Thursday, February 26, 2009

Market Geometry Hanna

Howard Arington W. D. Gann developed several unique methods for the study of price charts, and the central part of his methods were geometric angles of the price and time. Let's see how you can use the intersection of the prime corners Hanna, to predict the time to turn the price dynamics. I do not know whether this technique Gunn himself, but to me it seemed interesting and I want to present it to you, as I understand it.

In my example I will use a daily schedule of "JDS Uniphase". I do not give any investment advice, but merely show his thought process in order to detect market timing, using the corners Hanna. The basic principle of this theory: upward angle of Hanna will be posted on the schedule at a significant turning a minimum, and top-down angle of Hanna will be placed at a significant turning maximum. Initially we will be interested in crossing the lines of 1x1 with horizontal lines and the intersection of two lines of 1x1. In this example, the intersection of those marked by red arrows.

For visibility, the first illustration I have shown just crossing the line 1x1. However, I also see the line 2x1 and 1x2, and their intersection, and show them to my pictures in the afternoon schedule of JDSU. I started with a blank schedule JDSU and first tried to find the price and time to use as a line of 1x1. For this I use a special tool Hanna graphical program "Ensign Windows" and set the default settings to show only the corners of 1x1, 2x1 and 1x2. Also, I check the option to use the maximum or minimum value of the bar to accommodate peaks. Line 1x1 depicted in blue, while the line of 2x1 and 1x2 are shown in red.

The first peak was placed at a substantial minimum 05.10.1998g. I Adapt placement line 1x1, so that it is visually in line with market movement. I tried to develop trend occurred along these lines, or they provide the support and resistance. The greater the correlation could be found, so they are better suited. Since the peak is placed on the schedule, the program shows the relationship between price and time as the number of vertices. I see these numbers and try to select the price and time 1x1, which is a derivative of the unit price, or has some relationship to the Hanna, Fibonacci numbers, or part of the circle. My first peak 05.10.1998g. coincided with the value 1x1 equal to 21.0. This means that the line 1x1 grows at a rate of 21 cents per day. I am satisfied with the value 21, because it is a number sequence Hanna, and the number of the Fibonacci sequence.

To accommodate the additional peaks Hanna from recent major maximum and minimum, I increased intervalbarov. I will find a new meaning to 1x1, because the volatility of JDSU in 2000. much more than in 1998. I find that the slope of 1x1 to 60 cents for one bar fits, and I want to use 60 as the value 1x1 for all vertices in subsequent studies. I fit the number 60 because it is also part of a circle of 360 degrees, while 58, 59, 61 and 62 are not. I added a rising peak in the minimum of 15.12.1999g. and a downward peak at the maximum of 21.01.2000g. to see how the intersection of price and time may occur.

I noted the crossing, which predict the time to turn red arrows. Vertical green lines held by the red arrows to the intersection for better visibility. Please note that the decline from 2x1 (steep red) had a good intersection with all four lines of ascending peaks Hanna held a minimum of 15.12.1999g.

Angles Hanna also provide support and resistance, and many of these points have been marked by horizontal blue arrows. As can be seen from the example, when an angular line to cross, the price will move and consolidate at the next line.

For this example was taken daily schedule JDSU, but I am sure that similar results can be obtained for any other marketing tool, and another temporary format. However, you have to carefully study the feasibility of the proposed technology for its trading strategy. In addition, I do not believe that the proposed study is an unconditional and final, and I hope that you are conducting your own research, will find something new and interesting.

The use of graphics programs
Technical Tool Squares Hanna "in the graphic program" Ensign Windows "is a very flexible and can be used to show trends, timing, and price levels. "Square Hanna" indicate the possible time and price movements of major maxima and minima. To build a "square Hanna" on the schedule requires the start and end points. Since the "square Hanna" indicate the possible values for the future of bars, it is often useful to move the bars schedule left, so that the right of the graph, it was clear the place. To build a "square Hanna" on the graph move the cursor on the graph at the starting point. The starting point in the general case is an important maximum or minimum on the graph. Then the cursor is dragged to the right until the desired end point is not reached. Start and end points are corners of the square. The ultimate point is often located on the right side of the schedule. Let's see how to form a tool for setting parameters.


Price
"Square Hanna" could hold the horizontal line on the price levels shown in the horizontal marked list. These price levels are similar to those which can be constructed using the Fibonacci price levels. You must follow the trend to change direction on the price level "square Hanna."

Time
"Square Hanna" could hold the vertical line spacing as shown in the vertical marked list. These vertical lines are similar to those which can be constructed using the Cyclic tools. Keep an eye on the trend to change the time intervals "square Hanna."

Tool Square Hanna "horizontal price levels and with a vertical time intervals is shown below.

In our example, the parameters 1/8-oy, 1/4-y, 3/8-oy, and the average point were tested for both horizontal level, and for the vertical spacing. Thus, our square and is divided horizontally and vertically into eight parts. Lines 3 / 8 and 5 / 8 are shown in red.

Another variant of the "Square Hanna was to check the parameter fan lines, which is shown in the example of filling forms for the parameters. When fan Lines noted, the tool is moving from the horizontal and vertical lines for the fan of lines from the four corners of Hanna, as shown below.

Fan through the place of the angles to the same Eighthly points on the perimeter squared, used horizontal and vertical lines in the previous example. Horizontal marked list select the point used by the two fan-lines, where the summit is on the left side of the square. Vertical marked list select the point, used two fan lines peak which is located on the right side of the square. Typical configuration for the fan of lines would have to maintain two corners on the left side, but to address the two corners on the right side, not checking all the parameters in a vertical list of options other than the perimeter.

In addition to predicting the time turn at the intersection of the primary corners of Hanna, which were considered above. Lines Hanna is also the support and resistance, many of which can be easily found in the graphic example.

Squares Hanna
Now let us look at the results of the next study that I conducted. I decided to place the tool "Square Hanna" on the graph with a vertical mid-point of the maximum of 7 January 2000. The square was pomeschens the left edge of 7 January, and extended in a way that the horizontal midpoint aligned with a minimum of 13 September. The base box has been placed on a minimum of 13 September. Below is the image that I have received.


Measuring time
I placed the left edge on 7 January 2000. and extended the box so that the horizontal midpoint to align with a minimum of 13 September 2000. Interestingly, a maximum of 16 January 2001. coincided with a period 3 / 4 square! This time is indicated by a red arrow above the side of the square, indicating the highest maximum in the graph.

I also notice that on January 6, 2000. a new moon! A full moon was on 13 September. (for details, see "Lunar phase market" in the number 19)

Support and Resistance
Arrows on the graph indicated support or opposition, secured fan lines are held from 4 corners of the square. From the schedule shows that the price movement is not accidental, but it is mathematically sound to predict.

Reverse engineering
In my example, I used the graphical tool "Square Hanna, of the lesser peaks of the recent 5-minute schedule JNPR. Max was 6 February 2001. and amounted to $ 106.50. Let us apply the technique based on the theory of square roots (for details, see the "Pyramid of the market" at number 18) to obtain the projected price:

1) The square root of 106.50 = $ 10.320
2) subtracting 1, we obtain 9.320
3) The square of 9.320 = $ 86.86

86.86 The price is 180 degrees around the square Hanna of the Nine of the price of $ 106.50. Therefore, as I have two prices, which independently provide 180 degrees, I choose the width of a square of 180 bars. This result shows the 1x1, 1x2 and 2x1 fan lines from the four corners of the square Hanna.

Left apex angle is less than the maximum of the trend at around $ 106.50. The lower right corner is at 180 degrees for the price of $ 86.86 and at 180 bars to the right. Please note a few key points:

1. The red line 1x2 from the upper left corner stopped the recovery in the 138 bar on the price of $ 98,875.

2. The red line 1x2 from the bottom left corner stopped the fall in the 97 bar on the price of $ 92.

3. Two red lines 1x2, referred to in paragraphs 1) and 2) also stopped the recovery in the bar 186 on the price of $ 96.75.

4. The trend is moving up and down on the two red lines of the 2x1 right-hand corners.

Example also shows the construction of pyramid points, started with the same trend of smaller peaks. The design includes a number of pyramid points bright blue horizontal price levels, pale red and green diagonal lines, vertical lines and turquoise. (for details, see "The Pyramid of the market" at number 18). Here we can see how two tools work together.




based on
www.ensignsoftware.com

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