"TIME is the most important factor of all and not until sufficient TIME has expired does any big move start up or down. When TIME is up, price movement will start and large volume will begin, either up or down."
W.D Gann
I know about the use of equal ranges when it comes to comparing price ranges with previous price ranges. I have learned about this equal range business from many traders. We can all witness it from time to time. And yes, it does seem to be when I am observing the markets movements. Unfortunately I don't know which range is going to make it to the 100% level of the previous range. The market might make it half way, or it might even trade right through the 100% level like a hot knife through butter, easily. However, there some good uses for the study of price ranges, in particular the retracement levels. I am sure we all love a 50% retracement to be at the beginning of our trend.
What I have been noticing lately, well, actually I noticed this a long time ago but haven't looked at it as seriously as I am now, is the ranges of TIME that the market trades in. Let's forget about price for a while and look at the ranges in time that are clear and evident in the market. Let's look at the Australian SPI for example.
You will discover in the following TIME chart that the high of 3373 made on the 10th of July is in fact when the TIME started to turn the trend. Compare this TIME chart with the PRICE chart and you will see two completely different pictures.
In the TIME chart the high of 3376 made on the 3rd of October was in fact a DOUBLE TOP in TIME with the 3373 high made on the 10th of July. You will also see that the high of 3414 made on the 7th of November is in fact a LOWER TOP in TIME to that of the 3376 and 3373 highs.
TIME CHART
PRICE CHART
Happy trading,
Solomon Thallon
HotTrader, Australia
source : http://www.afsd.com.au/
No comments:
Post a Comment