Analysis and Trading based on Envelopes, Waves, Cycles

Your're most welcome.

its always beneficial to squeeze up your hourly chart and its very surprising what they reveal about those critical areas....note the tillman fork, where it ended overnight and when Friday sell off stopped and reversed....we talk alot about the Center of Gravity on the larger timeframes...

Parisboy & Others Interested In The Square of Nine

This what I've put together from memory so far using an excel version of the Gann Square of Nine. These levels are the projections from the Square.

Closed or the current price can be used, but I think I always used the previous days close price.

On this chart the close price = 8443. From the the Square it advised to Buy Above - 3844. Or Sell Below - 3828.

As can be seen Price quickly moved Above the Buy Above price of 3844 level & continued on to reach the 1st, 2nd & 3rd target levels, but fails to reach the 4th & 5th target levels. This Square I'm using gives 5 target levels Up & Dow. It is rare to see more than 3 target levels hit before price turns, but it does happen at times.

Once you trade using the Square for a while you will start to notice a clue as to which way price is POSSIBLY going. The clue is which is near to the previous days close Price when the levels are projected by the Square. On this chart the close Price is nearer to the BUY ABOVE level than the SELL BELOW level. Does this always workout? NO. Nothing ever does in this business, but it is a very good clue.

Not sure, but I do believe I waited until Price to moved ABOVE or BELOW the BUY ABOVE or SELL BELOW Price 5 pips before entering a trade. Again this is all from memory.



Not advising anyone to trade using this, but I did for a period of about 6 months with reasonably good results. It is like any other trading method you will need to practice to get a feel for what the Square of Nine is projecting.

Out of the many Gann methods, or concepts this is one that I could understand & was able to use. The only concern for me on using this is each Square of Nine I've tried does give slightly different projections, but this one in excel form I used as it give 5 levels instead of the 4 most on the internet will give.

I hope this is explained well enough to make sense & it will be of use to someone.

It looks like you have a chinkou span line projected forward on your chart. Is it to help with harmonic projection?

1. The Chikou span is one of five components of the Ichimoku Kinko Hyo indicator.
2. It is created by plotting closing prices 26 periods behind the last candlestick/bar.
3. It is used to gauge the momentum of an asset and to help identify potential trend changes.
4. It is used in conjunction with the other elements in the Ichimoku indicator, and is not traditionally used on its own to generate trade signals.

The Ichimoku guys have NO IDEA of what they are doing and why.

They have no ideas about the limits of the various lines they use.

The Chikou Span is a kind of Past FLD and it works only if there is a 52Time Unit Cycle (2 x 26) within Price Action

I closed my trade on GBP short as shown below because of the time of day and the total lack of volume....

Since we brought up Ichimoku, you will also see I was breaking a fundamental rule of Ichi.....Never, ever go short when the Chinkou is above Price, Never go long when Chinkou is below price.....

Ichimoku can be a wonderful indicator if you are a swing, or long term trader imho.....but it fails to consider turning points such as big round number, fibs, fib extentions, long term support /resistance (at least on the hour chart) But it has many good qualities especially on the daily, weekly charts....

Many diverse opinions on the Ichimoku system in this forum. Seems like I´ll have to do some research about it!

You are right Paris. I traded with Ichimoku for a period and found these things.

1. It is a designed for a particular market.
2. That particular market is a commodity, and commodities work on the SQ52 because of seasonality.
3. The creator did not leave any documents that we can access as to intricacies of the Ichimoku system, so people are guessing, a lot like they guess with Gann.
4. I stopped using it because the signals tend to be egregiously late.

When I saw it, I recognized that it was tracking price, but it was projected forward.
BTW, I like that founder of Sentient Trader wants people to learn Hurst manually. That is rare.

If I was not already in a trade..

then I would wait for the break of the ADR and take the pullback. The rationale is that there are some ADR traders, and when momentum lags, they will get out, and you will get your pullback. There are also pullback traders who will lean on the ADR line and trade around it. Pretty similar to the way a trader would use the VWAP, or any other line for that matter.

Ichimoku methodology raises lot of questions

a) why the various mix of calculations averages , how were they selected ?
b) why the projection 26 time units backward and forward ? was it tested and how ?
c) how were selected the parameters 9 / 26 52

I understand
1) that these parameters were DAILY parameters - were they tested on other time units ?
2) that these parameters were issued from observations of the japanese rice market, are these parameters applicable to ALL mrkets ? why ?
3) at the time when Ichimoku was created the trading week was 6 days long and the trading month was 26 days.

It no more the case now in Japan and in the World. Does this affect ICHIMOKU. How ? If not why

I will come back on Hosada wave and time concepts

newbies can have a taste of it in chapter 4 of Nicole Elliott ICHIMOKU CHARTS

Ichimoku uses for example the Senku Span , average of Tenkan and Kijun, and projects this average 26 time units forward.

This is efficient is you have a Cycle of 52 (2x 26) Time Units period operative (dominant) within Price Action .

Otherwise you go nowhere

Ichimoku uses for example the Chiku Span , last close, and projects this price 26 time units backward.

This is efficient is you have a Cycle of 52 (2x 26) Time Units period operative (dominant) within Price Action . Otherwise you go nowhere

This is extremely enlightening. Hosada and Gann lived in different eras and on different sides of the world. To have cycles within a day of each other is quite interesting. Legend says that Hosada only wrote one copy of how to completely use Ichimoku, and it is locked away in some vault somewhere, never to be revealed for love nor money.

It is of no interest what Hosada has written. Because it is written in Japanese and nobody has translated it entirely. A moroccan ichimoku specialist told me Hosada is reputed to have written 9 books

Nobody has even translated what written in Japan about Ichimoku AFTER Hosada.

All what we know about Ichimoku comes from a book from Manesh Patel an american of indian origin.

Since then. Nothing . No critical analysis of Ichimoku ? . No improvements on Ichimoku since Patel ?

Then guys has speculating about what Hosada should have said. That is oui-dire , "legend" ??? Ichimoku efficiency has to be evaluated rationally

Moreover I you read correctly and to the last page "Ichimoku" you will discover that discussions are only focused on the "ichimoku" you know, not on Hosada's wawes Theory, not on how Hosada considers time.