The angles to be used from a bottom of a stock up start from the point marked “ O ” and those starting down from the top of the chart marked “ T ” are the way they are put on from the top running down. Remember, the first thing to do when you want to put angles on from bottom to top is to draw the angle of 45°, then draw next the angle of 2 x 1 on each side of the45° angle. In many cases, you will not have to use any other angle for a long time, then put on the other angles when they are necessary. Of course, if your stock is advancing very rapidly, then keep your 1 x 4 angle and your 3 x 1. The stock applies when it is having a sharp decline – keep your angle of 8 x 1 and 4 x 1 drawn down, using the scale of 1point to each 1/8 of an inch, as shown on your Pattern Chart.
A stock to keep above the 45° angle must make a gain of one point per month, i.e. it must raise its bottoms one point per month. To keep above the angle of 8 x 1 going up, it must raise its bottoms eight points per month, and to keep above the angle of 4 x 1 it must raise its bottoms four points per month. To keep above the angle of 3 x 1, it must raise its bottoms three points per month, and to keep above the angle of 2 x 3 it must raise its bottoms 1 1/2 points per month or make a gain of 18 points per year. On the left hand side of the angle of 45°, beginning with the angle of 6 x 1, the stock only has to make a gain of 2 points per year. If a stock cannot rise above an angle of this kind, it is in a very weak position and of course on the bear side of the square.
The angle to the left of the angle of 3 x 1 indicates a gain of three points per year and the angle of 3 x 1 indicates a gain of 4 points per year. The next angle of 2 x 1 indicates a gain of 6 points per year or 1/2 point per month.
Coming down after having broken the angle of 45° and breaking this angle, a stock is in a very weak position, especially if it is a long ways from the base, and indicates much lower prices.
The angle of 3 x 2 on the left rises at the rate of 2 points in 12 months or a gain of ¾ of a point per month in order to keep above this angle. It is not necessary to draw angles from a long way back. You can make the calculation and determine where they cross. For example: suppose in 1900 , in the month of January, a stock made bottom at 15, and I want to calculate where the 45° angle will cross 20 years later in January, 1930. the 45° angle rises at th erate of 1 point per month, then 10 years would be 120 months or 120 points added to 15 at the bottom; the 45° angle would cross at 135 in January, 1930. All of the other angles may be calculated in a long way back in the same way.
I have marked on the Pattern Chart the measured degrees of the angles, which you will see are 3 ¾°, 7 ½°, 15°, 18 ¾°, 26 ½°, 30°, 33°, 37 ½°, 45°, 52 ½°, 56 ¾°, 60°, 63 ¾°, 71 ½°, 75°, 82 ½°, 86 ½°, and 90°. You do not have to bother about measuring these angles. All you have to do to get the angles correct is to count the spaces and draw your lines or angles accordingly.
You will notice on your Pattern Chart how each angle drawn from the top and from the bottom prove themselves by the point at whioch they cross. For example: the angle of 8 x 1 drawn from “0” and the angle of 3 x 1 drawn from 90 down both cross at 45, 5-5/8 units over from “0” counting to the right. Then take the angle of 2 x 1 from “0” and 4 x 1 down from 90 and tou will notice that they cross at 11 ¼ on 45, equal distance from the other angle and of course twice the measure.
The reason why these angles prove this way is because the 45° angle or 45 points, degrees, or anything else from “0” to 45 is one-half of 90. Therefore parallel angles beginnning at “0” going up and at 90 coming down, must cross on a 45° angle or at the gravity center.