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So what is the significance of 28.5 on a Wheat chart?
If 1/2 and 1/8 are a measurement in inches, the time scale can be compresed
or expanded. If the chart is squared, that is another matter. Really this
sort of question is like asking. What have I got in my hand?
If I said, "what is the signicance of 381 in the dow", how many could tell
me that that was the high in 1929 before the '29 crash? Most would say who
cares, but similar questions could be made up for any subject.
Brent
----- Original Message -----
From: "gposnak" <gposnak1@xxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Sunday, January 09, 2000 2:51 PM
Subject: [RT] Gann and scaling
I received one response to my post asking about the 13 pt scale on a copy of
an original Gann Chart. Here is my response. I would like to pursue these
basic lines of thought further if anyone is interested.
Ken,
The 13 pt scale is 13 pts per 1/8" on the price of cotton. e.g. from $.3640
to $3692 occupies 1/2" on the price axis.
I asked several people who have studied Gann and they all draw a blank. My
main question for Baumring students is what do they know about simple
scaling of charts. It seems to me that is fundamental.
I haven't studied astrology in years.
My recent studies are more in the area of probability and statistical
analysis of time series. A subset of this is digital signal processing.
Because of the incomensurable nature of the planetary cycles (ie non whole
number relationship) a superposition of cylcles can produce the appearance
of a random walk in an alleged resultant composite economic time series
such as the DJIA. In other words any outcome is explainable by chance. With
constantly varying phase, angular velocity, and amplitude it is hopeless to
try and resolve effects into causes. Therefore, I no longer try to do so. At
the same time I try to keep an open mind...
George
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