Category: Money Tips Date: 2006-09-18
Gann Law is very volatile relationship and split ratio of multiple stress scores relationship, multiple relationships and the relationship between scores can be transformed into each other, which depends on the values that we take the size. Such as a dealer must 4.00 RMB, and the stock so to 8.00 RMB, then from 4-8 yuan rose 100% to 1; and 6.00 RMB was up 50%; 5.00 RMB to rise 25%; 7.00 RMB to rise 75%; then the ratio of these locations are divided Gann should pay attention to the location. If we rose to 5.00 RMB to 4.00 RMB, or 1.00 as the first stage of a rise, then rose 2 to 6.00 RMB yuan, up 4 to 8.00 RMB yuan, is the first paragraph or 1 yuan multiple relationships. This is another law of Gann fluctuations in stress may have multiples of the relationship between resonance points. multiple relationships can be indefinitely expanded, scores of relationship can be infinitely narrow, the key is to take what the value set to 1. This is like the moon around the earth, the earth around the sun, atomic nuclei inside the nucleus, there are smaller particles, an infinite reduced. When we learned that multiple relationships and the importance of the relationship between scores when you can use it to establish a market framework , when the time and the price of the units are running multiple relationships and scores of this relationship, the market may have reached a turning point. There will be a natural in the price support and resistance, will appear at the time of time of resistance. in the market important to start low to calculate one-half of one quarter, one-eighth of the level of growth, and doubled twice, four times, eight times the position will likely become an important support and resistance. in the low areas, trends are constantly subjected to one-eighth of the resistance fluctuations in small, long, in low areas, often subject to one-eighth of the resistance movements, fluctuations in the small, long duration and repeated movements, once an effective breakthrough, resistance decrease trend crisp. important in the market, the high point, calculate the location of the half, third, fourth and eighth, and often an important support for the adjustment. will be an important low stock or stock highest point of the range partition eight copies, the location of partition is an important support and resistance. For the time loop, can be a 360-degree circle as time to market cycles of the unit, and use one-half of one quarter and one-eighth split ratio, divided into 180 degrees, 90 degrees, 45 degrees, including the month, week, date, cycle units, split positions often become an important turning point in the market cycle
Gann Theory and cycle
Monthly cycle as the unit analysis method, is one of the ways Gann attaches great importance, but also long-term investors should begin to grasp. As the time units on a monthly basis, the time span is longer, is not easy to control generated by the makers deceived line, so a very high accuracy, reliability is very strong, tend to be naturally formed. On this basis, the rules generated will not change easily.
