Bayer rules

[AstroElite]

RULE NO. 11
THE 6 INCH ELLIPSE AND ITS USE

In "Time Factors" I already had put special stress on the use of the ellipse. The idea about measuring movements with ellipses on the charts came to me when I considered that planets also move around the sun in ellipses.
The size of the ellipse which we have to use is reproduced here correctly. Be sure to reproduce it on Celluloid of medium thickness by going over the contour with a pin point to get its picture on to the celluloid.
Stores that carry drawing materials also carry such celluloid sheets. However, when you have completed the ellipse do not be in a hurry to separate the ellipse or cut it out with scissors, since the 123* angle of which I shall treat later must be drawn into the ellipse picture as shown in Illustration No. 3.

The two axis also have to be drawn into the ellipse; they form often time and price resistance. This ellipse was designed for K & E paper
and does not give results on any other. When you have a chart before you such as the wheat chart of 1939 we make some trial tests. We set the end of the ellipse which I shall mark point X on the important lows or highs as they were made. July 25, 1939 is such a day; so is October 8, 1939.

Set it there, look forward and note how nicely the movement did run within this ellipse, until it was abandoned as time progressed. The corner of August 30, 1939 becomes an important point for the position of the next top which was made on September 7th, 1939. The action of the trend may be compared to a ball that runs across a roulette wheel, bouncing from one side to another in rather weird movements. When the "wall" of the roulette bowl is reached, which we shall call the "periphery" of the ellipse in our case, a movement to the opposite side begins the angle of re-bounce being different each time.

It is suggested that you retain the idea of the movement of a small ball in an oval roulette bowl, whereby the ball's movement represents the trend taken of the article " wheat, cotton" or whatever we follow. Remember constantly, that the wall of the roulette bowl makes the ball bounce back, unless, that wall is hit with such tremendous force that the ball " jumps" over the wall. This very same condition happens in extremely wild markets. We call such jumps "gaps". They overthrow temporarily all calculations-actually a new cycle begins right at this point and new measures must
be taken from that point on.

Once in a while the "jumping" over the ellipse is followed by a top right there such as it happened end of December 1939 in wheat. While it is important to know when such jumps occur, they just simply cannot be found by setting the ellipse. They must be found via our astronomical rules and a guess, whether it jumps or whether it does not jump over an ellipse does not help us.

******ILLUSTRATION NO.3. HERE**

ACTUAL SIZE OF 6 INCH ELLIPSE WITH ANGLE OF 123*

The ellipse is more or less a helper that locates the exact price level at which changes are due on a certain day and nothing else. We will find when checking
through a few years that in narrow movements ellipses are not of much help, although they should be used just the same. This is the way ellipses should be used
when markets are narrow; set the point X to a low, watch the secondary reaction and put the periphery into the low point of this secondary reaction. The trend would be upward as long as the price structure remains inside of the periphery. As soon as it peeps beyond, consider the trend as changed.

When the trend is down ward, we reverse simply the picture as well as the ellipse and using the illustration above we set the ellipse into a top first, watch for the secondary comeback and lead the periphery of the ellipse through this peak of the secondary comeback. As we decline from the secondary top we must not cross beyond the ellipse but strictly stay inside of it; if we do, the trend changes to an up-trend.

For the setting at point X of the 9 inch ellipse we use the low points of a move. However, the possibility then exists that we can lay any number of ellipses through a given point. We have to restrict their number by laying the ellipse through previous highs or through gaps in case gaps were made. These highs or the gaps must not be too far away otherwise they are useless. Here is an example which show what I mean: Take the low of October 8th 1939 and the previous peak of October 6th 1939. Set the ellipse point X at the low of October 8th and let the left side of the ellipse run through October 6th 1939 and you will have the perfect lay of the ellipse, giving you what I call the “corner” in wheat November 24th to 27th 1939.

[AstroElite]

RULE NO. 12
THE ANGLE OF ONE HUNDRED AND TWENTY-THREE DEGREES INSIDE THE ELLIPSE

Whenever you read a book note that the following pages are of the greatest importance: page 40-42, page 70-72, page 80-82, page 123 and page 144. The gist of the story is lying in these pages. This I have found out from the study of dozens of ancient works. I also discover that exactly one hundred pages late rfrom an important page you will find ideas explained that are very similar to what was said a hundred pages previously. This statement I have to make since in the works of Confucius and Buddha it was so pronounced that, to get better explanations of certain pages, I merely went 100 pages further and obtained much clarification of the page one hundred pages before.

I have never seen any of the writings of Confucius or Buddha in original texts, not even pictures of it. But, the printers whose job it was to print translations, assembled their type in such a way that what I am stating above is brought about. Nature does that, of course, and the printer Is but the innocent tool of Nature.

Why and how I struck on the idea to build a 123* angle into the ellipse I do not recall anymore. I believe it was due to the fact that the cycles of the Saturn-Jupiter conjunctions geocentric (Herschel Text Book on Astronomy explains about that very nicely) contain 369* and one third of this is 123*. At any rate, I set this angle into the ellipse as shown in the illustration No. 3. In order not to disturb that picture by marking 123, I shall put outside of the angle, away from the
picture the initials SJ, meaning Saturn-Jupiter angle. The ends of this angle will be marked E and F.

The settings of this angle inside the ellipse gives very fine results to locate tops, bottoms, gaps or what have we. Use point E at an extreme low or at an extreme high so that the line leading to SJ comes upright into a date line such as October 8th, 1939. You will note that first of all the November 24-27 lows of 1939 are coming to the periphery, also that the SJ-F line is jumped over with a gap up ward in the middle of the ellipse on December 12, 1939. When we have very sever movements such as was the case in May 1940 in wheat we have to lay the ellipse in such a way that line F-SJ is set into the coordinate instead of line E-SJ. This way we have to lay the ellipse together with the 123* angle the long way.

Lay line SJ-E through high of April 22, 1940 and May 10, 1940. this brings the low of May 16, 1940 into the coordinate of that day and the end point X of the ellipse also fits into this day. The real low of 74-7/8 in Sept. wheat is from the high of May 10, 1939 just one ellipse diameter down. Another example of laying the ellipse:
Wheat 1940, set ellipse at low of February 1st. Note how the movement runs in the ellipse upward, with a one day exception on April 10th, when it moved out beyond by 1/2c but jumped into it again the day after with a gap upward. Only by end of April 1940 does the price abandon the upward trend and then, to help the trader, the price remained steady for fully four days and only then dropped.

Experiment around with this 123* angle and use in normal markets only the "E" setting as explained above. Note: In abnormal markets or at very high levels, set ellipse at tops or bottoms at point F instead of point E. ( see Ill. No. 3)