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I seem to have lost
the original posting by tob. Can you repost the indicator?
<FONT
face=Arial size=2>Thanks
<FONT face=Arial
size=2>Lionel
<FONT face=Tahoma
size=2>-----Original Message-----From: Kevin
[mailto:kevin_barry@xxxxxxxxxxxxxx] Sent: Sunday, February 09, 2003
5:46 AMTo: Metastockusers@xxxxxxxxxxxxxxxSubject: Re:
[Metastockusers] MS Retracement Calcs Made EasyHello
Terry,Thanks for this. A delightfully elegant
solution.Regards,KevinAt 06:18 27/01/03 +0000, you
wrote:
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 ne ar the DOR3 high at 48. Sin! ce 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, tob
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