Then I used basic Gann lines, time cycles, and the Square of Nine to conrm the hypothesis. In both of these cases, I had used AstroDow turning point clusters to come up with a hypothetical change in trend date. Going short for a return to at least line A was a high probability trade, with a stop at 543. Further analysis showed that this point was three months and a few days from 5/20, as well as at 541, exactly on the 180 degree angle on the Square of Nine. As the price action formed, it exactly touched line C on 8/13 and 8/25, the latter being within the AstroDow turning point cluster. The latter was exactly one year from the 8/27/86 high from which line C originated. As August approached, I had an AstroDow cluster of an AD2 on 8/24 and an AD3 on 8/27. I began looking for such a top as the summer progressed, and had noted the resistance offered by 1:1 line F. Further, if the market behaved normally, it could be expected to return to line C before a top was in place. In my case, I have dates representing three cycles contained in the Dow or similar market averages, such as a losing trade. Turning point systems produce dates likely to be points of trend change, without necessarily calling for a high or a low. While applied here to the turning points I derive, this same validating approach can and should be used with any turning point system. Figure 1 is a daily chart (15 months shown) of the XMI points, thereby increasing signicantly the odds of a correct trade. The timing and verify the point as a high or a low. For the best trades, additional information is useful to rene Like most such turning points, the AstroDow points are average points and may be off by a few days. Clusters of these points together are, like any cluster of cycle points, very good trading opportunities. I call these AstroDow two, three, and four points, which have turning points about once a week, once a month, and once a quarter respectively. It is the purpose of this article to explain how I use Gann techniques to help validate these turning the S&P or the XMI. By Hans Hannula, Ph.D.Īrket Astrophysics is an analysis approach that I have developed over the last decade which produces a set of turning point dates based on a computer model of the physical universe.

Using Gann with Astrophysics to Validate turning points.

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