Saturday, March 22, 2014

Fun with Gann vectors in a 2002 to 2014 square

I had to remove 20 or so vectors and time measurements that I thought significant to make this chart halfway presentable.  Define the price extremes of 2002 bottom, 2007 top, 2009 bottom 12/31/2013 top (to date) as a square (dark blue square) and start drawing some line (all angles drawn with a step multiple of 2.46 which is the price rise from 2002 to 2013 divided by the calendar days):

Just to name a few, the black vector at the southwest corner perfectly intersects the 12/31/2013 top.  The yellow vector from the northwest corner intersects the 10/2007 top and June 2012 bottom.  The green vector drawn from the 3/2009 bottom intersects the yellow Gann angle at the July 2011 secondary top before the 2011 panic.  The same green angle drawn from the bottom of that 2011 panic (point F) intersects the 12/31/2013 top.  I could go on with this visual geometry for hours.  Days.
The math of the square isn’t clear cut.  Here’s a couple items:

I can’t draw a lot from those metrics at first glance.  No ‘happy ending.’

Hmmm, what would these metrics look Gann angles used a step of 2.446 computed above?  Appears to me the box is a market work in progress, but one near completion given nearly 3 months have transpired since the above box ended.

Jim

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