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STMP Case Study: How to Profit with the Square of 9 Wheel

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“My calculations are based on the cycle theory and on mathematical sequences.”
-W.D. Gann

STMP has been on a tear, ripping from 112 to 142 in just 6 sessions.

The spike to new highs presented a perfected time/price square-out shorting opportunity Tuesday morning, and we sent out an alert shortly after the open to short STMP.

Let's walk through the setup to show the value of the Square of 9 Wheel.

STMP set a low of 100.50 on May 8.

This was a time/price square-out because May 8 aligns precisely with 100.50.

Last Friday, May 26, STMP closed at 142. This is another potential square-out because 142 aligns with May 26.

When items run hard (up or down) into a possible square-out the odds of a turn are enhanced.

At the same time a full revolution of 360 degrees in price up from 100.50 ties to 145.


Click to enlarge

As W.D. Gann stated, 7 is the number of time.

Reversals occur on the 7th bar of all time frames.

Tuesday was the 7th session since the last swing low on 5/18.

STMP gapped open, tagging 145, and then it reversed.

Once the opening gap was offset, the die was cast for a reversal day with STMP satisfying a 90-degree decline to 133 within hours.  133 is 90 degrees down from the 145 peak.

STMP's time and price balance point translated into:

1) A Gilligan Sell signal (a gap up to a new 60-day high with a close at/near session lows

and

2) A Key Reversal Day (a new 52-week high with a close below the prior days low).

These were forecastable before the fact using the Square of 9 Wheel.

The Square of 9 Time & Price Calculator underpins the idea that the market is not a random walk, and that time and price seek equilibrium in keeping with an innate underlying natural order and progression in the markets.

Subscribers covered half their short position around 135 and have a trailing stop on the balance, in keeping with our swing methodology.

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