I recently came across the Square Root Theory while reading up stuff on Gann. They projected the S&P lows and highs for 2005 using the Square Root method which turned out to be pretty correct. I calculated the projected low after the 2007 high which turned out to be right on the spot too. Using the 666.5 low, and given that price got up to the level it did thus far, I calculated price projections of 1282 ...... ...... 1126, 1109, 1093, 1076, 1060, 1044, 1028, 1015 ...... ...... 949. Take the price, calculate its square root, add increments of .25, and square.

Now that we're past it, it was a short-term turning point. These are the prices where a top could form.

I prefer the methodology below. It doesn't work worth a shit. But it sure does make me look...well you know..."intelwigent". z^2\sum_{k=0}^{\infty} (k+r-1)(k+r)A_kz^{k+r-2}+zp(z)\sum_{k=0}^{\infty} (k+r)A_kz^{k+r-1}+q(z)\sum_{k=0}^{\infty} A_kz^{k+r} =\sum_{k=0}^{\infty} (k+r-1)(k+r)A_kz^{k+r}+p(z)\sum_{k=0}^{\infty} (k+r)A_kz^{k+r}+q(z)\sum_{k=0}^{\infty} A_kz^{k+r} =\sum_{k=0}^{\infty} (k+r-1)(k+r)A_kz^{k+r}+p(z)(k+r)A_kz^{k+r}+q(z)A_kz^{k+r} =\sum_{k=0}^{\infty} ((k+r-1)(k+r)+p(z)(k+r)+q(z))A_kz^{k+r} =(r(r-1)+p(z)r+q(z))A_0z^r+\sum_{k=1}^{\infty} ((k+r-1)(k+r)+p(z)(k+r)+q(z))A_kz^{k+r}

That's certainly an interesting method, Lucrum. I didn't try to come off as intelligent, just sharing what I find, really

Sorry, Every few months someone has a Gann discovery to share. btw: The method works with some tweaking. Michael s. Jenkins has expanded this technique.

Hi,everyone: It is not important,which number the bottom is.The most important thing is that you must buy at that site or not. If you don`t confirm,well,there is little value . Sorry,my English is poor,please excuse me. I am from CHINA,I want to study English,my chinese is very excellant ^_^ I have intimate knowledge of trade,I am trading depending on technique all the time. good luck ,everyone