Can the Market Be Predicted?
“Look deep into nature and then you will understand everything better. “ Albert Einstein
“There is no logical way to the discovery of these elemental laws. There is only the way of intuition, which is helped by a feeling for the order lying behind the appearance.” Albert Einstein
“Coincidence is God’s way of remaining anonymous.” Albert Einstein
“In all chaos there is cosmos, in all disorder a secret order.” Carl Jung
“Mathematical science, which is the only real science, ….furnishes unmistakable proof of history repeating itself…” W.D. Gann
“Speculation is about anticipating the anticipators.” Bernard Baruch
Some believe that while a bubble can be observed and agree that it will end badly, we cannot predict when.
Most market participants believe that the market may be probabilistically predictable in terms of outcome, but not in terms of specific timing.
Specific is skin deep.
Some say there’s no formula for forecasting market tops because you’re really trying to predict human behavior which can’t be done.
I disagree.
Extraordinary popular delusions and the madness of crowds are predictable and follow similar patterns—albeit the market is not a fine Swiss watch and trying to pinpoint exact days is a mug’s game.
Some hate the idea that there may be a natural order underlying the markets and life because it means they are not in control.
it is important to let the market tell its own story and react. But, it is just as important to be proactive and anticipate in order to be able to react with authority.
The purpose of the Square of 9 Wheel is not to unequivocally predict highs and lows—although it often does so.
There are highs and there are lows—there are few final highs and final lows but many in between are obviously worth knowing and worth trading.
All major highs and lows are square-outs.
The T Rex in the ointment is that not all square-outs are major highs and lows.
· This does not mean the Principle of Squares and Gann’s Law of Vibration are only worthwhile in hindsignt.
· All setups are just setups until they are confirmed by price action. Price is the final arbiter.
The art and science of anticipation as utilized and revealed through the Principle of Squares and natural order underlying the Great Spritius Mondo of human behavior that drives the psychology behind the markets is not something that works only in hindsight.
Let’s take a look at two charts, AAPL and SHOP to see how time and price harmonics can be used to formulate a forecast and to measure the trend.
Because, in the last analysis, if you can’t measure the trend, you can’t manage risk.
The Square of 9 Wheel is the best tool I have found that allows one to anticipate trend turns and how to ride trends.
