The current market pattern is a bottoming pattern completing the 50-year decomposition cycle from February 1973. The first square ABCD of the cycle completed between February 1973 to February 1993, a 1040 X 1040 square (20 years). This square fixes the first price axis terminal point at 1.823800 level which is 656.4 points from the October 1973 top of the square.
The second phase/structure from February 1993 has two time axis terminal points, first on 3/10/2022 and second terminus on 2/01/2023 The first terminus on 3rd October 2022 from Feb. 1993 completes a 963.75 X 1546 structure (1 x 1.618) golden rectangle. This also puts the Feb. 1993 Terminus at an exact subdivision of 1597 points into two sections, 656.4 points and 963.75 points
963.75 + 656.5 = 1620.15 units 1620.15 - (exact 1597) = 23.15 units remainder
656.4 * 1.4472 = 949.942 units 963.75 - 949.942 = 13.808 units remainder
656.4 + 949.942 = 1606.342 units 1606.342 - 1597 = 9.342 units remainder
9.342 : 13.808 : 23.15 are successive Fib remainder approximating 8, 13, 21 sequence. 1.4472 ratio is from the structure of the ending pattern (403 * 1.4472 = 583.22 units) This indicates that the ending structure is a combination of the golden sections of both the 963.75 and 656.4 sections 656.40 * 0.618 = 405.66 units (containing the double bottom between 12/01/2015 and the 3/10/2022 Terminus) 963.75 * 0.618 = 595.59 units (containing the 1st August 2011 low to the second Terminus on 2/01/2023 So we have a window between 03/10/22 to 2/01/2023 to expect the bottom of the entire 50-year bear cycle.
At Terminus 1 on 3/10/2022 Total time = 1040 + 963.75 + 583 = 2586.75 weeks Total price = 656.40 + 949.942 = 1606.342 (Time / Price) = 2586.75 / 1606.342 = 1.6103 approximately = 1.618 Golden rectangle
At Terminus 2 on 2/01/2023 Total time = 1040 + 963.75 + 596 = 2599.75 units Total price = 656.40 + 963.75 = 1620.15 units (Time / Price) = 2599.75 / 1620.15 = 1.605 approximately = Golden rectangle
The magnitude of the wave from Feb 1973 to Feb 1993 = 1091.527 units = OE At point G, the magnitude EG = 1820.096 units The entire magnitude from point O to G connecting the 50-year cycle = 2923.895 units = OG (OG / OE) = 2923.895 / 1091.527 = 1.606 (OG / EG) = 2923.895 / 1820.096 = 2.679
Sum of ratios = 1.606 + 2.679 = 4.285 (Growth patterns usually terminate at 4.236 approximation) Sum of magnitudes = 1091.537 + 1820.096 + 2923.895 = 5835.528 units Unit Vector (Radius) within the growth process = 5835.528 / 4.285 = 1361.85 units Origin at point O (26/02/1973) = 2.228300 Price level at point G = 0.860050 The total change in price from 26/02/1973 to the terminus on 3/10/2022 = 2.228300 - 0.860050 = 1368.25 points (Exactly equal to the Unit Vector
Now the trading plan for this structure is first a sell entry with expiry date on the terminus on 3/10/2022 targeting the indicated TP points if price goes below the 0.707 level of the 403 square indicated. Stop level is above the 0.618 level Second trade is a buy and hold entry for the first 5-year growth cycle. Trade safe and good luck
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