"The principle of all things is the monad or unit; arising from this monad, the undefined dyad or two serves as material substratum to the monad, which is cause; from the monad and undefined dyad spring numbers; from numbers points; from points, lines; from line plane figures; from plane figures, solid figures; from solid figures, sensible bodies, the elements which are four, fire, water, earth and air; these elements interchange and turn into one another completely, and combine to create a universe animate, intelligent, spherical"
- Diogenes Laertius, Lives VIII. 25

The Monad, according to the Greek philosophers, was the beginning of all things. It was often represented as a dimensionless point in time and space. As traders, we can think of the Monad as the beginning of a series of events that unfold at the start of an impulsive phase. It is only when the Monad moves that a dimension is created. When the Monad moves from its original position to another position, then a line is created. Note that this initial movement could represent vibration as the Monad can appear at any position on the newly created line, and the dimensions of the line will remain the same. Now with two data points we are able to create an endless array of additional geometric forms. In this article we are going to use the two points of the line or Dyad as the radius of a circle as part of a trading method referred to as the Circumscribed Objective.

The Circumscribed Objective was first mentioned in 1934 in the Pickell-Daniel Extension Course of Grain Market Analysis. This material was often quoted by Gann expert, the late dr. Jerome Baumring.  In this article we will look at how to use the Circumscribed Objective to identify the end of an Elliott Wave ABC correction or the D point of a Gartley Pattern. In the following example we will use the traditional labels of the Gartley Pattern to help us find the completion of the CD leg of a bearish Gartley Pattern.

The first thing we need to identify is the BC leg. If using Market Analyst with Geometric Tools enabled, go to tools>geometric tools and select geometric circle. Then click the B high and the C low to identify the radius of the circle. The software should now display a circle based on your selected radius. This can be seen below in figure 1.

Figure 1. Geometric Circle based on the BC leg of a bearish Gartley Pattern.

This technique has value in itself as you can see that the D high found resistance at the one o’clock position of the geometric circle. However, the Circumscribed Objective technique takes it one step further by using an additional angle to intersect with the circle to give us a high probability time and price projection.

To add the angle we need to calculate the time from the B high to the C low. To measure this timeframe we can simply draw a horizontal line from the B high to the point above the C low as seen below in figure 2. This can be done with a simple trend line using the crosshairs to line up with C to ensure that the line is truly horizontal.

Figure 2. Horizontal time line from B to C

Now we need to copy this existing line segment and drop it beside the one we just finished drawing at the same price and just to the right of the line as seen in figure 3. This can be done in Market Analyst by right clicking the first line segment and selecting actions>copy and then clicking on the chart, just to the right of the existing line.

Figure 3. Additional line segment added to the right of previous segment.

These last two steps have now given us the ability to draw the final angle that will intersect with the circle to give us our time and price projection. To draw the angle, select the trend line tool and draw a line segment that begins at the C point low and draw it up to interest with the extreme right end of the last horizontal line that we plotted. Extend the end of the final line segment anywhere above the circle. The angle created can be seen below in figure 4.

Figure 4. Final line completes the Circumscribed Objective technique.

As you can see above, the intersection of the line with the circle has given us a price and time target for the D point of the Gartley Pattern. If you were to draw a horizontal line at this intersection, you will see that the price target was exact. The reversal in time was a little early. Some of you may be wondering about chart scaling when using techniques such as the Circumscribed Objective. Let’s just say that there is a clue apparent on the chart already.

The Circumscribed Objective is one of a number of geometric trading techniques taught in The Geometric Trading Course.  The first level of the Geometric Trading Course is free.  For more information, go to www.geometrictrading.com

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