Six transactions $200 profit each = $1200 in profit Four transactions $100 loss each = $400 in loss TOTAL NET PROFIT ON TEN TRANSACTIONS = $1200 – $400 = $800 !!!Īs you can see in the example above, when you use geometry based on the Square of Nine and simple mathematics, you can get quite a high efficiency as a trader. Let’s also assume that our stop loss is $100 each time and our take profit is $200. Let’s also assume that our take profit is twice the stop loss. for every ten transactions we have six in profit, and the remaining four are ended with a loss. Only one question remains: is 62.5% accuracy enough for successful trading? Let’s try to calculate it.įor the sake of simplicity, let’s assume the effectiveness at the level of 60%, i.e. 2 Calculated dates of potential reversal/turning points in the future calculated by price into time conversion – based on the closing price of June 10, 2020.Īs you can see from the eight calculated results, five of them indicated EXACTLY the top or bottom of the local swing. 9, 2020,ġ4/11/20 Saturday – the nearest trading day Nov.

The dates calculated from the closing price conversion as of June 10, 2020, into time represent the eight vertical lines shown in the first chart. The chart above is an example of how you can predict future market turning points.īased on the starting point local top on the GBP/USD chart as of June 10, 2020, and based on the closing prices of that day, I used a mathematical formula derived directly from the harmonic properties of the Square of Nine and calculated the nearest potential tops and bottoms of the market swings in the future. Fig.1 Gann’s secret formula – GBP/USD daily chart with potential turning/reversal points calculated by price into time conversion – based on the closing price of June 10, 2020.

Gann square of 9 formula