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Before computers, W. D. Gann pioneered a series of trendlines at different
degrees of steepness using 4x4 graph paper. A 1x1 Gann line moves at the
rate of 1 unit price, 1 unit time. A 2x1, 2 units price, 1 unit time. Fast
markets, 4x1, 8x1. Slow markets, less than 45 degrees, 1x2, 1x4, 1x8, only
1 unit price movement over extended time, 2, 4 or 8 boxes.
Plastic transparent chart overlays imprinted with these various degrees of
trendlines were super imposed over various pivots, seeking relationships
between previous and present price. Important support/resistance was a 1x1
gann line from an all time high/low and represented a true 45 degree
trendline. Gann called these overlays Time/Price calculators and I've a
series of them. Scaling being different for each market the overlays are
labeled which market they were sampled from.
Only my theory. Accelerations and reversals contain mathematical
relationships to previous ones creating a maze of geometrical connections
between pivots. Due to scaling problems, particularly since we no longer
use 4x4 graph paper, Speedlines were invented. A fractal sample of a market
containing a speedline golden section can anticipate the future. Markets
tend toward specific rates of acceleration, fast or slow, acceleration
mimics the past. Preferred degrees of steepness in trendlines are repeated
in the future. To paraphrase Gann : There is nothing new under the sun.
The future is only the past entered by a different gate.
Speedlines exhibit where a branch in trend is related by .5, .618, .382 to
previous trends. This matrix exists mathematically as strange fractal
attractors. Magnetic splines that attract or repel. It can be calculated
by computer without geometrically drawing the lines. .333/.666 maybe a
preferred relationship. A relationship may exist without necessarily being a
"natural" number, however the degree of variance between angles remains
constant once the cadence is set. Fast market accelerates at the same angle
as the last fast market or entrophies to a more sustainable velocity.
Are pivots and trendlines geometrically related? Can a box representing
previous price action be successfully anchored to newly formed pivots and
have any validity? Hopefully this method of measuring speed,
velocity,acceleration is viable. If I'm searching in the wrong area, please
advise, as I am sincerely attempting to tie together many different lines of
thought.
Wilson Foy
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