Category: Money tips Release Date: 2006-09-27
Shanghai Composite Index above example, the trend of the past eight years, you can find a monthly chart has already happened, obviously, a 20-month cycle. From the 91-year low of 104 points in May to 92-year low of 386 points in November, is a low to low cycle times, running for 19 months; in November from the 92-year low of 386 points to 94-year low in July points, 325 points, to run 21 months, but also a clear cycle of low to low; from 94-year low of 325 points in July to the 96-year low of 512 points in January and run for 19 months, but also a cycle of low to low; from 96-year low of 512 points in January to the 97-year low of 1025 points in September and run for 21 months, or a cycle low in May after 99 years. However, we also should consider the past eight years the stock market in the 5,6 month high the probability of very large, reaching 50%, so we can not rule out the month is a cyclic 5,6 high possibility. As long as 5,6 points on the month to switch out of the cycle in line with the law. 20 months of the cycle is 60 months Gann cycle (5-year cycle) of the third is the key Shanghai index cycle.
The Shanghai Composite Index on the chart, you can find three times to 18-month cycle to cycle. 93 years, the highest point of 1558 points in February to 94-year low of 325 points in July, is a high point to low cycle times, running for 18 months; from 94-year July low of 325 points to 96-year low in January 512 points, to run for 19 months, is a low to a low point of the cycle; from 96-year low of 512 points in January to the 97-year high of 1510 points in May, is a low to a high point of the cycle, run 17 months. The four cycles in accordance with 18 months (+ or -1 months), the cycle to run. The difference is that operating mode is not simply in accordance with low to low or high point to high points are three ways to complete the cycle. The sum of these three cycles of time, equivalent to 52 months, that is, 93-year high of 1558 points in February to 97 May high of 1510 points, which is likely to be a large level of high point to high integrity cycle. In this cycle, contains three to basically the same, running in a different direction of the three stages, namely the drop in the end plate, rising in three stages. This inference, 97 May calculate 52 months back, it could be the next big at the top of a Quote. 18-month cycle is a Gann cycle of 36 months (three years of the cycle) of the half, but also exist in China's stock market a very important one cycle.
Gann is also a monthly cycle with special emphasis on the following points:
(1) in the important markets begin to bottom, Three months later, another may be the bottom or top of the market; plus four months, may be another at the bottom or top of the market. For example, the Shanghai Composite Index hit a 94-year July low of 325 points, is an important base; 7 months to 95 years in February, the Shanghai index to run from a low of 524 points, is another key Shanghai Composite Index底部.
(2) an upward trend, the adjustment normally does not exceed two months, to the first three months, the market will rebound bottomed. For example, in January on a 96-year low of 512 points from the Shanghai Composite Index has launched a major bull market; up to 97 years, ending at 10:00 on May 15, half-way made three adjustments to each of the adjustments are for two months, the third began to resume uptrend. They are 96 years in April started to adjust, in June to resume rise; 96 years, in July started to adjust, in September to resume uptrend; 96 years, in December started to adjust, 97-year upward trend resumed in February.
(3) In extreme cases, the market may only be 2-3 weeks to adjust. In this case, the market may be a continuous rise in 12 months than those at the bottom of each month high last month, at the bottom. Such as: 96 years in November, the Shanghai index is only adjusted the two weeks that the upward trend resumed; 96 years, the Shanghai index started to rise in January, has risen to 12 months.
