THE MARKET GEOMETRY OF LUTHER JENSEN
There is a pile of evidence to suggest Luther Jensen and W. D. Gann were colleagues and even worked together. In Jensen's book, "Astro Cycles in Speculative Markets," Jensen briefly but succinctly outlines and illustrates an incredible market geometry on page 111. The surrounding chapters add detail to the technique.
The problem is that no one has ever been able to publicly demonstrate Jensen's method on other markets or timeframes other than the 90 week schematic on US Steel that Jensen outlines. Until now.
The key to using it with incredible accuracy on virtually every market is what is not seen on Luther Jensen's charts. Gann's astro-numerological key based in the Law of Vibration makes the geometry work by tuning it to the market and timeframe you are using.
Decoded from both Jensen's work and Gann's section on Descartes in "The Tunnel Thru The Air," Jensen uses the physics principle of parellel lines drawn through infinite points, which we call astral points. Jensen showed these points as the points of a square, but of course he is doing much more than he is showing you. In Jensen's chart on page 111, he uses a 90 week square with US Steel bacause coincidentally the points appear as the square sides. These astral points equate to fixed mathematical points on market charts that exist before and outside of market data.
In the daily chart of the SP 500 Index below, we used Jensen lines drawn from highs and lows through these infinite mathematical points, which are always fixed, objective, and predictable. Then we created a parellel line to the lines we just drew and extended it from the previous high or low pivot to forecast the next top or bottom or support and resistance. See expandable chart below and following explanation.
A. First, the market makes "Low A" (red) in late october 2018 and then pulls back. We first draw line A1 (red) from Low A to our first mathematical point. Remember, we do this in late October after identifying the low.
A2. Second, we create a parellel line to line 1A, with the exact same pitch. We call this A2, also in red. We then move A2 to begin at the open of the high day around october 3rd that began the run to the low. Notice that it provides exact resistance for the pullback high in ealry November.
B. The market then droops and pulls up for a double top December 2nd at high B (purple,) We draw a new line 1B (purple) from High B to another astral point on our mathematical line.
B2. We now create a new line, B2 (purple,) which is parellel to B1 with the exact same slope. Then we move B2 to start on the last pivot low below High B. Notice B2 provides exact support for the decline low from B1.
D. The market now declines below the support marked by B2. We now draw a new line, D1 (blue) from the same high, High B (purple,) through yet another mathematical point on our grid (that is invisible to you, but not us.)
D2. We now create a new line, D2 (blue,) that is parellel to D1, with the exact same pitch. Then we move D2 (blue) to start at the pivot low right before High B. Notice how D2 (blue) provides exact support for the big low at the end of December 2018.
C. Lines C1 and C2 (Teal) are drawn from Low C and moved to the first high to show the relationship of the principle. The illustration would not be tradeable in real time but shows you the forces that underlie the market.
We want to underscore how Luther Jensen's geometry method is simple, consistent, and practical, especially compared to all the nonsense out there that is labelled market geometry or Gann. W. D. Gann and Luther Jensen focused on this method because it provided highly accurate and consistent confirmation of highs, lows, and the end of a trend by providing extremely strong support and resistance. the technique also moved dynamically with the market.
We would also emphasize the simplicity and ease of this method. Even though there are invisible points on this chart made evident for illustration by our blue dots, these points can be drawn on any chart in 1 minute, and are the same every time. It allows for concrete rules and objectivity.
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