Here is an example of the technique described in chapter 4 of the book, The Definitive Guide to Forecasting Using W.D.Gann’s Square of Nine. This indicator is listed in MarketWarrior as Sq9 Chapter 4. This is an excellent time cycle method that is fairly accurate in finding tops and bottoms if you are willing to take the time to set the method up.
The charts below all show the weekly chart for the S&P500. On the first chart I have added the indicator Sq9 Chapter 4 and started the time cycle count at the major top in the year 2000. In the indicator settings, I have set only the time counts that are on the Square of Nine’s 135 degree angle to draw. The time counts on the 135 degree angle shown on this chart are 13, 31, 57 and 91. The 135 degree count values of 57 and 91 were close to market tuning points.
The second picture shows the next section of this chart. The new time counts on the 135 degree angle shown on this chart are 133, 183. The 135 degree count 133 was close to market tuning points.
The third picture shows more of this chart. The new time counts on the 135 degree angle shown on this chart are 381, 463. Both of these count values were close to market tuning points. The dark arching line in this picture is the 100 period moving average. This is a standard tool I look at on weekly charts. Notice at A the S&P500 made a top on this line.
The final chart shows the next cycle count from the Square of Nine’s 135 degree angle is 553 and is coming soon. This count values come in the last week of October. Because the market is moving up into this time I would expect this to be a top. Notice the points B and C. The S&P500 made bottoms on the 100 period moving average. This moving average is the bottom price target after a top occurs.