Instead of individual stocks, anyone game to take a look at the chart of the XJO tonight?
The great trading masters of old, William Dunnigan, William Fosback and William Proctor ( Templeton Touch ) variously taught that prices are harmonically related eg square root relationship between the high and lows of prices.
"We use the square of odd and even numbers to get not only the proof of market movements, but the cause."W. D. Gann, "The Basis of My Forecasting Method" (the Geometrical Angles course) ( Gann drew circles within squares etc.)
Following the style of Dunnigan & Gann, by choosing the most recent range low at A to high at B, I have drawn a circle over that range and encased it within a square and repeated the process by a square root iteration to see whether we can identify any of such square root relationship between the highs and the lows of prices.
This is what I found:
Observations ============
1. Points marked 1,2,3,4,5 and 6 which are the places where prices move beyond the edge of the square with the circle represents the exact or near exact points where prices undergo a change in trend...indicating a sort of harmonic relationship geometrically.
2. We are nearing point 7, which coincidentaly falls on the beginning of the chord length of a bottom for the short term cycle ( as shown in my previous charts on cycles and vibration)- indicating that we are moving into the time window for a projected CIT.
3. The square root relationship indicates 2nd May as the start of that time window, while the centre of the chord length is 5th May based on gann vibration number of 49, but as we have seen on past posts on the vibration cycles, there has been a variation or run off of around plus minus 3 days in the past. So we are looking at an approximate time period for the on coming CIT and not a precise date.
4. We can deduce that past inferences of the square root relationships provide some semblance of timing projection for the future... Remember, we have also seen some relationship by drawing the pentagon pattern as well ( first post in this thread ). We are merely trying to use historical occurrences to project into the future...and that is a really imprecise science:)
Well, let's watch and see how things go...remember this chart is for pure entertainment purposes and is not suitable for trading purposes:) Also do refer to the XJO thread in the ASX by stock forum to read of the various fine analysis of the XJO by the gurus if you want more than this simple chart here in the charting forum. Cheers!
(20min delay)