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I have a question for the group that has to do with how to draw SLs.
The method I see most often noted is to divide the verticle move into thirds. Example, to calculate support, a vertical line from the high is drawn to a horizontal line extended from a low. The verticle line is marked into thirds and a lines are drawn extending from the low thru the intersections.
Another method is to draw a line from the low to the high. Then a line is drawn from the low to the right to form the base on an angle. The angle is measured and divided into thirds and lines are drawn from the low thru the angle divisions.
These methods can give vastly differing support areas. Any comments?
Steve
>>> Ned Markson <cnedgo@xxxxxxxx> 07/04 6:44 AM >>>
You might want to take a look at Dynamic Gann Lines as developed by Don
Fisher. He can be contacted at ganntrader@xxxxxxx
Disclaimer: I have no financial interests in this method other than
being a very satisfied user of the technique.
Chris Cheatham wrote:
>
> I think speed resistance fans (on log charts especially) are one of the most
> powerful discretionary tools around. Esp in combination with Elliott
> patterns and fib targets. The thing that is difficult about them is, in my
> experience, the best way to use is to draw based on best fit, rather than on
> a formula -- very touchy-feely. (If someone has a canned approach for this,
> I am all ears...) If you get over that element of it, it is truly amazing
> the turning points that will fall very precisely on lines at later dates,
> sometimes years later. FWIW, I use 1/2s, 1/4s, 1/8s, but I have looked at
> fib #s and they work well also.
>
> Chris
>
> ----- Original Message -----
> From: "BobR" <bobrabcd@xxxxxxxxxxxxx>
> To: <realtraders@xxxxxxxxxxxxxxx>
> Sent: Monday, July 03, 2000 12:16 PM
> Subject: GEN - in defense of Speed Resistance fans & boxs
>
> > The speed resistance fans and boxes can be useful if applied
> appropriately.
> > Some criticism lately has been that they are backwards looking. If a
> swing
> > point is used as the first anchor and the first reaction used as the
> second
> > point for the box, then the line extensions provide price targets.
> > Accompany the fan lines with a Stochastic and a few other things and the
> > probability of detecting a turn should be enhanced.
> >
> > BoBr
> >
!
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