I received a lot of “comments” from people about my most recent GoPro post.

No kidding, people were vehemently angry … folks, not trying to make anyone angry or anything like that, it’s a blog and I enjoy sharing my thoughts as it 1) makes me think about the next investment in currencies, 2) solidifies my thought process, 3) helps me maintain my skill and 4) pr0vides some education on a POTENTIAL way to manage risk in these markets. So, if you get all bent out of shape because the “geometry” says GPRO can go to XXX or YYY. Don’t worry about it ok …

* TO ME IT’S ALL NUMBERS *.

* I DO NOT CARE about a particular securities fundamentals, profitability or any of that .. if you do, great. if you don’t, great. *

A couple people have approached me and asked me to blog about square roots.

**SQUARE ROOTS ARE THE KEY UNDERLYING STRUCTURE OF ALL PRICE and TIME ON A CHART OF ANYTHING …**

it’s theory is musical in the frequency of a string and the tension are components of the square roots of it’s length and 1/square root of tension and blah blah blah. not going to any farther than that …

the “ancients” believed that the numbers 1-5, their square roots and the inverse of those square roots were responsible for all of creation. sounds cool and not going to debate if it’s true or not but somehow they knew how to PRECISELY calculate every eclipse, planetary synodic period and, OBTW, the exact end of the great year (26,000 years ish) and some other cool stuff.

so, if Pythagoras (smart dude) discovered the power of ratio’s and musical theory AND the slight possibility that the market is vibrations and musical then there must be a square root component – correct?

so in order to reinforce my belief that there is a natural vibration and harmony to the market I chose a random stock – TWITTER to check it out. (I was just on my Twitter feed so that’s why …) I truly had no idea where this was going to take me – those of you who know me realize that I really didn’t and then some of you will think I planned it. Folks, I didn’t …I erased everything on my TWITTER chart and just pulled out a calculator.

So, take a ride on the TWITTER train and note the PRICE component of the square roots starting w/ the low of 39. There is also a timing component of the square root – we’ll do that sometime in the future.

The Gann Square of 9 is based on square roots …one full trip around the circle is the (square root of XXX+/-2)^2. If you want to go 2 trips around then it’s +/- 4 ….note the all time low on Twitter – it was a 2 trip turn around the wheel from 75 AND a 1.27 (square root of 1.618) extension. When that happens (overlapping square root target and pattern levels overlap) it’s a good probability that ‘stuff’ is going to happen.

Also note, just like we do “typical” projections from price we can do the same thing w/ the square root targets … we used Pi, the golden mean and the square roots of 2 and 5 to project POTENTIAL inflection points.

ALL OF THEM HIT … so, one has to ask “self, does the entire trading Twitter universe know about the square roots or is something else happening?”

You do the math (that was a joke) and decide for yourself.

No matter what your trading/investing style is HOPEFULLY this will show you how powerful square roots can be to manage risk.

I notice you use other than the ‘normal’ amounts to add and subtract from the square root of the high or low (normal being 1,1.5,2….). For example, on this twtr chart, you used both the normal amounts, but also values like 3.1412, 2.236 (sq rt of 5)… where does 3.1412 come from?

HI Tim … PI is a very good one to use and also the natural log 2.71828. They govern most everything. the key is lining the numbers up w/ multiple projection techniques. I like to have multiple confirmations. hope this helps …

got it, thanks for the reply, did not ‘get’ you were using PI…thinking 3.1416 – starting to really like this square root stuff (a technical term) and you’re examples

thanks Tim .. here to help. there’s a square root component in every turn