Ruth Miller The Solar Guidance System
Ruth Miller The Solar Guidance System
Ruth Miller The Solar Guidance System
GUIDANCE
SYSTEM
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BY DIlIlUTH MILLEIl
AND IAN WILLIAMS
by
Dr. Ruth Miller and Ian Williams
XL.62442- USA
<0
MANY THANKS
who designed
TABLE OF CONTENTS
INTRODUCTION
SOLAR SYSTEM
Celestial Sphere
Zodiac Map
EPHEMERIS SECTION
Computing
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Cumulative
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Degrees
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23
26
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.ANALYSIS
1
5
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TOOLS
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56
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RESEARCH
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67
INTRODUCTION
effect on the market. Combining this knowledge with some ofW. D. Gann's
work gave me an advantage any trader would be envious of.
When I told Larry that I would like to publish this information, he
offered to help me. As an unheard of in the commodity world, I appreciated
this very much. In the summer of 1989, I wrote the Ruth Miller Method of
Trading Com Manual. In September 1989, we held the seminar in Chicago
where I presented my trading system.
Many copies have been sold all over the world. In 1990, a young
Englishman, named Ian Williams, purchased the corn manual and entered
my life.
After studying the manual for several months he saw some additional
possibilities using astrological concepts in the market place. Ian had spent
many years researching and trading the markets. During this period he had
been through the school of hard knocks by allowing others to trade his
account when he could not devote enough time to trading. He vowed never
to let anyone trade his money again.
During our many daily telephone conversations we discussed certain
new ideas that might bring about new trading opportunities. Ian was
researching full time at this poin~ and slowly but surely the pieces of the
puzzle began to fall in place.
While researching full time, Ian became interested in gambling as a
way of adding to his income. After much searching and correspondence he
found a retired gentleman who was rather adept at playing roulette. Adept
was an understatement!! This man could beat the casino on every game of
roulette he played. He had never lost a game in 8 years of daily visits.
After much correspondence, the old gentleman became interested in Ian as
he displayed a business sense to winning at gambling, so in late 1990 he
decided to teach Ian all he could about the game. Ian was shocked at what
he learned from the gentleman. Every roulette wheel in the world had a
design flaw that gave him a 10% advantage over the casino. Ian agreed after
a few minutes study that the person who had designed the wheel, had left a
flaw. Ian was taught everything he needed to know about roulette, money
management and playing etiquette. While researching the markets full time,
he would venture into the casino during his spare time and win enough to
keep body and soul together.
During the summer of 1990, I had to place my husband, Kenneth, in a
nursing home due to Alzheimer's Disease, and now had more time to devote
to extensive research.
In early 1992, Ian came from England to spend some time with me. It
was during this period that we made what we believe to be one of the
greatest market discoveries of the century even Gann would have been
proud of us.
We had been researching for 5 days when during a lull in our work I
showed Ian a small drawing of something I had been experimenting with,
Ian studied this for several minutes and suggested a different approach.
With this new suggestion in mind, we began to work. By the early hours of
the morning, we knew we were on to something good, but at the time we
didn't know how good, During the following weeks, we researched 21 years
of soybean data and found that our work had never failed. We were elated.
We needed one more clue to aid us in our trading decisions. Ian returned to
England, and we both continued our search for the final link to finish the
goal I had set out for myself many years earlier, this goal was To unlock the
secret of successful soybean trading. Many months later, 7 to be exact, Ian
phoned at 4:00 am to tell me he had found what we were looking for.
(Hallelujah --We can all get some sleep now.)
He immediately booked another plane ticket, and in October 1992,
Ian came to stay for 6 weeks. During his stay we decided to put this project
on hold as we did not want to rush into making any decisions that we might
regret later. Given the right opportunity, millions of dollars will be made
with our new discovery.
It was during this time period that we researched and published our
book, PRACTICAL ASTRO-A GliDE TO PROFITABLE TRADING,
which deals with the astrological analysis that we use in our daily trading
decisions. All of the people who have purchased this book should have
made a reasonable profit as our O.B.E. Indicator performed up to its usual
high standard.
We were both undecided whether to publish our new material;
however, without sharing ideas we would not have reached the stage that we
have so far in our work. Use our work prudently, experiment, be
unconventional, and you to may find "the pot of gold at the end of the
rainbow".
IWM
sc.
THE PLANETS
A planet is classified as a heavenly body which circles the sun. There are
nine known major planets in the solar system. These are Mercury, Venus, Earth,
Mars, Jupiter, Saturn, Uranus, Neptune and Pluto. The Sun and moon are not
classed as planets, but are called "luminaries". However; in astrology, both are
considered planets. All planets move in the same counter clockwise direction
around the Sun. Some of the planetary orbits are more circular than others.
Night and day is derived from the fact that approximately every twenty four
hours the earth rotates on its own axis 360" (making one complete revolution).
Most of the planets orbits are located on about the same plane as the earth's.
These are within a 3" incline; however, Pluto has sharp incline of 17" and Mercury
has a 7" incline. The Moon is a satelite of the earth. The path followed by the
planets is called the "ecliptic".
Imagine standing at the center of a horse racing track. You being the earth,
the horse track being the path which the planets follow. An the planets move at
different speeds; however, planets that are closer to the Sun move faster than the
far out planets. Because of these variations, planets will be located at different
positions on the race track at different times. The faster planets like Mercury and
Venus will circle the race track more often, overtaking the slower planets. The
slower planets can literally take many years to make one complete lap. (Please
refer to Planetary Revolutions)
M astrologers, we are interested in where these planets are located in
relation to each other and to earth.
REVOLUTIONS
Mercury
Venus
Earth
Mars
Jupiter
Saturn
Uranus
Neptune
Pluto
88 days
225 days
365 1/4 days
687 days
12 years
29 years
84 years
165 years
248 years
The sidereal day is 23 hours 56 minutes in comparison with the solar day
of 24 hours. One complete revolution of the earth ( on its own axis) to a fixed star
takes 23 hours and 56 minutes. However, one complete revolution taken from a
fix from the Sun at noon time to noon time on the following day takes 24 hours
and is thus called "solar time".
This discrepency is due to the fact as viewed from earth (geo-centric view)
the Sun is also moving around us by 10per day, and will thus take an additional 4
minutes to catch up each day.
Looking at the sidereal time in the ephemeris tells us how many hours and
minutes sidereal time is ahead of solar time. We have not used sidereal time in
our research, although some astrologers may use this information.
As we stand on earth and look up at the night sky, all the stars and other
celestial bodies optically seem to be attached to the inner surface of a big
hemispherical bowL Standing on earth we seem to be at the center of a more or
less plane surface which extends out to the horizon with the inverted bowl of the
sky and stars being above us. Under our feet and out of sight is the other half of
the bowl, and it is continuous with the hemisphere above. This great heavenly
globe is called the "celestial sphere".
Back on earth as we stand and look at the night sky, the stars drift slowly in
an east to west direction while retaining the same positions relative to each other,
in the well known patterns called "constellations".
The whole of the celestial sphere from our view point looks to be rotating
slowly. Of course, there is really no celestial sphere as all the other planets and
stars are immense distances from earth. What we are actually seeing is an optical
illusion as seen when we sit down in a planetarium, and look at the stars projected
onto the inner surface of a sphere.
Although the concept of the celestial sphere is fictious, we have found it
useful to describe positions of all the celestial bodies.
It is earth rotating in a west to east direction (anti-clockwise) about its axis
that gives the appearance in the sky of the stars rising in the east and setting in the
west.
At the ends of the earth's axis are the north and south poles. When projected
out on to the great celestial sphere they intersect the sphere at what is called the
north and south celestial poles.
It is around this extension of the earth's axis that the celestial sphere appears
to rotate.
The equator divides the earth into two halves, the northern hemisphere and
the southern hemisphere.
More complications arise with the fact that the axis of the earth is tilted
(inclined) at an angle of23 1/2 degrees to the plane of the earth's orbit around the
Sun (ecliptic).
It takes one year (365 1/4 days) for the earth to make one complete journey
around the Sun. As the earth rotates, the Sun appears to drift in a west to east
direction against the background of the fixed stars. This movement as seen from
earth, is approximately one degree per day.
The apparent path of the Sun as it moves around the earth (geo-centric view)
can be projected on to the celestial sphere, and is caned the "eclpitic".
This path is inclined to the celestial equator at 23 1/2 degrees and it
intersects the plane of the celestial equator at two points during its yearly journey.
These points are called the "EQUINOXES". Due to the gravitational pull of the
Sun and the Moon, the equinoxes drift slowly around the ecliptic in a westerly
(anti-clockwise) direction. This movement is called the "procession of the
equinoxes" .
On March 20th or 21 st of each year, the Sun is at what we call the VERNAL
(spring) EQUINOX. This is the point at which the Sun crosses the equator from
south to north.
On June 20th or 21 st, the Sun is at the half-way point on the ecliptic
between the two equinoxes and is at its maximum declination of 23 1/2 degrees
north of the celestial equator. It is therefore at its highest point in the sky at a
given latitude as seen from earth (northern hemisphere).
From June 21 st the Sun keeps moving along the ecliptic, but the declination
of the Sun starts to decrease as it moves along its path.
On Sept 21 st or 22nd, (AUTUMNAL EQUINOX) the Sun on its path
(ecliptic) has reached the celestial equator (0 degrees) and crosses it moving south.
Ecliptic
A,
Spring Equinox
B.
summer Solstice
C.
AuftImnaJ Equinox
D.
WmtDr SoIJdce
South CeIA:stia1Pole
10
Geo-centric View: As the planets move around the Sun, the geo-centric view
is that of using the earth as the central focal point
earth they appear to be in entirely different positions than when viewed from the
sune This may seem a little difficult to understand at first. When viewed from
earth, we see the optical illusion of the Sun moving around us, where as. we know
as discussed pre~iously we are moving around the Sun.
To help you in your understanding ofGeo-centric and Helio-centric views,
we have drawn a geo-centic view and helio-centric view for March 21, 1993.
Heliocentric Sun
Mer 213.78 93 Sc
Uen 173.95 23 Vi
Ear 188,68 ee Li
Mar 148,48 28 Le
Jup IB9,11 89 Li
Sat 322,19 2Z Aq
Ura 288,93 18 Cp
Nep 289,18 19 Cp
Plu 233.15 23 Sc
Moo IB9.88 B8 Li
Angles
46' 37
56' 47
52' 58
24'
B6'
11'
SS'
B6'
BB"
52'
B7
51
B7
43
B7
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58
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PI Mo Geocentric
t c1 Mer 348,34
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14
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rl
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Earth
18 Pi
Ven
17,92 11 Ar
Sun"
9.00 BB Ar
Mar 184,73 14 Cn
Jup 199.91
18 Li
Sat 3Z5.54
Z5 Aq
Ura 291,66
21 Cp
Nep 29B.88
2B Cp
Flu 234. 7S 24 Sc
Moo 341.28
11 Pi
Angles
2B' 3B
55' 11
52" 58
43" 48
56' 39
32" 31
~"
18
52' 16
ii' 51
16" 35
To help you understand where the planets are located, instead of writing the
names, the planets are given certain symbols which are universally used. These
symbols must be learned and memorized if you wish to become proficient in
reading the ephemeris.
Planet Syp}bols and Nam~
0 Sun
., Moon
.n. Moon's Node
~Mercury
~ Venus
c:f Mars
.
Pluto
4. Jupiter
~ Saturn
a Uranus
': Neptune
THE ZODIAC
As our ancestors needed some sign posts in the sky to identify the place of
the planet., they looked beyond the planet and found fixed stars which did not
move.
These fixed stars or constellations appeared as animal shapes and were
named the Ram, the Fis~ the Lion, etc. Soon a backdrop of 12 signs evolved.
12
Today we think of this band as the "zodiac" which is divided into twelve equal
parts each measuring 30 degrees. With these 12 divisions astronomers could now
describe the location of ~ planet in one of the signs.
Each 30 degree segment is called a "sign". Every sign has its own name and
specific influences.
The earth moves around the Sun once a year allowing the Sun to pass
through each of the twelve signs, where it finally returns to its starting point, (0
Aries-March 20th or 21st) which was designated by early astronomers as the
beginning point. (Geo-centric view). Please refer to the diagram of the Standard
Astrological symbols.
( Aries is March 20/21, and starts on the left hand section of the zodiac.
Please note the dates on the inside of the circle. These dates are
approximately when the Sun enters and leaves the signs. For the exact dates and
time you must consult the ephemeris (planetary calendar).
It is necessary that you learn to identify the signs and their symbols for ease
of recognition in the ephemeris. There is extra information that is included in the
diagram on the following page that is not necessary for our study. The extras are
key words ascertaining to each individual sign, plus planetary rulers of the
individual signs.
13
.0.
Sign
1[0
Libra
.,j
:210
Scorpio
Gemini
21-1
~{1
Cancer
vf
;Z1-0
SaRittarius
Capricorn
120
ISV
Leo
Virgo
,IJ ~~"0
Aquarius
,)
)]10
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C
II
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--110
SY111bol
- 11\
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1.
Sign
Aries
Taurus
~\J
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14
EPHEMERlS SECTION
The American Ephemeris (10 year edition) has been the basis for our daily
trading and research. The current 1991-2000 edition (available fromACS
Publications Box 16430, San Diego, Ca. 92116) is reasonably priced at under
$15. There are other various printed Ephemerides on the market. We have
attempted to identify the differences which exist between some publications.
The American Ephemeris for the 20th Century by Neil Michelsen is published by
Astro Computing Services, Box 16430, San Diego, Ca 92116. This has 100 years
of planetary data. The aspects ( distance between planets) are not computed for
you. Declinations and parallels have been omitted also. Planet ingress is listed
(when a planet enters a new sign). Moon aspects are included.
15
In
addition to the ephemeris pages, she has included various aspect research for
various commodities as well as interesting articles from other traders. Published
by Professional Astrology Service, Inc. 757 S E 17th St, Suite 272, Fort
Lauderdale, FL 33316.
Raphael's Astronomical Ephemeris (yearly) This company has published a
yearly ephemeris since 1821, and copies are available for any year from 1860 to
date. The tabulations are for GMT. One interesting part of the organization of the
book is that the lunar aspects are separated from other planetary aspects. Another
bonus feature is a section on planetary motion. The publisher is: W. Foulsham &
Co., Ltd., Yeovil Road, Slough, Berks, England.
most US bookstores,
Any of the above publications contain the necessary data that is used in
our work.
16
fNFORMATION
COMPlITING
CUMULATIVE DEGREES
When the Sun is in Aries "r use only the degree listed for that date.
When the Sun is in Taurus () add 30 to the degree listed for that date.
When the Sun is in Gemini II add 60 to the degree listed for that date.
17
When the Sun is in Leo ~ add 120 to the degree listed for that date
When the Sun is in Virgo ~ add 150 to the degree listed for that date.
When the Sun is in Libra Q add 180 to the degree listed for that date.
When the Sun is in Scorpio m.. add 210 to the degree listed for that date.
When the Sun is in Saggitarius / add 240 to the degree listed for that date.
When the Sun is in Capricorn l) add 270 to the degree listed for that date.
When the Sun is in Aquarius ~ add 300 to the degree listed for that date.
When the Sun is in Pisces )( add 330 to the degree listed for that date.
Examples using ACS 10 year Ephemeris
March 27-95 Sun at 5 "r 51' 26" = 5 degrees
June 1-95
Sun at 10 3' 41" = 70 degrees
Sept 11-95
Sun at 17 ~ 47' 55" = 167 degrees
Dee, 4 -95
Sun at 11 / 20' 52" = 251 degrees
Feb 29- 96
Sun at 9}{ 41' 15" = 339 degrees
You should now be able to compute a cumulative degree number for the
Sun for any date of the year using the ephemeris data listed, Should you wish to
find the cumulative degree of any other planet the same basic procedure is applied.
We have not used the number in the minute column to arrive at our answer
in the examples above, Should we have done so? Our answer is yes, for we have
found examples in our work where 1 degree can make a difference, (you will
understand this problem later).
Let us examine the March 27 data listed above. The Sun is at 5 degrees,
but to be exact it is at 5 degrees and 51 minutes at midnight.
18
When the Sun has moved 9 minutes in longitude the minute column will
total 60 ( 51+9). 60 minutes = 1 degree, therefore the Sun will be at 6 degrees
during the day.
It is very difficult to give a specific rule in deciding how many minutes must
appear in the minute column before we add 1"to the cumulative degree. One might
consider that the Sun moves approximately 1 degree per day or stated another
way--60 minutes. We can therefore assume that the Sun would move 2 1/2
minutes per hour (2 1/2 x 24 hours = 60).
For trading in the US markets you can also determine that by the close of
market hours (1 :00 PM Chicago CST = 7:00PM London GMT) and therefore we
can calculate how many minutes must be added to the minute column to
determine the exact Sun degree.
than 15 we would advise you to use both Sun degree numbers for your work.
Looking back at the previous examples you will note that one example has
less than 15 minutes in its minute column.
as your Sun degree number. In all the other examples there is more than 15
minutes in their minute columns and you may wish to consider both numbers.
For convenience and research purposes we have developed a Sun degree
sheet based on a ten year average. The Sun degree for the dates listed should not
vary more than one degree from the exact ephemeris data.
WE WOULD ADVISE YOU TO CROSS CHECK THE SUN DEGREE ON
OUR SUN DEGREE SHEET WITH THE EPHEMERIS TO BE CONFIDENT
IN YOUR DAILY CALCULATIONS.
19
FEBRUARY 1995
DAY
SID.
TIME
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AByou study the Sun degree sheet you will notice certain deviations in the
numbering sequence of the Sun degrees.
numbers are repeated and others omitted, as there is a deliberate reasoning behind
the numbering sequence.
In a calendar year we will either have 365 or 366 days. The zodiac circle
consists of360 degrees. We now have a slight technical difficulty. In the
Ephemeris the Sun's movement is calculated in degrees based on a 360 degree
circle. In constructing the Sun Degree sheet we needed to average the 360 degrees
of the Sun's movement into 365 calander days as accurately as possible.
It was therefore necessary that extra Sun degrees be manipulated
throughout the calendar year. These adjustments were made on the following
dates: April 11/12, May 17/18, June 10/11, July 2/3, 24/25, Sept 17/18, by
repeating the Sun degree number.
increment, and on lan 30, the same procedure was applied. This achieved our
objective of placing 360 degrees in a 365 day calendar.
Let's take a look at the Sun degree sheet so that you can locate the average
Sun degree for a particular date. The Months are listed across the top of the sheet
from left to right with the days of the month listed down the left hand side.
To find the Sun degree on 5th of February locate day 5 in the left hand
column and move across from left to right until you reach the February column.
You have now found 316 which is the Sun degree for Feb. 5.
You should now be confident in finding the Sun degree for any particular
date, and be reasonably certain that this number will be accurate to within 1
degree.
21
May
40
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70
Ju1
99
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128
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158
OCt
187
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218
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248
12
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342
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316
344
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345
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318
346
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76
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193
224
254
287
319
341
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233
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330
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332
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333
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32
61
91
120
149
179
209
240
271
24
.303
335
33
62
92
121
150
180
210
241
272
Jan
280
Feb
312
Mar
340
~r
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281
313
341
292
314
283
25
304
336
34
63
93
121
151
181
211
242
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243
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95
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276
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217
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310
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68
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216
247
218
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311
10
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69
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217
279
The use of the square of nine is credited to a famous trader and author in
the early 1900's by the name ofW.D. Gann,
Interesting rumors still persist about its discovery. These range from finding
it in an Egyptian pyramid, a Buddbist temple, and even linked to the early Greek
mathematical concepts, Who knows?
Many people have attempted to incorporate the Square of Nine into their
trading methodologies,
4'
23
SQUARE OF NWE
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425
424
423
422
421
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599
700
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5:30 ;;29528527528
52S 524,523522521
6,26/62562462362262/
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721
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835
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614
613,612
611
609
SC8
606
702
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1/2
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'935
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.,-\'J! oa 4 I0&3 I0'2
.
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24
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'O~II
A line is drawn from the upper left hand comer of quadrant 1 to the lower
right hand comer of quadrant 3. We have another line drawn from the ~pper right
comer of quadrant 2 to the lower left comer of quadrant 4. These lines are called
diagonal lines. Note that they are also 45 degree lines which will divide the square
into eighths.
Additional lines are also added that divide the square into sixteenths.
These
are called 22 1/2 degree lines. All these lines can be utilized in your trading~ and
an explanation of their use will be included in a later section.
15
2S
24
16
23
Looking more closely at the numbering sequence note that nine numbers are
used in forming the first square in above diagram A.
The second square is also completed when the numbers IOta 25 have been
used.( diagram B).
You will also notice that the last numbers of these squares are
situated on a 45 degree line in quadrant 4; however~ they are not comer numbers
in a true sense as the next or following number is still on the same hOrlzontalline.
Special techniques will be used to deal with this unique design feature.
25
As the Sun moves clockwise around the Square of Nine we are looking for
the price and the Sun to align with each other according to predetennined rules.
Do not be alarmed by thinking that this concept is difficult Once
understood the SVP (Solar Vibration Point) will be easily identified, and when
combined with the SNAPP indicator (to be explained later) will produce projected
prices which are obtained in seconds.
As mentioned earlier the Square of Nine is produced in such a way that
some numbers fall on 45 degree lines. In quadrants 1, 2, and 3 these will be
refeITed to as comer numbers. Quadrant 4 is a special case whereby the next
number to the left of the 45 degree angle is the "comer number".
The Su.n Degree for June 4th is 73 as found on Sun degree sheet Now
locate this number on the Square. Note this number is in quadrant 3 and on the 45
degree line (comer).
For the next nine days the Sun will be moving left to right
across the square and into quadrant four. The Sun will be at 82 degrees on June
14th. On the 15th when the Sun is at 83 degrees it will have passed the corner
number of82, and is now moving up the square. On June 23, the Sun reaches 91
and this is also a corner number.
across the top of the square (from left to right) until it reaches the comer number of
101 on the 4th of July.
When the Sun has moved down the square to the III
corner on the 14th of July one revolution around the square has been completed
since June 4th. The Sun will make 9 revolutions around the square per year.
In order to determine if a SVP has occurred we need to place the Sun
degree on the Square, and the price range of the specific commodity contract
you are trading.
26
an
SVP is established when both the Sun degree number and one-of the prices of
the days trading range are aligned in the same vertical column. Both numbers
must be in the same quadrant.
Example: With the Sun at 114 any time during the day the price of an
individual commodity trades in this column (directly below 114) a Solar Vibration
Point (SVP) is established.
7-17 Range of Nov. beans 520 high 513 low SVP=516
7-17 Range of July beans 625 high 609 low SVP=611
Simple to find! We hope so.
SIAl MO U.
M M3
'38 t31 '3& us
''':1
~IQI~I~~..I~~'I~~I~~~.J~~6~1~~U~IM'
9304'33
Rule 2
Rule 1
Rule 2. As the Sun moves around the corner and up the square any possible
SVP will now be in the horizontal column to the left of the Sun, and in th~::ime
........-.
~-~---~---~
"-
quadrant.
-c-~.,~'"'"
27
Rule 3. A5 the Sun moves around the comer and is moving left to right an
SVP will be established if the Price and the Sun degree are in the same vertical
column. The price will be directly above the Sun and in the same quadrant.
Example: On October 2nd the Sun is at 188. The price of March soybeans
ranged from 565 high to a low of 553, with an SVP at 563.
to_~II~I~~~t_.~~~\Q_I~I~J~~~~
!Iitf1148 ..
.~ !I~t
i,s
Rule 3
Rule 4
Rule 4. As the Sun moves around the comer and down the square an SVP
will be established when the price and Sun degree are in the same horizontal
column. The price must be to the right of the Sun degree and in the same
--~,",,",-,
,-,
"~~"--'--,-~--~--,
~-"'-'-""
"""'-'-----
quadrant.
~-"
~---"
The price of
November soybeans ranged from a high of 799 to a low of790, with an SVP at
797.
These rules only apply during the times when the Sun degree is moving in
between comers.
28
1, 2, AND 3
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If the Sun degree is on the comer number to the left of the 45 degree angle
then there are only two ways for an SVP to occur. If the Sun degree at 82 , note
there can be a horizontal alignment to the left of the Sun degree or a vertical
alignment below the Sun's degree. In either case an SVP will have occurred.
Please don't feel frustated at this point if you think it is complicated. After
practice and confinnation that you are finding the SVPs correctly it will become
second nature and you will be able to spot them instantly.
30
time , With this problem in mind, we set about researching how we might get over
this hurdle, The answer was so easy and simple once we acquired some additional
informatioR
Throughout the year various commodity contracts will be coming on the
board, and various contracts will end or expire (go off the board} With this
natural birth /death cycle we can use this information to our advantage when
combined with the Sun degree and square of nine, This combination will produce
price projections with a high accuracy,
OUf SNAPP INDICATOR ( coined from Significant Number and Price
Projector) is based on utilizing the actual market day number when the Sun-price
alignment has occurred. This market day number is calculated by counting
~~---~,-,-
department of the commodity exchange is the most accurate way of locating this
information,
Due to the fact that most of our work has been in the soybean complex we
contacted the Chicago Board of Trade for the first trade dates.
Do not rely on newspapers or chartbooks for this information as they do not
print some contract data until there is sufficient open interest.
With the correct first trade date for the particular contract you wish to
research start a market day count trom that day, This day count is based on
whenever there was a trading day for that contract
-31
There could be several ways you may Msh to organize your data. One' that
we have used includes the market day number (81). the date. the ope~ high , low
and closing price with the Sun degree to the right of the data..
Below is our example of November 1983 soybean data.
MD(SI)
1
2
3
SOYBEANS
633.000
820823
820824
820825
820826
820827
820830
820831
820901
820902
820903
1\
.5
6
7
R
9
10
637.500
638.000
632.000
623.000
611.000
614.000
616.000
622.000
625.000
SUN
11/83
633.000
633.000
633.000
640.000638.000
632.000
623.000
637.000
640.000
635.000
628.000
617.000
610.000
616.000
631. 000
626.000
614.000
608.000
612.000
613.000
622.000
616.250
611. 000
616.5-00
620.500
624.000
625.000
149
150
151
152
1~3
156
62-0.500
157
158
623.000
616.500
159
160
The first trading day of Nov. 1983 beans was 8-23-1982. This is where we
we will start the market day count for this particular contract, and consecutive
numbering will continue until the contract expires.
When a solar vibration point occurs in the contract being studied, the
market day number on that day will become our SNAPP indicator number.
Having established that an SVP has occurred locate the SNAPP indicator
number on the Square of Nine.
we can expect that before th~~on!r~~!_~~ires it will trade in that particular area
,~.~,
. ~~-~
~~-~--
,,
~""~"'"._-"'-._~'~
'~'"
"
<1. th~_~are.
data we have a 950/0reliability that an objective will be met before the contract
~'''"':::;::=-;:;;:=:~-:::-;::;;:::-
explres.
32
~-"
~~-_.~
~--~-~~
~._.~
Let's examine some data from the November 1984 contract to assist you in
using the SNAPP INDICATOR"
Sun
81
SVP
719
727
719
725.75
290
113
725
Looking at the data above you can see that on lan 11 an SVP was confirmed
at 725" The SNAPP indicator for that day was 113 . You will find 113 in
quadrant 3 on the square. Remember in the previous section about how an SVP
was established, now using the same general principal look at the numbers directly
underneath 113 in the vertical column.
IQ'I'IICW''1'0
.,
1080111'01"
100000tOItI10M 10.11
rO"
...,
IOS8 ~
,oa'
this column, we must therefore make a note of the two numbers which encompass
..
the SVP of 72~. The two numbers are 713 and 824.
-~--:::;~:""'
33
"---'--~
..'..
."""'"
The following diagram will aid in determining which area of the square
to use in calculating your price projection numbers,
'!~~
'''11
/
---....
,- -""""
..r~
e _e4f1
""
"""'."'111_"''''''''''''''''
'"
-"..,..,
"""" ""
-"""'
"""
'
The following rules will apply when the SNAPP indicator is situated in between
the comers on the square of nine.
(1) When an SVP occurs and the SNAPP indicator is in section
~ our price
(2) When an SVP occurs and the SNAPP indicator is in Section B our price
projections will be in the same vertical column and above our number.
~~
.~
(3) When an SVP occurs and the SNAPP indicator is in Section C our price
projections will be in the same horizontal column an~ to the right of our number,
~
-:::--=-~
(4) When an SVP occurs and the Snapp indicator is in Section D our price
projectionr will be in the same vertical columl.i and ur:~~!TI~_~lb
our number.
\
t')
t'
~
\J'):/""'"
Remember! Only use the SNAPP indicator number on th~ day when
''''''''9'
1M i'lT ,,,,,"'.000
lOGl1008!QOa
EXAMPLES: SECTION A
,(lit
'QQ. roce
to
>GU l.od
'1
...
If)d
II).
10tII.18d'
'~'.
SECTION B
SECTION C
SECTION D
SNAPP INDICATOR=44
35
11O*"
,~I
IIJ\t1! IOCJ
..,..
think is a logical way of minimizing your price projections. We hope you agree.
Examples are necessary at this point to aid us in our explanations.
On July 29th with the Sun degree at 125 an SVP was established for November
soybeans at 539.
The SNAPP indicator for that day was 183. Note that 183 is on a comer in
quadrant 1. We have 3 possible price projection alignments- one to the left
horizontally, one on the 45 degree line itself and the last above in the vertical
column. The six price projection numbers that will encompass the SVP of 539 are
as follows:
Quadrant 1
Horizontally we have 548 and 459. On the 45 degree line we have 553 and
4631and vertically above 183 we have 558 and 467.
36
first number to be reached in this series would be 548. As 548 is the lowest
number in the series and is therefore our first upside target
The downside
targets are 467,463 and 459. Should beans trade into the $4.00 area, our first
target to be reached would be 467. This is how we arrive at our projected
numbers when our SNAPP indicator is on a comer.
In conclusion, we are therefore usingthe lowest number of the high number
series and the highest number in the low number series-- confused-- we hope no~
but with practice it will become clear.
The same basic concepts are used in quadrants 2 and 3.
Quadrant 3
Quadrant 2
37
The numbers in the lower series include 573, 577 and 581. The higher
number series include 672, 677 and 682
the high number series and 581 is highest number of the low series. The two
projected numbers are therefore 581 and 672.
Another example is included showing computation when the SNAPP
number falls on the number 21 in quadrant 3. On the 21st of August the Sun
degree is 147 and the SVP was 585. The numbers projected in the vertical
column below 21 are 516 and 611.
The numbers projected on the 45 degree line are 507 and 601. The numbers
projected to the right of 21 in the horizontal column are 498 and 591.
The lowest high number and the highest low number of the series will give
us 516 and 591.
As.you can guess Quadrant 4 requires special treatment as it did in the SVP
section. Let us first examine how we can deal with a SNAPP number occurring
on this 45 degree line. In this instance we have two possible projections, whereas
in the other quadrants we had 3 possible targets.
Let us work through another example to demonstrate the basic concepts
used. On August 8 the Sun degree was 135 and an SVP was established at 561.
The SNAPP number was nine (09). Our projections will include using the
numbers beneath the number 9 in the same vertical column and the number
located on the 45 degree angle. We have now only 4 numbers to deal with.
The numbers derived for this projection include 529 and 625 on the 45
degree line and 519 and 614 in the vertical column. Taking the highest low price
and the lowest high price of these numbers will give us an answer of 529 and 614.
38
39
We will
PRACTICE SECTION
By now we hope you have grasped all the elements needed to establish SVPs
and use of the SNAPP indicator. We have included the following section for your
practice. No pain-no gain. On the data print-out for November 1983 soybeans
';Vehave marked the Sun degree numbers and the market day numbers so that you
can concentrate on finding SVPs and make the price projections using the SNAPP
indicator. You will find extra data collection sheets in the appendix section
should you wish to use them.
The November 1983 bean data was selected for you to practice with as it
contains almost every type of situation you will encounter.
This November 1983 contract came on the board on August 23, 1982 at a
price of 633. This date is therefore the start of our market day count
As you look at the data collection sheet in this section, you will see in the
first three lines we have given you the date of the first three SVPs with all other
relevant intormation
discover that an SVP has occurred, list the date in column 1. In column 2 list the
Sun degree. In column 3 list the price of the SVP. In column 4 record the
SNAPP number (market day number). List the two projected prices using the
SNAPP number in columns 5 and 6.
The sun degree numbers listed on the printed data sheet have been taken
from the sun degree sheet ~however, on 10-14-82 (SVP date) the sun degree of
201 does not match the sun degree sheet number of 20O. This is due to the fact that
the during market hours the sun would been at 201 as calculated from the
Ephemeris.
40
An the other SVP dates will however have the same sun degree number as the sun
degree sheet.
As you work through the data you will occasionally need to use the large
square of nine as prices moved into a higher range. This larger square should be
used in the same way as the smaller square of nine.
Speed in completing this exercise is not of paramount importance, however
accuracy in identifying SVPs and projecting prices correctly is your primary goal.
Check your answers against the November 1983 data sheets found in the research
section. If you have missed any SVPs, go back to the data and find out why.
If you have any failures or wrong price projections we suggest you return to
the previous instruction section for clarification and study. If all your answers are
correct, Congratulations, move on to the next section.
41
'\.,.....
~_i'~
NOVEMBER
1983 SOYBEANS
~D~.
5.et'~
thot<h
~~-~- ~
DATE
SUN DEGREE
SVP
SI
PP 1
PP2
10-11-82
197
35
566
665
10-13
10-14
199
577
584
37
568
586
201
586
38
494
587
,
1
I
I
41