Obviously, if we are convinced that there is a mathematical answer to these charting of day and intraday charts, we must not be surprised to learn that the weekly charts should (and do) have a calculable relationship as well. Believe us! They do!
The first look at weekly charts is presented just past this explanation in two examples. The first selected was that of March Soybeans. We have shown the main crux of any of the rules as supplied by the PYRAPOINT system. This, of course, involves the position of the main market components at any given time -- and the progression on to the destiny of the bar.
These components are marked by small circles in each of the categories of importance on the chart. For instance, the objectives are denoted whether they are 45’s, tops or bottoms of squares, EOS, or closing points (since this is the clue as to whether you are in prospect of a reversal, etc.)
You may note that the objectives are derived in the same manner in which we found in the daily charts. The Pythagorean Cube dictates that indeed it should be the same. Note also that even though the larger the TIME frame, the more ragged will be the chart’s reflection. Nevertheless, weeklies do find the objectives exactly the same way as smaller charts. For example, the 3-square objective was virtually “to the tick”. The retracements and even the EOS pivots were exactly on target.
Your greatest asset in the use of weekly charts is to keep you on the right track trend- wise. We find it tough to trade via the weekly chart by itself. It seems to defeat one of the most envied assets of the system -- the use of accuracy on a basis that it should require less margin. Weeklies do have the accuracy, but often they do need much more margin when trading them alone. Don’t forget that they provide an excellent confirmation for TREND.
Please study this chart for confirmation as to the principles involved herein. It will assist greatly in the understanding of the two wheat charts, which are to follow. Realize that the charts to follow on wheat are to demonstrate a completely different principle -- that of vibration causes and effects when two squares (waves) work together in a small TIME frame. Actually, you will note that they are squaring, and thus causing a pivotal action, one week apart. See if you can understand the principles working here. It won’t keep you from trading properly even if you don’t catch the drift of this principle, but it will help you to know when one might expect such an action.
At the chart supplied at the end of this dissertation, note that a weekly chart of July
Wheat is supplied for your examination. You will see that there are two sets of squares, almost
in sync. The left chart is coming down from the contract high, some several weeks back in TIME. These square are working within the squares reflecting some 720 degrees.
The second set of squares are working from tops some 21 weeks ago, and the points of force are amazingly close to the contract high squares, especially in terms of location of the 45’s. Again, these are currently working charts from our portfolio studies. We note that they are working in the squares of 540 degrees of PRICE because they come from a lower, more recent top.
Now, at this juncture we observe something, which is definitely of consequence, even
though it seems simple enough at first glance as shown here in this chart. The squares from the recent high in January of this year are seen to “square out” on a low pivot, seemingly making the possibility of a bottom in a long line of lower bottoms.
Coincidentally, the squares from the contract highs are following for this same TIME frame in their chart, only one week later at the same relative place in PRICE. In other words, they are experiencing a double bottom with PRICE one week apart. The significant thing to learn here are that the tops is quite different. They have separate, but definable, targets. The contract high chart makes its double bottom with the nearby, then promptly makes an outside week with the top at the exact top of its square for that week of TIME. The following week finds PRICE vacillating between the top of one square and the bottom of the other -- following an outside day. Obviously, this is the chart of a very choppy market, which we have learned will very likely produce an unusual move or volatility, at the very least.
And so it did. The next week followed with near-limit moves downward after PRICE was unable to move above the squares indicated in the prior paragraph. We believe that the close proximity of the two squares produced an extra energy wave for the market to travel upon. Again, it is the story of two rocks in the stream (big ones though they be) which are placed in the stream of time, one many weeks ahead of the other. The waves are converging nearly together at this point in TIME, and the resulting forces do produce the choppy market until such time as the dominant force produces the out-coming product of PRICE movement. However “far out” this may sound, dear reader, it does happen over and over. Perhaps one needs not try to rationalize the “why” -- we do need to know that it is part of the long-term scheme of things that do repeat if you study the data that far.
Let us hasten to say that this should not be a confusion to you. You can do well with the simpler study and actions upon the simpler methodology of the charting as we have taught in earlier stages. The one thing which will become evident to you, however, is that the longer you study the fascinating actions of this “P.C.” square, the more you will be conscious of the larger and larger picture of not only PRICE, but especially TIME.
At this point, the author would like to submit a cross-section of charts for your review -- the thought being that you have studied different (and, perhaps to you, “difficult”) charts to totally understand. We have purposely presented different formations, degrees, TIME frames, and spacings of TIME with the hope to better equip you for a variety of situations. Some of these charts are presented for your textbook reference when you have a question on a trade position.
Following are some 50 plus charts, which are gleaned from our trading files, with added comments for your assistance in easy following. To us, this seems to be a representative cross- section of the everyday decisions, which confront any trader -- and a representation of the actual use of the answers, which we seek on a daily basis.
Please take a moment to examine each chart to see its intended lesson in our presentation. Some are seemingly somewhat repetitious, but follow the next, or prior, chart of reference. Usually you will see that there lies a reason for our madness. We think that it is important to see how a scenario trades out. This is one of the things, which we feel that you will appreciate as “different”. We intend that your learning curve will be ongoing and complete.
Note that comments are carried forward through TIME in succeeding charts -- and as PRICE unfolded on the chart.