Support and Resistance

[Bearbull 10]

Hey, nothing wrong with that. It is just one view. This is the Technical Analysis Section and not the Wyckoff Forum.

As a matter of fact, the Chimp basically agree with some of my interpretations such as the angled line and multiple touches that you guys have a problem with.

And he is spending most of his time on the Banana Island nowadays.:o

 

The key phrase here is "PRICE ACTION OBSERVED", anybody can carry out this exercise and prove it for themselves, whether it works or not or whether it is technical analysis or Wyckoff or if a chimp, gorilla, baboon working from an Island agrees or not is totally irrelevant.

 

Observe what the continuous flow of price is exhibiting, construct strategy and tactics, establish an edge with your setup, with rules, focus, anticipate, recognise, and execute. HOW SIMPLE CAN IT GET

 

If folks wish to carry out all this within a framework of Andrew Pitchfork, or Market Profile or movement of the planets, I have no problems whatsoever, whatever works on a consistent basis:)

[OAC 10]

I guess the principle of multiple touches doesn't work for you guys then ? or at least on a consistent basis ? Ok, Ammo may be right, we are looking at different types of charts. That would explain it.

[OAC 10]

whether it works or not or whether it is technical analysis or Wyckoff or if a chimp, gorilla, baboon working from an Island agrees or not is totally irrelevant.

 

 

 

Don't ever mess with the Chimp:

 

[firewalker 10]

I guess the principle of multiple touches doesn't work for you guys then ? or at least on a consistent basis ? Ok, Ammo may be right, we are looking at different types of charts. That would explain it.

 

Multiple touches sounds fine, but the chart example you provided seems a bit too perfect. Reality isn't that close, unfortunately...

 

Might be more interesting to show a real-time chart?

[OAC 10]

Multiple touches sounds fine, but the chart example you provided seems a bit too perfect. Reality isn't that close, unfortunately...

 

That is kvn's example , the guy who initiated this thread

[firewalker 10]

That is kvn's example , the guy who initiated this thread

 

Apologies, but the point is still the same.

I'm sure you could find examples where price reacts that smoothly, but most of time it's not that clean.

[BlowFish 10]

But you forgot that any three year old can draw a horizontal S/R line, but it takes a master to draw a proper trendline.

 

I think I would probably have to disagree with that. (with respect of course!) Horizontal lines can be challenging sometimes and sloping lines can sometimes be easy. I am not using sloping lines currently but have leaned heavily on them in the past. The art I guess is getting a good line with the minimum number of bars. Sometimes two is enough! Would always be happy to see any charts you like to post though Sometimes things line up and sometimes they need nudging into line.

[BlowFish 10]

The key phrase here is "PRICE ACTION OBSERVED", anybody can carry out this exercise and prove it for themselves, whether it works or not or whether it is technical analysis or Wyckoff or if a chimp, gorilla, baboon working from an Island agrees or not is totally irrelevant.

 

Observe what the continuous flow of price is exhibiting, construct strategy and tactics, establish an edge with your setup, with rules, focus, anticipate, recognise, and execute. HOW SIMPLE CAN IT GET

 

If folks wish to carry out all this within a framework of Andrew Pitchfork, or Market Profile or movement of the planets, I have no problems whatsoever, whatever works on a consistent basis:)

 

Worth quoting I think - the lines provide a framework to observe price action within/against.

[BlowFish 10]

Blowfish-

I'm working to determine the best chart to use to determine my S/R. My personal trading method is:

1. I look at the Daily and the 4 Hour Charts.

2. I trade off a 4 hr Chart (with 1 hr charts for entry)

 

I'm working to possibly look at Weekly charts to plot S/R but I have a fear this is TOO far out. A Weekly chart seems to have some merit to plot S/R, but I'm not looking to get someplace 500 pips away any time soon.

 

Any thoughts?

 

That sounds pretty reasonable to me however of course what is important is whether it works for you The thing with those sorts of time frames is that you are likely to get some nice moves of the levels (compared with say a 5 tick chart!)

[ammo 10]

uso trended up today from 10:30 to 1 pm chicago time ,using the 3 min bars u can draw an upper and lower rising trendline that worked beautifully,so those work. From 6/10/08 to 7/17 there was a horizontal line at 106.80 in uso that served as support with multiple touch's so that works,one intraday the other daily,they both work

[OAC 10]

But you forgot that any three year old can draw a horizontal S/R line, but it takes a master to draw a proper trendline.

 

Sorry I had a couple drinks when I wrote that. What I meant was it takes practice to draw the trendline properly and more importantly it takes a master to interpret correctly. You know we moderators work long hours.

[BlowFish 10]

Sorry I had a couple drinks when I wrote that. What I meant was it takes practice to draw the trendline properly and more importantly it takes a master to interpret correctly. You know we moderators work long hours.

 

:beer::beer::beer:

[OAC 10]

The job of the Trendlines is to indicate the direction & angle of the Trend, vast majority of the time when they appear to offer support or resistance is due to the fact that price found support or resistance at that price level(to the left) as depicted in the attached (red lines), these are from the price action observed in the past few days(support) and this morning(resistance)

 

:

 

THOSE PREVIOUS SUPPORT AND RESISTANCE WERE FORMED DUE TO THE LAW OF VIBRATIONS. THE TRENDLINE MERELY REFLECT THE FREQUENCY OF THAT VIBRATION. THERE IS NOTHING INCIDENTAL ABOUT IT.

http://www.tradingfives.com/gann/wd-gann-interview-1909.htm

 

 

[Sledge 13]

OAC-

Thanks for that Link. I knew of "vibration zones" but was unaware that their was an actual theory behind such things by Gann.

 

THANK YOU!

 

Off to read and research!

Aaron

[Bearbull 10]

THOSE PREVIOUS SUPPORT AND RESISTANCE WERE FORMED DUE TO THE LAW OF VIBRATIONS. THE TRENDLINE MERELY REFLECT THE FREQUENCY OF THAT VIBRATION. THERE IS NOTHING INCIDENTAL ABOUT IT.

 

Once again and for the final time, when demand is greater than supply, price will find support and rise and vice versa, I have the charts and from the OBSERVED PRICE ACTION, I plot S/R and Trend, simple. I have no problems with any other approach of other traders. Wyckoff and Technical Analysis are not different., infact he was a Master Technician if you care to study his original course. He read charts based on mechanical considerations (Trendlines, S/R) and technical considerations (Price/Vol) Whether all this is a byproduct of the copulation habits of rabbits via Fib. Numbers or forecasting ability of Gannophiles based on astrology or the Butterfly Effect of Chaos Theory is irrelevant to trading in realtime.

 

If anybody has the full grasp what Gann was apparently privy to - the Divine Law governing the Universe - the Law of Vibrations, first explain it with clarity, and then elucidate and enlighten us via examples of some realtime trades.

 

BTW get hold of “Winner Takes All” by W.R. Gallacher, and carefully read Chapter 2 , “The Circus” blows away the myth surrounding Gann. and all the maths jargon.

He obviously was not conversant with the concept of Uncertainty and human behaviour, market manipulation and the shenanigans of the specialists:

Check this out:

http://w3.tribcsp.com/~fredj/ney.html

 

As for his references to divine laws in the realm of physics, doubt if he understood Heisenberg’s Uncertainty Principle. Hell, even Einstein had problems with that (the famous Einstein-Bohr Debate- in which he stated “ God does not throw dice”)- Guess what, Einstein was proved wrong.

 

Also Here’s Dr. Alex Elder, writing in “Trading for a Living” :Quote: “ Various opportunists sell Gann Courses and Gann software, they claim that Gann was one of the best traders who ever lived and made a fortune of over $50million. I interviewed his son, an analyst for a Boston Bank, he told me that his famous father could not support his family by trading but earned his living by writing and selling instructional courses.”

So if you want to make a small fortune, first convince the public that you amassed a large fortune trading, and then have the public pay through the nose for your secret ( also consult professional trader G.H at TG & Syndicate members).

The second and more common way to wind up with a small fortune is to start out with a large fortune

[OAC 10]

Also Here’s Dr. Alex Elder, writing in “Trading for a Living” :Quote: “ Various opportunists sell Gann Courses and Gann software, they claim that Gann was one of the best traders who ever lived and made a fortune of over $50million. I interviewed his son, an analyst for a Boston Bank, he told me that his famous father could not support his family by trading but earned his living by writing and selling instructional courses.”

 

Is Wyckoff for real, or was he one of those who profited from the Gann promotion by putting him in the Ticker magazine. I don't want to offend anybody, I am just using my humble common sense here.

Edited July 26, 2008 by OAC
spelling

[firewalker 10]

Is Wyckoff for real, or was he one of those who profitted from the Gann promotion by putting him in the Ticker magazine. I don't want to offend anybody, I am just using my humble common sense here.

 

Without taking sides, it must be said that although Gann wrote books too, he - contrary to Wyckoff - has not completely laid out the principles of his "approach". Gann even said himself that he would not be inclined to do so. On the other hand, I think Wyckoff has been very generous in providing information for free...

[OAC 10]

Without taking sides, it must be said that although Gann wrote books too, he - contrary to Wyckoff - has not completely laid out the principles of his "approach". Gann even said himself that he would not be inclined to do so. On the other hand, I think Wyckoff has been very generous in providing information for free...

 

Just because I mentioned Gann. Don't overreacted . The concept of trendline governed by law of vibration is embraced by many that is too long to list...............

[OAC 10]

Once again and for the final time, when demand is greater than supply, price will find support and rise and vice versa, I have the charts and from the OBSERVED PRICE ACTION, I plot S/R and Trend, simple. I have no problems with any other approach of other traders. Wyckoff and Technical Analysis are not different., infact he was a Master Technician if you care to study his original course.

 

Again I don't want to sound like a broken record. That is all fine. This is the Technical Analysis section, all viewpoints are welcome.

Why are you trying to run a crusade here?

[firewalker 10]

Just because I mentioned Gann. Don't overreacted . The concept of trendline governed by law of vibration is embraced by many that is too long to list...............

 

In that case... I would be very interested in a thread about the 'law of vibration', because a quick google brings up a whole lot of esoteric, mystic, self-help "the life transforming truth"-kind of sites.

 

Incidentally, I also ran across the "Gann Harmony" The Law of Vibration, The Complete Gann I-IX Course Manuals at a special discount offer for only $1500 instead of $2000 :bad idea:

[OAC 10]

In that case... I would be very interested in a thread about the 'law of vibration', because a quick google brings up a whole lot of esoteric, mystic, self-help "the life transforming truth"-kind of sites.

 

Incidentally, I also ran across the "Gann Harmony" The Law of Vibration, The Complete Gann I-IX Course Manuals at a special discount offer for only $1500 instead of $2000 :bad idea:

 

I am surprised that they didn't mention your car because your car engine is based on the law of vibration. Nothing esoteric about law of vibration. It is all based on mathematics and physics. Other terms can be used such as cycles, harmonics. Dr. Alan Andrews of Andrew's pitchfork was a professor of Thermodynamics at MIT. Robert Krausz, who was featured as one of Market Wizards has done extensive work in this area. Even Wyckoff himself said Gann was an expert mathematician in the a 1909 edition of TICKER DIGEST, now known as the Wall Street Journal.

Try Tim Morge, a top currency trader in the world, majored in Physics at University of Chicago or Michael Parson,author of channel surfing. As a matter of fact, our distinguished member Waveslider who is a hedge fund manger himself used to work with Parson. Also our member Bigkuhuna knows quite a bit about this topic.

Why go outside when you have all this talents in-house.

Edited July 26, 2008 by OAC

[OAC 10]

Anyway I am going to retire from this thread. The only reason I have been posting so much is because I haven't been feeling well and shied away from active trading. They say those who can trade, trade. Those who can't trade teach.But Gann did have some very expensive courses that he sold.

I have heard about the son in the Boston bank.(May be Gann did sell his system for untold sums hidden away in an offshore account and doesn't want the IRS to know about it,who knows)

One thing though,I have never heard anyone claimed that the 1909 article in the TICKER DIGEST magazine was fake, especially with Wyckoff's name on it. Somewhere I also have a scanned copy of the original also , if that ever prove anything. So I wonder why?

Why Wyckoff interviewed Gann ? Why such unabashed endorsement ?

Edited July 26, 2008 by OAC

[zdo 20]

Bullbear

 

re: ‘So if you want to make a small fortune...’

Yep, every trading system makes money – if you sell enough copies.

 

Winner Takes All by W.R. Gallacher is an excellent book but to make the Gann traders wrong (OR the un / anti / non Gann traders wrong) might be from a confusion of terms, concepts, and constructs. Here is an analogous ‘mess’ regarding plain ole water and esoteric water -

 

“...Clearly the origin of some of the inherent confusion in the field is based on the materials scientists’ and the chemists’ use of the same term to mean different things. Chemists use “structure” to describe the structure of the molecules or ‘structural building blocks.’ Materials Scientists use “structure” to describe the 3-D structural architecture of the material. The former describe the size and shape of the bricks or cement blocks; the latter describe the shape and size of the walls and the room and how the bricks and blocks are arranged within it....”

 

http://www.rustumroy.com/Roy_Structure%20of%20Water.pdf

[BlowFish 10]

I thought when "vibration" "natural law" and "Gann" are mentioned in the same breath you would be talking about larger cyclical tendencies and how they are governed by planetary movements? Maybe I mis-understood what tunnel through the air was all about.

 

Talking about 'squaring price and time' its a shame that more charting software does not allow fixed X & Y scales. Regardless of whether the 45 degree line has any 'meaning' you can see much more if you use consistently scaled charts. I never understtod why more charting software did not allow you to plot to a fixed scale. How many times do you see a 30 point drop (that fills a screen) then a 2 point range and as the 30 point drop scrolls off the chart bang chart rescales so the 2 point range so it is now filling the screen. No wonder some people need indicators to tell them 30 is bigger than 2

[erierambler 10]

If anyone's interested in some of Gann's work, Andy charts some of it here:

 

http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID1744189

 

and his blog is here:

 

http://ptv-investing.com/blog/

 

erie