Category: Money Tips Date: 2006-03-06
Gann Gann numbers table is the invention of digital vertically arranged along the four-square, used to predict the price support and resistance.
Gann numbers table has a variety, such as digital 6,9,12,19,20,27,36,52,90 such as the base four-square, which is the commonly used 994 square digital watch.
Drawing figures in Table 99 as follows:
From the lower left corner square, bottom-up fill out 1-9, to continue to fill out the following from the second column 10-18, and so on until the fill to 81.
Gann believed that each stock has its own unique volatility in certain market conditions, volatility will have a "resonance", thus causing the trend reversal. Therefore, should be used with a similar volatility in the market square in order to have good results.
With the Gann square spiral is similar to the table Gann an important support or resistance is likely to occur in:
The midpoint of a four-square;
2 4 square center line;
3 4 square diagonal.
Mysterious "Seven"
In Gann's theory, "Seven" is a very important and mysterious figures.
Gann that "seven days", "seven weeks", "July", "seven years" could be some intrinsic cycle stock.
A circle "7" Dividers
Gann the 360-degree circle is divided into seven, etc., we get a group of key figures, namely, 51.4; 102.8; 154.3; 205.7; 257.1; 308.6; 360.0;
2 "77"
In Gann theory, "Seven" is an important market cycles, "77" is another important market cycles.
Multiples of 3 7
Gann is usually 7 days, 7 weeks, 7 months to analyze the market trend. Because the price minimum or maximum point, after 7 days or seven weeks is very likely took a new turn, and a multiple of 7, such as 14,21,49 and so on is a very important Gann cycles, now the cycle has been widely applied to the stock market, as we often use technical analysis indicators, such as 14, RSI (Relative Strength Index), 14 random index, 14 trends in indicators, 65 day, 90-day moving average, and so have adopted the 14, 65, 90, etc., as fluctuations in period to calculate.
Gann 50% of the callback method
Gann 50% retracement rule is based on Gann's 50% retracement or 63% retracement of the above concepts.
Gann considered: whether prices rise or fall, the most important price is 50% of the position in this position often have a price correction, if the price did not happen in the callback, then 63% of the price will be correction.
In Gann price, 50%, 63%, 100% of the most important, they were with the geometric angle of 45 degrees, 63 degrees and 90 degrees correspond to those price points are usually used to determine the establishment of the 50% retracement zone.
Investors to calculate the 50% retracement of that approach is: The difference between high and low divided by two, and then the results with minimum or subtracted from the highest price.
Of course, the price movements are unpredictable, and we should leave room on the forecast trend, the actual price may be less than 50% may be higher than the forecast.
