|
PureBytes Links
Trading Reference Links
|
Here's a simply but handy way of displaying Gann division of the range (DOR) lines, fib retracements, etc. in MS.
(IMHO) MS's fib retracement tool, for a variety of reasons, is so poorly implemented that it is almost painful to use. This is particularly true if you need to see several different retracements, as needed in DOR analysis. After struggling for several years with this problem (& mostly not using MS for this analysis), I developed the very workable solution that I've described below. Its pretty simple and perhaps some (or most) are already doing it, but I've not seen it described before.
The technique is to create an indicator containing the DOR values (fib numbers work just as well, of course) as follows 0; 12.5; 25; 37.5; 50; 62.5; 75; 87.5; 100. Next, drop this indicator on a CLEAN price window (no other indicators). Scale price to the right scale & this DOR indicator to the left. The result will be horizontal lines at the division ranges. For easy identification, assign different colors to these lines. Then save as a template and add it to the toolbar. The result will display the division ranges for the time period that you have displayed on the screen. To see the historical ranges, click the zoom reset button. To see the areas for a specific move, click the zoom in button.
Since MS will scale these ranges to any object appearing on the right scale, don't place any other indicator (such as moving averages) in this price window.
I've attached 2 charts showing technique for GM. Again, all I did was click the zoom button to change the perspective.
BTW, the chart for GM pretty clearly illustrates the power of Gann's DOR analysis. Notice that these DOR areas have provided clear support and resistance for the price moves, as Gann observed. Based on this analysis, it appears that GM is not a good long candidate until it clears DOR2 at 39. If its going up, price should form several weekly lows above this area before it moves up. If it can't clear this area, its likely that it will look for support at DOR1 (30), likely dropping somewhat below before popping back up. If it fails to find support at 30, look for it to revisit its lows @ 21. To me, it appears that price has been acting as it should at the existing division areas. That means that it is very likely we won't see a new low (or at least a significant new low) in GM if it goes down that far (Otherwise the existing division areas would change since they are based on the historical highs & lows), Also notice that price hasn't spent much time since the 2000 high near the DOR3 high at 48. Since the area between DOR3 & DOR5 (@ 67) is a favorite area for price to hang out, we can expect price to revisit this area for an extended period @ some point in the future.
For more on DOR analysis, see the various Gann Yahoo groups, in particular, the gannstudygroup. The murreymath groups also are helpful. Just ignore Murrey's method of calculating the divisions (IMHO its unnecessarily complex, convoluted and ultimately not particularly useful compared to Gann's approach.) Murrey's observations about the various DOR areas are just as applicable to Gann's analysis as they are to his system.
Regards,
tobSTOP MORE SPAM with the new MSN 8 and get 2 months FREE*
Yahoo! Groups Sponsor
ADVERTISEMENT
To unsubscribe from this group, send an email to:
Metastockusers-unsubscribe@xxxxxxxxxxx
Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service.
Attachment:
GM HISTORICAL DOR 1987-2003.GIF
Description: GIF image
Attachment:
Attachment:
Description: "Description: GIF image"
Attachment:
Description: "GM LAST MAJOR MOVE DOR 2002-2003.GIF"
|