LA-Page | LESSON 14, March 22, 1986 Conventional Cycle Wisdom [Problems in complex tops and bottoms] [Translation of tops and bottoms] [rue (2x Dione or eecus) Point where all waves are “in phase” [Point of origin; where to start count from] Wave idealized state is a circle cut in half, and bottom flipped over [As above, so below] herefore, diameter oF 2 radius of circle Amplitude of wave = Interval tee TRA (ual be ify Gann aimiended his prior bulk of work Before: 45° angle is most important nc is most tmportant (Can be below 45 angle and not be in a bear market)LA-Pas HOW TO MEASURE A CYCLE Distance between two nodal points = 1 diameter of circle or 4 wave (casy to measure nodal points) Nodal points el 0-1 Diameter of cire 1-2 Diameter of circle 1 0-2 2 Diameters, Interval Information required to find waves: Need as much data as possible to pive high confidence level 30-40 yeurs-on a monthly basis 10-20 years on a weekly basis + Ne to know which wave you're in Need to know low and high (monad) for initial interval squaring price and squaring time Initial interval which everything cycles around Moni 7 intervals in an octave, but not equally spaced Square of nine chart TH UAR! CIRCLE ‘Squaring of price and time Vesica Piscis ——) ‘acycle ne Side = Diameter Interval = 4 Amplitude Inscribed, circumscribed circle Appears to be a hexagon, But can be a cubeJA-Page 3 Most things have @ 6-form Symmetry - a, atea | square unit b, double area of square side = square root of 2 are 2 square units ce 216 “A. [7]s Os 1 fe io The relation of side adjacent and hypotenuse a sine = opposite side / hypotenuse Gann: “angles are moving averages that move along at a regular rate over time” = slope Points are part ofa line as long as within one standard deviation from line. a Tangent (to the circle) = sin (opposite side) / sin (adjacent side} Tangential veetors, pitch, rate of change, slope Objective of Squaring the Circle: area of square b, circumference of eirele = perimeter of square a, area of cirel Harmonie mean or Arithmetic mean = equality amongst partsJA Page4 ‘You can't get the Vesica Piseis without using ares from the 2 circumscribed circles. #88 [cross diameter of vesica = side of vestca the square = diameter of the circle ] The "O-G Momentum Method" talks about 1/4 cycles (he was the only one) The Crest of the Cycle is at the 1/4 point of the wave. The Trough is at the 3/4 point and the Nodal point is at 1/2 of the wave. When wave is 1/4 off, it needs to be followed by a 1/2 eyele, then another 1/4 cycle to get back in syne. “Double Hump" = getting Alternating Beat, fcycles (waves) are not in Phase, you can't add them, [1/4 + 1/3 + W2= 1) +All Nodal Points Must hit for All Waves (daily, weekly and monthly) Out of the Lst Square into the 2nd Square. Like the Atom, as you go up in orbits it takes more energy volatility increases, different world, space, energy shell 50% Retracement radius 14/.5° (2/3 level) 70% Retracement — 1 Each Octave has Ratio of 2;1 over lower one (100%) major 1/3 has Ratio of 3:2 major U5 major 1/6LA Pas Theory of Allocution - Sequential series, Fibonacci Geometry is the Relationship of Proportion of Parts Gann was a Kabalist. He shifted numbers around (changing positions of numbers in space) Toa Kabalist, everything in life has their natural opposites 8+5=13x4=52 (8 white keys and 5 black keys) Harmonic Composition and Decomposition - Most things grow in Nature in Spiral (nautilus) Start with a Triangle, double it and you get a Square. oe ORO Solomon's Scal 5+) * SS In what shape and form do you get your growth 2 Diamonds are triangles overlayed (lines of symmetry) 60 degrees (180 =3 x 60), the total number of degrees in any triangle The Hexagon is made of 6 trianglesLA-Page 6 Types of Angles ~ Gann said there were 3 types: Vertical, Horizontal and Diagonal A circle divided in 24 parts of 15 degrees each (24 hours per day) 15 degrees days = 15 cents Planetary Hours - each hour ruled by a different planet ORE IMPORTANT. Gann said "when time meets pric ME Tange is imminent” ‘The Plane of Symmetry, the Angle of Cleavage, doesn't always have to be 45 degrees. U4 Cycle will predict top Gann: squaring all time low, that Initial Interval, will appear all over the (not just in one place) The Comerstone, it Sets the Cycle Must find Dominant Cycle, the 4,3,2,1 or some combination Get Nodal Points (the position of rest, where price gets consolidated there) correctly and Interval Lengths correctly, then the 1/4 point in length is the high and the 3/4 length is the low point Nodal Points must be EXACTLY | diameter (whether there is Tran; fion or not of the high and low) Vector - Momentum: Below zero line is negative energy ‘Summation, Epsilon of all waves » adding them (coils) must be in phaseLA- Page 7 Regularly occurring Irregular Cycle occurs every 6th beat to 7th beat ‘Translation distortion ozeurs LTimare PITCH - the 45 degree is based on this... Pr tow much is each box worth ? how to seale your chart ? the smallest unit is 1x 1 A good rally occurs after price gets above a I x 2 line drawn from the top (after | x 2 is broken) slope (mi) angular velocity Example: $150 drop in 100 days = 150/100 yl) (x2-xt) By knowing the | x 2, you can compute all the other angles by multiplicatio 1x2=B (the average drop per day) 2B=1x1 4B=2x1 8Bedxl Must be 35-40 days old to bea valid angle (om a daily chart) There are more h inthe Inter part of the yenr {use Wednesday for weekly charts, there are very few holidays on Wednesdays] The Longer the Time, the Stronger the «Angle Purpose: to get Amplitude equal to Interval to match amplitude with interval, you must square them therefore Angular Momentum (velocity) is not important (exeept in parabolic situation) * With, more compression, a chart creates more distortion, Once a chart is squared correetly, the Nadal points jump out on you, On a compressed chart, they get buried, * The whole purpose is to find the Monad — Interval, then find amplitude, then the Z axis and then you have all 3 planes Problem: Which top or bottom is the most si ficant to-draw angles from?Point “A” — dead bottom, terminal phase, end of bear market Don't draw angles from it, Don’t square from it Point “B” ee ins rally Point “C” = 2™ try : ae A Vector is the average gain per day wou ae Ane Jinear function — straight line ifall angles incorporate into a singular vector after the 2 x 1 moves into parabolic function (never short it) a8 ¢ Spirals stort off as Squares BOOK: “Cieometry of Art and Life” by Matila Ghyka Gla! all logs are specific proportions fe et BIA as C/B pur 3 A 8 OS Works fine in sections 1, 2 and 3 But 4! section is Parabo Therefore use Logarithmic or Square Root Logarithms: 1-100 100-1000 1900-10009 3 digits d Objectives” ( ell Daniels) rum Time runs from “A’ eat wour OG oa Creme 5 98 89 S4 32 21 ~ is it (X) full body or %4 bodyTIME (vis a vis Waves) More Important than Price ~ For example, ifall waves beneath Nodal Points are heading down, then Prive will head down (negative prices - down), creep, or go sideways Overbalancing of Time and Price - important in the final section of a Bull or Be: indicates change in minor anel major trend vamp: Beat Market - 2 impulse legs about equal in size (A-B-C) Jess than | year in duration parabolie in nature Go up against gravity then gees down with gravity 3 tangents te parabotics function 5 6x1 to 3x1 t 1x1 (harmonic decomposition) LO breaks down in organized path has ffietion; yin‘yang energies ee Looking at angular velocity (aet changes in momentum) a va ‘The major low point within the last 20-30 years is important ta know. Silver: 1932 2435/8 1936 34.8 1/4 cycle Tet (om #) ee “Spa. 2 fold symmetry - mineral In Chemistry: 3 fold symmetry - vegetable Shell Electrons, 5 fold symmetry - ma 2 Square raor(2) 6 fold symmetry ~ poison to us P 6 Square root(3) 7 fald symmetry - opposites natural be 10 Square root(5) BS 14 Square root{7) a a 7 Intervals between Octayes, 7 electrons per shell (at 8, shell full} Different Energy Levels - octaves, spectral density of light (color), shells, sub-s is Everything in Nature has it's own form of Symmetry and Type of Growth The Comerstone is the Basic Building Block‘Once you know the Code of Sequential Series of numbers (grouping ef numbers in Sets, by geometry ¢tc.) you can predict the rest In Book of Revelations - Unive Number sct (st book) Mercury one of the controllers of eycles 88 days most stable orbit, least wabbles35x35 49x25 1225 1225 (using the numbers 7 and 5) Square Root (2) = 1.414 [This is a work page related to Notes page 23]]1B- Page 23 ‘Concept of Gnomonie Growth - All growth starts with the Hypotenuse (Gnomon), NOT the Square eROnN Golden Rectangle (the square doubled) Double Square (golden rectangle doubled) Logarithmie Spiral - Growth - Harmonie Progression Lowest price (options, contacts) to begin growth, to square it (for time as well as price) For the gnomon - which will produce all future growth - sill vibrate to Examp! Soybeans at 25 cents or35 cents [2 Cash lows] [Cash high = 1227) 25x49 35x35 = 225 225 Gann - "Yor ean square the Low, ake High or the Range" (to got the gnomon, the Number that it will vibrate to) the Wavelength (Lambela)1B: Page 24 Book: Edson Beers - "Dynamic Symmetry” from the 1920's Gann: section = impulse wave + retracement Elliott: impulse wave + rea Circumseribed Objective (Pickell Daniels) (1% of Gann) 45 degree angle shot from bottom = Circumscribed Objective cover your shorts 45 degree angle shot from top = Circumseribed Objective sell your longs Squaring of the Citele - one of the most ancient problems of ancient geometry slliott - all waves are proportionately related YEARLY : FUNDAMENTAL LAMBDA 24 | MONTHLY OCTAVE 30% Retracement 12 WEEKLY, MAJOR THIRD —33.1/3% Retracement 8 (also sixth, fifth) DAILY DOUBLE OCTAVE 25% Retracement 6 When you algebraically add then up, the Daily, Weekly and Monthly must equal Yearly according to Fourier analysis Gann » Center of Gravity = Nodal Line = 50% retracement Music: zero energy, at rest (as above, so below’)Page 25 Cycles: popular approach = tap to top ar bottom to bottom If-complex eycle, which top or bottom to use? THEINTERYAL: — Lambda = 2 Circles Much easier to measure Node to Node /2 Lambda (I diameter or 2 radius) U4 Lambda (1 radius) /4 Lambda (1.5 ‘Top te Bottom First Node to Top First Node to Bottom eters or 3 radius) Tracking Interval (time), not Amplitude (price) Time to Gann was the Mest Important factor Gann: "Price ean never Overbalance Time" "First check if Time ix Overbalancing Price, if sa, wave of Higher Degree is taking over" Elliot: waveof one order only a partof a. wave of a larger onder en ita anes a. apr er BURA ge H © Not all waves form along the ""X" axis as sinusoidal waves, therefore, don't use sine and cosines - use Time Components of Waves Rhythmie cycles of Optimism and Pessimism = Mass Pressure (Mob Psychology) Yeetorial representations of buying and selling pressure sm Force applied in certain direction for a certain period of time. > Potential and/or Kinetic Vibrational Enerzy Price Behavior = resultant Summational Wave (not a single one) of all waves acting upon it * When you have 3 Waves that cancel each other out (= 0) thea other waves take over and determine movementSCRE EPOS SESE E EPS S PSE S SSE! Page 26 wy @ Sh (a) High to low, or could be 1/2 Lambda ~ es a + (b) High to Node ~ 1/4 Lambda wy SS ay, ha Out of Phase - Which one ? a: relation to itself b: relation to larger wave Popular; tops occur rapidly (only Bear Market rally) No~ plateau at the top > tangent to the eurve When waves are out of phase, you get Right and Left Translation - when Top has Left Translation, the Bottom must be Right Translation 90 degrees of Circle = 1/4 When 90 degrees out of phase, ‘it takes 3 radius, or 3/4 Wave cycles to get baek into phase NIERACTIONS © ALL CYCLES ARE RELATED TO PL Relationship of Diameters and Radius that everyth (like Phi (1.618) and Pi (3.14) ~ the relat ng is built upon nship never changes) Increasing Radius - Conic, Spiral — means time is important 0 degrees is always 1/4 cycle, but as you move out in Gamn's chart, you include more numbers (more price movement) All this related to Music - [music intervals, certain keynotes, note to which it vibrates to} ‘Octave, Quanta Levels, Duodenarium (page 9 - handout) and Symbolic Frequenc!IB. Page 27 + Numbers= Mathematical Points of Force Gann ~ “‘should be able 10 write a forecast at least one year in advance” without time cycles... how could you? AFTERNOON SESSION ‘Squaring the Circle - (not the inscribed, not the circumscribed) This attempts to equal up the Area (volume of both When done, Radius = Interval = Amplitude... will be True Symmetry Tum square around on axis, you geta Diamond ~ the diagonal is the diagonal of Vesica Piseis and sides "become" Yeeto J ponsible for determining the Basie Interval Vesiea Piseis is 1/2 Lambda (wavelength) OBJECT: To measure its frequer The result is just to To get a chart Pitched (slope) True so that a 45 degree angle is really 45° I. Go toa historical chart: By visual inspection, take the highest price paint, subiract price of Snap-Back to Declining Tops Line (60-100 days, At Least) cy of oscillation or vibratory rate whieh never changes(going from High to Low). a mathematical number from any eat. h point to Snap-Back point 2. Take the number of Trading Days from Hi getting arithmetic of 1 x 2 line (p1-p2}/ trading days ex, (400-200) /200 = 100/200 =.5 units per day so the Ix2 angle has a value of 5 units per day ~ Doubling it will give you the Ix1, which is | price u T you scale price units ona chart per day Gann - "rising above he tx? angle puis commodities in a strong position where strong rales should ensure”B- Page 28 Once you have a True Pitched chart ~ find price Symmetry above and below the Nodal Line (using a compass, swing High and Low symmetrically around the X axis (price) ‘This will NOT work on a Non-Pitched True chart Breaking one Angle takes you down to the next Angle - this is where you expect to find support Daes NOT mean there will be a Change of Trend, but just Support Ly 2 anglezonce you break it; you will-return to the Base therefore; the:bye2angleisealledthe Death Angle“, Going from Ix1 to 1x2 - only a 40% correetion (a normal market correction) #of units. yranis: X-anis \ f (up) (over) a I 2 25, 1 1 2s 2 1 Parabola - (part of Logarithmie spiral) Starts with Triangle to Circle to Golden Rectangle to Double Square Vector Radius in logarithmic growth (spiral) = Gnomonie Growth (like a tether-ball - if you know the radius and know the growth rate, you know the next point - harmonic composition) Above the 2 x | line, a market is ina Parabolic Rise - Never short until Time Cycle runs out1B-Page ; If parabolic move in Bear Market rally (two equidistant legs) - use time cycles to indicate where to short Fast moving market only reacts 25% to 33% - Buy Dips Don't sell out tops because you may miss the move Slow moving market reacts 40% to 70% sell out Tops and re-buy Dips ‘Here wait to 3rd Highest Bottom and reactions should be only 2 days against the trend Being above the 2 X | line~ 5 wav. 3up, 2dowa = 1 4up, Idown = 3° tobeabove 2x1 Sup, Idown = 2 the 2x! T waves: 4up, 3down = 1 Sup, 2down = 3 tobe above 2x ~ tied in to Time Cycles ‘What is the True Interval (correct cycle length, correct composite) Creating the exact fit (F or =)IB- Page 300 Fundamental 24 Octave 12 Double Octave 6 Major Third s Whole Tone 9 1224= 50%, 8/24=33.33%, G6/24=25%, 9/2: 37.5% (3/8ths) Cycle= a change in Attitude of Masses (easier to spot in Weekly charts) Vectors: AtNode, the energy goes from +t - No more energy to push it (go) positive je shorting point (selling) this is when the W lajor changes take place — time, assuming there is no overbalancing "Commodity Options" - CPR. Commodity Price Ratio - by Zeig and Zeig Mathematical value of option based on volatility of the underlying. issue 45 days left, the Time Value drops off (45 day window) Liquidity Factor ~ market maker will kill you sales open-interest Volatility Important1B- Page 31 * If2nd Top doesn't execed. first by a,certain amount - stop is True Top 2nd top is Momentum Top This means you have a C Law of Periodicity: ™ 34 Sauer (ee cle eS) miss... NeT Getting « Summational Wave (Composite, Resultant) : luck and blue are the same frequency and out of phase By wave getting out of phase, the whole configuration changes Kno (momentum top) within a Cycle (True Top) 3.142857 1g the particular configuration, you can predict what happens next yau ean break down the Summational Wave into-it's Component Parts y ieLB- Page 32 SECOND DAY MORNING: There are 3 types of Angles: Horizontal Vertical Diagonal Law of Propottionality and Swing the Arcs - Radius is Swi ig Measurement of move (price, top to bottom) (not necessarily the final top or bottom, but the Resting place) If Squared - it will al: Square out of T be Time Interval ime and Price “Everything (done) by the Square" - the Masons Area of “a" + arca of "b" = area of "c" (a? equals the Area of Square TIMES 2 = TIMES 2 = TIMES 2 Ll ry i SQUARE GOLDEN RECTANGLE Te] DOUBLE SQUARE LiLB: Page 33 ‘Three ways to find the Square: All-time Low, High, and Rang iscis is the Gnomon = erval The line that Bis But that cis the Wesica only W2 cy When you use a Square’s Side as Radius, you get Inscribed Circle ee When you use a Squares Diagonal az Radius, you get Circumscribed Circle 5 ‘The Mean of the two, you get the Cirele that squares the Square 4 "Center of Gravity" = different types ‘50% Retracement = Arithmetic Mean ex. (12+6)/2=9 Geometric Mean Harmonic Mean ex. 12 and 6, harmonie mean = 8 (this equals 2/3 retracement) That percentage which is taken from the Upper Level is given to the Lower Level (as in Plato's "Republic") Take 1/3 from 12 (4) and give 1/3 to 6 (2) Price Behavior és the Composite Wave of summational resultants of All waves acting together (musical proportions) When all other forces are Neutralized - Sometimes you sce the pure wave (L) acting alone (singular component of composite wave) ofa particular time interval. But it’s navthe only wave and not expected to determine tops and bottoms in the futureBreak it down and add it up Tm Composite Wave and the Gnomon - Some portion of True Gnomon should come out here Proof of All-time low, for example Ifit fits (harmonic recognition analysis), that is the Proof When the price madel fits, know which component waves are there T Intervals, 8 Octaves in - Harmonic composition, Harmonic decomposition, then Harmonic analysis, Example: (usually get 5 to 9 cycles) 1. You pastulate which and how many waves (4 waves) [fundamental, Oetave, Major 3rd and Double Oetave) clated by Law of Proportion {all musical harmonics related to each other) ‘You must decide where all the waves start (where they go from Nodal Point - up or down) 2. You will have 16 charts (24) - [4 waves, each have only 2 ways to g Will fix over a Particular Period of Time (only), a particular section, which Direction the Individual Waves are running (polarity of the waves) Eventually you will quantify the Vector Forces of ench Wave _ But for nov, assume it is moving at 1 unit per day A Composite Cycle, by definition, doesn't have a Nodal Line Look to Dominant Component Cyeles, each has a Nodal [1B. Page 35 How do you go Up (or Down) a Harmonic? or Cycle? ‘When Boost as traveling along vectors the vector changes 2 ‘But when energy tins out, if goes back to initial vector of o Quantify force being applied, using Valume 9° For a Nodal Line, there must be Symmetry (above and below the Nadal Line) Sub-waves will clearly show up when others are neutralized by each other From price top to bottom is it: Atoc 1/2 cycle (timey Bic 1/4 cycle (time) ives; Cycle (time) peaks before price peak ~ Fundamental turns down before Composite wave (price) dees Question: — > Positive Acceleration Negative Velocity ? Bas Where does Price top, and bottom’ (NO) Adding cycles - if Down, then -1 (no matter how low?) When 3 eyeles tum up, and one still is down - doesn't it depend on how low the Down cycle is?RNOON SESSION Nodal Lines of Component Waves - irrelevant to composite summational wave: ‘There is no Plus or Minus ~ Only direction (vectors) important Individual waves turning up (the net number) Summational wave turning up (price turning up)Sune GUT 1s Susy 2 and (pre ae tes?) ieee WHEAT Ue "WHEAT = mak Plgwes 0% Sima ai hicago Board of TradeWHEAT MARCH 1979 Chicago Board of Trade UGEEERS