Category: Money Tips Date: 2007-03-09
Gann Law contains a very wide fluctuations in the content, but Gann was still alive, they did not give a clear definition of the volatility of law, which also led to the theory of future research analysts Gann fluctuations in the laws of different interpretations. There is a musician and speculators Peter had written an article, from the perspective of music theory to explain the volatility of law. Peter believes that Gann theory and music theory, the same strain, both to fluctuations in the laws of different interpretations. The basic structure of syllables composed of seven scales, the seven scales, the occurrence of earthquakes is the C & G and the high eight degrees C, which is 10% and double standards. In other words, scale is one-half, one-third, fourth and eighth in the form of produce a total shock, so the frequency doubled, tripled, quadrupled, an eight-fold will produce a total shock. The above-mentioned ratio and the ratio and Gann closely linked to the volatility of law, that is, the partition ratio of Gann.
Gann split ratio is 8-based, that is, the division of Gann ratio is 50 percent (half), followed by 25% (one quarter), and 75% (three quarters), and then is followed by one-eighth, three-eighths, five eighths and seven-eighths. We are studying the Shenzhen and Shanghai stock charts, you can find a lot of practical examples to demonstrate the effectiveness of Gann split ratio. We fancy card index weekly chart legend. 92 November 20, index number of weekly charts closing 401 points. After 13 weeks of rising rose to 93 February 19, weekly closing index for 1499.7 points. The rate of increase 1100 points, the highest point this week as the 1558 index points, then started to decline, after six weeks of the fall, to 93 years, April 2, weekly index closing 944 points, down 556 points, range, or about the rate of increase of 2 per 1, down time is about up half the time. Through the above example. We can understand Gann 50 percent rate the importance of segmentation.
Gann's experience is from the U.S. stock and futures markets Shangyuan summed up, but this conclusion is also ideal for China's stock market. Gann rules and split ratio of the fluctuation is not confined to a particular region, it is a natural law, which the laws of nature in the transaction process is that people naturally follow a rule, it is a reflection of people's fixed habits, which is kinds of fixed habits will not be easily broken. If a pair of military tasks from point A to point B, because the road very far, half-way need to rest, then the rest of the site is likely to select in the total distance of 50%. Another example is a person working eight hours a day, then the timing of his work is often the work of four hours of the morning, afternoon, four hours of work. Let us look at the Shanghai Composite Index weekly chart. From 94 7 29 to 95 years, February 17, the Shanghai index to run during this period a total of 28 trading weeks, from 333 points to 1052 points, up 7 weeks, followed by a decline after 21 weeks or to 533 points. Time to account for this period rose a quarter (25%), down time, accounting for three quarters of this period (75%), while 25% and 75% were attached great importance to the split ratio of Gann.
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. If a dealer must 4.00 RMB, and the stock be 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 Gann divided attention should be paid positions. 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, 1 yuan is the first paragraph or a multiple of the relationship. This is another law of Gann fluctuations in stress may have a multiple 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 understood that such 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 turning point in the may have been reached. There will be a natural in the price support and resistance, will appear at the time of time of resistance.
The important low in the market began to calculate the 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, often being one-eighth of the resistance movements, fluctuations in the small, long duration and, in the low areas, often being one-eighth of the resistance movements, fluctuations in the small, long duration and repeated movements, once an effective breakthrough in reducing drag , trend bright. 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 index or stock highest point of the range divided into eight separate location are 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 of the rate of division, 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.
