Wednesday, April 26, 2006

40 - How to Apply Pyrapoint By Scott Iverson

An extract of an article from Traders World Magazine issue #40

How to Apply Pyrapoint

By Scott Iverson

The following article will attempt to give a brief glimpse of how my students and I apply Pyrapoint and analyze markets on an intra-day basis, namely the S&P 500 e-mini futures. Pyrapoint works on all markets and time frames, but our trading and teaching has been almost exclusively on the e-minis.

I am often asked, "Is there a rhythm to the markets? Is there really a way to catch intra-day turning points?" The answer is YES! Not only can we capture intra-day turning points, we CAN OFTEN NAIL THEM TO THE TICK!

Pyrapoint is the creation of Donald Hall after spending decades studying the works and writings of W.D. Gann and his peers. Don believes, as do I, that he has found the basis for price movement using the correct mathematics of the Square of Nine (SQ9). The standard tools found in many charting packages like Gann Fans and unsophisticated Gann lines such as the 1 x 1, 1 x 2, etc., leaves a lot of to be desired and in my opinion are not consistent enough to use in actual trading. In other words, they work fine one time and utterly fail another, and seldom give us our intra-day turning points to the tick the way Pyrapoint does. The following discussion is my interpretation of Don’s fine work as well as my own discoveries of how price moves intra-day.

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