Timing is key

Cables natural S/R levels using square roots!

FX:GBPUSD   British Pound/U.S. Dollar
853 25 20
Hello all,

Today's square             root idea is not new ( re: William Dunnigan ), however what is new is that I have worked it out on cable by unearthing it's unique multiple (0.0625). In this example I am applying it to the LOW 1.45648. Once you suspected that this low was going to hold for a while the S/R lines could have been easily generated using a calculator and a pencil. This can also be applied to a bear market ( subtract instead ), and the multiplier is likely to keep working for future tops and bottoms. Below is how to do the math.

Low: 145.648 ( I shifted the decimal 2 places to the right )
Square             Root of 145.648 = 12.068
1st rotation multiplier (1 x 0.0625) + 145.648 = 147.160 ( convert to 1.47160 )
2nd rotation multiplier (2 x 0.0625) + 145.648 = 148.681 ( convert to 1.48.681 )
3rd rotation multiplier (3 x 0.0625) + 145.648 = 150.209 ( convert to 1.50209 )
4th rotation multiplier (4 x 0.0625) + 145.648 = 151.745 ( convert to 1.51745 )
5th rotation multiplier (5 x 0.0625) + 145.648 = 153.288 ( convert to 1.53288 )
6th rotation multiplier (6 x 0.0625) + 145.648 = 154.840 ( convert to 1.54840 )
7th rotation multiplier (7 x 0.0625) + 145.648 = 156.399 ( convert to 1.56399 )
8th rotation multiplier (8 x 0.0625) + 145.648 = 157.966 ( convert to 1.57966 )
9th rotation multiplier (9 x 0.0625) + 145.648 = 159.541 ( convert to 1.59541 )

The number of accurate hits is quite astonishing when you put this in perspective...these 9 S/R lines where generated from one number 1.45648..... As a trading tool, it is quite powerful both from the viewpoint of locating a trade entry and/or holding a position into the next S/R level...not bad considering each level is 150+ pips.....

Sincerely,

TIK
pezq PRO
a year ago
How did you work out the constant? I didnt quite follow. The SR of the low is 12.068 How is this related to 0.0625?
Reply
Timing is key pezq
a year ago
Hello Pezq and all, I must apologize, in my haste I omitted 2 CRITICAL steps in this calculation. below I have re-done the math:

Low: 145.648 ( I shifted the decimal 2 places to the right )
Square Root of 145.648 = 12.068
1st rotation multiplier add to square root ((1 x 0.0625) + 12.068)) = 12.131. Then square the answer (12.131 x 12.131) = 147.160 ( convert to 1.47160 )
2nd rotation multiplier add to square root ((2 x 0.0625) + 12.068)) = 12.193. Then square the answer (12.193 x 12.193 = 148.681 ( convert to 1.48681 )
3rd rotation multiplier add to square root ((3 x 0.0625) + 12.068)) = 12.256. Then square the answer (12.256 x 12.256 = 147.160 ( convert to 1.47160 )
4th rotation multiplier add to square root ((4 x 0.0625) + 12.068)) = 12.318. Then square the answer (12.318 x 12.318) = 151.745 ( convert to 1.51745 )
5th rotation multiplier add to square root ((5 x 0.0625) + 12.068)) = 12.381. Then square the answer (12.381 x 12.381) = 153.288 ( convert to 1.53288 )
6th rotation multiplier add to square root ((6 x 0.0625) + 12.068)) = 12.443. Then square the answer (12.443 x 12.443) = 154.840 ( convert to 1.54840 )
7th rotation multiplier add to square root ((7 x 0.0625) + 12.068)) = 12.506. Then square the answer (12.506 x 12.506) = 156.399 ( convert to 1.56399 )
8th rotation multiplier add to square root ((8 x 0.0625) + 12.068)) = 12.568. Then square the answer (12.568 x 12.568) = 157.966 ( convert to 1.57966 )
9th rotation multiplier add to square root ((9 x 0.0625) + 12.068)) = 12.631. Then square the answer (12.631 x 12.631) = 159.541 ( convert to 1.59541 )

Pezq: In answering your question,

1. The multiplier ( constant ) is simply 1/16 x 1= 0.0625. The multiplier is simply to obtain a workable square root division for trading this pair. Each currency pair/stock/commodity will have it's own unique multiplier, they are commonly 2 ,1 ,0.50 ,0.25, 0.125, 0.625 etc. must all be positive hence 1/2, 1/4, 1/8, 1/16 etc.

2. The multiplier ( constant ) is NOT derived from the LOW value of 1.45648, thus it is constant, and can be applied to any High or Low price for this pair.

Hopefully this covers it, please let me know if you would like any more clarification because it is a really powerful method as the chart demonstrates.

Sincerely,

TIK
+1 Reply
IvanLabrie PRO Timing is key
a year ago
This is very similar to Gann's square of 9...it's a square root calculator.
I find it extremely prone to subjectiveness, similarly to forks for that matter. Without some serious screen time and education, it's easy to be tempted to just guess your way around Gann, Forks and these square root levels.

Clearly, not the case when it comes to TiK ;)
Thanks for the thorough explanation.
Reply
Timing is key IvanLabrie
a year ago
The square of 9 is not for the faint hearted, and is way more than just a square root calculator and requires serious application to get your head around it and to be useful. This tool however is very simple to apply and is purely a square root calculator applied to either a significant Low or High, the answers are absolute and you can have as many rotations as you like no subjectivity there. The tricky part in the process ( especially with currencies ) or "subjectiveness" is in deciding on which constant is working the best, that needs elbow grease and a bit of testing, you also need to play around with the decimal placement, however, what you will discover is the each instrument sings it's own tune and once you find the correct note, you can get results like this:) Thanks for your input
+1 Reply
IvanLabrie PRO Timing is key
a year ago
Exactly, finding the optimal constant and decimal placement is the tricky part.
The same as the Gann methods (although it's only one dimension of 3: diagonal, vertical and horizontal planes)
+1 Reply
Timing is key IvanLabrie
a year ago
Yes Ivan you are correct, I am looking at only one dimension, but in it's own right it can be integrated into any trading strategy if one chooses to exploit this natural phenomenon. I do have a road-map chart that exploits the 3 dimensions, I might post an example down the road, if people are interested:) take care
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IvanLabrie PRO Timing is key
a year ago
Sure thing, always interesting to know more about your methods. Keep up the great work!
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pezq PRO Timing is key
a year ago
Thanks TIK that's answered my question. Clearly there is some validity to these levels. As to the underlying principle involved - I am unsure....exactly what is going on...but interesting none the less
+1 Reply
Timing is key pezq
a year ago
The basic premise is that future price fluctuations are proportional to the square root of prior prices. Although you can use any price in the past theoretically the major extremes tend to work the best.
+1 Reply
Timing is key
a year ago
As you can see the 6th rotation horizontal support 1.54840 held, let's see if cable will revisit the 7th rotation upper channel @ 1.56399. If it falls shy and reverses it will be a sign of weakness.
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Timing is key
a year ago
Hello all, I am following cable with this idea on a 60 minute chart to show how we can use these natural levels on a smaller time frame. I began from the most recent low and instead of multiplying the same constant (0.0625) by 1,2 etc ( 180 degree intervals ). I multiplied by 0.5,1,1.5 etc. ( 90 Degree intervals ). I have included forks to illustrate how the horizontals gave me a heads up when to draw the forks with confluent entry and exit points.

Thanks,

snapshot
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Timing is key
a year ago
Check out the bounce at the 7th rotation - 1.56399, pretty awesome resistance level
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Timing is key
a year ago
Once the 7th rotation Resistance became support to the 8th Rotation where it called the TOP.......remember these "Natural" levels where produced once the LOW at 1.45648 was in.....No subjectivity just SQUARE ROOTS!
Reply
Timing is key
a year ago
These rotations are working like clockwork! Keep loading the bars and be amazed!

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IvanLabrie PRO Timing is key
a year ago
Super sleek!
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FXKOPPA
a year ago
super amazing work , BOOM BOOM Hurrah
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FXKOPPA FXKOPPA
a year ago
now price heading towards 3rd rotation
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Timing is key FXKOPPA
a year ago
Yes, possible however the levels are getting a little sloppy there are 2 possible scenarios I will need to test
1.I will run them from the most recent high back on the 18 June and see what happens....I don't anticipate much of a shift in the levels.
2. I will run them from the most recent Low on the 30 Sep 2015....Reason The 2 Sloppy Hit's are actually communicating to me that the cycle has shifted slightly so if this is the start of an uptrend I can get these levels up early.
Will post an update
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IvanLabrie PRO Timing is key
a year ago
Great, looking forward to it.
Reply
Timing is key IvanLabrie
a year ago
OLD levels still working
Reply
FXKOPPA
a year ago
I was looking at USDCHF , before intervention of CHF , was following the same parameter.
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Timing is key FXKOPPA
a year ago
If you are referring to SQROOT. . S/R levels yes....key is to find the right multiple...once you find...it will provide the roadmap moving forward into the future. Your starting point may change ( Not often ) when major Tops & Bottoms are taken out.....I've been testing a strategy using this method with good results ......trying ti iron out the sideways action:) keep well .....I have recently posted a chart on the Swissy worth checking out...keep well
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Timing is key
a year ago
Nice Pin Bar on the 5th Rotation!! Keep pressing the play button:) Do your own charts to confirm:) Remember these S/R levels were generated from 1 Low Pivot!
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Timing is key Timing is key
a year ago
Touchdown...Almost @ the 4th rotation....That's 140 +pips just playing the S/R levels
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FXKOPPA
6 months ago
these are down level til 5th root
1.38195
1.39668
1.41150
1.42639
1.44135
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