The Square Spiral: The Mathematics of Markets deals primarily with explaining ‘time and price squaring’ in the stock market. It explains how the arrangement of numbers on the square spiral of numbers is the key to the geometric cycle of time-intervals and the ‘Fibonacci’ amplitude structures that are commonly found in random-walk time-series. The use of price and time squaring for the analysis and prediction of turning points in the stock market is often referred to, in colloquial terms, as ‘Gann theory’. It was knowledge of how the swings in the market can be predicted, which established the reputation of the legendary stock market trader William Delbert Gann. Gann is reputed to have taken around fifty million dollars out of the stock market between about 1910 and 1950. That is a lot of money in today’s terms. There have been many attempts to unravel the secret of how W.D. Gann made his money.
The square spiral of the natural numbers is the Holy Grail of stock market time and price prediction. It is known that Gann used the spiral of numbers, variously named the ‘square of nine’ or ‘Gann wheel’, to predict the time and price at turning points, and was thereby theoretically able to maximise profits from rises and falls in the market. Gann developed a theory of division of the spiral into eighths, to represent both time and the physical process of market activity in terms of rotational angles. It is known, that geometric relationships exist between price changes and time-intervals at reversal points where the market changes direction.
A number of books and articles, which describe some of the relationships that exist between time and price changes in markets and rotations on the square spiral, have appeared over recent years, but no comprehensive theory has been presented until this time. This treatment is intended to provide scientific credibility for the use of the spiral of numbers as the basis for a generalised wavelet analysis and prediction model for random-walk time-series.
- THE SQUARE SPIRAL
- THE MARKET IS A NUMBER
- THE ORANGE PYRAMID
The Square Spiral: The Mathematics of Markets By Trevor Casey pdf