Market Vibration

Description of vibration, which wrote the VD Gann in the first half of the 20 th century and how to identify them, Billy Jones 20 years ago, working on the same principle and on the market today.

This confirms the fact that Gunn was right when he wrote:

Human nature never changes. For this reason, history repeats itself, and markets operate almost exactly the same way, under certain conditions, year after year and in different time cycles.

The first graph shown below shows the market for wheat in May 1998. Which is the same product and in the same month that Billy had used in 1982. It begins with a maximum of 29 th August 1997. and continues with a period of 36 trading days on 21 th October, 11 th December and 4 February 1998.
In the example, which used a Billy, the market traded up 36 cents every 36 days. This was the example of the market selling at an angle of 1 X 1, moving with the degree of change one cent per day. In the example below, the market traded down 18 cents every 36 trading days. This corresponds to the corner of 1 X 2, with the movement of the market down to the degree of changes in 0.5 cents per day.

One interesting reason for the less steep the line is that the markets are moving faster at higher levels than at low levels. This laid the same principle as the centrifugal force. The farther an object is from the center or "0", the faster it must move in order to maintain equilibrium balance.

In using the example of May wheat, it is traded at price levels of $ 3.40 to $ 4.00 per bushel (35.2 liters). In the example used by Billy Jones, it traded at $ 4.50 - $ 5.75 per bushel.

In addition to trade very close to the average number of vibrations prices 0.5 cents a day, the market provides for trading on the movement of top fluctuations in one or two days after the benchmark 36 trading days.

The second graph shows the market for pork in October 2001. Min was before - September 20, 2001. Appendix 36 trading days gives 9 November 2000., 3rd January 2001. and 26th February 2001.

Hanna corners on this chart is the angle of 1 X 2 built up from the ground. The scale of graphics - 10 cents per pound. Therefore, the angle of 1 X 2 from the base moves up to the degree of change 5 cents per pound.

The combination of angle of 1 X 2 and Countdown 36 trading days as indicated by vertical dashed lines determine within three trading days of substantial fluctuations in the base.

Horizontal dotted lines indicate that at least these days the "vibrations" are significant because they do not overcome the subsequent market movement. If a trader is in a long position in the deployment of stop orders, which take into account both the angle and the oscillation down these days, it can be obtained as a result of a very large profit.

W. D. Gann writes in his book "How to make a profit on commodity markets":

Most of the money made by trading in oscillations or long-term positions, which follow a definite trend, as this trend continues up or down.

This is a classic example of a technology that allows a trader to do what Gunn said in the above quote. He also in his book described several transactions in which he received huge profits following the market up or down with the appropriate stop-movement orders.

W. D. Gann was a curious man. He noted the many parallels in the various fields of natural phenomena and science. For example, Gunn noted the analogy between the periodic law in chemistry and a harmonic octave in music.

The keyboard music is the fundamental octave of seven notes, and each octave repeats these seven notes in a higher or lower key, or number of vibrations. Items that are listed in order of when their atomic weights, tend to repeat fairly simple properties of each element of the 7th, like notes in a musical scale.

Hanna is interested primarily because the depth and characteristics of the laws also have common features everywhere in the markets.

In the accompanying schedule of wheat for May 1981. Note, it was noted 6 th June, when the minimum was recorded on this chart. Also note that the trade marked 29 days of July, 18 th September, 10 th November and 5 th of January (on the minimum they would have been 36th, 72nd, 108th and 144th days, as marked).

It was built under the 45 degree angle from the base and the angle of 45 degrees, down connecting selected days.

Pay attention to the fact that the bull market, every 36 trading days, the price will go up by 36 cents! On the bear side, every 36 trading days the price is reduced by 36 cents! This pattern does not end, because it can continue to the 180 th, 216 th and 252 th trading day.

It should be noted that once these 36 days were finished, the price is not traded below the minimum these days when it was at the bull's side, and not to trade higher highs these days, being on the bear side (see dotted lines on the graph). The study shows that this phenomenon in the 36 trading days, repeated at the markets from time to time, with minor modifications.

Let's look at some statistics:

36 trading days x 7 = 252
225 minutes in the trading day (wheat) x 36 = 8100
8100 = 360 square degrees, or 90 x 90 (for details, see "The Pyramid of the market" at number 18)

Carefully looking at the May schedule for wheat, we can see a harmony and rhythm.

Not if it has the same properties, which are found in the musical octave, the periodic law of chemistry or the color spectrum? Gann insisted that the "vibration" is the leading factor.

Gann said:

Through the law of vibration every marketing tool is moving in its own distinctive sphere of activity, with regard to intensity, volume and direction of all significant quality of its development are characterized by its own level of vibration.

Market-based instruments, like atoms, are really centers of energies, so they are controlled mathematically. They create their own field of activity and strength, strength to attract and reflect, which explains why some market-based instruments at the same time moving the market and become sluggish at other times. Thus, in order to profiteer from the scientific point of view, it is absolutely necessary to follow natural laws.

Vibration is a fundamental, nothing is exempt from this law, it is universal, therefore applicable to every class of phenomena on the earth.

Therefore, I hereby declare that each class of phenomena whether in nature or in the market, must be subordinated to the universal laws of causation, harmony and vibration.

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