|
PureBytes Links
Trading Reference Links
|
nwinski wrote:
Walt,
the main thrust of Gann's work was Astrological,
Clyde Lee previously presented an excellent study and proof that
the Lunar Cycle has a statistically significantly correlation with
many> markets. Is this the sort of study you are discounting?
Gann would have replied to your criticsm of using ratios that you can
not use them at random. These are to only be applied at the key times,
> when time and price come together. This is first determined by the
> planetary cycles. Walt, is this the Gann approach you tested?
Walt replied:
The ratios were tested independently of other factors such as planetary
cycles. In the works of Gann that I have studied, no mention has been
made of these cycles in connection with his methodology. Are you saying
that Gann didn't let us in on the REAL secret to his trading, and that
he was only showing people his method of entry? My, what a nasty little
cosmic joke that would have been? :) Seems to me that if Planetary
cycles is the METHODOLOGY, then we are no longer talking about Gann
trading as it is perceived by many proponents of the style.
Norman wrote:
> As for your concept of "living ratios" my guess is that it's a fancy
> way of saying you are tuning the analysis to the market, i.e. pattern
> recognition.
Walt wrote:
In the respect that the initial TREX setup is based on recognizing a
particular market pattern, in order to begin the process of building
the ratio, you are correct.
Norman wrote:
Analyzing and forecasting the market is much like playing
> "Name That Tune". You are given a few notes and must guess the rest in
> advance. It is silly to assume that every tune is going to be written in
> the same key, just as the market periodically changes keys and "tunes".
Walt wrote:
Basically that is my point. You can not randomly apply a set ratio to
a changing market.
Norman wrote:
this stuff words pretty good if you know how
> to use it correctly. Unfortunately, very few do. In short, Walt you are
> correct in that you can not use same ratio(s) indiscrimately. This would
> be like turning on the radio and always expecting to hear Beethoven's
> 5th Symphony just because that happened a few times before. You are
> wrong to imply that the only way to use those fixed ratios is randomly
> and indiscrimitaley.
Walt wrote:
Actually in my first post (the now infamous duck) I did not
categorically deny the validity of the use of fibonacci and Gann as
TOOLS. The post was SPECIFICALLY to warn new traders of the perils
of trading these ratios as a standalone methodology :)
Certain people took the post out of context, and to ridiculous
extreme. Perhaps at times, we all act like children when our pet
theories are questioned. :)
Norman wrote:
It is not an all or nothing situation. Perhaps
> there are applications of these harmonics of which you are not familiar?
Walt wrote:
I am sure that there are Norman. :)
Walt Downs
CIS trading
|