In freely traded instruments such as stocks, a trader can call upon pattern recognition to make informed decisions. Patterns arise not only in price but in time itself. One such application is the yearly 365-day terrestrial calendar represented as a circle of 360 degrees and its divisions. In this method, one takes the yearly 360-degree cycle in time and divides it by 4 for the four seasons, or 90 degrees (91 days). We then divide that once again by 2 giving us 45 degrees / 46 days or mid-season points. Giving us 8 divisions (interestingly, similar to the musical scale of octaves). Using these angles in time, we may discern potential turning points in the future for the instrument we are following. For example, let us look at a seasoned stock that trades in the Dow Jones Industrial Average, International Business Machines (IBM). IBM reports earnings TODAY after market close. Always be careful around earnings releases.
360 degrees /365 days back in time from 1/22/21 was a High 145.79 on 1/22/20 (earnings released on 21st).
315 degrees back from this time period there was no discernable change in trend.
270 degrees / 272 days back from 1/17/21 was a High of 122.86 4/20/20, but the day after was a Low of 112.06, ten points lower. (Earnings release was on the 20th)
225 degrees / 227 days back from 1/21/21 was a High 135.88 on 6/8/20.
180 degrees / 182 days back from 1/19/21 was a High of 132.17 on 7/21/20. (Earnings on 20th)
135 degree / 137 days back from 1/17/21 was a High of 129.95 on 9/3/20.
90 degrees /91 days back from 1/18/2021 was a High of 127.35 on 10/19/20. (An earnings date)
45 degrees /46 days back from 1/17/21 was a Low of 122.41 on 12/2/20 (inversion?).
In summary for this weekly time period, at 315 degrees back in time (approximately 3/7/20) there was no discernable turn as the market was in full pandemic panic mode. But on the other turn dates, we see a pattern to once again be aware of a potential change in trend for these shares this week based on 45-degree incremental geometry of time and earnings release. January 16-18 was the long weekend, so the cycle may be hidden or delayed. But we have 6 highs, 1 low, and one period with no discernable turn point. Now we must consider that the turn of April 21, 2020, was an actual low on the 21st. That would change it to 5 highs and 2 lows. So, based on these harmonic 45 degrees or 46-day increments within an average of the 7 prior turns the shares should see a turn that is tradeable (although we have one clearly missing during the March panic). So, in January based on the above dates 22nd+17th+21st+19th+18th+18th+17th divided by 7, we get an average of 18.71 or the 19th of January as a target date for a tradeable turn plus or minus 2 trading days. Remember this method is not exact as weekends can affect the cycles. Given the cycle over the last year has given 6 highs and 1 low, the presumption is a tradeable high this week. Again an earnings release is scheduled for today after the close.
DISCLAIMER
The content of this message and its attachments are intended only for the informational and educational use for the intended recipient and may contain confidential and privileged information. If you are not the intended recipient, any dissemination, distribution, or copying of this message or its attachments is prohibited. If you received this message in error, please notify the sender by replying to this email immediately and delete this message and its attachments from your computer. The information provided by TradeZero America, Inc. is solely for educational and informational purposes. None of the information should be understood, construed or inferred to be an offer or solicitation of an offer, or a recommendation, to buy, sell, or hold any security or financial product, or engage in any particular investment strategy. This message is also not an offer to provide advisory or other services by TradeZero America, Inc. All communications sent to or from TradeZero America, Inc. are subject to archive and review by TradeZero America, Inc. and by regulatory and law enforcement authorities. We explicitly disclaim all liability for any action taken based on any information contained in this writing.