In this showcase page, we'll take a look at one of the newest tools in Wave59. It's an extremely simple technique, but like a lot of good tools it does tend to be a little too tedious to do by hand. Let's apply it to INTL:
The first thing we need to do is select an important pivot. On INTL, there was one on Jan 29. So we can start there. Now what we need to do is count off important time periods from this top to project future turning points. The difference here is that instead of counting our time periods in trading days or calendar days, we're going to count them in degrees of movement of various planets. Calendar day counts are actually the same as counting degrees of the Sun, so really all we're doing is using another planet. So let's figure out which planet to use:
On the day of the top we've got Mars (brown line) square Jupiter (pink line). There are some other things happening on this day, but I tend to look for Mars because it works so well with this kind of thing. So let's apply our new bar counter to the high and count off degrees of Mars and Jupiter that we traveled:
This chart jumps ahead a bit, but if you look at point A you'll see brown counts (Mars) and pink counts (Jupiter) moving out. I also added counts moving from the bottom at B. We had Mars sextile both Uranus and the Node on this day, so Mars is also energized here. The important degrees used on this chart are standard astrological/geometrical numbers based on dividing up the circle of 360 degrees. Gann used to talk about this stuff all the time. Basically the important numbers are 15, 30, 45, 90, 120, 180, etc.
You can see that when these time periods run out INTL tends to make a turn. To actually get a trading signal, it's nice to get counts from two different turns to line up within a day or so of each other. This happened at the first low after B which was 45 degrees from A and 30 degrees from B. As the market was moving down into this spot, we knew it would be a buy signal as we need to change direction. The second time this happened was at the top in late August - the highest point of the chart. At this time Jupiter had moved 30 degrees from A, and Mars had moved 120 degrees from B. It was again a couple days early, but we knew it to be a sell signal as the market was moving up into this point.
Back to Archives