THT Market Education - How to WIN

[THT]

Here's a Gann Angle method not in the text books (that I've seen)

Details on the charts - Its easier to accept that the markets are mathematical environments where time and price interlace and from some of that it allows you to make fantastic calls/trades, that most people fail to see

You could have produced the Gann angles the day after the market low in March 2020 - Don't fall into the trap that Gann angles predict tops/highs and lows all the time, there's multiple Gann angles that are active all the time (I'll show you another time how to use them with TIME CYCLES, as TIME trumps price in this game)

All we have done here is divided PRICE at a key level and seen if it sync's to the market by converting it into an angle

 

The other gann angles on the chart are simply 2 x1, 3 x1 etc unless marked

Once you've thought about the above, take a retracement tool from the March 2020 LOW to the 2nd Sept HIGH - split it by 8ths, so 12.5%, 25%, 37.5%,50%, 62.5%, 75% and 87.5%

Draw Horizontal lines across from those retracement levels until they intersect/meet up with the 1 x 1 line - you can use fib levels too

Then draw vertical lines up from those intersection points and i bet you get some of the decent turns made in the rally upwards! 

think about that for a minute, because those turns were made BEFORE the Sept HIGH was anywhere near

So although the 1 x 1 angle using price from the 2020 low didn't interact with price until oct 2021, it was still relevant in terms of TIMING some of the major turns in that advancement of price! It's almost as if price knows what its going to be doing in the future!

I'll update you on the Nasdaq100 square I posted in Jan this year as that has conformed to the original Square created back in 2020

THT

 

 

 

 

[THT]

Here's a follow up to the post above, which is similar to the Nasdaq100 square I mention

If markets were/are random, then you should not be able to do this - as we can it shows you that the SP500/Nasdaq100 etc are doing something different

There's stuff I still don't know or understand about the markets and as i've mentioned before you don't need to know all this to make money from the markets - simple methods can be exploited - The main item is months after the event the market is still adhering to the terms, sizing of the original square off the low!

This is the SP500 from 2002-2007:

The key to the below was knowing 2007 should be a top and the approx time it was due - from that and the 2002 low price you could reverse engineer the required ascent per trading day with multiple 1 x 1 angles on of differing harmonics to the low price and as we've seen one of them was absolutely spot on - this could have been done the very next day from the 2002 low! and tracked throughout the months and years, not to mention that this Time Cycle creates a double top type event like it did back in 1973

*and the 1st chart in the Time Cycle thread as well as the 6th chart down

One final thing - how amazing is this

In the Time Cycle thread chart 1 - shows you the Time Cycle of 1982-2000 - In the chart below the GREY Gann Angle is the 1 x 1 from 1982 through to Jan and Mar 2000 - again price sliced and diced to get the angle, the other angles are simply the next whole number in the gann angle sequence so 2 x 1, 1 x 2 , 3 x1 etc etc

The Pink Think Gann angle is the 2 X 1 angle, the 1 x 1 grey angle nailed the high - but look at the 2 x 1 angle - It went smack bang through the 50% gravity centre of the 1987 plunge!

I've taken 50% retracement levels for you to see from the high that the 3 x 1 Gann Angle contained and then another 50% retracement level from the swing high right before the plunge

So not only was the ultimate high price for the year 2000 KNOWN from August 1982, it also knew the 50% level of one of the stock markets historic plunges, with the plunge being stopped by the 1 x 1 angle that 13 years later ran straight through the market top and reversed the time cycle, dot com boom and the inflationary period - people say that the 1987 plunge only stopped because the markets were forced to close, I'm of the opinion that the market would have stopped either on the 1 x 1 angle as it did anyway or the next one down which is the 1 x 2 - regardless, it cannot be argued with that the markets respect price levels at key times and as Gann said "Price and Time are linked"

Just mind blowing amazing - As you can see from the last chart the 2 x 1 angle pink, was ok on price before 1987, but not brilliant, that's because it had a higher purpose as mentioned! Truly amazing

99% of people misuse Gann angles and Gann being his true self, never actually told us in his works how to use them properly - he left it up to the users to figure it out - he did in his work tell the 99% how to use them, which is why they are often hit and miss

I think I've proven to you that there's a much better way of using them

THT

 

[skyreach]

Gann;s method looks mathematically based.

How do get the drawings of the 1x1, 1x2, 1x3,  etc... ?

IG does not have tool for use.

Checks various sites but most cannot  get it. Even IG has "Gann Fans & Gann Lines" but these ARE NOT GANN. Wonder if anyone knows how to input it into the computer system correctly.

 

[MongiIG]

12 hours ago, skyreach said:

Gann;s method looks mathematically based.

How do get the drawings of the 1x1, 1x2, 1x3,  etc... ?

IG does not have tool for use.

Checks various sites but most cannot  get it. Even IG has "Gann Fans & Gann Lines" but these ARE NOT GANN. Wonder if anyone knows how to input it into the computer system correctly.

 

Hi @skyreach

We are also working towards making IG trading platform charting developments better to provide a good user trading experience.
 

You did mention tools, we would appreciate it if you could take part in the poll and vote as we are continuously working on adding more chart features to our IG trading platform to make your trading experience better. 

Share your valuable & useful feedback on the blog below:

 

Thanks

 

All the best - MongiIG

[THT]

13 hours ago, skyreach said:

Gann;s method looks mathematically based.

How do get the drawings of the 1x1, 1x2, 1x3,  etc... ?

IG does not have tool for use.

Checks various sites but most cannot  get it. Even IG has "Gann Fans & Gann Lines" but these ARE NOT GANN. Wonder if anyone knows how to input it into the computer system correctly.

 

Hi @skyreach

Yeah you need specialist stand alone software most likely - I bought mine 12 years ago and its custom made for professional traders, there'll be some half decent software out there i would say, but I've never looked for over a decade as the software I have does pretty much what I need it to do - most software for angles etc don't apply them properly so it doesn't square out effectively

When you typically place a gann angle on a chart, the software decides how to apply it - which is why 99% using it are using it incorrectly, my software allows me to decide what factors the software applies to the gann angles, hence why you can get it to work as intended - all I've done is taken the price level and used harmonics/splits of that price and hey presto - I've also adjusted the angles so although 1 x 1, 1 x 2, 2 x 1 etc are the norm, you can use 1 x 1.414, 1 x 1.25, 1 x 1.618 etc as you wish

Yes Gann discovered this mathematical relationship in 1909 - wrote books and course that failed to mention exactly how or what he did, but he gave snippets away and he looked at the markets completely mathematically and esoterically

I'm just showing hidden things in the markets, that you never really see, you don't really need them to be able to trade well or effectively

From a mathematical aspect (Gann indirectly mentioned this in the 1940's) - the USA stock market DOW, SP500 and now the Nasdaq100 for the past 200 years if you apply Pythagoras's Theorem to the major swings of the market on a monthly basis and compare the ratios of swings to swings, they show mathematical ratios such as 1.414, 1.732, 2.23, 1.618 etc - which to cut a long story short can be seen as building an ever expanding CUBE, you HAVE to include TIME as a component to see the relationships

The relationships to the cube can't be seen in the chart below which is the SP500 index from 2000-2009 - but we can see Fibonacci relationships (1.60) is close enough for my crude use of the aspect in the calcs and 1.48 is close enough for 1.5 and 1.5 is the musical fifth

(If look at 1899-1915 and 1966-1982 periods you'll get the square root and 2,3 and 5 (1.414, 1.732 and 2.23 which are the basis for a cube) relationships - These are BOTH the top of one cube and the base on the next cube, 67 years apart in terms of TIME, so the next top of the cube arrives in 2033 ish - if you scoot to my TIME CYCLE thread, you'll see the UP/DOWN sequence of the USA market from 1966 - 2016, when the last cycle started

The REASON in the chart below we have lots of Fib ratios IS because the market is EXPANDING and growing, as its done since 2009 - you don't see these ratios of links if all you do is look at price or time on its own, you HAVE to combine them to form a new unit to measure

I make no apologies for telling people they don't have no idea what the markets are actually doing (I didn't until I studied Gann and the avenues it took me down - If these ratios just happened once or twice you could write it off as coincidence, seen as are there are hundreds of them over 200 years its no longer coincidence but fact

Take the 2002-2007 Bull run, forget about the Time Cycle in the posts above, you'd be looking for that move [B] to be 1.414-1.618 the size of the A move down, then with adjusting the price for the Gann angle, you could have pretty much nailed that rally for both price and time - the time aspect by by recalculating the figure until the levels matched

Cross referencing over to the TIME CYCLE thread Chart #1), we can SEE that the date for the next for the END of this deflationary cycle and the START of the next Inflationary cycle (hence all the Inflation issues appearing now) is early DEC 2016 - In fact this cycle turned 1 month early (which is within parameters) 

Coincidently take a look what the market did on the AUG 2015 date!

So if we apply the same Pythagoras Theorem calc from the 2009 low to the revised Cycle turn date of 4th Nov 2016 we get a figure shown in the chart below - I'll let those that are bothered compare that figure to those in the chart above, but if we take the 2002-2007 move called B, then the ratio is 1.6 times which is close enough for me to 1.618 - Once again KNOWING the approx TC date and applying Gann angles using an adjusted price of the 2009 low, the 1 x 1.5 Gann angle hit the Nov 2016 date and price level!

Its all intricately linked and proves out the maths

 

From an INVESTING point of view - The reason I'm showing posting here is to show you the markets are not random, they follow Time Cycles and they follow mathematics - It does NOT make sense sitting through a period like 2000-2003 fully Invested, its clear when the best time to get out, then back in, then out, then back in etc

I didn't think of this - its ALL out there in traderland, you've just got to do as i did and hunt it down, test, test and test and research, which is not a quick process

Permission is NOT granted to replicate or reproduce this post of images 

THT

[skyreach]

 Thank you for your knowledge.

I read up on Gann. There is a lot out there.

VERY INTERESTING. IT WORKS BY THE LOOK OF IT, at least by people who can understand it & use it..

I could not get the meaning of SQUARE as used here in Gann. If it is dimensionally based or is it just from the high to low  OR low to high based (which wold not make a physical square).

You mentioned the cube elsewhere in an example. Is the cube a separate concept?

It is a pity IG does not have this understanding to build it into their tools .

 

 

[MongiIG]

14 minutes ago, skyreach said:

 Thank you for your knowledge.

I read up on Gann. There is a lot out there.

VERY INTERESTING. IT WORKS BY THE LOOK OF IT, at least by people who can understand it & use it..

I could not get the meaning of SQUARE as used here in Gann. If it is dimensionally based or is it just from the high to low  OR low to high based (which wold not make a physical square).

You mentioned the cube elsewhere in an example. Is the cube a separate concept?

It is a pity IG does not have this understanding to build it into their tools .

 

 

Hi @skyreach

Thank you for your valuable suggestion and feedback. I will forward your feedback to our developers department to review building it into our tools.

All the best - MongiIG

[THT]

18 minutes ago, skyreach said:

 Thank you for your knowledge.

I read up on Gann. There is a lot out there.

VERY INTERESTING. IT WORKS BY THE LOOK OF IT, at least by people who can understand it & use it..

I could not get the meaning of SQUARE as used here in Gann. If it is dimensionally based or is it just from the high to low  OR low to high based (which wold not make a physical square).

You mentioned the cube elsewhere in an example. Is the cube a separate concept?

It is a pity IG does not have this understanding to build it into their tools .

 

 

Hi - No probs welcome

Yeah Gann is hard I'll admit that - he didn't tell us everything in his courses

Re the square - bit of both, you'll not see them often physically on a 2 D chart, however they do appear now and again (I think one is in view right now on the SP500 - I'll write about that at a later date) - however and this will involve a lot of work monitoring, looking for the ratios of the square etc and seeing them in price etc is hard work, but they do appear - I plan to get round to this soon but the thread had to start off showing p easy methods to win in the markets 1st

The problem with this is most of the time we only see part of the square -  the user then has to "add-in" onto their charts the expansion of the square which isn't easy to get the other measurements

If squares and cubes are prevalent in the markets then circles have to be too, because they are all linked - this can be seen when you get a curved price action 

Yeah the cube is effectively what the USA markets have built and are building as its constantly expanding - in the mid 2030's when the Time Cycles top out we should see (If still alive) that 16-19 year cycle create a top like 1966-1982 of which it should have the square root of 2,3 and 5 ratios on the big turns - that period should be the top of the current cube and the bottom of the next cube and as its expanding in size, the swings should be pretty big in terms of points - the swings will always find balance and support near the 50% level of the all time high - closer to the time I'll reveal the Time Cycle to watch for that to happen on 

You'll not be able to physically see the cube effectively, its just the maths of the swings when compared to one another over long periods of time that tell you 

The TIME CYCLES are absolutely key to it all as they control the expansion - but basically what happens is the time cycles do their thing, then when they've evolved 360 degrees around the circle the cube is complete and the next higher one commences etc etc - the evolution time for the cube is approx 67-71 years - hence 1899-1966, 1966 to mid 2030's - its why 2000 less 71 = 1929, it why if you look at the chart of the dow in 1929-1933 it looks very similar to a chart of the nasdaq100 from 2000-2003 (they fell 82% too!) 

Take the image below and see it expand - that's what the USA markets have done since  May1792

I think to provide software that does everything is expensive and probably complicated to create

Keep an eye on the thread as over time I'll be showing various things just got another couple of things I want to show on angles and then it'll be onto Squares and Circles

[THT]

Here's a "rough" method and also includes a rough timing method - I DON'T use this - just want to show you other uses to angles

But wanted to show it as part of the Angles aspect:

Take a low to high and use that as the 1 x 1 - the other Gann angles spread out below - which is a pretty good fit for turns

Now on the same chart add retracement levels - to keep this clear I've just kept the 50% level of the range A-B which we used to create the 1 x 1 Gann angle

From the middle angle thick maroon - I've marked on the chart in vertical grey lines when a gann angle hit and crossed the 50% price retracement level

As you can see its an average timing tool too - but it can be hit and miss - If of interest add in the other price retracement levels or fib levels to see etc because some of the turns missed on the chart were hit on other retracement levels!

Also notice the high at B - this was resistance for the double top towards the right side of price action on the chart

Remember there's no perfect system that gets everything all the time - we need a variety of methods 

Here's a timing solution that converts Price levels into Time levels - still doesn't beat Time Cycles

[THT]

Okay

When you get a major low or high, you have to run various calcs from - there is NOT a one fits all method I'm afraid

The reason for this is that every market works through their own Time and Price cycles and those time and price cycles are simply not static

As we've seen in the posts you sometimes have to use adjustments or splits of the original

The last chart in this post shows you how using a simple ratio times and division method you could have nailed the low price bar of the Dec 2108 LOW and the MARCH 2020 LOW 

Here's the SP500 from the chart above, but viewing it from a different angle - REMEMBER to work out OPTION PRICES, those creating and selling the options USE SQUARE ROOTS - In the chart directly above we square rooted the low price and re squared it and we saw that a 29-30 trading day time cycle worked pretty well, especially in nailing the high, could we have done more?............................................................................

I'll let the charts speak for themselves:

OK take a break before it gets a little complicated - in the chart below something different, In the charts above, we are using the low of Dec 2018 - Go to the TIME CYCLES page to see as this was a major TC date from the Nov 2016 cycle start - Look at the application of ratios from the low to high price - this does not always happen, but when it does, we get significant TIME zones but we also get PRICE levels that are either the RANGE of the ultimate High/Low price bar at some point in the future!

Note - Just stop and think how a 2 year price rally gave us the price bar lows of 2 major turns in the SP500!

to get the ratio of 1.5871 you need to divide the high into the low price

(to get 623 you need to multiply the price advance in points 1062 by 0.5871)

More to come in the next post, but its going to get a bit more advanced and we'll continu looking at the price rally from Dec 18 through to the high of Feb 2020

Permission is not granted to replicate the charts in this post outside of IG

THT

 

[THT]

OK I've done this before but we need to refer to Gann's Square of 9  - do NOT let the numbers scare you - its basically a square root calculator

Gann designed this when he visited the Pyramids in Egypt!

See the number sequences going around in a circle and those form square platforms - Find the number 34

To get to the number above it (61) all you doo is square root 34 + 2 and re square - this is 360 degrees around the circle

To get to the number 46 all you do is square root 34 + 1 re square - this is 180 degrees around the circle

This applies to ANY number -including dates, but we won't look at dates as there's 365.24 days in a year which needs us to convert into 360 degrees for a solar year

This next square of nine chart shows you the ANGLES - see how by dividing into 8 quadrants we get the shape of the great pyramid of Egypt - the pyramids weren't built for nothing you know!

The angles are 45 degrees - round the circle back to 360/0 degrees

Regarding where the 0 degree is - that CAN be moved to the 90, 180 or 270 degree places, it doesn't really matter that much but its usually where it is there or the 180 deg location 

Notice in the chart above that it shows the angles sub diving the 8 quadrants into 16 quadrants too - this has now produced angles every 22.5 degrees around the circle

VERY often you will find markets pausing and turning at or very near these angles

So how does this all apply to our chart of the SP500 Index from Dec 18 to Feb 2020?

We've now got to use software to get the bigger numbers as the price levels for the SP500 exceed those printed on the sq 9 charts above so further sq 9 charts will be screenshots of that software

1st - this chart shows you every approx 180 and 360 cycle around the Gann sq 9 from the Dec 2018 LOW price - the price levels on my chart are precise as they have to be manually inputted onto the chart and it isn't exact

As you can see simply by using a square root calc and progressing it upwards by adding +1 at a time it has some great hits - Remember to advance 1 full circle or 360 degrees of price we add +2 to the square rooted number so the price action here advanced nearly 5 levels/platforms on the sq 9

Here's those levels marked on the sq 9 software and the final high

Please take not just how close the final high was to the YELLOW major angle

 

Here's the square root price levels that match the chart above showing the approx. levels

I've made time counts of the YELLOW numbers from the GANN Sq 9 - only 0-365 - you can see those numbers on the YELLOW shaded areas of the Gann Sq 9, as they are the critical area's / zones / lines etc - Here's the chart with the Square root price levels from the low AND TIME COUNTS 

To avoid cluttering the chart, I've selected the best fit time counts - as you can see time followed not precisely but well enough 

Just for reference, here's where the major turns since 1929 happened on the Gann sq 9 in green!!!!!!!!!!!!!!!!!!!!

The 1929 HIGH was 381!!!!!!!!!

Its not quite this simple though and different markets work out different cycles, price swings etc 

As you can see in the previous post using a simple Gann angle can be much more simpler and easier than calculating this level, that level, this time count, that time count etc

Anyway you don't need these fancy methods to win in the markets, simple methods work - just highlighting that the markets are not as random as people tell us they are

THT

 

[THT]

I think I'll leave the Square subject as per the post on Gann squares previously showing how the Nasdaq100 has worked in conjunction with the expanding boxes/squares - that's a good enough example to work from

Now onto Circles:

Remember you will not see these often as the charts you look at are 2 dimensional and a circle operates in higher dimensions, but every now and then you can find and use them and unfortunately due to this you will not find exactness either, we have to be satisfied with "good fit" 

See below:

ALL the charts in this post are of the FTSE100 Index DAILY charts

So you take a Swing high to swing low - this forms the RADIUS of a circle - we then draw/create a circle using that swing vector

As you can see in the chart (s) below its been pretty effective 

Notice as you go through the charts how the curves of the circle contains price action nicely

In this first circle we can see it contained price pretty well apart form the spike down - notice how it contained the swing high though! Remember this circle could have been drawn at the swing high bar

OK so this could be fudged and drawn to suit, the proof is if it happens often........................................

So in this chart I've kept the original circle along with its radius vector line and simply drawn another circle around the new radius vector line drawn from the new swing high to the swing low

Price hit the arc of the circle and bounced

Then we repeat the process swing high to swing low for the chart below

Then again.........................Then again - this is up to date now, so we need to watch and see - at some point the circles die out

You can also use different swings too

What this shows you is that future support/resistance levels were written into the market when  the market swing was made and BEFORE price got anywhere near them!

Here's another way you can us circles

FTSE100 still daily charts

Take a swing high to low, use that as your radius vector, draw the circle, then

Draw a horizontal line from the top of the circle and it often (not always) but often creates another important level

In this chart below all I've done is started the next radius vector from the top of the 1st circle to the swing low to create a bigger circle and then used the same horizontal line to see if the market does anything around it

There's many more things you can do with the circle on price action, to which I'll leave you to explore if interested

THT

 

[THT]

I referred to a current potential square forming on the SP500 Index in a previous post

Details below:

Take note - We're using GEOMETRY here and examples like this aren't always as clear cut as this - most of the time you have to use other geometrical means to work out what the market is doing and likely to do - again the post is to show you that the markets are not random and that they conform to geometrical properties, if you study sacred geometry and the key mathematical ratios for the Triangle, Square, Cube and Pentagram (I don't have it as my avatar for no reason!) you will discover the maths of the markets

The below is a simple extraction of the Initial Impulse thrust/move to arrive at a top (Of which I've shown an example of for another section of the SP500 Index or Nasdaq100 - anyway same principle)

Re TIME - Those that are Interested can see if they can find the simple link

https://en.wikipedia.org/wiki/Square_root_of_3

[u0362565]

S&P 500 has bounced again at a 50% level THT! If I learn nothing else I appreciate that you've opened my eyes to this and stops me from trading too frequently. Thanks for sharing your knowledge.

[TorcMan]

Lots of interesting info on this thread, much to digest. Thanks for posting.

[THT]

1 hour ago, u0362565 said:

S&P 500 has bounced again at a 50% level THT! If I learn nothing else I appreciate that you've opened my eyes to this and stops me from trading too frequently. Thanks for sharing your knowledge.

FTSE100 too! 

If all you ever did was 50% levels you'd kill it

Just got to be patient, people will tell you markets are random and don't repeat - just remember they DO repeat and they aren't random - the 50% level is just one of those things that does repeat and disproves those who believe in the randomness of markets

Go back through the posts and retest the 50% level for the SP500 as in the charts in the post above there was a minor 50% level off the Impulse from the square low, but also there was a higher degree 50% level off the bigger picture which has resulted in mega R profits (which was the previous low of Oct)

"Other Levels" are available too! LOL in the Interest of Impartiality 

You can make a fortune on the 50%, but you can also do just as well off of other levels too - You might not be bothered about this and it does add layers of complexity (and work!) to the analysis, not to mention many many hours of learning but by analysing the Internals of a move allows you to predict ending/starting points etc

For example  the Internals of the move UP and DOWN suggested the SP500 is/was working to a certain GEOMETRIC form - in the fall from the top, the NEAREST levels were a 50% level (not exact) and the BLUE level shown - which WAS EXACT! - Hence the bounce - The WHOLE UNIVERSE, our world AND HUMANS are built from the LAWS of GEOMETRY and that geometry uses MATHEMATICS that is within the Pyramids and all this shows up in the markets

I'd bet that 99.9% of humans don't have a clue what the ratio 2.828 represents but its present in the markets for centuries - EVERTHING IS LINKED and it stopped dead the fall in the SP500 a few days ago

The hard part is working out what type of geometry the markets are working out to as it alters - This is WHY at times FIB Levels work perfectly and then they suddenly "disappear" - those touting Fib levels either don't know or simply keep it simple to sell something

This is NOT to say its possible to get a constant accurate working/count of the markets, because there's times when nothing makes sense as to what they are working out to and you have to just sit back and wait until it starts hitting geometry levels once again

There was also timing for a LOW on the 6th Dec too - 1 one day error is perfectly acceptable  - The TIMING you would not believe the cause if I told you, but it signals a HIGH around the 24th Dec - this may or may not come in - but it all fits in with the Santa Rally that often happens in Dec

 

 

[u0362565]

I'll certainly be keeping my eye on the 50% level on the strong trend markets. There can be complexities around how/when to enter and I usually need a couple of attempts but the payoff is hopefully worth it still. Still so many ways to screw up of course. I need to think about a backup plan/diversify, don't want all my eggs in one basket. Thanks again.

[THT]

Entry is easy if price rallies up through the level you buy, couple of attempts is fine if you've got a tight stop, the payoff over time should be high

Remember if you use multiple methods and they all result in losses at the same time the drawdown on account will be large, but the opposite is true if they all work too!

[u0362565]

Yeah had fairly tight stop and it was a bit choppy so got knocked out. Uncorrelated methods will work together as you say. 50% levels will work while the trend is still on but when/if that stops so does the method I would imagine and you have to do something different.

[THT]

35 minutes ago, u0362565 said:

Yeah had fairly tight stop and it was a bit choppy so got knocked out. Uncorrelated methods will work together as you say. 50% levels will work while the trend is still on but when/if that stops so does the method I would imagine and you have to do something different.

If its going to work there's not too much faffing, it'll faff if the 50% level is not working - which is happening right now on GOLD

On the daily chart a stop of 25 points for the SP500 is fine

[THT]

Here's stock 3i in the UK

The chart has been messy since the March 2020 bottom - after an initial rally its basically been sideways 

Aim of this post is to show you the MATHEMATICS and the PATTERN and when the 2 combine its SHOW TIME

Most of the details on the chart

The one thing I will say is on 23rd March 2020 you could have projected the precise PRICE AND TIME as shown on the last chart in this post using the adjusted price method

Chart 0:

What can you SEE?

Chart 1:

Well there's a 50% 

Chart 2:

But BEFORE the 50% we had this.........

PS the ENTRY would have been the 50% level OR the swing low of C

As a side issue notice how price is going away from our field of vision and then at the X it starts coming towards us and then at E it reverses and heads away from us - this is the multi dimension nature of the markets and its WHY nothing is ever equal or static for long

The price action looks like a ball bouncing 

Chart 3:

If you entered at the swing low C you'd of got stopped, entering at the 50% worked depending on how you managed the position, if you got stopped then you had a 2nd attempt at the 50% or Gann Secondary Reaction to get in and long

Chart 4:

Taking a step back to the expanding triangle

The Internal ratios of the moves worked out to arithmetic maths:

The BLUE line is the result of the A-B range  

The RED line is the result of the B-C range and

The GREEN line is the result of the C-D range

These are simple EXTENSIONS greater than 100% of the move being measured 

Chart 5:

Chart 6:

As you can SEE - the price level we've talked about in the post was KNOWN about by the market some 19 months EARLIER before it was anywhere near the price level

It would be prudent to refer to the CNX1 Expanding Triangle that I showed you months ago especially the ANGLE that the triangle is coming towards us - in this post its coming towards us fast and near on direct, in the CNX1 trade it wasn't so fierce

As you can see markets don't do this all the time - BUT THEY DO, DO IT! - All you have to do is scan your tradeable markets for set-ups and trade when they appear - I don't like talking % returns but there's hundreds of % on the table each and every year, year after year available if you look for opportunities and only trade the high probability trades that show up

THT

[THT]

Something for you for the weekend:

This is what the SP500 Index was working out to over the past couple of months

For those wishing to expand more - Refer to works on SACRED GEOMETRY and GEOMETRICAL SOLIDS

The chart below showing the correction worked out to ARITHMETIC ratios of whole numbers

Basic simple arithmetic ratios ARE THE BUILDING BLOCKS of financial markets - they LINK everything together

This isn't exact but it gives you an idea of roughly what price action did

All those Fib level traders have been scratching their heads as to why Fib levels have disappeared from the daily chart of the SP500 index

Now going forward, the market is either going to contract or expand and depending on what the bigger geometrical shape the market is building/working to, we should see mathematics that confirm - to get to the next phase we might need some Fibonacci Growth/Contraction, we might need basic arithmetic levels, we might need a square relationship etc etc etc etc etc etc

Whilst we are on geometrical shapes - the avatar I show since joining this community has always been one big clue 

Have a good weekend

Permission is NOT granted to repeat, copy, duplicate or replicate this work anywhere

THT

[THT]

OK - We've seen that the markets aren't doing what most people think they are doing - I just wanted to show you a glimpse (there's more!) into what the markets do - this is why sometimes they defy logic - the "news/experts" say one thing and then the markets go on to do another thing "out of the blue" - All that is happening is the market is working out to its geometrical growth/contraction sequence and once that is completed, it will reverse/change to the next sequence - us humans try to pin "reasons" and logic onto markets to explain, which is why if you listened to those news channels and experts your money would soon disappear!

One way to challenge people who swear they are great stock pickers is to get them to show you how its done over 10 years on either the Forex or Commodity markets, because they work totally different to the stock market, in the stock market ALL you have to do is Invest and leave it long enough and you are guaranteed to make money - the key there is leaving it long enough

That does not mean you can't beat the market(s) though!

Here's an ultra simple method - works on EVERY time-frame and EVERY freely traded liquid market

You can make this as complicated as you wish, but here's the stripped down raw method:

~ THT BEARISH HOOK

1. This is basically a bearish Gann Secondary Reaction - you DO NOT need any Indicators for this method
2. Market trades down, then UP for 1-3 bars - After bar 3 UP the market needs to drop or the trade is ignored
3. Sell at the LOW of the swing low point prior to the 1-3 bar hook upwards
4. Stop could be:

• at the high of the swing high UP point
• at the 50%/61.8% level of the range of the swing UP
• Trailing stop using a 2 bar high method

That simple - as you can see it works great during bearish trends/periods

Alternative considerations are below the chart

Chart is the DAILY EURUSD Forex Pairing

Here's a few idea's:

• the 2 trades above offered about 500 pips in total - even getting 250 pips from both trades was worth while
• You could trade the 50% level if touched (often the 50% isn't met though (I've shown 2 on the chart that were valid)
• You could add a moving average and trade that level and or use as a trailing stop
• As you can see within the trend of the market there were "mini" hooks within the main hook trade - these are not picked up by the swing file as the hook was not significant for it to be picked up by the software, but you could have pyramided all the same on these mini-hooks within the main hook!
• The 2RSI was in this instance useless, however,
• The DTSTOCH was useful - This is a triple smoothed Stochastic - you could have used the DTSTOCH to filter the market as to when it was bearish etc

If you look at the chart for trades 1 and 2 the DTSTOCH was bearish both times - for the final hook, the DTSTOCH was bullish / flat which then turned out to be a bullish divergence signal which then turned bullish

So the DTSTOCH was warning on the final hook trade that the momentum was waning - this is an excellent use of an Indicator

The DTSTOCH was also flat in the middle to end of the 1st trade - which pre-warned of the loss of momentum etc - then you just let your trailing stop do the work of getting you out of the market (not the Indicator) as you can often eek out more £'s from the trailing stop than the Indicators! 

Taking it a stage further, you could have dropped down timeframes and used the DAILY Indicator as a guide to possible Intra-day price action direction and traded up or downwards according to the direction of the DTSTOCH

THT

[THT]

The following post - you DO NOT need to know this stuff to be able to trade and win

Its for those traders with a mind-set like mine that need to know why and how a market is printing swings

You know that sometimes a markets movements just do not make logical sense, hopefully this will help clarify and explain a little

• Markets are printing multi-dimensional bars in a dimension controlled by PRICE and TIME and forcing it onto a static 2 Dimensional format - this very fact often "SKEWS" the way a chart looks - i.e. you notice Triangles/Arches forming on a price chart that is classified as a sideways box/rectangle/range etc, but the time counts from low to low or high to high aren't equal - this is because in the dimension of price and time they are equal but forcing them to print onto a lower dimensional format (2 D static price chart) it forces the swings high/low points to "twist" - for an example of this look at the chart below and notice the "M", notice the 1st swing up and down that creates a "A" its twisted anti-clockwise, then notice the 2nd "A" to the most recent swing low, its twisted clockwise towards us
• Everything in our world works off the basis of fundamental laws of mathematics - the device you are reading this post on is built from all those laws and your development as a human being is governed by them
• In the markets price action and time work off the following group ratios:
• GEOMETRIC - Fibonacci
• HARMONIC - The Square
• Square Root of 3 - The Cube
• ARITHMATIC - Simple division of whole numbers
• Square Root of 5 - 2 adjoining squares
• Markets grow and contract to those ratios according to what geometrical solid they are building at any given time
• These geometric shapes evolve over time and there will be a dominate feature per financial market as the buying and selling action repeats - we can't see these shapes unless price action is nearly square on to our field of view on the screen/chart - most of the time our field of view is skewed from square on, so you have to look at the maths to "see"
• TIME governs EVERYTHING - you will find that when time and price balance things evolve to the next stage - i.e. the period 1966-1982 in the stock market signalled the END of the UP trend from 1949 and the 16-19 year cycle - it start a new 16-19 year cycle deflationary and this turned out to be both the TOP of the 1899-1966 Cube that the market had built and the START of the next cube - these take 67-71 years to form - this is why you can predict time cycles (Refer to my Time Cycle thread for evidence of the cycles) - Re price action, its at these extremes of time limits that markets REPEAT, prove it to yourself, get a chart of the Nasdaq100 from 1994 onwards and compare it to the Dow from 1924 - 70 years - I can confirm that the cause of the TIME aspect is calculated using exact mathematics - so as a rough rule of thumb in 67-71 years time from the year 2000, we will have another spectacular mega stock market crash of similar proportions that will fall to a level of circa 80% of the all time high at the time
• So basically the markets are expanding and contracting according to the laws of mathematics that involve the square, triangle, cube and other geometric solids
• When building a geometric solid, the maths often involves a combination of ALL the groups - this is WHY if you're just using say Fibonacci ratios to track retracements and expansions sometimes the market hits it spot on and other times its "off"

Here's a chart of the GOLD market to today:

• I've marked off swings and if they have conformed to a ratio of significance I've labelled it by the grouping it belongs to
• As you can see on the most recent DOWN swing of the market, its been conforming to HARMONIC price ratio relationships
• At the most recent Swing LOW its changed to GEOMETRIC - we'd expect the upswing to conform to geometric ratios until it runs out and alters
• In the UPTREND from (A) - most of the "mini" swings conformed to a specific grouping of ratios
• The BLUE swing line is a higher degree swing (WEEKLY) and you will find that all those swings are also doing similar thing to the smaller swings, BUT the geometric structure they are building might be different to the smaller swings etc
• I'm afraid to inform you that sometimes swings can't be attributed to any grouping ratio!
• This is WHY it is Impossible to be able to predict price action exactly 100% of the time
• From a VERY basic trading level, look at swing low (B) - there would have been lots of stops placed there, hence the stop run/wash'n'rinse
• Price then rallied and stopped dead at a geometric ratio of the blue swing down which ALSO coincided with a prior harmonic retracement ratio AND a swing high from the prior main BLUE upswing that forced the market down into the swing low at (B)
• Notice the 50% level wasn't touched - If you're NOT aware of the other internal ratios you'd simply say price stopped at the 50% level, BUT IT DIDN'T 
• You can have all these ratios on your chart prior in advance and see if the market conforms to your thinking, if it doesn't you don't trade, if it does and multiple ratios appear at the same level then its a ultra high probability trading opportunity

 

 

[THT]

Hope your trading in 2021 was profitable

I'm signing off for the year now and next year I'm probably pulling back from posting quite significantly 

If you've read the thread right through, you will have seen how the thread has gone from simple to gradually more complicated - The main purpose of this is to show you you can trade and win from average normal methods, but I also wanted to bring to your attention that the markets are NOT random, they conform and comply to geometrical moves which can be measured using maths and sacred geometry 

Often and sometimes that maths might not seem to make sense until after moves - which can be frustrating as a trader looking for clues as to the next move of the market!

I've mentioned in previous posts that the stock market SP500 Index is building a CUBE on the biggest of all stages and within that on the smaller moves we'll see other geometric structures such as the triangle and square forming

During the 2000-2009 period I previously showed how using Pythagoras's Theorem using BOTH TIME and PRICE the market showed Fibonacci ratios

In the chart below I've highlighted the 1st major correction to the bear market - as you can see the retracement level retraced right up to the 57.7% level

The 57.7% level in Sacred Geometry is a ratio of the CUBE and is the Reciprocal of the square root of 3/cube (1.732) 

When a market stops within a point or two of exactness its Important

Notice the TOTAL % decline that the SP500 made from the Oct 2007 high to the bear market low of March 2009 - THIS IS NOT BY CHANCE!!!!!!!!!

The hint of the CUBE was there in may 2008 - It IS perfectly acceptable for price retracement levels to be seen as % moves by the market - If it were simple to analyse the markets everyone could do it and make a shed load of cash

In the chart below I've run projections of the High to 1 decline 

But I've NOT projected from the swing high #2 - I've projected it from the start of the bear market and high of Oct 2007

Notice that the market stopped dead on the 261.8% Fib Geometric projection within 1 point!

and the total bear market stopped within a range of the 282.8% projection  - This is a harmonic sacred geometry ratio and its an expansion of the SQUARE - If you take the harmonics of the SQUARE and multiple by 1.414 (the diagonal of the square you get - 1, 1.414, 2, 2.82.8 etc etc

Then I've run a projection from the high to swing high #2 projected from swing high #2 and you get projection 500% (5)

Which was within 2 points of the March 2009 crash LOW!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Just take a minute to think through the accuracy of all of this

The number 5 in Sacred Geometry is related to the diagonal of 2 adjoining SQUARES (this is 2.236 and is the square root of 5 )- the expanding ratios go - 1, 2.236,5 etc etc

A trader with a good knowledge of what the markets are actually doing, knowledge of sacred geometry ratios and knowledge of Time Cycles could have nailed the 2009 crash not only to the actual day, but to within 2 points of the low

I hope you can see from this and previous posts how the markets work to mathematics and not a randomness 

Safe trading for 2022

Have a great Xmas and New Year

THT

 

 

[u0362565]

Thanks again for your posts this year. It's refreshing to see someone talk candidly about their trading methods and it's certainly helped me achieve a 20% return this year. Just a bit better than my bank savings rate.. Of course I could throw all that away but it's a decent cushion and something to work with.

Merry Christmas!

[THT]

On 20/12/2021 at 22:57, u0362565 said:

Thanks again for your posts this year. It's refreshing to see someone talk candidly about their trading methods and it's certainly helped me achieve a 20% return this year. Just a bit better than my bank savings rate.. Of course I could throw all that away but it's a decent cushion and something to work with.

Merry Christmas!

Thanks - SP500 and FTSE100 just gave another 50%! 

I know what you mean about bank rates - you will definitely beat the bank if you employ the method strictly - Its got triple digit returns all over it per year if used correctly and I know that from 1st hand experience 

Yeah its a shame I'm the only one on here helping others, I would have gone further and published up coming trades as proof of concept, but when I joined the forum it had a resident idiot who thought they knew it all and tried to challenge everything you wrote, so I decided not to publish too much - Its one of the reasons I've never officially published anything, I couldn't think of anything more soul destroying than dealing with the 1% of the public who are plain stupid and idiotic - even before I posted my 1st post on here I made a pact with myself that if the forum had 1 of those people then I wouldn't be posting anything to helpful 

All the best for 2022

 

[THT]

As I'm reviewing trades for the year, thought I'd show you part of my THT Precision Sacred Geometry trade method

You've already had multiple previews in some of the posts above, here's a recent on  I took inside my SIPP and ISA accounts

FTSE100 Index:

Right hand side of the chart - fro the BLUE A

Might be good to refer back to my CIRCLES post I showed on the FTSE100 and notice WHEN and WHERE swing high A topped out!!!!!!!

REMEMEBER - EVERYTHING in the markets works out to geometry - Triangles, Squares, Circles, Cubes, Squares joined together etc - you can lean about this in Robert Lawlors Sacred Geometry book

So from the TOP at A, Run a retracement from A to swing low 1 = price rallies just past 52% to form swing high 2 - this retracement could cause you confusion as it stops at the 50% and the 52.6% levels sloppily (not precise), if it had stopped precisely on 1 of the ratios it would have given you the heads up as to what geometry the swing was working to, so at this point its created a THT Sell the Hook method detailed in a post above and it also allows you to project ratio levels to see if anything more precise occurs

All this can be done once price goes below swing low #1:

We want to see if there's any geometry that syncs up - the geometry of A,1 and 2 is either GEOMETRIC (Fibonacci) or HARMONIC (The Square)

swing low 3 up to swing A will produce many levels of BOTH geometries, so we then run a projection of A-1 from either swing high 2 or swing high A - this produces many projections but the only 2 that are so close are on the chart at swing low 3 - BOTH the retracement of 70.7% and the 200% projection are from the HARMONIC geometry 

Remember NO price is printed on the chart when the above projections were made

So we had 2 different geometrical ratios/projections of the same geometric group landing on a price of 6996, When this happens it is fine to set a buy order at 6998 with a 15 point stop (daily charts) or an alarm at the price level and wait for a penetration through it and then buy if it rallies back up through the price level with an even tighter stop

Remember WD Gann said "When price and time balance/square, price will reverse"

As long as you have multiple confirming signals then trading this precise is fine

The ensuing rally did as it should from the levels and just failed to exceed swing high A - then price fell down into C - which again was halted by the 70.7% retracement level which is related to the Square, so #3,#B, #C were printing price in accordance to the square and its harmonics - you get the picture

From a TIMING perspective - Run a timing projection of the swing #A to 3 and project it from #B - 70.7% of that time period lands smack bang on 20th Dec which price formed swing low #C at the 70.7% price retracement level!

When everything syncs and squares its beautiful!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

You CAN'T do the above on every swing, but you CAN do it on enough throughout the year to A) Predict the market very precisely at times and B) to make extremely high R profits

As you can SEE - the markets aren't moving randomly as lots of books tell you, there's an order 

I won't show anymore of this going forward as it can be confusing to some, If you are interested then seek out those traders who use geometry, namely Fibonacci and Elliott Wave traders and then you MUST expand on their work as just trading Fib levels won't cut it, Elliott Wave traders will give you a GROUNDING only, but you must remember the big Elliott Wavers out there have been calling for a major top/high in the market since 1986!!!!!!!!! It's never come and its won't - but they can give you a decent grounding in Fibonacci ratio work, but its only a grounding

Thanks for reading and wishing you all the best for 2022

THT 

 

[u0362565]

On 29/12/2021 at 13:58, THT said:

Thanks - SP500 and FTSE100 just gave another 50%! 

I know what you mean about bank rates - you will definitely beat the bank if you employ the method strictly - Its got triple digit returns all over it per year if used correctly and I know that from 1st hand experience 

Yeah its a shame I'm the only one on here helping others, I would have gone further and published up coming trades as proof of concept, but when I joined the forum it had a resident idiot who thought they knew it all and tried to challenge everything you wrote, so I decided not to publish too much - Its one of the reasons I've never officially published anything, I couldn't think of anything more soul destroying than dealing with the 1% of the public who are plain stupid and idiotic - even before I posted my 1st post on here I made a pact with myself that if the forum had 1 of those people then I wouldn't be posting anything to helpful 

All the best for 2022

 

Yeah I did catch that, I was basically wrapping up for Christmas but thought it was worth a go, got 4+R out of it.

As an aside, I was having a look at the performance of an index tracking fund I used to pay into and its up14% for 2021. What I take from this is that last year was a good one for investors given the rebound from the low in April 2020. And to some extent if the markets are trending and you're a long short term trader you should also do ok, that includes using the 50% level method. I suspect if market conditions change the fund will not do so well and the 50% methed also breaks down (I suspect). That's why you need multiple strategies because one won't cut it all the time. I know you've posted a lot more than just the 50% but it's arguably the most beginner friendly.

[THT]

11 minutes ago, u0362565 said:

Yeah I did catch that, I was basically wrapping up for Christmas but thought it was worth a go, got 4+R out of it.

As an aside, I was having a look at the performance of an index tracking fund I used to pay into and its up14% for 2021. What I take from this is that last year was a good one for investors given the rebound from the low in April 2020. And to some extent if the markets are trending and you're a long short term trader you should also do ok, that includes using the 50% level method. I suspect if market conditions change the fund will not do so well and the 50% methed also breaks down (I suspect). That's why you need multiple strategies because one won't cut it all the time. I know you've posted a lot more than just the 50% but it's arguably the most beginner friendly.

On the performance of the 50% - you're being spoilt by solely using it on the SP500

I've always said if a method works, it will work on ALL liquid markets and ALL time-frames

Have a look at it on another liquid market, forex, stock, commodity etc

You can make an absolute fortune just from trading the 50% over multiple markets/time-frames

All you have to do is get a swing file on the chart and visually look at all the swings throughout  the year - the confidence comes from seeing the patterns 10,000's of times over the years and knowing that the markets are not random and by that fact and the fact that they work out to geometry - there will ALWAYS be 50%'s - ALWAYS forever and ever

If it breaks down on one market it will be present on many others

On the buy and hold comment:

If you go to my Time Cycle thread - I show the 16-19 year cycle - this cycle creates a UP/DOWN (Sideways) market direction sequence, also in the thread there's a couple of comments about "there's no certainties in the markets", well the sequence IS one of the very few certainties in the markets! - anyway - the last UP sequence started end 2016 and should produce 1000-2000% in total + divs for the 16-19 years that the cycle will last from 2016

If you look at the last 2 UP cycles (1949-1966 and 1982-2000) there both produced 1000% growth - so I expect the same - then during the down cycle that will follow the UP cycle at some point 50% of those gains will be wiped out as the markets crashes 50% (again this is ANOTHER certainty in the SP500)

For Investors of late, those who bought the 2009 low timed things to perfection and it proved to be the best point to buy - usually/often during the DOWN cycle 16-19 yr phase the last 3 years end in a bear market, that didn't happen this time around - so we'll have a huge number of Investors who think they are Investing gods just from buying and holding who'll be singing into the 2030's 

Once the market has "built" this next stage in the cube, it'll top out and crash- "catching out" 99.9% of people out there - this is going to be very Interesting as the next DOWN cycle is expected to be the TOP of the current cube and also at the same time it'll be the BOTTOM of the next expanding cube

Trackers during this period will also do well as they track the market upwards and downwards at which they'll not do too well, handing back profits or losing

During this next UP cycle we'll have good trending markets but also sideways periods too

THT