Kools tools -square root fun

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koolblue

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this thread will address another neat little trick i use in scalp trading. Mostly i use this to confirm my price projection tool. On any significant peak, or low take the price and get the square root. Then if its a high ,i subtract .146,.250,.382,.500 and .618 from this number and mutiply it by itself to get expected support or resistance numbers. For example : 893.50 sq root is 29.891 and 29.891minus .146 is 29.745. 29.745x29.745=884.75 an area where some support or resistance might occur. using .250 gives 878.60(878.50) and so on. same thing in reverse for a low. for instance on the recent holiday low of 875 the square root is 29.580 and 29.580 plus .250 is 29.830. 29.830x29.830= 889.84(889.75) pretty close to the holiday high of 889.25 before a nice pullback started. Pay around with it and youll find it a useful short term tool! ;)
 
well todays trading is over and as you can see 889.25 did halt the advance for a nice pullback. Note hoe the next number added to sq root of 875(.382) and then multiplied by itself gives 897.73(897.75) and look what happened at 897! GOOD TRADING ALL!
 
Extending forward using 875 and adding .50, .618, and .786 to the sq root , we would expect some resistance near 904.75, 912, and finally 922,.... time will tell!
 
You can carry this as far as you choose! ie: 2.250 or 5.618 etc. Now heres how i actually use it . First a 'long term' example, just for fun!
 
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Now, again, i trade the ES and currently am not even trading gold. But if i was, this is how i would scalp it . My intention is to show how it works (along with Kools tools) in all markets. i use these techniques with great success on ES scalps every day .
 
Kool,

Certainly looks fun, and I intend giving this a try, although I have not done so yet.

If I may ask, what gave you the idea for this?


Also, do you happen to have looked at how it operates in the Crude market?

Thanks,
M.
 
koolblue said:
this thread will address another neat little trick i use in scalp trading. Mostly i use this to confirm my price projection tool. On any significant peak, or low take the price and get the square root. Then if its a high ,i subtract .146,.250,.382,.500 and .618 from this number and mutiply it by itself to get expected support or resistance numbers. For example : 893.50 sq root is 29.891 and 29.891minus .146 is 29.745. 29.745x29.745=884.75 an area where some support or resistance might occur. using .250 gives 878.60(878.50) and so on. same thing in reverse for a low. for instance on the recent holiday low of 875 the square root is 29.580 and 29.580 plus .250 is 29.830. 29.830x29.830= 889.84(889.75) pretty close to the holiday high of 889.25 before a nice pullback started. Pay around with it and youll find it a useful short term tool! ;)
Click to expand...

All well and good, but it's just numbers. Where is the logic or reasoning behind it ? You could write a computer program to come up with gazillions of things like this, but would any of them have any significance or predictive qualities ?
 
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next square root is sq root 813.25 plus 0.500=842.00. and plus .618=848.75...check it out!
 
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I'm sure you must know this but you are basically using the famous square of nine when working with square roots.
Take any number on the square of nine and find its square root. Then add "2" to that number.
Last multiply the new number by its self and you will have the number that is right above your starting number, one circle out on the square of nine.

That means if you take a number on the square of nine and move up 90 degrees, or one quarter turn of the wheel, you are really taking that number getting the square root adding .500 and then squaring the sum.

45 degrees of the wheel would be adding .250.
180 degrees would be adding 1.000 and so on.

I hope I didn't steal any thunder but people did ask about it just being numbers and so on.
Granted some people think very little of the square of nine, BUT I don't!
 
hwsteele said:
I'm sure you must know this but you are basically using the famous square of nine when working with square roots.
Take any number on the square of nine and find its square root. Then add "2" to that number.
Last multiply the new number by its self and you will have the number that is right above your starting number, one circle out on the square of nine.

That means if you take a number on the square of nine and move up 90 degrees, or one quarter turn of the wheel, you are really taking that number getting the square root adding .500 and then squaring the sum.

45 degrees of the wheel would be adding .250.
180 degrees would be adding 1.000 and so on.

I hope I didn't steal any thunder but people did ask about it just being numbers and so on.
Granted some people think very little of the square of nine, BUT I don't!
Click to expand...
another gann fan :p there coming out from everywhere :LOL:
 
I'm not a true Gann fan. I have studied his stuff more than most and learned a thing or two from it, BUT have also done so with some of the other "major" trading styles/methods. I used to use square roots and the square of nine allot. I have replaced most of what I used to use it for with the simple measured move.

P.S. I still think the square of nine is a great tool.
 
I used to use square roots and the square of nine allot. I have replaced most of what I used to use it for with the simple measured move.

P.S. I still think the square of nine is a great tool.[/QUOTE]


Do you mind me asking what you are using instead?
 
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