RANGY and Square Root Volatility (SRV)/ Square Root Theory

[marmayogi]

by I. M. Vronsky

Based upon historical superior market performance of South African gold stocks over North-American and Australian precious metals mining shares, it is reasonable to assume that again the South African gold mines will perform even better this time on account of their large reserves and their small market capitalization in the next gold bull market. Not only past performance makes a very convincing argument, but present day fundamentals support this theory - especially in regards to the market capitalization of gold reserves. North-American and Australian gold stocks appear overpriced in comparison to the market cap of South African gold reserves. In view of the reasons mentioned it appears that the South African stocks offer a significantly better value (not realized yet) to their North-American and Australian counterparts.

Apart from fundamentals, the technical side of gold stock evaluation also strongly favors the South African golds. Much has already been said about numerous technical indicators… all except one that is: SQUARE ROOT VOLATILITY. Let us apply the well-known SRV theory to one of my favorite South African gold stocks. The honors of authorship of the SQUARE ROOT VOLATILITY (SRV) theory belong to Norman G. Fosback. The SRV theory was first mentioned in Mr. Fosback's widely acclaimed book "STOCK MARKET LOGIC," first published in 1976. It is indeed an outstanding book of stock market indicators and theories, worthy of any serious market student's close attention.

The following description of the SRV theory is nearly verbatim from the text, except obviously where I apply it to Randgold & Exploration (RANGY) - which closed last Friday at $1.47. It is indeed noteworthy to remember that RANGY is still down 82% from its 12 month high in April 1997.

Square Root Volatility -
"Low priced stocks are more volatile than high priced stocks. A formal statement of that assertion is the Square Root Rule which hypothesizes that the magnitude of a stock's price move is directly related to the price of the stock: the lower the price of the stock the more volatile it is, and, the higher the price of the stock the less volatile it is.

Specifically, the Square Root Rule states that given a certain market advance, all stocks change in price by adding a constant amount to the square root of their beginning prices. For example, if the average priced stock advances from $25 to $36, the square root of the average price has moved from 5 (the square root of 25) to 6 (the square root of 36), or up 1 point. In accordance with the Square Root Rule, we would then expect all other stocks to add one point to the square root of their prices.

Hence, a $4 stock (whose square root is 2) should advance to 9. (the square root of 9 is 3), and a $100 stock (whose square root is 10) should advance to 121 (the square root of 121 is 11). The following table summarizes the results.

Note that although each stock adds 1 point to the square root of its beginning price, the percentage changes in actual prices are dramatically different. The lower the price of the stock, the greater is its percentage advance. And the higher the price of the stock, the less is its percentage advance.

In a declining market, when all stocks should lose the same number of point from the square root from their beginning prices, we would expect the lower priced stocks to decline more rapidly - and the higher priced issues to decline at a somewhat lesser rate. Unlike the Beta statistic, the SRV factor for a stock is always positive: All stocks are always expected to move in the same direction, albeit in different magnitudes, as the market goes. As a measure of expected performance for a single stock, this is, of course, somewhat unrealistic since all stocks do not always move in the same direction as the market. However, like the Beta statistic, as the portfolio becomes more broadly diversified, SRV becomes a better measure of expected percentage change. For very large portfolios it is extremely accurate. Indeed, the author's research reveals that SRV is usually superior to Beta as an estimator of future expected return, even though Betas are much better known, and more widely used.

Conclusion. Used independently or jointly, the Beta and SRV factors are valuable and highly functional stock selection tools. Most investors would improve their overall performance if they refined their market timing techniques, and simply resorted to holding highly volatile securities during bull markets."

Using Mr. Fosback's SRV factor, I would like to apply it to RANGY, whose price in mid-March was just a buck. For comparison purposes I will expand the sample table used above.

The starting price for RANGY is $1 - and 1 is the square root of 1. According to the SRV concept the ending price should increase the square root by one, making the new square root equal to 2, and therefore the ending price is $4. Consequently, according to Fosback's hypothesis the expected value for RANGY is $4, a quadrupling in price.

To illustrate the point we compared the recent low RANGY price with the approximate prices Crystallex International, Barrick Gold and Microsoft. The expected percent change per the SRV theory ranges from only 21% (Microsoft) to 300% (Randgold).

The price gains indicated above, can be reasonably expected during a bull market. Please bear in mind that Microsoft is now at an all-time high, whereas Randgold is down more than 80% from its 52 week high.

We all are aware that trading theories do not work at all times, but good theories tend to work most of the times. Any prudent investor will also consider other factors before investing in a particular stock. However, in light of all other positive fundamentals and favorable technical factors relating to RANGY, the SRV factor definitely reinforces my belief that the stock will closely follow the SRV theory in the looming gold bull market.

To summarize, the Square Root Volatility theory is based on the premise that lower priced stocks show greater price movements than higher priced stocks. Consequently, in a gold bull market one would expect a low priced gold stock like Randgold to enjoy much greater appreciation than a Crystallex International ($4), or a Barrick Gold ($25), or even a Microsoft ($100).

[marmayogi]

Sir,

Square Root law மூலம் bitcoin technical analysis செய்யும் trader நடக்கப்போவதை அப்படியே கணிக்கிறார். எப்படி calculate செய்வது ?. இதை பற்றி தெரிந்தால் ஒரு example சொல்லுங்க.

Specifically, the Square Root Rule states that given a certain market advance, all stocks change in price by adding a constant amount to the square root of their beginning prices. For example, if the average priced stock advances from $25 to $36, the square root of the average price has moved from 5 (the square root of 25) to 6 (the square root of 36), or up 1 point. In accordance with the Square Root Rule, we would then expect all other stocks to add one point to the square root of their prices.

Hence, a $4 stock (whose square root is 2) should advance to 9. (the square root of 9 is 3), and a $100 stock (whose square root is 10) should advance to 121 (the square root of 121 is 11). The following table summarizes the results.

[ஆதித்தன்]

please give 5 example from that traders recent opinion chart or explanation about next movement... i'll analysis and give topic about that Indicator strategy.

[marmayogi]

Time and price point of resistance in accordance with the squares of numbers.


Gunn wrote:

Market-based instruments tend to squares of different numbers, points of the triangle, the squares of their bases and tops, or to an intermediate point of the various squares according to the period of time.
Therefore, for us it is important to examine the levels of resistance according to these numbers. The squares of each number and the intermediate point located between the square of one number and the next is very important. For example:
The square of 2 = 4, square 3 = 9. The intermediate point between 4 and 9 = 6.5.
Square 4 = 16; squared 5 = 25.Promezhutochnaya point between 16 and 25 = 20.5.
The square of 6 = 36; square 7 = 49: The intermediate point between 36 and 49 = 42,5.
The square of 8 = 64: the square of 9 = 81. The intermediate point between 64 and 81 = 72.5.
Square 10 = 100, square 11 = 121. The intermediate point between 100 and 121 = 110.5.
Square 12 = 144, square 13 = 169. intermediate point between 144 and 169 = 132.5.
If we carefully examine the number of the «Square of Nine» or «odd and even graphs, we see that the squares of the same in the same corner of the center. Odd squares 1,9,25,49,81 and so forth, go from the center down to the lower left corner. Even the squares of 4, 16, 36, 64, 100 and so on, go from the center to the upper right corner.
Since the distance from 16 (four squares) to 25 (five squares) is 180 degrees around the schedule, it becomes clear why Gann was expecting a change in trend rates of 180 degrees or «on uglu180. Likewise, he expected the changes to 90 degrees (half a square) and 360 degrees (two squares).
Square progression seems to work better with three signs. If you study the market with the price, containing the four characters, then try to reduce the number of characters to get the number that you can use the chart. Similarly, if you study the market instrument with a low price, then add a zero or move the decimal place to get three significant mark.

Investigate the use of «square. Nine «in the calculation of price support and resistance.
Gunn gave clear instructions about where to expect such support and resistance, to «Kvadrat Nine». Gunn repeatedly returned to the corners, because they describe the geometry of the square (0, 90, 180, 360 degrees), which can then be placed in a circle. Thus, the well-known term «squaring the circle» becomes a reality.
Placing these corners of the squares of natural graph from the center, one step from a natural square to the next is 180 degrees. Middle between the squares is reached at 90 degrees and a full cycle or circle of 360 degrees is two full square from its starting point.
The first example describes the market of the December contracts for wheat in 2002
Maximum of 319 was made in early January. In early May, the market observes a minimum at around 283, 05.
Calculate the square root of this movement. The square root of 319 = 17.86
Square koren283, 05 = 16,84
17,86 — 16,84 = 1,02, which is within, 02 completing the square. It is easy to see at the «Kvadrat Nine», found 319 just right in the corner, rising up from the center towards 12:00 hours. Then 180 degrees, or directly opposite the bottom, is at least 283.

The following example describes the S & P-mini contracts on electronic trading, this is a smaller version of the stock index S & P.

The market showed a maximum of 7 January at around 1178.5. Interim least the subsequent peak was recorded February 20 at around 1073.75. then on March 19 the market rose to a double top at elevation 1177.5. Then on May 7 market made a lower swing to 1,045.75.
I follow the formula of the square root, we obtain the following meanings:
The square root of 1178.5 = 34.33
The square root of 1073.76 = 32.77
34.33-32.77 = 1.56 or only 06 of the movement of 1,5 square or 270 degrees.

The next move back to 1177.5 obviously also be 270 degrees.
Then:
The square root of 1177.5 = 34.31
The square root of 1045.75 = 32.34
34.31-32.34 = 1.97 or only .03 of motion in 2 full square or 360 degrees.

It is easy to see at «square. Nine «location 1178 on the right side just below the angle from the center towards the 3:00 o’clock. The first movement is obtained at least 270 degrees counterclockwise to 1074. Second minimum — 1045 is located near the peaks in 1177 and 1178

[marmayogi]

Main and Serial Cross

«Square. Nine «or as it is called the» Pythagorean Cube «or» calculator odd squares is considered one of the most important trading tools Hannah. Gunn used the «square. Nine «ring dates from above, it can rotate around the center. This ring is allowed to shift the dates of the values most important tops and bottoms.
No rolling ring date calculator «Square of Nine» can not be synchronized with the current market vibration.

Then continuous schedule presented at the December corn. According to Hanna, we have put together the December contracts for corn, forming one continuous contract for grain, containing only the December contract. The main maximum is shown in this chart on December 28 200g. Price $ 2.62.

Gunn has repeatedly described the main Cross (angles of 90, 180, 270 and 360 degrees) as the most important point of support and resistance. The second most important was the Ordinal Cross (angles of 45, 135, 225 and 315 degrees).

Counting time on the calculator for the main peak in the price of 262 (Price changed to a three-digit value), we moved the price of Main Cross and ordinal Cross so that they are in harmony with the vibration of the market. To do this on «Natural Squares Calculator» moves the center ring so that the line of zero degrees was the price of 262.

Now we have created a new Chief of the Cross and Ordinal Cross. Main numbers moved from 249 to 245 ½, from 233 to 229 ½, from 218 to 215 and from 204 to 201 ½. Ordinal numbers Cross moved from 257 to 253, from 241 to 237, from 225 to 221 and from 211 k207. From that moment on, any reference to the number of main sequence and Cross will refer to the «displaced» numbers.

From the main peak in the 262 market made the first move down to point number 2 on the 243, keeping within the 2 ½ cents on the support of 90 degrees Chief Cross. Then he made 2 more attempts on the same level, finally rose from the triple bottom to the maximum, marked by number 3. Price at point number 3 is 252, that is exactly equal to half the distance from the number 1 to number 2 and also 45 degrees ordinal Cross.

The next move is down to point number 4 on the price, which is located at 180 degrees Chief Cross. Gunn said that the most powerful angle is an angle of 180 degrees, making it a place for a potential rally. Rise to the point number 5 stopped at 241 ½, that «non-displaced» ordinal Cross provides resistance.
The next move down to number 6 stood at 220, which is located in one cents of 225 degrees ordinal Cross, from where the rally back up to number 7 to the old base of 230, which again is 180 degrees of Main Cross.
Again the movement down through the old foundation on the price of 220 and 270 degrees of Main Cross to 315-degree support ordinal Cross on the price of 206 ½ — point number 8. Rally back to number 9 back to the old price of the base and 225 degrees of the ordinal numbers.

The final movement to the base at point number 10 goes up the price 202 ½, which is located within a single penny from 360 degrees of Main Cross and next after the beginning of costs 262.

Of these 5 waves down amounted to almost exactly 135 degrees on the calculator. They were from number 3 to number 4 (from 45 degrees to 180 degrees), from number 7 to number 8 (180 degrees-315 degrees) and the number 9 to number 10 9225 degrees-360 degrees)

[marmayogi]

The numbers in the analysis

Gann was a rare mathematician. He was a pupil numbers, numerical theories and numerical progression. As the study of his works begin to understand that some numbers occupy a dominant place in his method of trading for the reasons of various kinds: some — religious and spiritual, while others — the historical and the third — psychological. Most often he cites such numbers as 7, 9, 12 and 144. Number of 3,5 Gann considered as important as it is half of 7-ki, as in the Bible, it appears many times (Gann believed it — the most important book of all time). Also, the squares of numbers figured prominently in his works: 16, 25, 36, 49, 64, 121 and 144.

Hanna Instruments

Gann believed that between the time and the price is an ideal ratio, if the price rises or falls at an angle of 45 degrees to the time axis. This angle is denoted by «1×1″ and corresponds to a unitary increment in the price for each unit time interval.

Fan Gann (Gann Fan)

Lines of Gann Fan (Gann Fan) are built at different angles from an important base or top of the price chart. The trend line of 1×1 Gann considered the most important. The price curve above this line is a sign of the bull market, and below it — a bear. Gann thought that the ray of 1×1 is a powerful support line when an upward trend, and breaking this line considered as an important signal a turn. Gann emphasized the following nine basic angles, the angle of 1×1 is the most important:

 1X8 — 82,5 degrees
 1X4 — 75 degrees
 1×3 — 71.25 degrees
 1×2 — 63.75 degrees
 1×1 — 45 degrees
 2×1 — 26.25 degrees
 3×1 — 18.75 degrees
 4×1 — 15 degrees
 8×1 — 7,5 degrees

The considered ratios of price and time increments to have corresponding angles in degrees, X and Y axes must have the same magnitude. This means that the unit interval on the axis X (ie, hour, day, week, month) must correspond to the unit interval on the axis Y. The simplest method of chart calibration consists in checking the angle of inclination of the ray of 1×1: it should be 45 degrees.
Gann noted that each of the above-listed rays can serve as a support or resistance depending on the direction of price trends. For example, if an upward trend ray of 1×1 is usually the most important support line. If prices fall below the line of 1×1 indicates the trend turns. According to Gann, prices should fall to the next trend line (in this case, the ray of 2×1). In other words, if one of the beams broken, we should expect consolidation of prices near the next ray.

Line Gann (Gann Line)

Line Gann (Gann Line) is a line drawn at an angle of 45 degrees. This line is also called «one to one» (1×1), that means one price change per unit of time.
According to Gann’s concept, the line at an angle of forty-five degrees represents a long-term trendline (ascending or descending). While prices are above the ascending line, the market holds bull direction. If prices hold below descending line, the market is characterized as a bear. Intersection of Gann Line usually signals of the main trend. When the price during the upward trend down to this line, time and price become fully balanced. The further intersection of Gann Line is the evidence of breaking of this balance and possible changing the trend.

To build a Gann Line is necessary to define two points.

Grid Gann (Gann Grid)

Grid Gann (Gann Grid) represents trends built at an angle of 45 degrees (Gann Lines). According to Gann’s concept, a line of forty-five degrees represents a long-term trendline (ascending or descending). While prices are above the ascending line, the market holds bull direction. If prices hold below descending line, the market is characterized as a bear. Intersection of Gann Line usually signals of the main trend. When the price during the upward trend down to this line, time and price become fully balanced. The further intersection of Gann Lines is an evidence of breaking of this balance and possible changing the trend.

To build a Gann Grid must specify two points defining the size of cells

Market vibration

Description of the vibrations being reported in the WD Gann in the first half of the 20 th century and how to evaluate them Billy Jones 20 years ago, working on the same principle and on the market today.
This confirms the fact that Gunn was right when he wrote:
Human nature never changes. For this reason, history repeats itself, and the markets are almost exactly the same under certain conditions, year after year and in different time cycles.
The first graph, shown below, displays the wheat market in May 1998. Which is the same product and in the same month that Billy used in 1982. It begins with a maximum of 29 August 1997. and continues with a period of 36 trading days of the 21 th of October, 11 th December, and February 4, 1998.
In the example, which used Billy, the market was trading up 36 cents every 36 days. This was an example of the market traded at an angle of 1 X 1, moving to the degree of change of one cent per day. In the example below, the market traded down 18 cents every 36 trading days. This corresponds to the corner of 1 X 2, with the movement of the market down to the degree of change of 0.5 cents per day.
One interesting reason for this less steep line is that markets are moving faster at higher levels than at low levels. This laid the same principle as in the centrifugal force. The farther an object is from the center or «0″, the faster it must move in order to maintain an equilibrium balance.
In the example used the May wheat, it is trading at price levels of $ 3.40 to $ 4.00 per bushel (35.2 liters). In the example used by Billy Jones, it was trading at $ 4.50 — $ 5.75 per bushel.
In addition to trade very close to the average number of vibrations of the price of 0.5 cents per day, the market provides for trading in the vibrations of the top of fluctuations within a day or two after starting 36 trading days.

The second chart shows the pork market in October 2001. The minimum was recorded before — September 20, 2001. Addendum 36 trading days yields 9 November 2000., 3rd January 2001. and the 26th of February 2001.
Gann angles on this chart is the angle of 1 X 2 built up from the base. Scale graphics — 10 cents per pound. Therefore, the angle of 1 X 2 from the base moves up to the degree of change of 5 cents per pound.
The combination of the angle of 1 X 2 and counting 36 trading days as indicated by vertical dotted lines determine within three trading days of the substantial basis fluctuations.
Horizontal dotted lines indicate that at least these days the «vibrations» are significant because they are not overcome by subsequent market movements. If a trader is in a long position in the deployment of stop orders, which take into account the angle, and swing down these days, it can be obtained as a result of a very large profit.

[marmayogi]

Trade Zone

Many methods Gunn, used them in their trading and technical analysis, have gone unnoticed after his death. In the study of his old charts and records some of these methods have been disclosed. Do not know why Gunn does not mention them, unless it is believed that they required a lot of time to test and confirm its reliability. Notwithstanding this reason, we believe that some of these methods are interesting and useful for trade and market analysis.
One of these techniques — «Zone System». This is a fairly simple method, and certainly he deserves attention. As you can see on the graphic example below, which is taken as a timetable for the May wheat, the Zone system uses an angle of 45 degrees [1 x 1], the delayed up from various points of the earlier motion under consideration. These zonal lines will divide the continuing movement of three important sections, or zones, which, after it had been established, will not be changed. Initially, other lines will also be used, but after a while, some of these lines will be discarded, and you can select a main unit that will remain the same throughout the market movement. Experience, as in most cases, to generate trial and error. As with most systems, the Zone System works best in a trending market (bullish or bearish), but not at a bleak side market in periods of consolidation. As soon as the movement is gaining momentum, and the trend has been established, the main zonal divisions become final. The ideal shopping zone, established in the early movement, will not change as we move the market. The same is true for areas of sales. This means that you had to buy the May wheat (see the example) at 472 and it turned out, it would be a good buy, given the subsequent increase in prices. You’ll have similar results if you buy at 492 or the subsequent movement in the area shopping. Shopping should be implemented as the market moves down to the shopping area. You should sell when the market moves in the area of sales. If you are a short-term trader, then you must buy in the area of buying and hold until the price reaches the area of sales. At this time you should sell and go into the short side. If you are a long-term trader, you have to buy whenever the market enters a zone of purchases, adding to your position, while the general movement will not be completed. The implementation of input and output can be used by different methods. It is assumed that you will use the graphical
system of «one on one. In this case, the angle of 45 degrees defines a zone. If you are using a different unit price and time, it may be necessary in the other corner, but not 45 degrees, to set the correct zone. Zone system can be used in conjunction with a mechanical method of Gunn and an indicator of the trend line.
These methods can be used for both short-and long-term time scales. Must be remembered that this is just one more technological tool, which is designed to help you analyze the market. It should be used in combination with other methods of technical analysis that will allow you to trade successfully.

Pyramid market

Communication costs and time
Analysts methods Gunn spent years studying old charts and records in the search for the secrets of Gann, and countless people continue to claim they have found new nuances technology Gunn, who escaped from the others. Perhaps someone and found
Don Hall has published a book and developed a system called the pyramidal point (Pyrapoint), which seems to be based on the principles of Gunn. The purpose of this article is to take one of the ideas used in the work of Don, and present it from different points of view and do on the basis of this conclusion.
Geometric Gann angles are a trend-lines drawn from obvious top or bottom under some angles. The most important angle is 45gradusov, which means that the slope of the line is one unit price per unit of time. (Note: Depending on the size chart, the line might look like, and maybe no, held at an angle 45gradusov). Many analysts Gunn used the phrase «the square of time and price» in the method of the Don, it is expressed as follows:
Price = Time squared or P = t 2
This relationship between price and time can be represented graphically, as shown in the diagram below. Values of time 10, 20, and 30 are marked by arrows.
For clarity, let’s take a visible top or bottom, which arose at the price of 400. According to the theory, the essential point is a mathematical bunch. Start a new curve of time in this time point, and it will give us the expectation of future top or bottom, which should appear on this curve. This principle can be expressed as, «When the price meets time, change is inevitable.» This ratio «price meets the time» shown in the following diagram.

Since the visible top or bottom in P, if the price meets the curve at point (A), then it will do so at 18 bar. Time point (A) equals the square root of the price at the point (A). Price point (A) equals 324. The square root of 324 is 18.
If the price meets the curve at point (B), then it will do so at 20 bar. Time for a point (B) equals the square root of the price at the point (B). Price point (B) = 400, so the time for B = 20 bars.
If the price meets the curve at the point of ©, then it will do it at 22 bar. This is a very interesting concept!
Remember that the price and time are related by the formula: P = t2 or t = square. root (P)
The slope of the trend line
Now we will go further and determine the slope of the trend line obtained using the relationship of price and time. Let’s look at the following model:

As was shown in the previous section, the next time the curve will need to go t bars to achieve the price P. At time t +1 price meets the curve at the price of P1. Now, let’s find the slope of the trend line that connects the P and P1 (shown in blue).
P = t2
P1 = (t + 1) 2 = t2 + 2 t + 1 = P + 2 t + 1
Slope = (change in price) / (change time)
Price Change = P1-P = P +2 t +1- P = 2t +1 = 2 t +2-1 = 2 [t +1] -1
Changing the time = t + 1
Therefore, the slope of the P and P1 = (2 [t +1] -1) / (t +1) = 2-1 / (t +1) = 2-1 / sq. root (P1)
If we give all the prices to a three-digit numbers, then they will be in the range [100 ... 1000]. With price limits in the slope formula, we can get a tilt range as follows:
For the price P1 at 100, the slope of the rising trend line to 100 = 2 — 1 / 10 = 1.9
For P1 of 1000, the slope of the rising trend line to 1000 = 2 — 1 / 100 = 1.99
The slope of the rising trend line in the middle of this price range is 2 — 1 / sq. root (500) = 1.96
Let’s call this trend line line in 45grad. Because we expected the slope, using one unit of price change from P to P1 with one unit of time t. For this line of 45o, the slope is mainly equal to 2. I think this explains why Gann used 2 cents as a range of price grid on its daily charts. This arrangement of the scale naturally gave Gann angles in 45grad. with a slope of 2 cents per day bar. I showed that 2 is the slope of the rising trend line at 45o, which is obtained from the ratio of price and time specified in the formula: P = t2.
You can obtain this result for the slope of the descending trend line from P1 to P:
The slope of P1 to P = (- 2 t — 1) / (t — 1) = (- 2 [t - 1] — 3) / (t — 1) = -2 — 3 / (t — 1) = — 2 — 3 / (square root of (P) — 1)
For the price P equal to 100, the slope of the descending trend line and 100 = -2 — 3 / 9 = — 2.33
For P equal to 1000, the slope of the descending trend line to 1000 = — 2 — 3 / 99 = — 2.03
Again, the slope of the descending trend line approaches the value — 2. Consequently, — 2 is a good approximation to the slope of 45o for the descending trend line.
Application of the pyramidal points

Now let’s see how the above calculations can be applied to the price chart. I used these calculations to develop a tool for analysis in ESPL, which holds the horizontal lines at the settlement price levels, and nearly vertical curves through the calculated time intervals. This forms a trapezoidal grid similar to the previous illustration. (Don Hall calls them «squares»). Diagonal lines connect the corners of the trapezoid for the trend line support and resistance.
Below is a daily chart JNPR with the start of construction of a trapezoidal grid at the highest peak. All price levels, time intervals, and trend lines are constructed mathematically on the basis of two initial values: price — $ 244.50 and the date — 16.10.2000g.

The graph is represented much more than can be explained in this article. However, we point out the main characteristics. Horizontal price lines are designated on the left, which is the degree of rotation around the Square of 9. This is described in the book of the pyramidal points, but it is not possible to explain in this article. Note that in this example, the time line is almost vertical. This is some kind of construction method, described in the book, which uses a vertical line. The curve of time generates the left and right sides
trapezoid, and price levels form the side of the base and top.
Time: Time is measured by time curve, which relates to price. Remember: When the price meets time, change is inevitable. Note for the first time, when the line is designated 12 in the base and 16 at the top. If the price meets time to 720 horizontal, then the time for change would be the 12th bar from the top. If the price meets time to 540 horizontal, then the time for change would be the 13th bar from the top. For the 360 horizontal change in the time it would be in the 14th bar. For the 180 horizontally, the time change would be in the 15th bar. At 0 tench, it would be at 16 bar. That is why the top line of time is marked 16, and the bottom line is marked 12. Starting with 16, for each 180o reduction through time is reduced by one bar, or 180o for each increase, by increasing the time at the bar. Please note that the market has really felt the change when the price met with the curve of time, marked from 12 to 16!
Price 12 — 16 temporary lines used to obtain predicted values for the following time lines, which is labeled 25 — 31. As the price meets every curve of the time, the new curve of time is calculated based on the price. Each of the curves of time demonstrates excellent correlation with the change in the market when the price meets the line of time.
Price: visible maximum — $ 244.50 is the basis for the calculation of horizontal price levels, which are shown. Remember: the market is looking for these price levels, and you can calculate these costs in advance. Notice how the market fell to 540 horizontal, up to 180 horizontal, fell to the 900 level, up to 540 level fell to 1080 levels, and rose to the 720 level.
Trend lines: the descending trend lines in 45o, shown in red create a price channel, or as Don calls him — «road pricing». Emerging trend lines in 45o, shown in green create a «road pricing», which goes in another direction. Red lines — a resistance line above which should close the market to change direction from bearish to bullish. Green Line — is a support line, below which should close the market to change direction from bullish to bearish. We used the rising trend line drawn below the lows in an uptrend, showing support, and the descending trend line drawn above the highs in an uptrend, to indicate resistance. The advantage of the above tools is that the diagonal trend lines are computed in advance, and the market seems to agree on their movement with them. Price should be up and down the channels. The more you study the examples, so I think the more you will enjoy this tool.
Intraday charts

Technique pyramidal points can also be successfully applied to intraday charts. The size of the price range that is used on the daily chart, it will be too large for use on the intraday chart. No problem. Don points out that there are squares within squares. All you need to do — is to divide the price range in half, quarters, or eight parts. The time interval is calculated from the price, and will not change.
One point that needs to be clear: If the calculated interval is 11 bars, as the price is 121, what is the intra-day time frame should I use? If you use 1-minute bars, we have the curves

time 11 minutes. If you are using 2-minute bars, the curves of time would take place in 22 minutes. At 5-minute bars, the curves of time are carried out in 55 minutes. The choice of intra-day format of bars depends strongly on the time interval calculated for the next time curve.
To solve this problem, I displayed a 1-minute chart and use the cyclical instrument to measure the rhythm of the cycle from base to base, from the top to the top and from the base to the top. When I found the width of the cycle, which seems appropriate to catch the multiple turning points, I found the number of minutes in the cycle. I use this formula to assess the use of intra-day time frame.
Within-day time frame bar width = cycles per minute / sq. root (P)
Example: At 1-minute chart JNPR I found a cycle in 65 minutes, when the price was about $ 133. Therefore, the time format bar = 65 / sq. root (133) = 5.6 minutes in a bar. Thus, 6-minute schedule or, possibly, 5-minute chart should show good results using a tool of pyramidal points. In the study of 5-minute chart we really find excellent correlation. In this example, I used a smaller price intervals for the separation of 180o-s intervals in eight parts.

Look at the graph, and you will see how the price moves up and down trend channel. Notice how the trend changes occur at or near vertical curves of the time, and how the market is looking for horizontal price levels. This is a detailed diagram of the price movement is calculated in advance of the visible peaks reached January 12, at 9:35 am.

[marmayogi]

Market Geometry Gunn

Howard Arington WD Gann developed several unique methods for the study of price charts, and the central part of its methods were geometric angles of price and time. Let’s look at how you can use the intersection of the primary Gann angles to predict the time reversal of price movements. I do not know whether to use this technique Gunn himself, but to me it seemed interesting and I want to present it to you in the form, as I understand it.
In my example I’ll use the daily chart of «JDS Uniphase». I do not give any investment advice, but only show the progression of his thoughts, to detect the timing of the market, using Gann angles. The basic principle of this theory: upward angle of Hanna will be placed on the schedule at a significant reversal minimum, and downward angle of Hanna will be available at a significant turning point of the maximum. Initially we are interested in the intersection of lines 1×1 with horizontal lines, and the intersection of two lines, 1×1. In this example, these intersections are marked with red arrows.

For clarity, the first picture I showed only the intersection lines of 1×1. However, I also regard the line 2×1 and 1×2, and their intersection, and show them to my pictures on the daily chart JDSU. I started with a clean graphics JDSU and first tried to find an appropriate balance between price and time to be used as a line of 1×1. For this I use a special tool Gunn graphics program «Ensign Windows» and set the default settings to show only the corners of 1×1, 2×1 and 1×2. Also, I check the option to use the value of the maximum or minimum bar to accommodate the top. 1×1 lines drawn in blue, while the line of 2×1 and 1×2 are shown in red.
The first peak was placed in a substantial minimum 05.10.1998g. I adapted accommodation through 1×1, so it is visually in line with market movement. I tried to develop a trend going on along these lines, or they provide the support and resistance. The greater the correlation can be found, so they are better suited. Since the peak is placed on the schedule, the program shows the relationship between price and time as the number of vertices. I see this number and try to choose a value price and time 1×1, which is a derivative of the unit price, or has some relationship to the number of Gann, Fibonacci number, or part of the circle. My first vertex 05.10.1998g. coincided with the value 1×1 equal to 21.0. This means that the line of 1×1 is increasing at a rate 21 cents a day. I am satisfied with the value 21, because it is a number sequence Gunn, and the number of the Fibonacci sequence.

To accommodate additional peaks Gunn from recent significant highs and lows, I will expand the range of bars. I find the new value of 1×1, as the volatility of JDSU in 2000. much more than in 1998. I find that the slope of the 1×1 at 60 cents for one bar fits, and I want to use the 60 as the value of 1×1 for all vertices in subsequent studies. It fits the number 60, because it is also an entire part of a circle of 360 degrees, while 58, 59, 61, and 62 are not. I added the upward peak in the minimum of 15.12.1999g. and the downward peak at the maximum of 21.01.2000g. to see how the intersection of costs and time may occur.
I noted the intersection, which predict a time, turning the red arrows. Vertical green lines carried by the red arrows to the intersection for better visibility. Note that the reduction of the line 2×1 (cool red) was a useful intersection with all four lines from the ascending peaks Gunn conducted from minimum 15.12.1999g.
Gann Angles also provide support and resistance, and many of these points were marked by horizontal blue arrows. As seen from the example, when the angular line is crossed, then the price will move and consolidate at the next line.

For this example was taken daily chart of JDSU, but I am sure that similar results can be obtained as for any other marketing tool, as well as other temporary format. However, you yourself must carefully study the feasibility of the proposed technology for its trading strategy. In addition, I do not believe that the proposed study is an unconditional and final, and I hope that you, your research, be able to find something new and interesting.
The use of graphics programs

Technical tool «Gann Squares» in the graphics program «Ensign Windows» is a very flexible and can be used to show trends, timing, and price levels. «Squares Gunn» indicate the possible time and price movements from important highs and lows. To build the «Gann Squares» on the schedule required start and end points. Since «Gann Squares» indicate the possible values for the future of bars, it is often useful to move the bar graph to the left, so that the right of the graph was a clean place. To construct the «Gann Squares» on the graph move the cursor on the chart to the starting point. The starting point in the general case is an important maximum or a minimum on the graph. Then the cursor reaches the right, until the desired end point is not reached. The starting and ending points are corners of the square. Endpoint is often located on the right edge of the graph. Let’s see, looks like a form to establish the parameters of the instrument.

Price
Kvadrat Gunn «may hold the horizontal lines on the price levels shown in the horizontal tagged list. These price levels are similar to those that could be built using Fibonacci price levels. Should follow the trend, to change the direction of price levels Squares Gunn.
Time
Kvadrat Gunn «may hold the vertical lines in the intervals shown in the vertical tagged list. These vertical lines are similar to those that could be built using Cyclic tools. Follow the trend to change the time intervals Squares Gunn.
Tool Square sausages with horizontal price levels and with vertical time intervals is shown below.

In our example, the parameters 1/8-oy, 1/4-y, 3/8-oy, and Midpoint were tested for both horizontal levels, and for vertical intervals. Thus, our square is divided both horizontally and vertically into eight parts. Lines 3 / 8 and 5 / 8 are shown in red.
Another type for Squares Gunn «would test parameter radial lines, which is shown in the example of filling out a form for the parameters. When the option is awarded fan Lines, the tool moves from a horizontal and vertical lines for the Gann fan lines from the four corners, as shown below.

Fan lines held prior to the angles of the same eight points on the perimeter of the square used in the horizontal and vertical lines in the previous example. Horizontal marked list select the point used by two radial lines, the apex of which is on the left side of the square. Vertical marked list select the point used by two radial lines, the apex of which is on the right side of the square. A common configuration for these fan lines would have to maintain two corners on the left side, but to remove two corners on the right side, without checking all options in a vertical list of options other than the perimeter.
In addition to the prediction of time reversal at the intersection of the primary Gann angles, which were considered above. Gann Lines also provide support and resistance, many of which can be easily detected in the above graphic example.
Gann Squares
Now let’s look at the results of the next study that I conducted. I decided to place the tool «Square Gunn» on the chart with a vertical mid-point

a maximum of 7 January 2000. The square was placed with the left edge of the January 7, and stretch so that the horizontal mid-point aligned with a minimum of 13 September. The base of the square was placed at least 13 September. The following is a picture that I received.

Measurement of
I placed the left edge on 7 January 2000. and handed the square, so that the horizontal midpoint to align with a minimum of 13 September 2000. Interestingly, a maximum of 16 January 2001. coincided with the point 3 / 4 square! This time is indicated by a red arrow above the side of the square, indicating the highest high in the chart.
I also noticed that on 6 January 2000. Moon was! On 13 September, it was full moon.
Support and Resistance
Arrows are marked on the chart support or resistance provided by radial lines, which are held from 4 corners of the square. From the above graph shows that the price movement is not accidental, but is quite susceptible mathematically sound forecasting.
Reverse engineering
In my example, I used the GUI tool «Square Gunn, drawn from recent peaks at 5-minute chart JNPR. Maximum was 6 February 2001. and amounted to $ 106.50. Let us apply the technique based on the theory of the square root (see «Pyramid of the market» at number 18) to obtain the projected price:
1) The square root of 106.50 = $ 10.320
2) subtracting 1, we obtain 9.320
3) The square of 9.320 = $ 86.86
Price 86.86 is 180 degrees around the square Hanna of the Nine of the price of $ 106.50. Therefore, since I have two prices, which independently provide 180 degrees, I will choose the width of the square of 180 bars. This result showing 1×1, 1×2 and 2×1 fan lines from the four corners of the square Gunn.

The left top corner is a smaller peak trend at around $ 106.50. Lower right corner is at 180 degrees on the price of $ 86.86 and at 180 bars to the right. Note a few key points:
1. Red Line 1×2 from the top left corner stopped the restoration of 138 bar on the price of $ 98,875.
2. Red Line 1×2 from the lower left corner stopped the fall of 97 bar on the price of $ 92.
3. Two red lines 1×2, referred to in paragraphs 1) and 2) and stopped the restoration of the bar 186 to the price of $ 96.75.
4. Trend is moving up and down on the two red lines 2×1 right-hand corner.
The example also shows the construction of the pyramidal points, started with the same at the top of the trend. The design of the pyramidal points includes a number of horizontal price levels bright blue, pale red and green diagonal lines, and turquoise vertical lines. Here we can see how the two tools work together

[marmayogi]

sir,

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