THT Market Education - How to WIN

[u0362565]

I struggle to see the 50% levels in Forex, at least on daily or weekly time frames. I'm wondering if I'm missing something. Swings cab easily be 100% of the previous or more which makes sense given they range far more. 

[THT]

@u0362565

They happen and show up exactly the same - ANY market, ANY Time-frame

GBPUSD

Edited January 6, 2022 by THT

[u0362565]

Yeah ok I find the ones that bounce more or less exactly at 50% easier to pick out as this is what has been happening on US500. But I see it can go down through the level then you need to pick it up as it pushes back up through it.

[THT]

19 minutes ago, u0362565 said:

Yeah ok I find the ones that bounce more or less exactly at 50% easier to pick out as this is what has been happening on US500. But I see it can go down through the level then you need to pick it up as it pushes back up through it.

Yeah that chart was shown on purpose - As markets are not random and they move to geometrical levels, other levels are prevalent so just as the 50% is a nice easy level to find, other levels also exist lower and those levels if they work as per a 50% level, offer more £'s and R's return

Sometimes the geometry levels don't work out

The key thing to remember is if a Swing low point holds and the market is active (not flat) - the markets heading upwards which will mean it will rip through all the technical geometry levels of a swing as it works out its next swing geometry etc

Take that GBPUSD last chart - the low in Dec 2021 @ 88.6% is a geometry level related to the golden mean - you could have set an entry there with a stop under the swing low you were basing the retracement off in early Dec or you could have set an alarm, waiting for the 88.6% level to be hit in the same manner as we do for a 50% level and then placed a buy order

Depending on how the position was managed for a risk of 25-50 pips for a 200-400 pip return or 8+R

THT

 

[THT]

I wasn't going to post this, but decided to as it has a multitude of learning aspects to it

GBPUSD

Start from the WEEKLY charts - top down approach - IGNORE the news and any fuzzymentals being reported

the Info on the WEEKLY chart above is enough to get excited - the WEEKLY Timing chart below also helps out

Now from a timing aspect, this is VERY crude - but for this example its close enough - this out of Gann's books/courses BUT it Isn't exact (In typical Gann style he "failed" to mention in plain English how to time things to the day (he hid the information) - You'll just have to take my word that there was 3 proper Gann timing dates that fell on that swing low point of Dec 2021

Now WD Gann in his courses told us to take a swing, count the days/weeks/months and project forward in time to get the next cycle dates - As stated above, Gann didn't tell us the whole truth, but it can be, as in this case "close enough" - As a warning I would NOT trade off static cycles like this - use them as a very rough guide only

Now you can SEE from the April 2018 HIGH to the March 2020 LOW - I've simply projected forward in time various %'s of that Time Range which have in a crude way been pretty close to swing turns - the 1 simply = 100% or like for like timing - for this purpose back in March 2020 we could have projected forward all these future dates and watched as the market neared them - the next and main one is the 100% like for like Time count so traders should be alert from the 18th Feb 2022 for a potential turn point - as it happens proper Gann timing has some very very close dates to the 18th, which should see a turn in the market within 2-3 weeks at most from the 18th!

Now - from the June 2021 HIGH - based on WEEKLY swings, GBPUSD has made a series of lower highs and lower lows, this is a confirmed down trend / bear market and should not be ignored

It's just bounced off 3 differing major retracement levels on the WEEKLY time-frame AND until the current swing EXCEEDS any of the swings UP that have formed the downtrend from the June '21 High, the trend assumption is still BEARISH - when a corrective swing EXCEEDS prior corrective swings it overbalances and as such is a heads up to a possible change of trend or price action - This does NOT mean a reversal, the GEOMETRY has possibly changed, and depending on what the market is working to, could be a reversal, a stalling etc - this is vital to understand

I don't care what the fundamentals or news wires are saying - those geometry retracement levels on the weekly chart shouted out that the level was likely to be important and it proved it was - these levels could have been projected by a trader from the June '21 high!!!!!!!!!!!!!

this might be "it" or the market could go lower - if the geometrical retracements levels low than this level "build" the geometrical structure that the GBPUSD is forming, then the market will head to those levels, regardless of news etc - so as a trader it would be prudent to work out what those potential levels are 

For the purposes of this post - I'm just showing you the real reason that the GBPUSD bounced in Dec '21 to present 

OK, We've seen that WEEKLY retracements levels are Important, in the grand scheme of things they are more Important and carry more "weight" than the Daily levels

Remember the markets are fractals - fractals can only exist if strict GEOMETRY exists and binds - this happens on 1 minute charts right through to yearly charts, the Image below shows this perfectly - take 2 mins to study the arms/points, you should be able to see the growth and expansion from the smaller pentagram to the next larger pentagram

THIS IS EXACTLY HOW THE USA STOCK MARKETS ARE GROWING/DECLINING

Off on a related Tangent! - If you take each point of the pentagram that you can see, starting with the 0 you move around the circle in 72 degree aspects - The 1974 LOW and the 2009 LOW were separated by 144 degrees in TIME if you know what to use as the Timing source - The recent February 2020 plunge hit 36 degrees which is the inner angle of the pentagram - I could go on - EVERY and I mean EVERY major high and low of the US stock market since it was born in 1792 has landed right on a Pentagram point in TIME

 

So moving down onto a DAILY chart of GBPUSD

Info on the charts

This is the daily chart of GBPUSD showing Daily price action and the retracement level of the entire up trend - sat perfectly on the 38.2% ret level for a bounce

without the swings shown

with the swings shown

Here's the SP500 Index showing the Indicator certainty which coincided at a previous 50% level on that market - this anomaly in the Indicator happens at least once per year per market on daily time-frames 

Permission is NOT granted to share or reproduce this post or its content

Happy and profitable trading

THT

[u0362565]

A 50% level on GBP/USD in progress? Not trading it but looking out for them.

[THT]

19 minutes ago, u0362565 said:

A 50% level on GBP/USD in progress? Not trading it but looking out for them.

Yep - If you scroll up to the post I made on Friday 7th Jan - https://community.ig.com/forums/topic/10953-tht-market-education-how-to-win/?do=findComment&comment=82988

You'll see the geometrical levels - As well as the other confirming evidence - If you traded this as a DAILY trade you're most likely out, If you traded it based on the WEEKLY chart then you should be still in the position

When multiple geometrical levels are at the same price value it adds weight - BUT it's NOT the be all and end all - as the market can completely disrespect levels, so we never now for certain if a level will hold or not

For the GBPUSD there were multiple confirming factors all in place shouting that the probability of a turn upwards was very highly probable

THT

[u0362565]

Meanwhile the US500 is trying to decide what it's doing. Came through a 50% but seems to have stalled at the daily 20MA. Interesting movements from December, why do I get the feeling it's due a big retracement given its stayed above the weekly 20MA since the 2020 crash. It just can't maintain this. Out of interest do you ever short markets or do you just concentrate on one side. For stock markets being long only might make sense to limit the number of trades and given the positive skew. In currency/commodity markets I guess it's more 50/50.

Edited January 13, 2022 by u0362565

[THT]

54 minutes ago, u0362565 said:

Meanwhile the US500 is trying to decide what it's doing. Came through a 50% but seems to have stalled at the daily 20MA. Interesting movements from December, why do I get the feeling it's due a big retracement given its stayed above the weekly 20MA since the 2020 crash. It just can't maintain this. Out of interest do you ever short markets or do you just concentrate on one side. For stock markets being long only might make sense to limit the number of trades and given the positive skew. In currency/commodity markets I guess it's more 50/50.

Oh it'll retrace at some point - If you look at my Time Cycle thread, there's a date for 2022 shown - I'd be on high alert around that date for increased volatility which may or may not lead to anything

Yeah I short markets, but only if its clear that there's NO bullish uptrend - So in a sideways range I'll short double/triple tops etc - If there's a series of lower lows and lower highs I'll short too but I'm always aware of possible support levels where things "might" change

The recent action of GBPUSD offered shorts down into the support area where it has now turned upwards

The exception to this is if I have a Time Cycle date - I'll have shorts prepared as if you look at the 2020 Feb plunge, it happened quick and fast "out of the Blue" 

Yeah the currency and commodity markets offer far better shorting opps as they "spike" more over the weeks and months

THT

 

 

 

 

[THT]

Okay, If you've followed the thread, you'll know I've made some wild (but reasonable) claims about the markets and specifically what they are doing unbeknown to 99.9% of people out there

Here's another one:

First some history as you might not be aware of this

I'm pretty sure in the posts above I published how the SP500 hit 666.79 at the March 2009 LOW from a calculation based on the Square root of 5 expansion series, this is a ratio of 2.236

Pythagoras - do some research on him, learn where he learned - then look to see what he's showing in the picture below - he's telling people without actually telling them - look at the geometrical symbols, music references etc

This is a Canon of Proportion showing some of the main key geometrical ratios - take 10 mins to study it and think - The vast majority of traders just look at Fibonacci, we can see its there forming geometrical ratios both in excess of a whole 1 and also below 1 - but other ratios exist in the divine growth and contraction of things and this applies to the markets too! 

This is the WEEKLY SP500 Index:

The week ending 7th January 2022, the SP500 possibly topped out, the ascent from March 2020 is absolutely impossible for the market to maintain forever - the Gann angle is also way too steep to maintain ongoing without a decent break/pause 

Talking of our man WD GANN he said over 100 years ago "When Price and Time EXCEED the price and/or time of any prior correction in a trend, then watch for a potential change of trend" - that has now happened on the PRICE side (from March 2020) 

On the chart below the key aspect is the price projection level of (A) - (B) from (A) @ (C) = 1.902 or 190.2%

In the sacred canon of proportion above is that ratio there?

What is 1.902 a ratio of? Well its the DIAGONAL of a Golden Rectangle

So from (A) to (C) the market has traversed a golden rectangle - again a trader with knowledge of Sacred Geometrical ratios could have had that precise level (among lots of others) on their charts from Feb/March 2020! Look how close the market came to that level! That sort of accuracy tells you its [the market] non-random

What next for the market?

That depends on the next geometrical section its forming -  The key will be to see what retracement ratio level stops the fall - in the chart above I've just shown Key levels, price might stop on a hidden level that exists

For those Interested get a DAILY chart of the SP500 and look to see what retracement ratio level stopped the price rally/correction in Jan 2022 to within points

Permission is not granted to copy or replicate this post

THT

[u0362565]

I'll tell you one thing, I wish I'd learnt how to short a market right now! I assume this movement is somewhat to do with whats happening with Ukraine/Russia. It's crashed through multiple 50% levels so is there a point where you say this method no longer works for the conditions at play. For example you can draw 50% levels to your heart's content extending back in time on daily chart swings. If you see enough movement above the level you may decide to trade at least it would somewhat limit the number of trades you were making. Movement of the market back to the high at least if we believe in what has happened historically is a case of when and not if. What is dangerous in my eyes is moves downward that last a long time, like 2008 where it went on for months. If it's relatively quick down and back it's easier to weather e.g. 2020 crash. I am assuming that we are not on a longer term decline but I haven't polished my crystal ball yet this year so not sure

[THT]

@u0362565

We'll not have a 2008 event for a long-time - there will be big plunges and 25% corrections along the way, they are a given along with a couple of bear market periods - but the ultra long term trend is upwards until the cycle ends in the mid 2030's

The market is pre-BUILT - Its working through geometrical ratios - once its hit a key level it will reverse trend - the only problem as traders is we don't know exactly the geometrical shapes the market moves to all the time - I know this is hard to understand and visualise - as it works out and through its next move, trading opps will show up

The reason the SP500 has crashed is it hit 1.902% which meant it reached to within 1 point the diagonal of a golden rectangle - once price reaches the geometrical shape its building it turns - I think what will happen is people will attach the reasoning of earnings season to it, but its always after the fact, like generic economic reasoning

Yeah the key is working out what type of market you're in fast and when the trend changes, what worked prior, no longer works - the other key is staying solvent long enough to pick up the trades once the prior trend comes back into play as well as trading other markets

I wrote a piece the other month on selling the "hooks" - the FTSE100 Index just provided that very short trade opportunity today

If unsure, just stay out of the market in cash until things become a bit more clearer - a gann secondary reaction is a indicator to the start of a possible new rally, if that happens at a key retracement level of a bigger move then it could be significant 

THT

 

[THT]

OK so we KNOW that the markets work to geometrical ratio's, those ratio's are key integral ratios of geometrical shapes - Again in the 1930's there was a trader named HM Gartley (another trader from the 1930's!!!!!!) - Gartley identified lots of patterns using swing files of the market and published them - I would encourage you to explore his works and those works of people who have copied his methods and updated them for this generation of readers

 

All I've wanted to show you is that the markets are NOT doing what all the "expert" commentators are spouting on about - the markets work out to geometrical ratios as it BUILDS (expands) or contracts the geometrical shape its building in higher dimensions 

In the chart below:

Look at how PRECISE the SP500 Index stopped on levels this past week - when turns occur within 0-2 points of ideal perfection its as good as perfection/ideal!

If you get/look at the Gartley patterns then you be on your way to seeing the market differently and precisely - its not perfect or exact but that work will give you a good grounding and knowledge as well as exceptional trading methods that often catch tops and bottoms 

THT

[THT]

So how do we make money from all these geometrical ratios?

Well if you look for absolute perfection, you'll never make any money as you'll have far too many lines on your chart - you can use perfection ratio's in hindsight for confirmation etc

If you follow HM Gartley and all the others that followed his methods then you can simplify things - please bear in mind that a market can work to the following simplified ratios:

AB to CD swing ratio projections :  0.5 / 0.618 / 0.786 / 1 / 1.272 / 1.618 / 2 / 2.236 / 2.618 and 3.14

Internal Retracements: 0.382 / 0.5 / 0.618 / 0.786 and 0.886

External Projections of the BC swing: 1.272 / 1.618 / 2 / 2.236 / 2.618 and 3.14

I really really encourage you to investigate this further from authoritative sources such as Larry Pesavento

On the chart below - focus ONLY on the BLUE swing line and until the very end IGNORE the 57.7% Orange Retracement ratio line

What I am going to show you happens LOTS and Lots and Lots! - on the differing ratios listed above

In this example I'm showing you a BEARISH GARTLEY ABCD on an INTERMEDIATE swing timeframe - the perfect ABCD have 1:1 relationship so swing CD = the length of swing AB - in the example below that isn't the case, BUT it still worked because it all linked on the GEOMETRY!

OK swing (A) to (B) retraced just short of the 78.6% level of the 0 to (A) decline at which point it reversed - a cheeky short at the 61.8% or 50% level would have brought you profits

Swing (A)-(B) retraced between 50-61.8% at (C) within this, price retraced the minor a-b swing a smidge past the 78.6% retracement level - IF (and it was) price was bullish this this zone could be significant in stopping the price fall

 I won't go into the buy here, but you can buy at or around (C) zone - because as you're looking for a ABCD swing, we can trade the Internal swings it creates or just look for a trade at point (D) - up to you as a trader

So to calculate the (D) level zone:

As this a GARTLEY we're looking for then (D) HAS to be below point 0 - so below the blue swing high to the left of this chart

We still have the 78.6% and 88.6% retracement levels of that swing on the chart in blue

You would take a projection of swing (A) to (B) and project it from (C) - as you can see this gave 2 price extensions of 61.8% and 78.6% in PINK

You'd also take an External projection of the (B) to (C) retracement swing and that gave a 127.2% level right in that zone where other key geometric levels landed - green line

Lo and behold price reversed right in this zone as expected - IF price had exceeded point 0 then the whole trade would have been off and invalidated

Now within that chart on the green and red swing file lines there's also other geometrical patterns including a ABCD - If you lokk at the swing low # (A) up to the Nov 5th swing high (not labelled) that was a ABCD (CD = 2.236 times the AB swing) AND right up into a61.8% retracement level of the 0-(A) decline!  2 confirming geometrical ratios around the same same and the market stalled!

Look again at 0-(A) decline - that's a ABCD right there too! - the market is BUILT out of these ABCD's!!!!!!!!!!

Remember folks - the "Experts" tell you, you can't buy bottoms or sell tops - Oh yes you can 

On this very chart right now - the market is INCH UK stock - Its heading down into KEY resistance - see bottom chart for details 

For the purist's out there we can see that price stopped 0.18p lower than  the 57.7% retracement level of (A) to (B) swing = related to the CUBE and the Square root of 3

Not shown on the chart is the 150% external projection of the (B) to (C) swing - it goes right through the SELL word and (D) - price didn't reach it exactly, but it was not far away from it!

Briefly - there's an ABCD- right near the 78.6% retracement level = BUY

You could have sold a #B in anticipation of a 1:1 ABCD swing

On the chart the boxes are from my software - as price has taken out the prior swing low (our old (C) in the chart example above) this is NOT a gartley trade, its now classified as a Butterfly - which has differing ratio parameters 

Butterfly:

Gartley:

THT

[THT]

Following on from with the NETW chart above showing the Gartley:

Its VITAL for you to take the geometry 1 step further - you can wing it without, but to really nail things down, it would be prudent to understand and KNOW geometrical relationships 

I've worked out all the geometrical relationships for all the ratios

So for example If a market retraces to a 61.8% level and a ABCD is working out, its highly probable that the CD leg will reach 161.8% of the AB leg from C - that's because 1.618 and 61.8% are linked intrinsically - 61.8% is the INVERSE of 161.8%

Take the NETW chart:

Price retraced to exactly 50% level - this is NOT a Fib number its ratio related to the SQUARE - from the chart below have a stab in the dark of the number % that 50% is the Inverse of..............................................

That's right 200% - Once you know these ratios, you no longer have to scratch your head wondering why a market does things at certain levels

Look how the market reacted once it balanced the prior main retracement of 50% at the 200% level - obviously important!

Thought these markets were meant to be random?????????????????????????????????????

The expectation would be a rally upwards from that zone

THT

[THT]

IG have this on their site - only just noticed looks like it went up there last year

Forget all the **** in the news and online - If you've read my thread, you'll notice I mention some of these in it, you'll also notice that I refer to a Gann Secondary Reaction - the Gann Secondary Reaction is in most of the patterns shown in the link below - either shown as A-B or B-C depending on the method

These patterns allow you to WIN in this game, big - every night when i run through my charts I'm looking for these patterns forming, I also have a software program that scans for Gann Secondary reactions, as you can see they are the STARTING bit should these patterns form

https://www.ig.com/uk/trading-strategies/top-7-harmonic-patterns-every-trader-should-know-210608

This chart is SSLN which is a Silver ETF I use to trade inside my ISA and SIPP accounts - I originally got in at the low bar at #A - Yes its possible to buy those lows - I got out a little before #B for a 10% profit in 9 trading days

I'm now back in on the inside bar 1 day ago to test another rally - It might not work - what I can tell you is both the trade at #A and the one at swing #C are BOTH Gann Secondary reactions which are the foundations of those Harmonic GEOMETRIC patterns IG show - they don't always form perfectly but when they do they work lovely for big profits

[THT]

THE ART OF TRADING CORRECTIONS

Right, let me show you how to nail and trade these corrections - I don't care how you label them, 1,2 / 1,2,3 / A,B or ABC - up to YOU

I'm going to show you how to buy at either the LOW bar of the correction or within 1-2 bars of the low bar

The VAST majority of corrections happen greater than the 38.2% Fib retracement level - so that MEANS 50%+ level

See everything I've told you about geometry - Price has HAD to hit the 78.6% level to possibly COMPLETE the geometric shape/form its been working out to - IF and its ALWAYS an IF, price has completed the geometry, then we'll have a significant and meaningful bounce from here on in - If it doesn't then its another warning signal

But as Very HIGH Probability trading opportunity it is in position on the PATTERN, the GEOMETRY and Indicator Momentum 

Remember for it to be a GARTLEY - Price can't exceed the X level at all 

Let the market take you into trades, don't buy at the market as that is guessing and hoping

STOPS? - Well If you're right on the level and the price bar the market isn't going to go below the low of that bar, so 1 penny below the low of the swing low bar which is most likely going to be the entry bar as well

The vast majority of the above was learnt back in 2009/10 from Dynamic Traders Robert Miner and can be found his his book High Probability Trading Methods

Remember IF the level is significant then price IS going to bounce from it

THT

[MongiIG]

16 hours ago, THT said:

THE ART OF TRADING CORRECTIONS

Hi @THT

Thanks for sharing!

 

All the best - MongiIG

[THT]

So following on from a few things - Do we KNOW for CERTAIN what the markets next move is?

NO we don't - BUT..........We can use TA to guess with a high probability of success

The chart below is BARCLAYS BANK

I've not bothered to look to see what its up to today as I'll get that price data tonight

Now this is NOT guaranteed - but so far Barclays is in the position of forming a near perfect GARTLEY harmonic pattern

Traders will be expecting higher highs  - BUT IF and its an IF, a Gartley pattern is forming, then price should stall around those levels clumped together on the chart - doesn't have to be exact but it needs to hit those levels and then REVERSE

NOT to new lows, but it needs to top out and stall some coming back into the RANGE of the #B-#C swing as a MINIMUM

This is crucial info to a trader who is long as if like me you trade Gann Secondary Reactions - the #ABC swing! you want to know where possible resistance is and where the move could terminate

Traditional Gartley traders will automatically sell at #D with a stop above X - I prefer to wait and get confirmation around #D of price turning, then I short with a tight stop in the range between #D to #X, usually 1 penny above the HIGH of the bar that reverses the uptrend

If #X is exceeded then the Gartley potential ends, but any point up to #X the Gartley will remain a valid potential trade

As this ones very close to playing out I'll keep you posted on if it works or not 

[THT]

In addition to the post above showing you that the market topped to the 1.902 Golden Triangle ratio - here's another one within 3 points of the top

Rally from Low in 2016 up to the Jan 2018 high/top = 1  

Times that rally by 2.828 (which is a harmonic of the SQUARE and you get the TOP short by just 3 points

The Feb 2020 plunge that was also a known time cycle date forced the market down 35,41%

35.4% is another harmonic of the SQUARE and is the INVERSE of 2.828

EVERY trader in the world has said to themselves "I can't work out what the market is up to" at some stage in their life - its because the market KNOWS years in advance where it is heading, we pick up the pieces through geometrical ratios after the event, 

See how it all fits - and as in the post above the market worked out to  he diagonal of a golden triangle as well, which you'd expect as its all linked to the SQUARE

 

[THT]

When trading you HAVE to have a plan and rules

Either buy at the breakout of the prior swing highs/lows or the Triangle

I've used this for YEARS, although I've slightly modified my method to skew the risk:reward more in my favour, but the principle is exactly the same:

Tullow Oil

All you do is look for the INSIDE SWINGS

I covered this in the first few pages of this thread - Market PATTERNS REPEAT 

Simple

THT

[THT]

Over the past few years I've showed you a multitude of methods to win in the markets and help you to analyse them - Even if I do blow my own trumpet, I've yet to meet anyone who shows you what I do - there's a handful of traders out there that do know but they most likely sell you subscriptions or course etc - but there's also masses of traders out there that sell you stuff and they have not got a clue!

I make no excuses in having a dig at them - If you can trade you have no reason to sell anything, unless you can't really trade, are greedy or have an ego that needs pampering

I've already shown you snippets of Gann Angles:

As with everything in trader land, they are vastly and wildly misused and 99% of software programs out there don't even calculate them correctly either! So the vast majority of would be traders start off with dodgy charting because their charting providers fail to invest properly in providing charting that actually works or is scaled properly!

So its absolutely no surprise that people try things only for them dismiss as "rubbish" methods that don't work

This problem gets further misused as traders then slap on a blanket 45 degree angle across a badly scaled chart - markets ONLY work to 45 degree angles if they are scaled CORRECTLY and as you'll see in the chart below the 45 degree Gann angle does not pick highs and lows - it wasn't designed for that use

EVERY market out there has its own unique price formula to calculate angles and as such it needs to be scaled differently from market to market - as a trader its your job to work out what that number is if you want to use Gann angles properly

The chart below is the Dow Jones Index

Right at the 2020 plunge you could have calculated the angles shown on this chart - Notice how price respected the angles through its journey across the chart

the thick PINK angle is the 45 degree line which is scaled using the key scaling number for the Dow Jones Index

The other coloured angles are mathematical ratios of the 45 degree line

If we focus in on the 45 PINK angle line - it didn't predict the top, but it did lead to further depressed prices after it was crossed and closed under - giving a clear heads up that things could be changing, as they have done so.

Which I'm sure you will agree can assist in "reading" the market and its strength - so way back in MAY 2021, as price struggled to regain the GREY Gann angle, the first warning signs were signalled

Don't fall into the trap of thinking that they can predict every top or bottom - at some point in time both time and price will balance out exactly

PS - You know that your Gann angles are set up right once you start to see price gapping over key angles and bouncing off angles - the real key is knowing what number to scale price to with with 

PPS - Notice how much the 2020 "Plunge" fell - in % terms = 38.4%, this is very very close to the Fibonacci ratio of 38.2% (and perfectly within error toleration) - This is NOT by chance or "out of the blue"

If you use the scaling formula from the Dow as it is NOW, it distorts the past - look what happens if we use it from the 2009 low - the pinkl 45 degree line is out of sync, with another gann angle hitting - this is because the scaling is correct, but the 45 degree scaling is too high - in this case 4 times too high

So the Dow has scaled 4 times as much since 2009 to now - the chart below is basically 4the current scaling used in the top chart divided by 4 - which brings the 45 degree angle back to normal

Just to confirm, back in 2009 you'd of used the correct scaling at the time, which would have produced the gann angle shown below

Tell me this is a fluke and the markets don't respect mathematics

Also note the as well as the projectons in previous posts in this thread - this is also another reason for the markets reversals of late

Think of how can an angle that MEASURES TIME and PRICE equally scaled pin-point a turning point some 13 years later or if you placed these angles on your chart in 2009, some 13 years INADVANCE????????????

Its as if the markets already know where they are going years, decades in advance!

THT

[MongiIG]

On 01/06/2022 at 15:04, THT said:

Over the past few years I've showed you a multitude of methods to win in the markets and help you to analyse them

 

Thanks for sharing @THT

[MongiIG]

On 01/06/2022 at 15:04, THT said:

This problem gets further misused as traders then slap on a blanket 45 degree angle across a badly scaled chart - markets ONLY work to 45 degree angles if they are scaled CORRECTLY and as you'll see in the chart below the 45 degree Gann angle does not pick highs and lows - it wasn't designed for that use

EVERY market out there has its own unique price formula to calculate angles and as such it needs to be scaled differently from market to market - as a trader its your job to work out what that number is if you want to use Gann angles properly

Hi @THT

Thanks for sharing!

Gann theory is only successful when applied correctly. This seems it requires a lot of time and experience.

Can 90 degrees move sustain in the markets? I think no trend will exceed 90 degrees on any chart. What will be the result of an extreme angle, since you mention markets only work to 45 degree angles ?

 

Thanks

MongiIG

[MongiIG]

On 01/06/2022 at 15:04, THT said:

The chart below is the Dow Jones Index

Hi @THT

Are S&P 500, Dow Jones and Nasdaq 100 in recovery mode, for now ?

Looking at Dow Jones for the 34k area to be about as high as the Dow can get if the bearish outlook is to hold up.

 

Thanks

MongiIG

[THT]

On 02/06/2022 at 14:38, MongiIG said:

Hi @THT

Thanks for sharing!

Gann theory is only successful when applied correctly. This seems it requires a lot of time and experience.

Can 90 degrees move sustain in the markets? I think no trend will exceed 90 degrees on any chart. What will be the result of an extreme angle, since you mention markets only work to 45 degree angles ?

 

Thanks

MongiIG

Hi MongilG,

Yes absolutely - Gann wrote a lot of books, but he didn't divulge everything, just little hints here and there, so to work out what he didn't say takes years to understand and more importantly test, as its pointless using unless it actually works and makes money

~ Markets BALANCE on the 45 degree angle, this means that when that happens you'll get a reverse in trend, as can be seen from 2009-2022 45 degree angle

You'll never get a 90 degree angle as you're thinking, it would be very short lived

But price does move 90 degrees but that needs a different application to be used rather than gann angles to see its effect

The USA markets bounced from a key geometrical level - how long that lasts we'll see - For a long time i've been waiting for a sideways trading range to develop, this could be part of it from Sept 21

THT

 

[tradinglounge]

If you pull apart all of Gann's trades on Chrysler you can work out what he did, its actually quite simple. Use the weekly chart as its easier.

[THT]

Not sure this fits into either of my active post categories - If you do not have your mouth wide open in disbelief from the final chart then I would recommend seeking medical assistance for a check you are human lol!

Remember - THE MARKETS ARE NOT DOING WHAT YOU THINK OR BEING TOLD BY MASS MEDIA

Information only, not trading advice - no liability accepted by THT, trade or Invest at your own risk

Please also refer to the last post I did in the Time Cycles thread for timing of the Feb 2020 and Jan 2022 corrections - I've left those timings off the chart to avoid cluttering

Gann angles on the Dow Jones (DJIA) from 2009 LOW = balanced nicely in 2022 as can be seen (PINK 1 x 1)- also notice the 50% trading range levels sliced the plunges in half, this was on the 1 x 1.5 angle from the 2009 low

The 1 x 1.5 angle is NOT in the trading books or manuals (even Gann NEVER mentioned it)

Next we take a close up of the 2020 price action:

Notice the little feathering of the 1 x 1 from the 2009 low and then whoosh, price rejected, then notice the 50% plunge range on the 1 x 1.5 angle from the 2009 low, then notice the green angle at the 2020 low

This next chart shows you the 1 x 4 angle off the Feb 2018 LOW:

In 2018 the formula for the Gann angle increased - today its 4 times larger than what it was calculated at in 2009

Super smart traders would of in Feb 2020 drawn onto their charts retracement levels, % falls and looked for any hitting any Gann Angles on their charts that matched in terms of price AND time levels - the 1 x 4 did just that, on the DJIA it was sat at 38.4% which is close enough to 38.2% Fib level - a trader could have placed a buy order on that level in confidence (Please note it is not always possible to buy or sell the exact highs/lows etc, but on occasions like this it was perfectly possible with multiple confirmations in place BEFORE price even got anywhere near)

Now what about something new?

Please note for years on here I've mentioned 50% points - the 50% amount is 

This next chart connects the 50% plunge points of the 2020 plunge and the crash of 2007-09 together - as you can see held the market in 2015, got the 2018 low ok'ish - remember 2018 there was a major TC due and also in Aug 2015

Now one simple button press - we use the exact same info in the chart above but we look at a weekly log chart of the market, and we get.......................................

Right through the CENTRE of the 1987 crash, 2007-09 crash and the Feb 2020 plunge - Remember it HAS to be LOG scale and your charting software MUST not move the line when the scale alters (most charting packages will not work properly I'm afraid)

What this MEANS, is that that green line runs right in the CENTRE (50%) of the growth spiral that the DJIA is working to - all you have to do is project the line forward on its exact trajectory and you will get other MAJOR 50% centre points of ALL future CRASHES and PLUNGES that have YET TO HAPPEN!

Yes the market WILL for years, "get off course" as it can be seen in the past - but I can absolutely GUARANTEE you, the market WILL revert back upwards and back downwards to intersect this green line FOREVER as long as the DJIA trades

So here's the MIONEY call - whenever in the future a "PLUNGE or major correction" happens, you can calculate IN ADVANCE the bottom zone of the correction, place a buy order and just HOLD it for YEARS, you'll have TIMED the market virtually EXACT and you'll of "bought the DIP" as its meant to be done

Also when the market deviates much LOWER than the line you can buy in confidence of where the green line is heading and also you will be able to "crosshair" the chart and get a TIME DATE in the future

How about that - Random markets, my backside!

THT