Ferrera - Method of Forecasting

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Method of the Dan Ferrera's Forecast

On June 18 & 26, Dan sent along some S&P projections for July 12. Now that it is July 12, wanted to post the
results of the projection. Following is the original email with the analysis, which was the answer to a student's
question. Below that, you will find a screenshot of July 12 S&P, to see how it turned out. The projection was
made using techniques included in the Gann Pyramid, Square of Nine Essentials.

-----Original Message-----

From: Daniel Ferrera


Sent: Monday, June 18, 2001 7:34 AM

Because the Square of Nine is a "Natural Squares Calculator", and Gann himself said to watch the natural
squares of numbers in both price and time, I give you the following future date to observe as a learning
exercise.
Here are some natural squares of numbers (days, weeks & months) all hitting 7/12/01
1024 days from 9/22/98 top (this is the top in between the 8/31 & 10/2 double bottom)
1089 days from 7/19/98 top prior to the 1st 20% correction in 10yrs. Russian currency crisis.
1156 days from 5/13/98 top
1369 days from 10/12/97 top top before the Asian currency mini crash
2704 days from 2/15/94 top
3969 days from 8/30/90 low
4624 days from 11/13/88 low
7056 days from 3/18/82 low
26,244 days from 9/4/1929 top ( We are 72 years (1/2 the sqr. of 12) from 1929, i.e the 18-year cycle)
16 weeks from 3/22/01 low
144 weeks from 10/18/98 low Russian currency crisis and Long Term Capital bailout
169 weeks from 4/22/98 top this is where most indexes topped in 1998, i.e. Small Cap, Mid Cap, Transports,
etc.
196 weeks from 10/12/97 top before the Asian currency mini crash
225 weeks from 3/20/97 top
576 weeks from 7/1990 top
1849 weeks from 2/1966 top ( This one also matches that 18-year cycle)
3600 weeks from 7/1932 all time low
We are also 36 months from the 7/98 top, 81 months from the 10/94 low and 324 months from the 7/1974 top
Also 6^2 or 36 years back gives us the 18-year cycle again.
July 12th should be a Major Low! Also, this particular day has the potential of being a huge down day or mini
crash. This is not trading advice, just a learning exercise for course owners.
There is also a Total Eclipse on 6/21/01. Take a look at the planetary aspects to the eclipse point on July
12th. I would also suggest, that you look at this in relation to the NASDAQ natal chart and the NYSE natal
chart. Both give indications that July 12th & 13th are interesting days in relation to both the eclipse and the
natal charts. To get you started, notice that on July 12th & 13th that the conjunction of Mercury and Jupiter
take places on the Eclipse point of 0-Cancer.

Dan

Question:

Dan:

Thanks for the S&P500 5/22/01 market example. It certainly is fascinating. But I am not clear about
how the various cycle values to add are determined.
For example we have 1 and 1/2 cycles added to the 60 degrees in this example. I see where the 60
degrees came from but not the 1 and 1/2 cycles :
"The sqr root of 1081 = 32.878 + 3.333 (1 and 1/2 cycles + 60-deg for the Sun) = 36.21 ^2 = 1311.28 "
On the next one the 26 degrees is again clear but the 3/4 of a cycle is not. Wouldn't 1 and 1/2 cycles be
just as appropriate.
"The root of 1207 = 34.742 + 1.644 (3/4 of a cycle or 270-deg + 26-deg for the Sun) = 36.386 ^2 = 1323.94"
It seems that we are looking at aspects to the price using this equation. The degrees of the Sun
for important aspects are converted to their root values and added to the root of the price. The result is then
squared. We then look for multiple confirmations. But then how do account for the various odd aspects that
were used like 26 degrees and 17 degrees ? How would they be determined ahead of time ?
Perhaps the question is answered in your courses and I just need to study them. Please excuse me if that
is true.
In any case if you have any more market examples please send them.
Sincerely,
Mike

-----Original Message-----

From: Daniel Ferrera


Sent: Tuesday, June 26, 2001 11:10 AM

Answer:
When you make projections to predict a resistance level, you should use lows and project up. If you are trying
to calculate a support level, you use highs and project down. You are looking for price levels that are making
negative aspects to the starting prices, i.e.. 45-deg, 90-deg. 135-deg, 180-deg, etc. These aspects can be on
any ring of the square. Harmonious aspects are allowed,such as 60-deg, 120-deg, 240-deg but I prefer
negative aspects for the majority. As you get closer to a date that is projected to be a turn, you limit your
calculations based upon the current price levels that are in place. When working with previous tops to project
support, you also factor in the longitude traveled by the Sun since the time of the turn. That is where I was
getting numbers like 17-deg, 26-deg etc. These numbers where generated because the Sun had moved this
amount from a past turn that I was using. I just converted them to roots by dividing them by 180-deg and then
I added them to the normal square root aspects. For example, I am expecting a major stock market low on
July 12th, 2001 followed by a rally into September. What would I do to come up with a likely support number
for July 12th? In terms of the Square of Nine, I would do all of the following. Since I'm calculating support, I'm
going to look at aspects to past highs. Here is a list for the S&P500:

3/24/00 1552.87 to July 12th 2001 the Sun moved 466-deg, which is 106 after rejecting the circle. 106/180 =
0.588 as a root
7/17/00 1517.32 to July 12th, the Sun moved 355-deg, which divided by 180 = 1.972 as a root
9/1/00 1530.09 to July 12th, the Sun moved 311-deg, which gives 1.7277 as a root
11/6/00 1438.46 to July 12th, the Sun moved 246-deg, which gives 1.366 as a root
1/31/01 1383.37 to July 12th, the Sun moved 158.5-deg, which gives 0.88 as a root
5/22/01 1315.93 to July 12th, the Sun moved 48.75-deg, which gives 0.2708 as a root.
Just taking straight aspects to these prices gives the following:
1167.09 is 135-deg to 1552.87
1170.71 is 225-deg to 1517.32
1164.73 is 180-deg to 1530.09
1168.15 is 45-deg to 1438.46
1169.86 is 180-deg to 1383.37
1174.88 is 360-deg to 1315.93

The Average of these 6 is (1167.09+1170.71+1164.73+1168.15+1169.86+1174.88)/6 = 1169.24


Setting "zero" as July 12th on the outer calendar wheel gives 165 on the 180-deg, which is also 1165. 172.50
comes out on 225-deg, which is also 1172.50. 1166 comes out on 45-deg and 1180 comes out on a 90-deg
angle. The average of all these gives (1165+1172.5+1166+1180)/4 = 1170.875 This already tells me that the
low is likely to be between 1169.24 and 1170.88. Now I'll just calculate the aspects taking the solar
movement into consideration.
What we are going to do here is converting all the prices from our highs based on the distance the Sun has
traveled since the time of the top to our next date. I will do these in the same order as above.
3/24/00 1552.87 root = 39.406 - 0.588 (for Sun) = 38.818 re-square = 1506.837
7/17/00 1517.32 root = 38.953 - 1.972 (for Sun) = 36.981 re-square = 1367.594
9/1/00 1530.09 root = 39.116 - 1.7277 (for Sun) = 37.388 re-square = 1397.88
11/6/00 1438.46 root = 37.927 - 1.366 (for Sun) = 36.561 re-square = 1336.70
1/31/01 1383.37 root = 37.193 - 0.88 (for Sun) = 36.313 re-square = 1318.63
5/22/01 1315.93 root = 36.275 - 0.2708 (for Sun) = 36.004 re-square = 1296.30

Now we just take straight aspects to these new prices which take the Sun into account and see what we get.
1178.33 is 270-deg to 1506.837
1172.67 is 225-deg to 1367.594
1165.84 is 135-deg to 1397.88
1160.49 is 270-deg to 1336.70
1177.43 is 360-deg to 1318.63
1173.34 is 45-deg to 1296.30

The Average of these 6 is (1178.33+1172.67+1165.84+1160.49+1177.43+1173.34)/6 = 1171.35


If I was asked to make a projection for July 12th 2001, I would say that we are likely to find support at
1170.49, which is the average of (1169.24+1170.88+1171.35)/3.

Also, looking at the last low to high swing we see that the S&P made a low at 1081 on 3/22/01 and a high of
1316 on 5/22/01/ The Range = 235 points. Divide by 8 gives 29.375 points per 8th. The 3/8ths support line
comes out as (3 x 29.375 = 88.125 + 1081 = 1169.125) This is a 5/8ths decline from the 1316 top. If we
measure from the higher bottom on 4/4/01 at 1092, we get a range of (1316 - 1092) = 224, divide by 8 gives
28 points per 8th. The 3/8ths line comes out as (3 x 28 = 84 + 1092 = 1176). The average support number of
these two calculations comes out as (1169.125 + 1176)/2 = 1172.56, which is in line with our other
calculations.

Using the angle projection technique from 4/4/01 (This is where the up-trend started), we get the following:
The root of 1092 = 33.045. So we look for market turns every 33 days. July 12th is 99 days from April 4th ( 3
x 33 = 99). The 1 X 1 angle would cross the price of (root of 1092 = 33.045 + 3 = 36.045 re-square =
1299.27) 1299.27. We now have a range of (1299.27 - 1092) 207.27 points. Divide by 8 gives 25.909 per 8th.
The 3/8ths angle support line crosses (3 x 25.909 = 77.727 + 1092 = 1169.73. If you so not understand why I
added 3 to the root it was because every 33 days, we move 180-deg in price on the Square of Nine because
the root of 1092 = 33. July 12th is 99 days from April 4th, which is the 3rd cycle of 33 days or 540-deg on the
Square of Nine, i.e. (180+180+180 = 540). The 1X1 angle coming down from the 5/22/01 top would drop at
the rate of 1.987 points per day (Root of 1316 = 36.276 minus 1 = 35.276, re-square = 1244.44. 1316-
1244.44 = 71.55 divided by 36-days = 1.987/day).

July 12th is 51 days from May 22nd. Multiplying 51 x 1.987 = 101.36. Therefore the 1 X 1 crosses (1316 -
101.36) 1214.63 on July 12th. The 60-deg angle would cross at 1180.88 (1.987 divided by 45 = 0.04415
price/deg ratio multiplied by 60-deg = 2.649 points/day X 51days = 135.116 pts subtracted from 1316 =
1180.88). This is a price angle that the market must regain to put it back in a more positive position. The 67.5
degree angle crosses at 1163.99 on July 12th. This would be the next support line if 1170.84 does not hold
because 1164.73 is 180-deg to 1530.09 and 1165.84 is 135-deg to 1397.88 (Sun adjusted price) so we have
3 hits in this price area.

The mean of Five Geocentric on 7/12/01 is 209.025 or 29-Libra


The mean of Six Geocentric on 7/12/01 is 216.77 or 6-deg 46-min Scorpio
The Geocentric Cycle of Eight avg. on 7/12/01 is 182.177 or 2-deg 11-min Libra.
If you place the zero line on these outer circle degrees, you get:
1167.96 is on the 315-deg angle from 29-Libra
1170.89 is on the 315-deg angle from 6-deg 46-min Scorpio
1174.82 is on the 0-deg angle from 2-deg 11-min Libra
Average of these 3 is (1167.96 + 1170.89 + 1174.82)/3 = 1171.22, which matches our other calculations.
The mean of Five Heliocentric on 7/12/01 is 207.198 or 27-deg 11-min Libra.
The mean of Six Heliocentric on 7/12/01 is 219.22 or 9-deg 13-min Scorpio.
The Heliocentric Cycle of Eight avg. on 7/12/01 is 253.10 or 13-deg 6-min Sagittarius.
If you place the zero line on these outer circle degrees, you get:
1167.27 is on the 315-deg angle from 27-deg 11-min Libra.
1171.82 is on the 315-deg angle from 9-deg 13-min Scorpio.
1167.62 is on the 270-deg angle from 13-deg 6-min Sagittarius.
Average of these 3 is (1167.27 + 1171.82 + 1167.62)/3 = 1168.90, which again matches our other
calculations. The average of these two (1171.22 + 1168.90)/2 = 1170.06, which supports the original
calculations based on past highs.

I hope that this clears things up for you.

Sincerely,
Daniel

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