Saturday, 17 October 2009

Market Geometry Hanna

Howard Arington W. D. Gann developed several unique methods for the study of price charts, and the central part of his methods were geometric angles of the price and time. Let's see how you can use the intersection of the prime corners Hanna, to predict the time to turn the price dynamics. I do not know whether this technique Gunn himself, but to me it seemed interesting and I want to present it to you, as I understand it.

In my example I will use a daily schedule of "JDS Uniphase". I do not give any investment advice, but merely show his thought process in order to detect market timing, using the corners Hanna. The basic principle of this theory: upward angle of Hanna will be posted on the schedule at a significant turning a minimum, and top-down angle of Hanna will be placed at a significant turning maximum. Initially we will be interested in crossing the lines of 1x1 with horizontal lines and the intersection of two lines of 1x1. In this example, the intersection of those marked by red arrows.

For visibility, the first illustration I have shown just crossing the line 1x1. However, I also see the line 2x1 and 1x2, and their intersection, and show them to my pictures in the afternoon schedule of JDSU. I started with a blank schedule JDSU and first tried to find the price and time to use as a line of 1x1. For this I use a special tool Hanna graphical program "Ensign Windows" and set the default settings to show only the corners of 1x1, 2x1 and 1x2. Also, I check the option to use the maximum or minimum value of the bar to accommodate peaks. Line 1x1 depicted in blue, while the line of 2x1 and 1x2 are shown in red.

The first peak was placed at a substantial minimum 05.10.1998g. I Adapt placement line 1x1, so that it is visually in line with market movement. I tried to develop trend occurred along these lines, or they provide the support and resistance. The greater the correlation could be found, so they are better suited. Since the peak is placed on the schedule, the program shows the relationship between price and time as the number of vertices. I see these numbers and try to select the price and time 1x1, which is a derivative of the unit price, or has some relationship to the Hanna, Fibonacci numbers, or part of the circle. My first peak 05.10.1998g. coincided with the value 1x1 equal to 21.0. This means that the line 1x1 grows at a rate of 21 cents per day. I am satisfied with the value 21, because it is a number sequence Hanna, and the number of the Fibonacci sequence.

To accommodate the additional peaks Hanna from recent major maximum and minimum, I increased intervalbarov. I will find a new meaning to 1x1, because the volatility of JDSU in 2000. much more than in 1998. I find that the slope of 1x1 to 60 cents for one bar fits, and I want to use 60 as the value 1x1 for all vertices in subsequent studies. I fit the number 60 because it is also part of a circle of 360 degrees, while 58, 59, 61 and 62 are not. I added a rising peak in the minimum of 15.12.1999g. and a downward peak at the maximum of 21.01.2000g. to see how the intersection of price and time may occur.

I noted the crossing, which predict the time to turn red arrows. Vertical green lines held by the red arrows to the intersection for better visibility. Please note that the decline from 2x1 (steep red) had a good intersection with all four lines of ascending peaks Hanna held a minimum of 15.12.1999g.

Angles Hanna also provide support and resistance, and many of these points have been marked by horizontal blue arrows. As can be seen from the example, when an angular line to cross, the price will move and consolidate at the next line.

For this example was taken daily schedule JDSU, but I am sure that similar results can be obtained for any other marketing tool, and another temporary format. However, you have to carefully study the feasibility of the proposed technology for its trading strategy. In addition, I do not believe that the proposed study is an unconditional and final, and I hope that you are conducting your own research, will find something new and interesting.

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