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.

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

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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