Print out the chart for the ES of 5 may 2011.
1. Draw your trendlines on it in one color .e.g. blue and then you S/R on it in another color e.g. red.
2. Write out your notes of what you see.
3. Then write out your 'conclusion' - that is if someone said to you: "Forget the mumbo-jumbo of the graph - tell me what will happen."
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Gann speed lines are the speed or velocity of the price movement.
If a stock rises 1 pt for each 1 day that is a 1 X 1 speed.
If a stock rises 2 pt for each 1 day that is a 2 X 1 speed.
(well that is the way I think of it. Gann and NT would label it 1 x 2 speed -but I'm going to use speeds greater than 1 x 1, or the 45% line as ratios greater than 1.0)
If a stock rises 3 pt for each 1 day that is a 3 X 1 speed.
If a stock rises 1 pt for each 2 day that is a 1 X 2 speed.
Gann focused on 1 x 1, 1 x 2 and 2 x 1, 1 x 4 and 4 x 1, and lastly 1 x 8 and 8 x 1.
These all together equal a gann fan.
Using NT you click on a low (or high) do a Cntl F9 (or drawing tools and select) and you get a gann fan. Then you click on the gann fann, right click and the properties come up and you can set the speed of the 1 x 1 and the direction (up right, down right, etc).
Gann was a deeply religious man and often quoted the Bible which he feel was the greatest book ever written and that once you have read it 3 times (metaphysical importance to 3) that you would also believe that.
All things that have been shall be and nothing new is under the sun.
Gann believed that there was Divine Order to the universe and spent his life searching for it (accumulating 55 million dollars along the way).
He believed time and price we linked - even that time = price.
The 1 x 1 line is a line of time = price ("space").
I have covered some simple estimation techniques for price (take a move divide it into the vibration of 2 or 3 and mark these levels as possible S/R levels. That gives you the horizontal lines on your graph and then you have the regular S/R levels of previous highs and lows.
Gann also had rules for time S/R that is time turn points - though I won't cover those.
(Essentially use 360 and divide into the key numbers - e.g. 360 days / 8 = 45 days giving you a possible turn at 45 days with an orb of 2 days. As there are 365 days in a year that gives you the orb 365.25/8 = 45.65 days.)
-----back to speed lines ----
A +1 x 1 is a 45% line upwards sloping form the bottom left to the top right.
Gann speed lines connect time and price.
With your S/r levels the intersection of the best fitting gann line with the horizontal lines of the SR gives you the the next high (or low).