Tag Archives: Square of 9

Sep 6 2011

The Square of Nine and Exxon Mobil

Written by:
Patrick Mikula CTA
Mikula Forecasting Company
www.MikulaForecasting.com
support@MikulaForecasting.com
Copyright © 2011 by Patrick Mikula All Rights Reserved

Here is a current example showing how to use the Square of Nine. This example uses the method described in Chapter 3 of my Square of Nine book The Definitive Guide to Forecasting Using W.D.Gann’s Square of Nine.  To use this method, you need to select a starting point Change In Trend (CIT). This is used as the starting price on the Square of Nine. This indicator will then draw support and resistance lines based on the 90 degree, 180 degree and 360 degree movements around the Square of Nine. The picture below shows the daily Exxon Mobil (XOM) chart. On this chart I have used the top in July 2011 for the starting point.  This is identified as point A. Notice that the stock price fell to point B1 which was right on top the -180 degree line. Also on this chart I have added the momentum indicator Stochastic Smoothed. The reading on this indicator is very low, close to zero, which indicates a bottom when the price reached the -180 degree line. I like to combine Square of Nine price levels and momentum.  Next notice the XOM stock price has  risen but has failed to reach the next higher line which is the -90 degree line. This failure indicates continued weakness. This is identified as point C. Given the failure to reach -90 degree line the price will probably fall back to the -180 degree line. Markets like XOM will often bounce between Square of Nine support and resistance lines.

20110906_post568.png

Click To Enlarge: Square of Nine and XOM

End

Oct 12 2010

Forecasting a Top in The S&P500 With the Square of Nine Chapter 4 Method

Written by:
Patrick Mikula CTA
Mikula Forecasting Company
www.MikulaForecasting.com
support@MikulaForecasting.com
Copyright © 2010 by Patrick Mikula All Rights Reserved

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.

20101012_post546a.png

Square of Nine Chapter 4 Pic #1

20101012_post546b.png

Square of Nine Chapter 4 Pic #2

20101012_post546c.png

Square of Nine Chapter 4 Pic #3

20101012_post546d.png

Square of Nine Chapter 4 Pic #4

End

Oct 4 2010

Commitments of Traders Reports

Written by:
Patrick Mikula CTA
Mikula Forecasting Company
www.MikulaForecasting.com
support@MikulaForecasting.com
Copyright © 2010 by Patrick Mikula All Rights Reserved

The Commitments of Traders (COT) reports are released at 3:30PM Eastern time usually on Friday by the US government’s CFTC.  This report shows the number of futures contracts that are being held by different groups of traders. The categories of traders are Large Speculators, Hedgers or Commercials and Small Traders. The COT breaks down the positions based on long and short positions held by each group. Normally these reports do not cause the market to move but sometimes there is a surprise in the COT and it causes a big move in a market. If the report shows a large change in the positions held by the large speculators or the hedgers it can cause a rush to exit or enter the market. Because the COT is released late on Friday it usually means a trader has the weekend to take a look at the report and the effect in the market will occur on the following Monday. Below are the COT release dates for the rest of 2010.

October
1, 8, 15, 22, 29

November
5, 15, 19, 29

December
3, 10, 17, 27

End

Sep 23 2010

Square of Nine and 5 Minute Gold

Written by:
Patrick Mikula CTA
Mikula Forecasting Company
www.MikulaForecasting.com
support@MikulaForecasting.com
Copyright © 2010 by Patrick Mikula All Rights Reserved

The chart below shows a 5 minute chart for the mini gold, symbol YG. This chart is for October 4, 2010.  The high to low price ranges for this market have been abnormally small for the past two months. The price of gold is currently at $1,310 per ounce. With prices at this level, a normal high to low price range would be 15 to 20 dollars per ounce. The price range on this day was a normal size range of 20 dollars per ounce.

On the chart below, I have added the MarketWarrior indicator Square of Nine Chapter 2. This indicator is drawing two support and resistance price levels at 1315 and 1297. These two price levels were close to the high and low of the day.

When the price of gold again starts forming normal size ranges, the Square of Nine will start finding accurate support and resistance levels as it has done in the past during times or normal volatility.

20100923_post538.png

Square of Nine and Gold

End

Mar 30 2010

Square of Nine Price Targets for Google

Written by:
Patrick Mikula CTA
Mikula Forecasting Company
www.MikulaForecasting.com
support@MikulaForecasting.com
Copyright © 2010 by Patrick Mikula All Rights Reserved

The picture below shows a weekly chart for Google symbol (GOOG). I am again going to draw the MarketWarrior indicator “Sq9Chapter 03” on a chart. You can find this indicator described in Chapter 3 of the book “The Definitive Guide to Forecasting Using W.D.Gann’s Square of Nine“.

I have started this indicator’s calculation at the low price 289.45 of the week Mon/Mar/09/2009.  Only the +360 degree increments are drawn on this indicator. These increments represent 1 full rotation around the Square of Nine. The prices reached will be important support and resistance levels where we would expect the current up-trend to end. The next higher resistance value above the current price is 625.66 and above that is 729.71. I would expect the current up-trend to end close to one of these price levels.

20100329_post443.png

Google

End

Mar 29 2010

Square of Nine Price Targets for S&P500 Index

Written by:
Patrick Mikula CTA
Mikula Forecasting Company
www.MikulaForecasting.com
support@MikulaForecasting.com
Copyright © 2010 by Patrick Mikula All Rights Reserved

The picture below shows a weekly chart for the S&P500 symbol ($SPX). On this chart I have drawn the MarketWarrior indicator “Sq9Chapter 03″. This is the indicator described in Chapter 3 of the book “The Definitive Guide to Forecasting Using W.D.Gann’s Square of Nine“.  I have started this indicator’s calculation at the low price 666.79 of the week Mon/Mar/02/2009.  On this indicator I am drawing only the +360 degree increments. These increments represent 1 full rotation around the Square of Nine. These prices will be important support and resistance levels where we would expect the current uptrend to end. The next higher resistance value above the current price is 1282.86 and above that is 1430.07 and 1585.29. I would expect the current uptrend to end close to one of these price levels.

20100328_post442.png

Square of Nine Prices

End

Mar 25 2010

Square of Nine Price Targets for Amazon.com

Written by:
Patrick Mikula CTA
Mikula Forecasting Company
www.MikulaForecasting.com
support@MikulaForecasting.com
Copyright © 2010 by Patrick Mikula All Rights Reserved

The picture below shows a weekly chart for Amazon.com symbol (AMZN). On this chart I have drawn the MarketWarrior indicator “Sq9Chapter 03″. This is the indicator described in Chapter 3 of the book “The Definitive Guide to Forecasting Using W.D.Gann’s Square of Nine“. I have started this indicator’s calculation at the low price 34.68 of the week Mon/Nov/17/2008.  On this indicator I am drawing only the +360 degree increments. These increments represent 1 full rotation around the Square of Nine. These prices will be important support and resistance levels where we would expect the current uptrend to end. The next higher resistance value above the current price is 140.34 and above that is 191.56. I would expect the current uptrend to end close to one of these price levels.

20100325_post441.png

Chart 1

End