Sunday, April 25, 2010

Time and Price

Gann's method had 2 components time and price.  Price was primarily based on Vibrations of a stock.  In layman's terms it was the speed of movement of a stock up or down.  Many who follow assume a 1 point move per day or per candle that Gann assumed.  With that being the slope of 1 one draws a 45 degree line from the bottom. Say 666 on March 6th 2009.  and as long as spx is above this 45 line it is bullish and below is bearish.  Based on that we are bullish.  We have completed 285 days of trading and spx is above (666+285 =)  951 with that one is bullish. One can also draw 2x1, 3x1, 4x1 and 8x1 where price move 2, 3, 4 or 8 times the vibration  or points  in 1 day. One may be able to estimate the move to the next angle line.  This is not as complicated as it sounds it is laborious and at best is an estimation and I did not get very good results.
The second aspect in Gann's studies is time.  The Gann emblem on the left is from March 06th  2009.  The dates in the middle are Gann turn date.  I have marked those on the right daily chart in the form of squares.  
The seems to give very good fore warning of the tops and bottoms in the making.  The green Gann emblem is from Feb 05 2010nd the daily chart of spx is from Feb 05th 2010.  The next big  turn dates coming up are 288 days from March 6th 2009 on 28th of April.   May06 is 90 day turn date from feb 05th 2010.  Both these points that we may be near a top.
Also our very well respected Astro person in our CCL ( Incidentally you should visit our chat room we discuss a ton of EW, Astro, Cycles, Channels, and a number of market indicators) Miss Malibu is also calling for a good size turn.  I am totally in cash and playing DOMA and DMRM if and when we hit the top or a top I will know.  No negative indicators were generated.  I think use of progressive stop is the way to go so I don't have to pick the top or bottom.  I will continue stay bullish until something changes.

1 comment:

  1. Do not think the SP has risen a little, because since 1150 there are already nearly 6%. I know that there is room to climb, but I still say that we can alleviate these values. I continue to predominate with long positions in my portfolio but am aware of these figures.