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1:1 Ratios and your describing market geometry, which

often provides ‘random’ probability trade set-ups for swing trading,

and possible extended targets from previous price action :- fibonacci & Elliot Wave are examples.

Yeah I understand how future markets work and where the most logical

swing and reversal zones are, without using geometry.

I  use different techniques within multi-timeframes on a daily basis for Forex

and Futures, and look for the major swing points in the market when trading

equities, and when to sit in cash using  higher timeframes techniques.

If I didn't trade stocks I wouldn't care less if the market had found it's

lows or not. Or whether market was going to reverse upwards,

or continue down for the rest of 2008.

All I want is volatility, and to be able to achieve my primary income each day.

I would simply stick to daytrading Forex and the SPI using 'spiral' techniques.

"‘Spiral-Points ©’: they are dynamic support and 

resistance levels that define the direction of the market and the

 high probable expectant outcome. Spiral-points are ideal for day

 trading derivative markets; they are an excellent timing tool to get you

 in and out of the market, thereby allowing you the potential to capitalize

 on intra-day moves. Spiral-points are extremely important because 

they become ideal entry points; important because of least capital risk,

 and important because they’re closest to your initial stop loss point.  

There are a few market patterns that occur with such unbelievable 

regularity that traders must become aware of them. No one, to

 my knowledge has engaged in more in-depth research (in this area).

 (Frank Dilernia 2005 :- that’s me)"

Below is an example of Spiral point swing trading for the Euro this week

over a two-day pattern.

Each bar is 41 pips.

All I know that is:- I have to trade as close to the spiral filter as

 possible (pink) and price will move away 41 pips.

Then it becomes ‘random’ on how far price moves away:- continues

 or reverses.

It is also obvious that a lot of the patterns are occurring over a

24 hour period so I won’t be trading some patterns because they

are occurring during GMT or US trading times, but most often they align with

 4-hour periods.

But regardless of when they occur, there are a number of spreads that

are simply monitored, and once they line up during Asian trading time

 :- cha ching

And most of the patterns are occuring with the 5-day pattern:-  Thrust

 and extend away from the 50% level, or rotate back towards the 50%

levels.

Therefore no need to use Geometry, as most derivative markets move in very similiar patterns as just described.