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Thanks very much indeed for your detailed reply and I do hope that you will
go on posting your Gann charts. Personally, I only day trade the one
instrument, but sometimes it is fun to use an option play on another market
which, usually, is in contra mode to the bonds. The current position you
illustrate on the Spoo is looking pretty bullish in the short term and if
tomorrow, the bonds have a down day, we will have a continuation DS, making
the bonds look as if they drop quite a bit - this, of course, would tie in
well with the Spoo (and DJ and OEX) travelling north, as per you analysis.
Irritatingly, I have to do my civic bit and may well not get back for the
start of the market, so I am hoping it will take its time to confirm and
leave me some time to get in on the act, later rather than earlier - but the
market is rarely that accommodating....
Best of trading next week,
Bill Eykyn
t-bondtrader@xxxxxxxxxxxx
www.t-bondtrader.com
"Learn to read the tape"
----- Original Message -----
From: "Prosper" <brente@xxxxxxxxxxxx>
To: "Real Traders" <realtraders@xxxxxxxxxxx>; "Bill Eykyn"
<t-bondtrader@xxxxxxxxxxxxx>
Sent: Sunday, October 29, 2000 12:32 AM
Subject: [RT] RE: SP00Z Channel Break
> Hi Bill et al,
>
> Glad you find it interesting. I will try to answer your questions. All of
> the tools I use for the charts are in SuperCharts and TradeStation. The
old
> channel in this case is the the same angle as the 1x8 Gann angle drawn in
> the downward right direction. After there was enough information to draw a
> new channel, I used the Linear Regression tool to get the "best fit" and
> matched it up to the 1x8 Gann Angle. That line was lined up with the pivot
> point (on 9/1). The width is based on Standard Deviations and then matched
> up to the real deviation of the data. Usually 2 Standard Deviations over
30
> days is used. The new channel is also a 1x8 channel in the upward left
> dirrection. Naturally as price moves through time it moves toward the 1x1
> angle. A large channel can be drawn around the 1x1 and other angles as
well.
>
> I use a confirming signal based on the ADX and certain price criteria
before
> I jump in. If I were to trade it, I would buy the SP for example if it
went
> above Fridays high but I would be very careful with my stop or better yet
> protect with put(s).
>
> So that no one jumps to a wrong conclusion I am not a vendor and have
> nothing for sale. I think that the angles are interesting as well as being
> useful to me. I thought I would post some SP charts with the angles
because
> the index has something in common for many traders weather they trade
> stocks, bonds or what have you. Putting up a Canadian Dollar chart
wouldn't
> mean much to very many.
>
> As a writer I'm sure you know how hard it is to tell someone how to do
> something without being able to personally show them. The technical
reading
> is about as interesting as reading the dictionary. On top of that I
continue
> to learn more about this method of analysis all the time. Thanks for your
> interest.
>
> Prosper
>
> > Very interesting chart. While I don't pretend to understand how the
Gann
> lines are drawn, I can see the logic - if that is the word - behind the
> placing of the lines, but how do you come up with the channel?
>
> > What is the rationale behind it? Why is it the width it is and what are
> the
> parameters compared with drawing 'ordinary' channels? Perhaps the lines
> are
> too close together for me to see, but I would be interested. Certainly
> the
> channel you have drawn is an interesting one, which correlates very well
> with the huge downthrust in the Dow. Been so used to punting puts,
> perhaps
> the time has come to kick a call...!!!
>
>
>
>
> To unsubscribe from this group, send an email to:
> realtraders-unsubscribe@xxxxxxxxxxx
>
>
>
>
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