Explain the importance of Gann’s Master Charts in forecasting market movements. What was the premise of Gann’s “Master Charts” Discuss Gann’s use of RSI. Demonstrate the relation of RSI to the S/R ratio. Explain the use of Gann’s Volatility Oscillator and the application of Gann’s Breakout and Rollovers. What are the different types of breakouts? What are breaks/rollovers? How would you be able to infer an impending trend change or new uptrend. How to identify a trend is discussed at the end of the thread. I would suggest you to first look at the thread – A step-by-step approach to forecasting the stock market. By some of the threads posted on this forum, you should be able to achieve the desired results. For example, to identify a trend before market movement actually begins, one of these methods could be used – Regards, Arava Arava February 19, 2013, 04:44 AM What was the premise of Gann’s “Master Charts” The market is always in a dominant cycle and moves to an even longer duration over/under structure by which the market can be defined as tending to fluctuate steadily between lower prices and higher prices, up or down. The most common indicator used to measure the trend is the RSI (Relative Strength Index). The reason that the RSI is used is that it shows the speed of the change in the price of a market from the 100 base point area upwards or downwards; the 100 point area represents a normal range of price change and the direction of the trend is measured by the distance away from the 100 (100 points signifies a potential 100% change in price, the full’strength of the trend’). Why would a person turn to Gann for advice? Gann was a professional whose market analysis was used as a key factor inExplain the importance of Gann’s Master Charts in forecasting market movements. Gann’s charts are used to identify the impact of early-warning signals.

Trend Identification

A) A Gann bar chart without axes labeled in dollars is plotted over a long period of time representing 4 years of stock market daily fluctuations. Each bar represents a month in which the price of a stock increased. B) For each bar, Gann identified a “turning point” in the daily market fluctuation. This was achieved by identifying the first and last points during the month in which the stock price increased to a greater percentage than the prior day but smaller than the next day. C) Notice the upward sloping columns in the bar chart. The columns are similar in size except for the last bar row. From the vertical column on the left-hand edge of the chart, call the first bar the June 10 high, and call the last bar the Jul.6 low. D) What do you notice about the turning points? Start by answering (D). To answer (D), you must know: First, the turning points tend to occur near the high or low of the previous bar. In this case (D), you may notice that the turning-point bar (the Jul.6 low) occurred at a time in which the percentage change in the Nasdaq was almost 0%, which is not that big, in fact quite small. The May 30 high did not occur near the last high, so the turning point from the Sept.

Sacred Numbers

15 high should not be a big one. E) Notice also that the last turning point of the April high did not occur at the Sept.15 low. What might be the effect of not having the last turning point occur at the Sept.15 low, even though the bar in the last turning point coincided with the Sept.15 low? What do you predict for the price of the stock? GANN_PRO(D) STEP 5: Review the chart while answeringExplain the importance of Gann’s Master Charts in forecasting market movements. How does Gann’s work relate to other works by the likes of Halberstam and Schiller? Bibliography Page Scholars of the U.S. Stock Market hold two ideas in high regard. The first is that the U.S. stock market is “efficient,” meaning that prices reflect all available information and adjust in as near-anonymous, impersonal fashion as possible in order to clear a market. The second is that the market serves as a proxy for the economy, and thus shares a first-mover advantage with the real economy.

Gann Wheel

Both views make intuitive sense. The efficiency story holds that in an efficient market, there is an inverse relationship with money. In real life, we spend money to generate income. There is no need to create that income for the purpose of spending. If the market would do the work for you—and because every economic actor demands their fair share—there need not be much investment money to buy stocks. Reveal how a market-follower view and efficiency theory differ. Why shouldn’t someone follow the market and not those traders who devote their life to the market? Some traders are willing to dedicate their time, energy, and life to the perfect position, trading style, and methodology. Others want to make money, so they follow. site efficiency story can explain why it is still a popular idea, even amongst those who disagree. What are the four most recent market cycles of the stock market since 1885? Use descriptive language to list your reasons. Which market cycles do you consider to be the strongest? Your evaluation should follow these criteria: 1. Stability of move; 2. The breadth of the move; 3.

Time and Space Confluence

The length of the move; and 4. Support for future growth or decline. Which market cycle do you consider to be the weakest? Are there others you would add? Scholars of the U.S. Stock Market hold two ideas in high regard. The first is that the U.S. stock market is “efficient,” meaning that prices reflect all available information and adjust in as near-anonymous, impersonal fashion as possible in order to clear a market. The second is that the market serves as a proxy for the economy, and thus shares a first-mover advantage with the real economy. Both views make intuitive sense. The efficiency story holds that in an efficient market, there is an inverse relationship with money. In real life, we spend money to generate income. There is no need to create that income for the purpose of spending.

Time Spirals

If the market would do the work for you—and because every economic actor demands their fair share—there need not be much investment money to buy stocks. Reveal how a market-follower view and efficiency theory differ. Why shouldn’t someone follow the market and not those traders who devote their life to the market?