of the times turned out to be important.
One interesting thing is that the Venus/Mars/Saturn line is not present on the Ephemeris. Those planets only come together like that on the Square of Nine. Maybe that's important. Let's put up the Astrological Flux Lines for these planets and see what happens:
Those levels look pretty good to me! (Note that these levels use the improved ratios for the S&P. The defaults will be changed in 1.7, but if you want to play with them now, set it to 360/5.625 instead of 72/18.) If you had only taken trades when the market was bumping up against one of these levels and the Exchange was conjunct/opposed to the SQ9 levels, you could have really cleaned up.
So that's a way of using the Square of Nine that most people are probably not aware of. That tool is a price/time calculator, so you can use it to find both. Most people tend to get stuck on price. I've always believed that there was a lot more hidden in the Square of Nine than was at first apparent, and I still think so. I can't say I've solved it, but I'm definitely working hard on it. When version 1.7 comes out, you'll be able to help with the research yourself.
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