Monday, November 1, 2010

From Square to Triangle: Price Time Harmonics

The charts below project some interesting things about last week and the week of November 22nd for the market. The projections are made by taking a swing range and projecting that range forward in time. Since the peak on April 26, 2010 the market has been making swings of a very geometric nature as the table below indicate. (the advances and decline range approximated the geometric 90-120-180-210 numbers). Projecting these price ranges forward indicates that last week's market action--peaking at 1196.14--may be a significant resistance level that will impede any further advance. The third week of November produces similar time clusters that suggest that a cycle change may occur then as well.
Another interesting exercise is if the range is multiplied by either 1.732 or .8666 important price levels-historically and possibly in the future are generated. By converting the square of a price range into an equilateral triangle remarkable relationships reveal themselves.
  • When a 2x2 square is converted into a equilateral triangle (2x2x2) it is shown that when the triangle is divided into 2 right angle triangles the perpendicular (opposite side) is necessarily 1.732 or the square root of 3.
  • The resulting height of the perpendicular relative to the hypotenuse is a ratio of 1.732:2 or .86666.
  • Multiplying the range by .8666 significant levels are generated--showing levels of supply and resistance.
  • As well as projecting price forward the center of the triangle--at the perpendicular--trend changes often occur. The relationship of the various swings during the summer are seen to be all related geometrically. Other relationships become evident by applying 90-120-180... degrees to the range. Try it--you will see many minor trend changes hit.

The table below shows these relationships. (right click to open in a separate window or tab)

These two graph are essentially present the same information but one may be easier to follow than the other. :)

It is quite possible that the market is in an area of some significant 'energy'--both in regard to price and time. It appears that once the this coming week passes the next energized period will be the week of November 22-26th. It would be exceptionally amazing if the market experienced a sharp decline currently and then rallied once again to present levels or slightly higher in the latter part of November.

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