APP was flagged as a long swing on the Hit & Run private Twitter feed on Thursday, September 9.
It set up as a Combo long as multiple technical strategies aligned:
1) It was pulling back to its rising 20 day moving average, satisfying a Holy Grail setup.
2) It was in my Plus One/Minus Two pullback buy position. In other words, the 3 Day Chart was pointing up followed by two consecutive daily lower lows.
3) As well, it was leaving a “180” buy setup on Thursday.
The Rule of Multiples offers that multiple strategies/technical have a greater likelihood of sealing the deal and delivering a winner.
I have a unique trading tool called the Square of 9 that WD Gann employed. It measures price and time independently and also integrates the two, showing possible square-outs or balance points between time and price.
The difference being that Gann had to calculate the numbers “in the air” so to speak. I have fabricated a physical Square of 9 that I offer.
On the Square of 9 below, notice that 80/81 is one full square or 360 degree rev up from the 49 all-time APP low.
Notice that the next 90 degree decrement up from 81 is 90.
In my 30 year plus career, I have satisfied myself completely that stocks play out in these 90 degree decrements of time and price.
APP ripped from 81 to 90 quickly in June before pulling back to test the impulse push higher from May 14.
Pushing north of 81 to 90 signaled the Line of Least Resistance was higher — that ultimately APP had opened the door to higher prices.
90 days/degrees from May 14 ties to mid-August where APP turned up, ultimately reclaiming its 50 day moving average and once again testing the key 80/81 region. Stocks have a memory.
As offered above, APP carved out a Combo long setup following the 3 day pullback from 80/81, setting up a solid risk to reward trade.
Clearing 81 projects a test of the ATH at 90 while rallying north of 90 projects the next 90 degrees higher to 101.
In sum, I think you get the idea that the market is not random, that there is an innate relationship and structure between time and price that drives stock behavior.
The Square of 9 Wheel of Time & Price does a good job of revealing this relationship.