Timing the grain markets through the understanding of cycles.
Identifying the major trends that bring you the most profitable opportunities.
making the complex understandable
Grain Market Timing
W.D. Gann spoke of the "square of 12". Today, you can find many "Gann experts" advertise a chart of numbers that has 4 sides which they call a square. Yes, Gann did have a 4 sided square with numbers listed on it. But most importantly he was simply talking about a number. In mathematics "Squared" means a number times itself. 12x12 = 144. When we understand this phrase in conjunction with the other concepts Gann mentioned, a wonderful tool is discovered. We started this tutorial with a circle. Most everything Gann did is understood with the circle of 360 degrees. The square of twelve (144) becomes evident when used with the circle.
On October 4, 1974 nearby Corn futures culminated a MAJOR bull campaign by topping out at $4.00. This monster high would serve as the all-time high until it was finally breached some 22 years later. The bear market that followed this 1974 top pushed nearby prices lower for almost 3 years until Corn makes a MAJOR low on August 22, 1977 at a price of $1.81. On August 22 the earth is at 326. When we compare the position of the earth with the price of $1.81 we see that the earth is almost exactly 144 degrees above 181. What's more look at the price the market declined from. This position of 400 is also 144 degrees from 181. It is just that one must go backward around the circle. You see, these 3 positions are all related. They are separated by 144 degrees on the circle. These 3 positions create a triangle with 2 legs of 144 degrees.
There is a significant risk of loss in trading Futures & Options. Past performance is not indicative of future results. Any decision to purchase or sell as a result of the opinions in this report will be the full responsibility of the person authorizing such transaction.
Copyright © 2011 Grain Market Timing, All rights reserved.
THE SQUARE OF TWELVE
In music the ratio 3/2 helps create and define the musical scale. The number 144 times 3/2 is 216. When 144 degrees are travelled around the circle, there are 216 degrees left to complete the circle. In other words 144 + 216 = 360. This illustrates how 144 is the link between music and the circle.
The link between music and the circle
In the following analysis we are going to illustrate how the number 144 identifies turning points in the market. Using the Corn market (and then later Soybeans) we will show how time and price separate on the circle by this very important number.
The following example will illustrate that these principles continue over large spans of time.
From the 1977 low, nearby Corn begins a long rally back. On July 6, 1979 nearby Corn reaches $3.21 and makes a high, dropping back to $2.56. It makes this low of $2.56 on November 2, 1979 and also on March 27, 1980. You will immediately notice that there are 145 days between these 2 lows. But there is something even more important about these lows. These two dates are the places where PRICE had previously turned. In other words, the position of November 2nd is when the earth reaches 400 (the 1974 top) and March 27th is when the earth is just past 181 (1977 low). This proves that the principle that was in effect in 1974 was still in effect in 1980, only here it was seen in the dimension of TIME. Now, to cement the beauty and value of this concept, let's examine the price of $2.56. It is readily apparent that 256 is 144 degrees from 400. But also remember that 400 is 144 degrees from position of March 27. These 3 positions of 256, November 2nd, and March 27th form a triangle of 144 degrees, very similar to the one at the 1977 low.
Nearby Corn 1974 - 1977
Nearby Corn 1977 - 1980