The Square of 9 + RBA Reserve Bank of Australia: The Hidden Geometry That Cracks the Forex Code

Ever felt like the Forex market is speaking a secret language that only insiders understand? You place a trade based on a textbook pattern, and boom—it reverses faster than your decision to buy that neon green jacket on impulse.

But what if I told you there’s a hidden formula—a mathematical cipher used by elite traders—that can help you anticipate market turning points with uncanny precision? Welcome to the world of the Square of 9 and its unexpected relationship with the RBA Reserve Bank of Australia decisions.

This isn’t your average RSI crossover story. We’re diving into advanced, little-known territory. If you want to outsmart the market movers and finally stop feeling like the guy who brings instant coffee to a barista showdown, read on.

The Square of 9: The Ancient Wheel That Moves Modern Markets

Let’s start with the legendary Square of 9—an esoteric tool developed by W.D. Gann, a trading wizard whose methods still baffle and inspire traders today. Think of it as the Fibonacci sequence’s cooler, more mysterious cousin. The Square of 9 is essentially a spiral grid where price and time align to reveal market turning points.

Here’s a simple breakdown:

1. Visualize a spiral of numbers starting from 1 and moving outward in a clockwise direction.
2. Each number has specific degrees associated with it (0°, 45°, 90°, and so on).
3. Price levels that align with these degrees often act as support, resistance, or reversal zones.
4. When these price levels synchronize with time cycles (e.g., key dates like central bank meetings), market moves become more predictable.

Example: Say AUD/USD is hovering around 0.6520, and you use the Square of 9 to identify 0.6450 as a 180° level. If the RBA is about to announce an interest rate decision, and price approaches this level, it could signal a sharp bounce or reversal.

Why the RBA Reserve Bank of Australia Holds the Key

You might wonder, why focus on the RBA Reserve Bank of Australia in particular? Because the Aussie dollar (AUD) is highly sensitive to monetary policy shifts, commodity prices, and risk sentiment. RBA decisions often lead to explosive moves, making AUD/USD a playground for traders who understand market timing.

According to a 2024 study by the Bank for International Settlements (BIS), AUD/USD showed the highest volatility among major pairs on central bank decision days, with price swings averaging 0.8% within 24 hours.

Furthermore, the RBA’s policy stance frequently diverges from the Fed and ECB, creating unique trading windows. This is where the Square of 9 becomes a sniper rifle instead of a shotgun.

Combining the Square of 9 with RBA Events: Ninja Tactics for Precision Timing

1. Pre-Event Mapping: Before an RBA meeting, plot key support and resistance levels using the Square of 9. Identify price points aligning with 90°, 180°, and 360° degrees.
2. Price-Time Symmetry: Note if the upcoming decision date aligns with Gann time cycles (e.g., 45, 90, or 180 days from a previous high/low).
3. Volatility Exploitation: Place limit orders around these degrees, anticipating sharp reactions during rate announcements.
4. News-Driven Confirmation: Pair your technical setup with RBA’s rhetoric on inflation and growth. Hawkish tone near a support level? Buy. Dovish surprise near resistance? Sell.

Real-World Example: On May 7, 2024, the RBA held rates steady, but AUD/USD spiked 60 pips after Governor Michele Bullock hinted at future hikes. Traders who mapped 0.6645 (Square of 9’s 225° level) as resistance could have banked quick profits as the pair reversed.

Underground Trends: Why the Pros Swear by It (But Won’t Tell You)

You won’t find the Square of 9 on every retail trader’s chart. It’s the tool institutional players whisper about in closed-door strategy meetings. Why? Because it taps into market psychology and natural order—the kind of stuff algorithms can’t fully grasp.

According to Brent Donnelly, author of “Alpha Trader,” “Markets often move in geometric patterns driven by crowd behavior. Traders who understand this geometry have a clear edge.”

Another market veteran, Peter Brandt, emphasizes that “pure price action and time cycles reveal truths that news alone cannot.”

Secret Sauce: The Unspoken Role of Commodities

Here’s a curveball: Australia’s economy is commodity-driven, especially iron ore and gold. Price cycles in these commodities often mirror Square of 9 rotations, influencing the AUD.

Example: In Q4 2023, iron ore rallied 18%, lifting AUD/USD from 0.63 to 0.67. Square of 9 analysis had flagged 0.6750 as a 315° resistance level—a ceiling the pair struggled to break.

How to Apply This Today: Step-by-Step Playbook

1. Learn the Square of 9 Basics: Master the spiral chart and degree relationships. (Hint: You can find free templates online.)
2. Track RBA Calendar: Mark rate decisions, speeches, and inflation reports. (Source: https://www.rba.gov.au/)
3. Map Price Levels: Use the Square of 9 to identify potential turning points.
4. Monitor Commodities: Watch iron ore, gold, and copper for AUD correlations.
5. Trade with Precision: Execute trades near these levels during RBA-driven volatility.

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Key Takeaways for Traders Who Want an Edge:

• Square of 9 aligns price, time, and psychology—a trinity the market respects.
• RBA decisions amplify AUD volatility, offering precision trading windows.
• Combining Gann geometry with fundamental catalysts creates sniper-like entries.
• Institutional players quietly use this—you should too.

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Image Credits: Cover image at the top is AI-generated