Category: Money tips Release Date: 2007-03-17
Callback is the trend of prices in the main movement in a temporary reversal of movement. Callback theory is the Gann theory, an important part of the price.
According to the concept of horizontal price, 50%, 75%, 100% as the callback location is the trend of price movements constitute a strong support or resistance.
For example: A stock price of 40 yuan from 20 yuan the highest point down to the lowest point of beginning reversal, the price band of space is 20 yuan to 40 yuan minus 20. This trend is 50% to 10 million, which will rise to 30 yuan a callback. And 30 yuan and 20 yuan with 50% of the price of 5 yuan to 25 yuan, when the callback and then continue to rise. Upward trend has been to 40 yuan and 20 yuan, 75%, or 35 yuan a further 50% retracement of the last up to 40 yuan to complete the pre-100% retracement of a bear market.
So, how to determine the peak and peak at the end of it? Gann that covered only several times a year can be an excellent deal, and this, to be seen in years as the unit prices of the map to determine the year's top step and the bottom of the city and then on-line chart, weekly chart and daily charts.
Gann price band
Gann used to reveal the laws of the time when the price will occur when the callback, and Gann price corrections in the price of law reveal how much.
Gann divided into a number of the price range of a price band, Gann price band at a relatively high price and the lowest time of the standard division. The duration of the analysis, these time could be on the 1st, tree days, weeks, months, years or even longer.
Price band is usually by the former division of a percentage of price trends, usually through the price were divided into eight horizontal price band or three price zone. The horizontal line expressed different levels of future price movement of the support line or resistance line, the price will be in these places callback.
Rising trend, 1 / 8 or 3 / 8 horizontal line indicated an upward trend in prices of smaller resistance; and in a downward trend in prices of these two horizontal support has become a smaller place.
Gann Line
Gann line points up and down Gann Gann lines are two lines, it is by William D. Gann created a unique set of theories. Gann is sometimes translated into Gann, he was a legendary master of technical analysis of stocks. Gann Line is that he will be a percentage point of principle and principles of geometry combined product. Gann line is from a point of view, according to a certain point of view, to draw back the multi-rays, therefore, Gann lines containing the angle-line content. Gann Gann line up fall line is divided into two types of Gann Line. Each line has a certain point of view, these perspectives are in line with the percentage of those numbers on. Tangent or cotangent of each angle is equal to the percentage difference in the number of a fraction (or a percentage).
Each line has a support and pressure, but this which is most important is 1 × 1,2 × 1 and 1 × 2. While the rest of the angle of price fluctuations also can play a number of support and pressure, but their importance is not great, are easy to break.
The specific method of drawing Gann Line is the first to find a point, then this point as the center according to different points of view to draw up or down a few rays.
Selected point with the points the same way as most other elections, must be significantly high and low points, if the newly selected point was immediately innovative high and low points to replace, then the Gann line with the choices the change. If the point is to be elected to the high points, Gann lines should be drawn down. These lines will be in the future to play a supportive role and pressure.
If elected to the point is low, it should draw up Gann Line. The line will play in the future the role of stress and support.
Needs to be stressed is that Gann line is relatively early stage of technical analysis tools. When in use will face two problems.
First, the scale used by the technical charts the impact of selecting different scale will affect the Gann line role. Constantly adjusted as long as the scale, you can always make Gann line to achieve "accurate forecasts" effect.
Second, the Gann line offers not one or a few lines, but a fan-shaped region, in practice there are very difficult. For those who are not professional research Gann theory, the investor, it is best not to use the Gann Line.
