1. Markets, and indeed much of life, tend to follow cycles, which are determinable, and measurable in total circles, or parts of circles, which make up the cycles.
Let us take a moment to clarify this statement a bit. It is VERY important! As you study the “P.C.” or Square of Nine, you cannot ignore the facts that when PRICE is traced from a significant top to a significant bottom, or vice-versa, you will find that many times you will trace the PRICE completely around the square for a top or bottom of that wave. Sometimes you will note that it goes more than once around the square.
Further you will note that PRICE has a very avid habit of stopping at a significant division of the square when it does not go to the full square.
At this point, let me say that we were not the first to note these phenomena, or to appreciate its significance. We do believe that we may well be among the first to offer a plan to harness this information for our trading excellence. This is basic to the birth of PYRAPOINT.
2. As Gann and Company observed the movement of PRICE across the face of the “P.C.”, they made some other significant conclusions. They noticed that the movements of waves were not only tied to TIME, but that they had a relevance associated to the distance of each wave-move which was recorded before a reversal. This relevance was shown to be especially important at moves such as one-fourth, one-eighth, one-half, and quite significantly at three-fourths of any cycle. It is noteworthy to point out that three-fourths of any move or wave is considered a candidate for a “death-zone” status for that particular move. Other fractional moves were observed as important as well, but it is our desire to make this study as simplistic as possible. Therefore, we shall be most concerned with the above.
WE ASK YOU TO REMEMBER THAT 90, 180, 270, AND 360 DEGREES ARE CONSIDERED PRIME OBJECTIVES IN ANY CHART FORMATION -- BUT THAT THE 45 DEGREE LINE WILL BE OUR BIBLE FOR STAYING ON TRACK TO THESE AND OTHER OBJECTIVES.
This will be most evident in the charting to follow.
3. Pre-Gann studies have referenced PRICE to TIME. It is the studies of Gann as proposed in his seminars, which show the most graphic use of price to the “squares” of time. In this study, we use PRICE and TIME together, plotted on a circle with PRICE and TIME reduced to common denominators on the scale of the
circle. The most common example is to use one unit of TIME (be it daily, hourly, weekly, or whatever unit selected) and to plot one unit of PRICE on the 90 degree axis for a cross graph. An example would be one cent per unit on the vertical axis of your chart, while using one day per unit on the horizontal axis of the same chart.
A line representing the moving average computed by can therefore, express the relationship between the two factors of PRICE and TIME, and as applied to, a central line, common to both. In other words, a chart showing corn advancing one cent each day would obviously be increasing at a rate equal for each unit, or would be plotted on the 45 degree line.
This is the same procedure and action for other units of PRICE and other units of TIME. 4. As you become involved in the plotting as expressed above, you will note a need for the use of multiples of PRICE and multiples of TIME as well, in order to make computable and understandable squares in your decision-making. This is where you will need to make proper use and interpretation of the Pythagorean Cube Ratios. Simply stated, the crux of the accuracy of the charting is to use scales, which are reflective of the “P.C.” and the ratios derived there from. They involve the use of the proper multiples of each unit which are evolved in this manner: 1, 2, 4, 8, 16, 32, etc. Never try to use PYRAPOINT charts with scales reflecting odd derivatives such as 3, 5, 7, 9, etc. unless you are forced to using one-half of one of these for some abnormal charting situation in the earlier portion of the chart. Even then, you will likely be in trouble when you need to increase to the next level in price. In other words, just don’t use this approach! Stay with the even numbers and doubling in the Pythagorean fashion.
At this point, remember that of PRICE and TIME (the relationship of which it is your objective to record) that TIME is always the prime unit of consideration. You will see why this is so important when you are acquainted with some of the charts that follow. Remember, too, that TIME does not change except by your choice of scale selection for your use in each particular chart. Obviously, TIME never changes, is ever ongoing, and is not subject to our adjustment in the Pythagorean manner. PRICE adjustment is primarily for the convenience and the understanding of the particular square in which you are recording this PRICE action. It makes a rectangle into a square as it identifies the parameters of influence.
5. Since the circle is primary in our analyses, and since the “P.C.” is our prime tool, it should not surprise us that this is a square-root calculator, and that it has within its square walls of numbers the derivatives of Phi, Pi, and squaring abilities as well.
Note that the Square of Nine has time frames denoted on the outside of the numbers in a “circle of time”. Note also that 0 degrees is shown as the start of the Spring Equinox, or March 21. This means that a full 360 degrees around the square would bring price back to the March 21st beginning, one year later. Obviously, each 90 degrees indicates one-fourth year, or three months. Likewise, 180 degrees is reflected in the span of time for six months, 270 degrees or three-fourths of the circle of time is in nine months, and one-half of the 90 degrees or one-eighth year is 45 degrees or 45 days approximately.
Note, too, that some scholars have made extended use of the Square of Nine in its adaptation to identification of parts of the 24-hour day. In this use, six a.m. begins at 0 degrees and progresses three hours per each 45 degrees in the rotation. We will present to you our interpretation as to this use. We will give you examples showing significance to certain time frames per charts shared from our files.
Hopefully this will give you an idea of the concept as presented with reference to the synonymous use of PRICE and TIME.
CONCLUSIONS FOR THIS SECTION
By now you should have a number of things in mind that will lead to a peace of mind and profit that you may have never experienced.
We have opened our core data, and have put it in writing so that you may have a constant source of reference. We have not, nor will we, withhold any data or assistance which you feel that would assist you, for...just how many of us have experienced the sick feeling resulting from initiating a position, only to find it immediately move the opposite way? Questions of what to do -- where to get out -- do I stay or run...and then the erroneous answers come flying back: “I’ll see how it closes” -- “I’ll check it tomorrow and see how it opens” -- Maybe it’ll close better today” -- and “Alas! I have too much invested now, I’ll have to see the ‘HOLD CARD’”. UGH! THIS, FRIENDS, IS WHAT WE ARE ATTEMPTING TO AVERT!!
It is our intent to leave you void of the feeling described above, and rather with a feeling of fulfillment, encouragement, and profit orientation -- and it is our desire to do so with no image of selfishness. We sincerely hope that you have