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    "It doesn't matter whether you want the markets to rise or fall - they sing to their own tune and if you're not listening to the markets tune your money is at stake" The Hovis Trader
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This weeks SP500 Resistance – WD GANN

Hope you’re all staying safe – world sure is a hot bed of activity at present right across the globe

You know with the markets NOTHING is 100% certain – the markets can be really complicated and also really simply

I would thoroughly recommend that you read as much of WD Gann as you can – WD Gann wrote many trading courses – you have to read, reread and then reread them for them to simplify – I will be honest Gann hid true meanings in simple words, so if you are reading his courses hoping for mysteries to be told, you’re mistaken, he forces YOU to do this yourself! Which due to the avenues and work involved will demand a huge amount of time of you, which most people don’t have – then you have people trying to charge you £1,000’s for trading courses to “reveal” the truth!

In all respect, you can do it yourself with a little application and hard work – nothings free in this world!

I still use a lot of Gann’s simple trading methods to this day – used properly they make very attractive returns and I mean much better than the Industry standard 1:3 risk:Reward returns – these are ALL contained in his works with no hidden mystery, you just have to test them and use a bit of common sense around

Now the below is COMPLICATED beyond belief, but you can do it on a calculator!

What I’m about to show you is just ONE aspect, you can use the calculator below to do many other things on Price and Time

Gann in his courses writes about the Squares (9 & 12) no-one knows where Gann learnt or developed this but he did spend time in London, India and Egypt – I would bet this came from Egypt

Take a look at the image below – this is Ganns square of 9 in basic form – notice the angles!

TIP: Pull the 1 towards you in your mind and it will form a pyramid shape (hence why i think Gann got this from Egypt)

Sq 9

Now take a look at this Square of 9 is more in-depth and detailed – do the same imagine it as a pyramid shape

I’m not going into exactness here, you’ll just have to believe me, but all those numbers are perfectly formulated, notice the circles perfectly intersect some of the numbers and also perfectly hit the apex of some of the squares too – this is not by accident!

Now you are probably looking at this (if this is your first time seeing it) thinking “WTF?”

Simply – the Square of Nine splits the circle up into various angles, through 360 degrees, those lines land on numbers and it can be used a yearly calendar, with the angles hitting Spring, Summer, Autumn and Winter etc

this post I want to focus as simply on the numbers as possible:

Basically all the numbers you see (which can be both TIME or PRICE levels) are SQUARE ROOTS – If you know maths then you should see a lot of coincidences in that square of 9

Look at the “blocks” if you follow price around the square from 1 it spirals – look north from 1 until you come to the number 316, just before the circle moves into another circle.  The next number on that north line is 391 (the north line is in fact the 90 degree line, if you read Gann he refers to things as 90 degrees, days, weeks, months, years) here its the 90 degree line

(0 degrees is at the 9 o’clock point, 90 degrees is 12 o’clock etc)

Now back to the numbers – there is a point to all this!

Take that number in block 9 (316), sq root 316 = 17.776

to get to the 391 number in block 10 all we do is add 2 to the sq root number of 316 = 2+17.776 = 19.776

Then we re-square the number 19.776 x 19.776 = 391

so to move upwards number wise from block to block we add 2 to the square root and then re-square

Stick with the 391 number if we deduct 1 from the sq root number it shoves us southwards to the bottom part of the square of 9

391 sq root = 19.773 – 1 = 18.773 x 18.773 = 352

Now to move in other directions all you have to do is add or subtract by different ratios to get  the other angles on the chart – so sq root + 0.25 – try it

use 391 (19.773+0.25 = 20.023 x 20.023 = 401

Find 401 on the chart

what you have done is by adding 0.25 = 45 degree line, so by re-squaring 391 with 0.25 you find the number associated with that number on the 45* angle of the square of nine! Pretty jazzy eh!

Now to be accurate 45* added to 90* = 135* angle of the Square of Nine (see coloured chart above)

Now in Ganns courses he constantly mentions angles, degrees etc – you simple alter the addition or minus ratio according to what angle you wish to locate/find (remember adding 2 to the sq root moves you a full 360* on the square of nine)

This IS what Gann WAS using 100 years ago! 100 years ago!

Square of 9

Now, here comes the relevance:

The chart below is the SP500 Index

I’ve had the following BLACK line on this chart for weeks

Take the LOW PRICE of March 2020 = 2191.86

Now we’ll apply the Square of Nine to that number – As we’re looking for a possible RESISTANCE LEVEL we need to be adding 2’s to the sq root figures to move up in numbers and up the block on the sqr of 9

2191.86 sq root = 46.817

46.817+10 = 56.817 x 56.817 = 3228.18

This is the 10th block on from our 2191.86 low price level

Now look at the chart below – here’s a caveat – I have to manually draw these lines on – the 3226.57 black line on the chart was the nearest I could get to placing the 3228.18 line on my charting software due to the limitations of tiny movements on the mouse

Now Look at the chart and the HIGH price of 3233.13 is ONLY 4.95 points over – How amazing is that?

You could have done some time forecasts using time on the Square of Nine and or Gann Angles to see if Time on the 10th block balanced (I’ll leave that for you to do)

Note – It is impossible to know which block will provide support/resistance – you have to test test and test as price moves along

Just wanted to give an illustrated explanation for the most recent decline in prices

Now using more traditional methods – Notice the 2 period RSI at the high – divergence @ a key resistance level

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I am pretty sure that more intellectual minds have dissected and written books or courses on Gann’s Square of Nine – As I’ve not read any I can’t help you in which sources to refer to or not to use – All I’ve done is stripped Gann down bit by bit and tested when I could, I’m sure there’s some bits I’m sketchy and not knowledgeable on, that’s for me to look into or leave alone

Stay Safe

THT

Market Outlook for 2020/2021

Hi All,

I forgot to publish this here – I posted it on Facebook to a group when asked out of the blue (hence the professional artwork!) and completely forgot – Apologies!!!!!!!

The date in the YELLOW box top left shows you when I created this chart pic

This is my favoured market direction for the next 12 months – I might be utterly wrong but I’m thinking that the market is going up (It has been doing this)  then for the rest of the year just sideways to down with the emphasis on the bearish side

Not sure if a new low will occur – that’s above my pay grade I’m afraid!

But I’m thinking that for the next year or so we are not going to be doing too much

I will be producing some analysis in the coming months on the next couple of Time Cycles that are due in the next couple of years

242

Stay Safe

THT

The 15th March 2020 Time Cycle

Well, well well………………………….

It’s been an eventful few weeks on the markets hasn’t it!

As published waaaay back in June 2017, we’ve been in the zone for the March 15th 2020 Time Cycle due date

CHARTS SAYS IT ALL REALLY!

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Then this happens:

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Not all these cycle dates will move markets – but some of them will, I’d rather know well in advance when the market could become a little bit “iffy”, rather than not knowing at all

I have a personal opinion on market outlook for the rest of the year based on a couple of differing factors – will post April/May time 2020

I also have some other interesting stuff that I need to post as it’s important to the Time Cycles Analysis – Watch this space next few weeks

In the meantime, all the best and good luck

The HOVIS Trader

REMEMBER: 

These Internal cycles are not exact date specific, they have a tolerance of + & – 3/4 weeks around the actual exact cycle date published

It pays to be aware of potential market sensitive points/dates/zones 

The BIG Time Cycles drive the whole show, never lose sight of that

This means you have to trade/Invest according to a plan that you have for yourself

It does not mean that the cycles cause price to rally/fall into the next published cycle date – that just does not happen with these internal cycles (the big cycles it does though!)

We are looking for potential increased market volatility in these Time Cycle zones (Which is exactly what we got on this one!) – It is IMPOSSIBLE to know for certain whether a TC will be a high or low

I’m not revealing the actual cause of the cycle

I trade according to my trading methods and set-ups, if they show up i trade, if they don’t I don’t – I do not trade the cycle date(s) blindly with a buy or sell order, a trading set-up of some kind acceptable to me has to appear for me to get involved – There’s a few spanners out there who think I can predict price action on the exact cycle date and make a killing! It doesn’t quite work like that in reality

 

 

 

Time Cycles – Long Term Projections/Predictions

Right we’ve kicked into touch any theory that the markets are random, the previous Time Cycles just happen too often with precision to be coincidence – Now when you know what is used to calculate these cycles ALL doubt is removed, all makes sense. We’ve covered the major turning points of the past, what about the future? Well here we go, here’s the future for you: Look at the dates AFTER Dec 2016 (Blue Line)

2017-2034 cycle dates

Remember if markets are falling into a Time Cycle the expected result is a bounce upwards out of it and vice versa if a market is rising into it – this does not always occur, but it does NOT mean the Time Cycles are invalid, it just means something else happened – the TC still worked just not as we thought. Take 1929 in the Dow – the TC still worked but rather than it being a high it turned into a low – the TC was due to top in 1933! perfectly fine when you understand the cause. I’ll no doubt comment more on specific dates are time draws us closer, in the meantime, now lets move down to the short-medium term cycles that are in play in the markets and see what can be done with those!!!!!!!!! This IS where you make the big money

I’ve left the previous cycle dates on for your reference (these were previous shown in an earlier blog post!)

The only thing now left to do is watch, wait and see what actually happens – It is absolutely critical that you see how the bigger cycles form and play their part in moving the markets, if you don’t you need to revisit it all until it makes BECAUSE, if you don’t understand the big easy cycles its unlikely you’ll understand the smaller cycles – these smaller cycles can be used to trade off and beat the market – massively!

Right now on to the smaller cycles that we can trade………coming soon