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Some people see things in inkblots and others see nothing. A responce to
looking at an inkblot tells more about the responder than it does about any
reality of the inkblot. Man's history is filled with attempts at imposing
space/time matrices on what he perceives. Since we live in a dynamically
adapting, evolving universe, perceived coherance, synchronicity exists for
short periods of time. When market related aspects are insync its best to
be long or short, otherwise flat or hedged. Actually a matrix of lines is a
"filter" test with all the tests applied at once as opposed to an individual
test of say one moving average or trendline. It is a way of seeing the sum
total of tests defined within a set of time and price divisions. It shows
trends, trend change, volatilty. IRA made the same comment about WinMidas
support resistance lines but that doesn't affect their usefulness to anyone
except himself. WM lines created years back continue to impart support on
the DJIA as well as the OEX down to hundreds of an index point. Some can
make use of a few or hundreds of lines and others see only a spider web. No
offense intended or taken. That's life.
BobR
----- Original Message -----
From: Prosper <brente@xxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Wednesday, June 28, 2000 10:21 AM
Subject: [RT] Re: GEN - cumulative volume
> I'm surprised at Ira making this oft repeated statement about Support and
> Resistance lines or Gann Fans. Actually, if you put enough lines up there
it
> will blacken the screen.
>
> Only seven angled lines are on Bob's chart. Gann added 2 more angles for
his
> Gann Fan, one at 1x3 degrees and one at 3x1. When applied correctly I have
> found an uncanny correlation between the lines and price movement.
>
> To fairly test this idea that an equal number of lines will define price I
> made the attached chart. It has 9 lines on it. I used a random number
> generator to produce numbers between 0 and 90 degrees and set the bar
> spacing to 1. To make it truly random, I then used a coin toss to decide
> whether the angles would be positive and negative. Finally, I used the
coin
> toss to decide whether they would go right or left from a pivot point on
the
> July Live hogs chart.
>
> You can see that no lines followed the price accurately beyond 2 days. I
> believe that a large number of lines could be added that would not define
> support and resistance or any price action. Note: I changed the bar
spacing
> to 2 before I snapped the picture for ease of viewing, the lines remain in
> the same relative placement. Also the negitive angle lines go down from
the
> pivot point so they barely show up on the chart.
>
>
> Prosper
>
>
>
> > You put enough lines up there and it is bound to follow one of them. Ira
> >
> > BobR wrote:
> >
> > > Was fooling around with the Speed Resistance Fan tool and was
surprised
> to
> > > see how closely the cumulative volume follows the SR lines. Starting
at
> the
> > > 4th quarter 1998 lows we have a picture of peaking CV in the summer of
> '99
> > > with lower highs since then. Another top in CV is in progress. At
the
> > > present we have the DOW sitting on a lower SR line with a downward
> sloping
> > > McClellan Oscillator of volume. Odds would seem to imply a bounce
here,
> but
> > > the volume oscillator can get more oversold and that lower speed line
on
> the
> > > DOW can be broken. This is where Gitanshu's spread should pay off.
> > >
> > > BR
> > >
> >
> ------------------------------------------------------------------------
> > > Name: SRlines.gif
> > > SRlines.gif Type: GIF Image (image/gif)
> > > Encoding: base64
> >
> >
> >
> >
>
Attachment Converted: "f:\eudora\attach\SUPERT7.gif"
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