Gann combining speed lines wih retracement levels

June 26th, 2016, 09:56 AM

This thread is about combining speed lines with support and resistance levels.

I an article I read yesterday the author says that this is a key to Gann speed lines and represents the "squaring" of price and time (ie where price equals time).

Cavet:
Gann set certain relationships between the number of grid units of time to price. Most of the examples I have found are in relation to daily charts or longer. In his day an intraday chart would have to have intraday prices via a ticker tape and making the chart would be very difficult and time consuming.

In electronic charts the relationship between horizontal and vertical is fungible. I have notice that NT speed lines cross a horizontal at one time at a certain compression of the time axis and at another at a different level - even though the speed line should adjust and give the same result.

Therefore testing the speed lines on an electronic chart would, I believe, require creating lines with a computation and drawing an line segment or ray manually.

June 26th, 2016, 10:06 AM

https://cyclesresearchinstitute.org/pdf/cycles-economy/Sidney-J-2002_Aligning-Time-and-Price.pdf

source: Jason Sidney
Managing Director, Market Insight Pty Ltd
Market Insight

June 26th, 2016, 10:14 AM

Data points
2119.50 06/23 05:16 PM
1999.00 06/23 11:31 PM
2064.75 06/24 09:12 AM
and then
2022.25 06/24 02:20 PM

So a fall from 2119.50 to a low of 1999 or -120.50
and then a retracement to 2064.75
or 54.56%

According to the theory this should give the retracement at just (below?) the 1 X1

(As my example has the main leg as a fall - versus a rise I believe the speed lines start at the top left and go downwards)

June 26th, 2016, 11:47 AM

Here the line (1x1) looks very close.

Price rose slight above the 50% level 2059.25
Then when it (almost touched) the downward (1x1) it reversed.

June 26th, 2016, 11:54 AM

Here I have tried an experiment.

I am looking for the time est - i.e. the vertical line.
I used the ruler and measured the downleg which was 25 bars

1.50 (ie the downleg =1.0 and the retracement of 50% = 0.50 ==> 1.50)

25 times 1.50 = 37.5 bars

The result: 38 (which equals the estimate of 37.50)
This means that you would have had a time window for the peak of 15 min

June 26th, 2016, 11:59 AM

Time estimate accurately (the 1.50) =
06/24 08:53 AM

The actual retracement time
06/24 09:12 AM

and 18.5 min difference

June 26th, 2016, 12:12 PM

Here I am moving the estimate process to a real world trading example.

The price (50% retracement) and the time (150%) are shown.
I have created a trading rule
"Once price estimate has been achieved and you have a bar close below the estimate {provided the time has been achieved} sell at the next bar (using a limit sell with the close or a market order)."

June 26th, 2016, 12:16 PM

Hallo Schweiz! Irgendwelche Gedanken dazu?

June 26th, 2016, 12:37 PM

AS the price retracement was 54.75% versus 50%
I have taken the time length of the initial downleg and multiplied it by 1.5475
=0.4025 days

Then there is a weekend coming up so I have added that time length (the ES is closed) to the estimate
giving a time estimate of 06/26 06:36 PM
for the completion of the downleg2.

Gann combining speed lines wih retracement levels

Discussion in Emini and Emicro Index

Gann combining speed lines wih retracement levels