the hAnDbook oF teChnICAl AnAlySISfashion. Prices that intercept or are in proximity to the ordinal and cardinal crosses
represent prices at which potential reactions or reversals may occur in the market.
For example, let us assume that we want to forecast the next important reversal in
the Gold market. We position the price of gold’s highest peak of $1920 at the center
of the square. We now have gold prices revolve counterclockwise around the center,
expanding outwards at $1 decrements per square (replacing the numbers 1, 2, 3, etc.
with decreasing prices instead). We then look for prices that lie on or are in proxim-
ity to either the cardinal or ordinal crosses. These prices represent potential reaction
levels or bottoms in the Gold market. Similarly, we may then repeat the process by
moving clockwise, looking for potential reaction levels or tops in the Gold market.
fiGure 19.30 Square of Nine Price Projections on the Daily Chart of USDCHF.
Source: MetaTrader 4
fiGure 19.31 Square of Nine Price Projections on the Daily Chart of Gold.
Source: MetaTrader 4