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PRICE-TIME REVIEW'S
--GANN Analysis and Support-- |
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THE EVIDENCE--part 2 of 2 W.D. GANN's PARABOLIC CURVES, from his SPIRAL CHART or those third party "Squares of Nine (9)", VERSES EXPONENTIAL GROWTH CURVES <Part 1 of 2 > updated and re-posted 12/26/2006.
The six "curves" that were plotted on the upper part of the
graphic below shows why Mr. Gann's SPIRAL CHART, or the "so-called" SQUARE
of NINE, is VERY LIKELY based on a fallacy, as they do not follow the compound
interest formula "exactly."
However, this comparison between curves on the graphic also show that the "so-called" Gann method produces a curve that is "close enough" to the "real curve," exponential growth, that we do use it in our work to help spot "clusters" where the Gann traders using this method may be enough in numbers to force a CIT at it's target points...or at least a point on the parabolic curve it seeks. On the other hand, let me say again that we do not have a lot of faith in this method...period, and more of that skepticism comes from the fact that there are far too many different methods being used for its calculations, and, for me, I fail to see how we can get enough Gann traders all on the same page at the same time to make that "difference"...if you know what I mean? BE SURE to view that DOW chart on the bottom. While it refutes the thesis of a parabolic curve trend line, it also says a lot about where that index stands currently on the long term "exponential curve trend." B. Bonfoey Editor All content is copyright(2003-6) PriceTime
LLC
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| <Part 1 of 2 > |
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| COMMENTS: (if
any) BY THE WAY, for that DOW chart above, the purple dotted line coming up from the blue exponential regression curve to the 2000 high represented the "most overbought" level, from the blue mean, before the index topped. For that to be repeated now it would take a DOW of about 14,500-15,000...as shown by the second purple line moving up along side the current trend. HOWEVER, let me also say that the 2000 high had to be not only a "throw over," but a very nasty thrower because If that were the actual "upper channel" then the lower channel would project back below zero. SEE what I mean? <Part 1 of 2 >
For The Price-Time
Review
B. Bonfoey
Co-Editor
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All content is copyright(2003-6) PriceTime
LLC
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FULL SCREEN END PAGE
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