Q: All the charts posted in your write-up are daily. I assume all the methodology can be used intraday as well? He has suggested to other people not to try day trading, but himself posted up a one-month long trading contest result where he increased the account by 10x, which of course is amazing and obviously intraday trading.
STRAKER ANSWER: Yes it is true that info is out there, I don’t like to make too many big claims due to my conservative client base… but yes it can definitely be done and I have used this system to gain significant intra-day trading advantages with impressive results 😊. In fact I believe and state in the book that any true universal harmonic method is good for all time frames. Pendulum is 100% effective on any time frame, using exactly the same trading strategies.
In the book, it is suggested that my preference is month/week/day, and for me it comes down to the amount if dedicated time I can devote to my own active account management. That is not much these days. I am looking after many millions for other clients, and that is a much more conservative game. 😉
I do still apply this at times, and here is an example that I traded last week… I was looking for DAX to reverse between 28-30th around 11,330, so took some intra-day entries off the 8-min using pendulum, here is the chart:
Took half the position off for first exit for few hundred points once price broke the APR, holding the remaining for a deeper move, as this is potentially a large swing down from here. 😊 Looking to add back at the ACS (dashed line yet to be reached).
My approach to intra-day will be explained more thoroughly in Golden Speed because that is where I get into my larger theory of scaling and Gann. There, when we get to Golden Speed charts, they involve specific time frames such as 32-min and 128-min due to the principle being applied using Golden Mean ‘square’ scaling, and there are many various examples on all kinds of time frames.
Hope this helps feel free to pass around info.
Q: You put this quote at the top of your introduction: “Science teaches that 'an original impulse of any kind finally resolves itself into a periodic or rhythmical motion; also, just as the pendulum returns again in its swing.” What do you think Gann means by this, and how is it used in your work?
STRAKER ANSWER: This is a most important revelation from Gann. It is saying that any impulsive vector known as a Gnomic Event (GE) provides key information that will be useful in plotting the resolution of the vector via a rhythmic, pendulum-like motion (or action-reaction sequence that resolves to neutral over time).
All market movement occurs in phases of composition and decomposition OR thrust and rotation. During the thrust phase, new information shocks the market and an impulse of new growth begins. After the initial wave impulse subsides, price will move towards a new ‘gravity centre’ in the market, in order to balance the pendulum motion (market moves towards points of resonance).
Price begins a rotational orbit when entering the gravitational field of this new point, and is either stuck there for a while, or immediately begins an accelerated orbit, and at some point, price is flung off again into another thrust wave.
Q: What do you mean by a rotational orbit around the gravitational field of a point?
STRAKER ANSWER: The market will follow the inner edge of a circle during the rotation phase until the limit of pendulum motion is reached again at a point of resonance, and enough centrifugal force takes hold of price and ‘flings’ it out of orbit again.
Using this scaled template method combined with a lot of deep research on angles has led to the discovery of a strict and consistent mathematical reason for an exact ‘point of release’ from the circle during the rotation phase. This release point sets up the action-reaction based geometry of the next trend move.
The circular scaling method was integral in noticing the celestial mechanics (yes planets!) involved in the strict mathematical forces of this point of release!
Fortunately, you don’t need to get into the planetary basis or calculations for using the pendulum effect since the pure geometry gives you everything needed for the technique to be successfully applied. If you are interested in the planetary basis then I strongly urge you to research the work of Sean Erikson.
Q: I’ve never seen Gann use anything that looks like pendulum motion… Can you explain what it was that Gann said or showed that demonstrates he used pendulum motion principle?
STRAKER ANSWER: Let’s develop this concept of pendulum motion further and see how we can establish the expected market behaviour pattern based upon it. It would seem Gann is saying that following a seed vector impulse of any kind, there will be a series of swings that are harmonically related to the original seed vector. These mathematically resolve from the original seed vector into a periodic or rhythmic motion, or market swings of movement in price and time. Again, this is all driven by root cycles of wave motion. The 1x1 line on a correctly scaled chart will always demonstrate the correct balance of forces and resolution of each successive swing.
Any impulse vector on a correctly scaled chart creates an angle and depending on the scaling and technique applied, either the vector will be pulled along (line of force) a Gann angle, or in the case of pendulum motion a custom angle of precise degrees even to multiple decimal places. Gann angles are always ‘paired’ e.g.: 1x2 & 2x1, 1x3 & 3x1. 1x4 & 4x1, etc and each pair is equidistant from the master 1x1 angle.
Gann angle pairs demonstrate a symmetrical order of action-reaction-neutral arising from any given Gnomic Event when correct scaling is achieved, the action angle of attack during the ‘action’ phase will have a paired angle precisely equal to 90 – angle of attack. By applying ‘magic 9’ and one of Gann’s preferred master numbers 90 (using 90 – angle) this ‘mirrors’ the angle around the 1x1 line and the paired angle that results is the natural Gnomic line of force (limit of motion) opposing the original Gnomon, this is the truth of wave form as plotted via Gann’s mathematics or a valid harmonic based alternative method.
After years of using this method, I have observed these sets of balanced movements always have strictly mathematical relationships with very little margin of error. This is the precision Gann was famous for. A long period of carefully measured and observed chart-based results have proven (to my satisfaction) the geometric precision Gann seekers expect to find DOES exist in a very real way. It is simply a matter of using Gann’s techniques based upon the proper mathematics aligned with the correct scaling. This is the material that is the basis of Book 2 and will be explained in detail therein.
Here is one example of a pure Gann method on a 2-minute chart demonstrating price action occurring in near perfect ‘pendulum motion’ time and time again. Price will repeatedly travel along a vector (action), then reverse and cross the 1x1 angle moving between symmetrical pairs of angles and finding the limit of motion at the precise opposite paired angle (reaction), then price reverses again and returns to the neutral 1x1 angle.
This example makes very clear the concept using Gann angle symmetry. Bear in mind this is a 2-minute intra-day chart, and in every application here to main swings, the scaled price-time geometry displays near perfect symmetry! Good news is angles are also very simple and quick in application once you get the key to Gann scales.
Q: How does your work make a difference in using Gann analysis and his various tools? Do the tools in Pendulum Motion also apply in the Gann work?
STRAKER ANSWER: By using my scaling correcting with Gann’s methods to geometrically align the price movement with particular natural world forces, this in turn aligns the Gnomon with one of the Gann angles. How? It is simply a Law of Square Scaling and works due to the particular Key natural world principle invoked that the market must follow.
Each vector is ‘pulled along’ along the Gann angles by this force, forming the thrust vectors of price and time or price/time. Once we scale correctly, such that the vector naturally aligns with a Gann angle, our rules of Pendulum Motion then come into play using the other matching symmetrical Gann angle as the APR or limit of pendulum motion. Much more about this approach is explained in Book 2 of the Series, Golden Speed.
By understanding time-by-degrees, then a system of cycle length conversions via ‘squaring’ degrees to price movement distances, we are well on our way to truly comprehending the Gann square’s power. Remember the principle it is built on is simply rhythmic cycles. Gann squares naturally measure time cycles then cleverly use the wave form geometry to ‘square’ the cycle length as price movement. Scaling, of course, remains paramount in these types of charts, and the full Gann solution with nothing held back is presented in Book 2.
Q: Can one also use Gann techniques in the circle-based scaling system, or only the pendulum motion tools? Are the tools cross-correlative between the different scaling systems?
STRAKER ANSWER: Gann was clearly obsessed with the perfect nature of price and time squaring (which is due to the balance of action-reaction forces in the market caused by rhythmic wave cycles… peak MUST equal trough).
This circle-based scaling method can support all manner of geometric applications, including any Gann-based time intervals, angles, key number counts, division by key numbers, geometric shapes, squares, master overlays (line work template), action-reaction pattern techniques, and a myriad of other techniques. The reason they work is they are all using the natural mathematics of chart geometry and harmonic science, involving music, frequency, pitch, amplitude, velocity and other elements of mathematics generated from wave mechanics.
The ideal market science is 100% grounded in physics, geometry and mathematics, and each one of these branches of science has been extensively studied and applied by market masters. While price action charts may seem random, the truth is they have many more elements of useable determinacy based on balanced forces than it first appears. True and correct geometric and mathematical systems will transfer between different scaling systems with ease, providing different insights according to the system used.
Q: I just don’t seem to be able to grasp how “circular” scaling could work? What do you mean? It’s very confusing to me…
STRAKER ANSWER: Here is why this circle scaling works. If we can accept that Gann was right and there truly are natural forces at work in the market as a cause of price movement, then the price-time information of each vector therefore perfectly represents these forces in motion on the chart.
It follows that scaling our chart to the vector information itself will force the entire chart to align with these natural forces! We are using the vector as the hand of a clock to get an accurate measurement of the tic-toc effect in the market!
Although not an exact replica of a strict Gann master overlay, this template has been designed to incorporate the principles of price and time squaring using a time-by-degrees basis.
As we have just seen, the pre-requisite scaling method squares price with time measured by degrees of rotation instead of along the normal horizontal axis.