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Continuation of part 6

Step #2: Perform analysis of 3-DVs and its derivatives from each point.

For example, let’s take a look at point E.  At point E we can work with 4 different 3-DVs and their derivatives. They include  DE, BE, CE and AE.  Meaning, it is highly probable that EF will be equal to the four 3-DVs above and/or their derivatives.

As mentioned earlier, the 3-DV of EF today is 12,364. If we analyze the four 3-DVs above, we will soon find out that 3 different numbers closely resemble today’s value of 12,364. They are

• DE 14,094
• AE 13,542
• CE 13,873

All other 3-DVs and their derivatives either fall short or are outside the scope of our analysis. You will notice that the value AE is the closest one to our present value of 12,364. That basically means the market is not yet done moving up.  It also means that once the value AE 13,542 is reached, it is highly probable that it will mark the turning point in the stock market.

Further,  as of today the value EF consists of 2 input variables. Time Value of 7,742 trading hours and Price Value of 9,641 points.  Let’s further assume that based on our research we believe that March of 2014 will be the top of the bull market and/or the move EF.  This gives us an additional 80 trading days or 520 trading hours.  By adding 520 trading hours to 7,742 trading hours we get all necessary information to make an accurate estimate of the bull market top.

In addition,  we can estimate how much the market will move up between now and March of 2014. We simply adjust our 3-DV equation to look like this

SQRT (8,262^2 + X^2 ) = 13,542

When we solve the equation for X, the X = 10,730. This value represents the PRICE portion of the equation at the completion of the move.  With today’s PRICE value being at 9,641 this means the market is likely to go up another 1,089 points (10,730 – 9,641) between today and March of 2014.

Think about this for a second and how powerful this simple calculation is. If you got your lattice structure figured out and/or you know the next 3-DV move,  you can predict with 100% certainty exactly when the stock market will top out. Not only when, but exactly where. To the day and to the point. So, while everyone else is playing the guessing game of how long this bull market will continue, you know the answer well ahead of that turning point taking place.  You know that you must hold for another 4 months in order to realize the maximum gain and then simply reverse to short position to benefit from the upcoming bear market decline.  Amazing, isn’t it?

But what if the forecast above is incorrect?

To Be Continued…..

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Stock Market And 3-Dimensional Analysis (Part 7)

Continuation of part 5

7. The move AB was an exact square and continuation of another 3-DV prior to 1994 bottom. This move was a perfect square. The market moved exactly 8,296 points in exactly 8,437 trading hours. Giving us a 3-DV of 11,832.  This 3-DV was identical to the actual top set on January 14th, 2000 of 11,854. Proving, once again, how accurate this analysis can be.  

8.  Finally, the move BC was the derivative from the move AB. If you divide 11,832 by the square root of 3 you end up with a value of 6,831. With move BC having a 3-DV of 6,840, it gives us 0% variance.  As 2003 secondary bottom was approaching an analyst using 3-DV analysis would be very well aware that a turning point was coming up. Using the techniques above the analyst would be about 10 trading points away from the actual bottom.

This concludes the analysis and explanation of the 3-DV moves above.  The explanation above went over every single value and showed you how they can be used in order to predict the markets with great accuracy. Going further and by understanding the lattice structure within the market you would be able to know precise angles and directional moves of any upcoming market or individual stock moves.  For the first time attaining the ability to predict the markets in both time and price. On any time frame.  From daily resolution to decades from now.  

This section is written on November 29th,  2013 with the DOW at 16,097

If you follow my daily blog you are very well aware that my mathematical work is predicting a severe bear market between 2014 and 2017. This bear market will represent the final leg down of the bear market that started in early 2000. This brings us to point F on the chart above  and further explanation on how to predict exact turning points by using 3-DV analysis. Please keep in mind that point F represents the actual turning point in 2014 and the ushering in of the bear market leg. It hasn’t happened yet.  We are predicting the future here.  Let’s take a look.

Step #1:  Measure 3-DV from all major turning points (E, D, C, B and A)  to today’s DOW close.  They are..

• EF: 12,364
• DF: 10,610
• CF: 20,190/20,900
• BF: 24,100
• AF:  34,750

Step #2: Calculate all derivative values for the numbers above.

To Be Continued…..

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Stock Market And 3-Dimensional Analysis (Part 6)

 

Continuation of part 4. 

3.  We have already mentioned this earlier in the book, but AB + Bc  and CD + DE are equal. Let’s take another look. (11,832+6,483 =  18,315)  and  (10,156 + 8,137 = 18,293). Please note that we are using 2002 actual bottom for point c instead of 2003 secondary bottom. Also note, that the variance is just 22 points over the 15 year period of time. That constitutes a margin of variance equal to just 3 trading days or a few hundred points directional move.

Also, note that if you divide 18,300  by the square root of 5 you get a value of 8,184. Which was the value of the move between 2007 top and 2009 bottom. Further, if you multiply BD of 12,815 by square root of 2 you will get a value of 18,123 which is identical to the value above.  Once again, if you know the structure of this move and lattice structure associated with the market you have the ability to identify every single turning point in the market over the last 15 years.

All you have to do at those points is to rotate your portfolio position from long to short and from short to long in order to make a killing and outperform the market by a large margin. It is as simple as that.

4.  The move CE of 9,810 and the move CD is the continuation of the move AC represented by 14,100. If you divide 14,100 by the square root of 2 you get a value of 9,970. The actual move between CE ended up being 9,810 giving us the variance of only 1.6%.  The actual move between CD ended up being 10,156 giving the variance of only 1.8%. When you combine this knowledge with the previous 3-DV already discussed you get another confirmation that March of 2009 will be a solid bottom for the stock market and that the 2007 top has been reached.

As such, when everyone is freaking out about the 2007-2009 decline and predicting the end of the world as we know it, you would know that the market will turn around in March of 2009 and begin a multiyear rally.

5. When you multiple vale AB of 11,832 by the square root of 2 you end up with a  3-DV value of 16,733. The actual move between 2000 top and 2009 bottom or the move BE was exactly 16,613. That is a variance of just 0.7%.  Again, the move AB predicted the move BE and 2009 bottom 9 years in advance. Giving you another confirmation point that March of 2009 is an exact bottom and a major turning point.

6. The move BD of 12,815 was the derivative of the move AB + Bc of 18,315.  When you divide 18,315 by the square root of 2 you end up with a 3-DV value of 12,950. This gives us a variance of just 1%.

To Be Continued….

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Let’s analyze all of our 3-DV so you can see the amazing accuracy available with this technique. As a quick not, please understand that all 3-DV starting at point A have their origin long before point A was reached. In other words,  all 3-DV that we see on the chart above are the direct result of the 3-DV values that have preceded it prior to 1994. Let’s take a more in-depth look.  

The value of importance prior to point A was a 3-DV of 9,922. Representing a 3-Dimensional move between 1988 bottom and 1994 top.  Let’s take a look at that number and its derivatives to see how many other 3-DV values we can explain.

(Original 3-DV 9,922)	Multiply	Divide
SQRT 2	14,031	7,015
SQRT 3	17,185	5,728
SQRT 5	22,186	4,437
2X	19,844	4961

1.  Immediately we see the move AC equal to 14,100 or the square root of 2 move.  With only 0.4% variance between forecasted value and real value it is an exact hit. By knowing this number and lattice structure described before you could have identified  this turning point 9 years before its actual occurrence. Most certainly you would have been able to identify 2003 bottom by looking at this number at the time.

2. The next two numbers that are associated with the original value of 9,922 are the AE 23,455 and AD 23,610. These values are represented by square root of 5. Even though the variance is a little bit higher, at 5.6%,*** these numbers are once again responsible for exact hits on both the 2007 top and the 2009 bottom.   Once the lattice structure is understood these inflection points could have been predicted all the way back in 1994 with exact accuracy.  Certainly an analyst studying the market could have identified these points as they would have approached the turning points above.

*** It is important to understand that most of the moves above are exact. The large variance (or perceived variance) of 5.6%, for example, is caused by the growth spiral developing in the stock market. As I have mentioned before the stock market is a natural and dynamic growth system. Meaning not only does it move in a predictable way, but it also grows and changes energy levels as it moves along. For example, the energy level of 1860 or 1920 or 1960 is completely different from the energy level today.  This part of analysis might be discussed in future publications for clarification. For now, growth spiral cause for variance will simply be mentioned.

To Be Continued…. 

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Continuation of part 2

For simplicity sake, here is all you need to know. When we apply lattice structure thinking to the existing stock market structure, we soon realize that the most common derivatives are the 2x and the square roots of 2, 3 and 5. The next step in our analysis would be to calculate these derivatives for each one of our 3-DV determined above.  We do so for both upside and downside by multiplying and dividing each value.  The calculations are very simple.

For example, lets figure out derivative for the move AC of 14,100

(ORIGINAL 3-DV 14,100)	Multiply	Divide
SQRT 2	19,940	9,970
SQRT 3	24,421	8,140
SQRT 5	31,528	6,305
2X	28,200	7,050

 

What do these numbers represent?

They represent all possibilities of the next move.  Basically, we know that the next move (starting at point C) will either be 14,100 or the other 8 numbers representing  the derivatives of the original number above. This helps us determine the next turning point with stunning accuracy. For instance, please note that the move CE  (the move between 2003 bottom and 2009 bottom) was exactly 9,810 points. The square root of 2 derivative above stands at 9,970. This represents a 1.6% variance from the actual value.  Fairly accurate if you ask me.  Particularly if you know the exact structure and the direction of the move years before it happens.

Further, at the time of this writing (November 26th, 2013) the 3-DV of the move CF (2003 bottom to 2013/2014 top) is sitting at 20,050 and thus far has had an exact hit of 19,935 if you take 2013 September top into consideration. While I will not make exact predictions in this book, this gives you an indication of how powerful this 3-Dimensional analysis can be.

For example, in my other writings I have clearly indicated that the 2013/2014 tops will be the completion of the bull move that started at 2009 bottom.  After the move completes itself we should experience a 3 year bear market that will take us into the 2017 bottom. As you now can see, by looking at the market through the 3-DV analysis we can predict with great accuracy when the top of 2013/2014 will take place.  For example, just by looking at this one 14,100 3-DV alone (or its derivative of 19,940), we know that the market is toping right now and should reverse itself shortly.   

To Be Continued…..

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Stock Market And 3-Dimensional Analysis (Part 2)

Continuation of Part 1. 

Let me show you what I mean. 

The Right Way:

SQRT (6838^2+7510^2)=10,156 (3-DV)

As you can see, in this case price variable energy level matches the time energy level.  In simple terms, they match each other, yielding a highly relevant 3-DV in the process.

The Wrong Way: (using daily time variable)

SQRT(6,838^2 +1,155^2) = 6,935 (3-DV)

In this case the price side of the equation overwhelms the time part of the equation.  Depicting price and time as not squared.  The end product is the 3-DV that is almost identical to the price move itself. Yielding a 3-DV value that is not applicable for further 3-Dimensional analysis.

The bottom line is, to perform viable 3-DV calculations we have to square the chart or be in the same range of variance.  It is also important to note that at times the market (or individual stocks) will exhibit violent up or down moves, rendering squaring of the chart impossible.  In such a case and as a rule of thumb, use the prior measurement TIME variable. For example, if the price moved up 1,000 points in 20 trading hours, continue to use trading hour variable if you have used this variable in the time frame directly preceding this sharp/powerful move.

How To Predict Future Moves By Using Existing 3-DV

Once again, if we know the 3-DV of any move we can predict the next move with great accuracy.  It will either be identical to or a derivative of the move preceding it.  For example, looking at the chart above, if we know that AC is 14,100 we can very well forecast that CE will be equal to 9,810. Let’s take a closer look and perform a complete 3-DV analysis of the chart above.

At first glance, there isn’t that much synchronicity of the 3-DV calculated on the chart above. Other than the matching two 23,610 and 23,455 values, the rest of the values do not warrant any sort of uniformity.  The question is why?

If you remember, I have mentioned earlier that as the stock market moves through 3-Dimensional space it continues to trace out mathematical points of force.  Those point of force represent market turning points, but what are they really?  Without going into too much detail these points represent lattice  structures moving through 3-Dimensional space. We know from Chemistry that every element (or combination of elements) will have its own lattice structure. Same thing with the stock market and individual stocks.  Each individual stock or the overall stock market will have its own lattice structure or points of force associated with them. As the market moves it simply traces out these 3-Dimensional points on the 2-Dimensional stock market chart.

To Be Continued…..

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Once again the chart above represents 3-Dimensional movements within the stock market. The numbers above unify price and time into one number and are calculated as per Pythagorean Theorem formula given to you earlier.

While we have already looked at the number of these moves before let’s take a look at one more to cement our knowledge. Let’s take a look at the DE move as an example.  During this bear market decline of 2007-2009, the market moved exactly 7809 points in exactly 2288 trading hours.  When we apply our 3-Dimensional calculation we get a 3-DV of 8,137, which is the number you see on the chart. I highly encourage you to run every number on the chart above to confirm the numbers and to gain a better understanding.      

Now, understand something very important.  While the chart above is a long term chart representing the DOW between 1994-2013, it doesn’t have to be. The chart above could be the stock market chart over the last century or it could be a daily chart representing 2 hours of trading. The time frame doesn’t matter.  The same rules of 3-Dimensional analysis apply to all time frames.

What are the rules?

Rule #1: By identifying 3-DV on the chart you know exactly what the next move will be. It will either be identical to the one preceding it or a derivative of it. Meaning that once you know what the DE on the chart is, you can predict with great accuracy what the EF move will be. To the day and to the point. That’s how accurate this work is. Much more on that later.  

Rule #2: Make sure you know the time frame you are analyzing.  If you are using a long term chart, as above, make sure you do not shift to the short term chart and anticipate the same size movements.  For example, do not take DE 8,137 value and they try to find it on the daily chart. It will not work. You will only be able to find this value or the value of its derivative on the long term chart.

Rule #3: Always square price and time. When calculating your 3-DV make sure your time variable and your price variable are squared(match in size).  In simple terms, at certain times you would have to shift your time variable between minutes, hours, days and month.  Let me illustrate what I mean by showing you the right and the wrong way to do this.

Let’s assume for a second that you are looking at the chart above.  Current market is a high energy, fast moving market.  As such you have to use the hourly time frame to square the chart.  It would be wrong to use any other TIME variable.  Let’s take a look at the move labeled CD. Between 2003 bottom and 2007 top the market moved…

Price Move: 6,838 POINTS

Time Move: 7510 TRADING HOURS OR 1,155 TRADING DAYS -OR- 231 WEEKS -OR- 58 MONTH (there are 6.5 trading hours in 1 trading day)

If you want to generate a proper 3-DV measurement you have to use 7,510 trading hours as your primary TIME input. That input squares  (matches) the price movement. If you were to use trading days or weeks or months, the PRICE portion of the formula would overwhelm the equation and you would end up with a worthless measurement that is not applicable to the stock market analysis. Let me show you what I mean.  

To be continued……

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Let’s take a quick look at a real stock market example to see the amazing precision this technique offers us.

 

I cannot overstate how amazing this chart is. Just a few points. 

• As we have already discussed, the move between 1994 bottom and 2000 top was 11,832 3-DV UNITS. The Dow topped at exactly 11,866 in January of 2000. Amazing!!! 
• The up move between 1994 bottom and 2000 top was 11,832 3-DV UNITS. The down move between 2000 top and 2002 bottom was 6,483 3-DV UNITS. When you combine both values together you end up with a value of 18,315 3-DV UNITS. The move took 9 years. 
• The up move between 2002 bottom and 2007 top was 10,156 3-DV UNITS. The down move between 2007 top and 2009 bottom was 8,137 3-DV UNITS. When you combine both values together you end up with a value of 18,293 3-DV UNITS.  The move took 7 years. 

So, the combined move took 16 years and there was only 22 3-DV UNITS of variance between the moves.  This variance over the 16 year period of time can be attributed to as little as 2 trading days and a few hundred points on the Dow.  This example alone should put to rest all claims that the stock market is random and unpredictable. Once again, when we identify the exact structure of the stock market through using our 3-Dimensional analysis we can time the market with great precision. 

For example, if we understand the structure above we know that the move between 2002 bottom and 2007 bottom will be identical in 3-DV UNITS to the move between 1994 bottom and 2002 bottom.  Just by having this information alone one should be able to figure out the stock market with great precision.  Further,  once we have hit the  from 2007 top and analyst using this technique knows that the upcoming down move will be exactly 8,127 3-DV UNITS. (18283-10156=8,127)

The only thing left to figure out at that stage is the angle or the velocity of the upcoming decline. Multiple ways will be shown to figure out that inflection point over the next few chapters, but for now let’s assume that this information is already available. That would mean that once the 2007 top is confirmed you would know exactly where the market would bottom.  So, while everyone is freaking out in late 2008 and early 2009 you are either shorting the market and making a lot of money or you are setting yourself up for the upcoming bull market that you know will start in March of 2009.

Either way, I hope this clearly illustrates how powerful this 3-Dimensional analysis can be. Also, please keep in mind that the example above is just a tiny sample of the information available to you once the 3-Dimensional analysis is performed. 

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So, how do we measure the stock market in 3-dimensional space? 

By using simple math.  However, before I go any further I would like to give credit where the credit is due.  The technique below was first developed by a brilliant market analyst by the name of Bradley Cowan. If you are serious about performing stock market analysis I encourage you to seek out his work.

In order to measure the stock market in 3-dimensional space, we must unify price and time values into a one joined value. How do we do that? By using simple geometry and Pythagorean Theorem.  For our purposes here is all you need to know.  We call the outcome 3-Dimensional Value (3DV)

As such and in order to properly calculate the value we need two numbers.  Time and value over a studied period of time.  As a reference point, we typically measure these values between bottom-to-top -OR-  top-to-bottom moves. Let’s take a quick look at the real life examples for a quick reference point.  There was a strong bull market between November 1994 and January of 2000(a 5-year cycle).  

More precisely, the market moved exactly 8,296 points in exactly 8,437 trading hours. The move occurred between BOTTOM on 11/24/1994 and TOP on 1/14/2000. There are 6.5 trading hours each day the market is open. I highly recommend you verify these numbers and perform sample calculations on your accord for better understanding.

Now, to calculate 3DV according to the formula above

SQRT(8296^2+8437^2)= 11,832.75 
*SQRT= Square Root

The 11,832.75 value is the 3-Dimensional Value we are seeking. It is the first step in our Timing financial analysis.  An analyst who is willing to put in the work,  will soon start seeing periodicity and recurring patterns of the same size movements on multiple time frames. Once the sequence of such moves is understood, exact forecasts into the future could be made. For example, let’s take a look at our 3DV of 11,832.72.   Do you know that the stock market topped out on January 14th, 2000 at the price of 11,866.55 or just 33 points away from our 3DV.

Do you believe that is a coincidence?   No, not at all. As I have told you before, there is a mathematically exact structure within the stock market and once that structure is understood, the stock market(and individual stocks) can be timed and predicted with great precision. 

To Be Continued…..

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