# Bottoms From Which To Draw Angles Or Moving Trend Lines

**Daily Chart**

If Grains have been declining for some time, then start to rally by rallying from a bottom, it must make higher bottoms every day and higher tops. Then, after a 3-day rally on the daily high and low chart, you can put on the 45° angle and the angle of 2x1 from the bottom or low point. As a rule, it will only be necessary to put on these 2 angles, at first. If this bottom holds and is not broken, then you can put on the other angles from the bottom.

**Weekly Chart**

If any option is declining and reacts for more than 1-week and continues down, for 3-weeks or more, then starts to rally and advances 2-weeks or more, you would start to put the angles on from the low point of the decline, only using the angles above the 45° angle until the option again breaks under the 45° angle. After that, use the other angles on the lower or bearish side of the square.

## What To Do After The 45° Angle From Bottom Is Broken

After an option makes top, either temporary or otherwise, and breaks under the 45° and starts moving down, then the first thing to do is draw angles below the 45° angle, starting from the bottom or low point. Note example marked "Form #3."

**First Angle On Bear Side Of The Square: 2x1**

The first angle you draw on the bear side of the square is 2x1 or 2¢ over and 1¢ up which moves at the rate of ½¢ per day, week or month, and measures 26¼°. This is the first support angle the option should reach after it breaks under the 45° angle. As a general rule, when the price reaches this angle, it will receive support and rally. Sometimes, it will rest on it for a long period of time, holding on this angle and making higher bottoms, but when this angle of 2x1, or moving trend line of ½¢ per day, week or month, is broken, then you must draw the next angle of 4x1.

**Second Important Angle: 4x1**

The next important angle on the bear side of the square, which moves up at the rate of ¼¢ per day, is the angle of 4x1, measuring 15°. It will be the next strong support angle from which the price should get support and rally.

**Third Important Angle: 8x1**

After the 4x1 angle is broken, the next important angle you will put on your chart is the angle of 8x1 which moves at the rate of ⅛¢ per day, week or month and measures 7½°. This is often a very strong support angle. After the option has had a big decline, it will often rest on this angle several times or may make final bottom and start up from this angle, crossing other angles and getting back into a strong position again. Therefore, this angle is important to use on a monthly or weekly chart after a prolonged decline.

**Fourth Important Angle: 16x1**

This angle can be used on a monthly chart after a long period of time has elapsed from an important bottom. It moves at the rate of 1/16¢ per month and measures 3¾°.

**Fifth Important Angle: 3x1**

This angle, drawn in red ink, is a very important angle measuring 18¾°. I strongly advise using it at all times and keeping it up on monthly charts from any important bottom. It can also be used to advantage at times on weekly charts, but is seldom of much value on a daily chart. It moves at the rate of ⅓¢ per day, week or month. By drawing this on the monthly chart for a long period of years, you will soon be convinced of its value and also by testing it on a weekly chart, you will find it valuable.

This completes all of the angles you will need to use from any bottom, at any time.

## How To Draw Angles From Tops On Daily, Weekly Or Monthly Charts

**Position Under 45° Angle Drawn From Top**

After an option has made top and declined for a reasonable length of time, say, 3-days, 3-weeks or 3 months, breaking previous bottoms, then you start to draw angles down from the top. Note example marked "Form #4" which is the pattern for drawing angles from the top under the 45° angle.

**45° Angle From Top**

The first angle you draw is the angle of 45°, or a moving trend line, which indicates a decline of 1¢ per day, week or month. As long as the option is below this angle, it is in the weakest position and in a bear market.

**Other Angles**

In many cases, an option will start declining an average of 8¢ per day, week or month; or 4¢ per day, week or month; or 2¢ per day, week or month. Therefore, you should put on all of these angles from the top, which moves down faster than the angle of 45°.

**Weakest Position**

The price of any Grain is in the weakest possible position when it declines and keeps under the angle of 8x1. It is in the next weakest position when it is dropping down at the rate of 4¢ per day, week or month, or under the angle of 4x1. It is in its next weakest position when it is dropping down under the angle of 2x1.

**Strongest Position**

The price is in a stronger position and indicates a better rally when it crosses the angle of 2x1, but this depends on how far it is down from the top and how far the angles are apart, as will be explained later under the rules.

**Changing Trend**

As long as the price is declining 1¢ per day, week or month, or falling below or under the 45° angle, it is still in a bear market and in a very weak position. When the option rallies and crosses the angle of 45° after a prolonged decline, then you are ready to put on the angles on the other side of the 45° angle, which shows that the price is in a stronger position in a bear market, and may be getting ready to change into a bull, market.

## Position Above The 45° Angle Drawn From Top

(Refer to Form #5 which is the pattern for drawing angles above the 45° angle from the top.)

**2x1 Angle From Top**

The first angle or moving trend line to draw, after the 45° angle from the top is crossed and after the option indicates that it has made a temporary bottom, is the angle of 2x1 moving over 2¢ and down 1¢, or ½¢ per unit of time. This is moving down at the rate of ½¢ per month, week or day.

**4x1 Angle**

The next is the angle of 4x1 which moves down at the rate of ¼¢ per day, week or month.

**8x1 angle**

The next angle is the angle of 8x1 which moves down at the rate of 1¢ every 8-days, 8-weeks or 8 months; or ⅛¢ per time period.

**Strong Position**

After the price has crossed the angle of 45° and rallied up to the angle of 2x1, it will meet selling and react to some angle coming up from the bottom of the last move, but it is in a stronger position when it holds above this angle of 2x1 and is in the next strongest position when it crosses the angle of 4x1. Crossing the angle of 8x1, which is of least importance, it indicates it is in a very strong position again from the top. You must always consider a movement coming up from bottom and its position on angles from the bottom to determine its strength. It is important to consider the number of cents it has moved up from the bottom and how many cents it is down from the top.

**3X1 Angle**

The angle of 3x1, drawn in red ink on Form #5, moves down at the rate of 1¢ every 3-days, 3-weeks or 3 months; or ⅓¢ per day, week or month. This angle is important to use after prolonged declines.

This completes the forms of all the angles that you will need to use at any time from tops or bottoms. Practice putting these angles on tops and bottoms until you thoroughly understand how to do them, and know that you are getting them absolutely accurate. Then, you can begin to study the rules for determining the trend according to the position of the price on angles.