New Trading Systems and Methods, Fourth Edition

APPENDIX 6

Construction of a Pentagon

CONSTRUCTION OF A PENTAGON FROM ONE FIXED DIAGONAL

Establish the diagonal D by connecting the top and bottom of a major price move by a straight line. This diagonal will be toward the left and top of the pentagon to be constructed (see Figure A6.1).

FIGURE A6.1 Construction of a pentagon from one diagonal.

1. 1. Measure the length of the diagonal D. This diagonal connects two points of the pentagon.
2. With the point of a compass at one end of the diagonal and the tip on the other, draw a long arc to the right; placing the point on the other end of the diagonal, draw another arc to the right. These arcs should not cross to avoid confusion.
3. The length of a side of a regular pentagon is calculated from the diagonal by the formula

   

   Using a ruler, set the compass to the length of a side and place the point at one end of the diagonal. Draw an arc on both sides, crossing the arc on the right; do the same for the other end of the diagonal. The two new arcs will cross on the left. The three new crossings are the missing points of the pentagon.

4. The center of the pentagon can be found by bisecting any two sides. The point at which the two bisecting lines cross is the center. Use this point to circumscribe a circle around the pentagon.

CONSTRUCTION OF A ...