Generating the 1990 Gulf War Low, from the 1974–1976 move

One of the rules of Compound Pivots: Each pivot must be used for projections.

Please recall the discussion of Compound Pivots in the log spiral article, Stocks & Commodities, February ,1999, and that in 1982 the two end pivots were 08/09 and 08/12. The decline from the 1976 top to the 08/12/82 low is 1487 days, 3 more than the 1484 days used in the previous example. One of the rules of Compound Pivots: Each pivot must be used for projections.

The principle illustrated in this example, using the perimeter value of a right triangle, is also shown in Figure 23, page 34, of the log spiral article, Stocks & Commodities, February , 1999.

As shown on the chart accompanying this example, the perimeter of a right triangle with legs 497 and 1487 equals 3552 ( 497 & 1487 generate an hypotenuse of 1568). 3552 is the exact number of days from the 09/22/76 peak to the 10/11/90 low.

The 1976 peak was the terminus of the advance from the 1974 low.