back start next[start] [1] [2] [3] [4] [5] [6] [ 7 ] [8] [9] [10] [11] [12] [13] [14] [15] [16] [17] [18] [19] [20] [21] [22] [23] [24] [25] [26] [27] [28] [29] [30] [31] [32] [33] [34] [35] [36] [37] [38] [39] [40] [41] [42] [43] [44] [45] [46] [47] [48] [49] [50] [51] [52] [53] [54] [55] [56] [57] [58] [59] [60] [61] [62] [63] [64] [65] [66] [67] [68] [69] [70] [71] [72] [73] [74] [75] [76] [77] [78] [79] [80] [81] [82] [83] [84] [85] [86] [87] [88] [89] [90] 7 :1 .Illustration 2.5Swing ranges do not have to come from the last move in the stock or index, as is own by IBM. In this case, die hig at 91 in 1973 to the low at 48 in 1981 indicates resistance at a price level of 134.You can take the square of 90 and put it on the October, 1987 low, and move the square to the right and note where price found resistance and support.Examples of these horizontal angles (geometric divisions of 360) offering support or resistance, are on most charts. The S&P highs in October, 1989 and January, 1990 at 360 is a case in point. Obviously 360 is a horizontal resistance angle, but when you start to calculate the number of points moved up into that price, it becomes a much more formidable price level. For instance, October, 1987 low at 216 plus 144 is 360. Check October, 1985 or January, 1987 or the final move from June, 1989. If you are still not convinced look at an intra-day chart, and you will see moves of exactly 5 5/8 points and 11 1/4 points.Gann stated that there were nine mathematical proofs of any point of resistance. The following is an excerpt from Ganns notes:(1) Angles from tops and bottoms(2) Angles running horizontally(3) Vertical angles or time periods ending major or minor cycles(4) The crossing of important angles starting from "0" at the time of top or the breaking of angles starting from "0" at the time of the bottom(5) The crossing or coming toaether of angles from double or triple bottoms or double and triple tops(6) The crossing of double or triple tops or breaking of double or triple bottoms(7) Resiatance points in the past movement of an individual stock(8) Volume of sales(9) Squaring of Time and Price.He added, " The more confirmations you get at the same point, the stronger the resistance and the safer it is to trade, but never overlook the value of the Time Factor and the Main Forecast."Occasionally, you will see a chart pattern which unfolds with a high day followed by three or four days of sideways action on less volume, and then a down day with increased volume, in which price closes below the low of the previous sideways move. This pattern is a bearish pattern on both daily and weekly charts, although, a daily pattern such as this cannot be relied upon as much as the weekly pattern. In fact, when you see this on a waekly chart, you should buy puts every time you see those lows of the sideways movement broken, if there are significant time cycles expiring. This pattern will almost always result in a three day move down from the daily oharts, and a three week move down on weekly charts. It is considered a setup for trading purposes. Illustration number 2.6 is an example of this type of pattern.niustiation 2.6 spike high followed by a sideways move and Uien a break of die bws of die sidew move is diown beie in Syntex. Ibis is an extraordinaiy example, ta this pe of move cannot always be expected £rom this pattern done. At this time in August of 1986» Syntex was cxpifiag loog tenn cycles with a 90 day blow off move.When a bull trend shows high momentum on a move to new highs in the market, as was shown by the 1985 market, this type of momentum is, more often that not, followed by a sideways or consolidation movement. In fact, a consolidation of this type, can be a bullish indication. Look at the October, 1985 to January, 1986 period on the S&P and Value Line weekly charts to see this.Again, all stocks do not individually move with the market. During consolidations, weak stocks will rally off support, while some will continue lower. Some strong stocks pop up, while others correct. Individual stocks move in a different directions[start] [1] [2] [3] [4] [5] [6] [ 7 ] [8] [9] [10] [11] [12] [13] [14] [15] [16] [17] [18] [19] [20] [21] [22] [23] [24] [25] [26] [27] [28] [29] [30] [31] [32] [33] [34] [35] [36] [37] [38] [39] [40] [41] [42] [43] [44] [45] [46] [47] [48] [49] [50] [51] [52] [53] [54] [55] [56] [57] [58] [59] [60] [61] [62] [63] [64] [65] [66] [67] [68] [69] [70] [71] [72] [73] [74] [75] [76] [77] [78] [79] [80] [81] [82] [83] [84] [85] [86] [87] [88] [89] [90]