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.Gann WheelThe third way to use this chart is to use the 360 degrees and dates around the outsideand a plastic overlay (see Exhibit 12.8 in the printed Gann Masters Course) dividedinto the angles of 90, 120, 144, 180, 214, 240 and 270 degrees.If rallies stop exactly on 90 degree lines and go back down, the main trend is down.Ifdeclines stop exactly on 90 degree lines and go back up the main trend is up.If you keep the 0 point of the overlay on March 21 and look at the prices the angles ofthe plastic overlay hit, you will find that sometimes the dates on the outside of thewheel hits the same price that an angle is on at the same time.This is called timeaspecting price.This is natural time and price resistance.You always check thisparticular use of the wheel, as it happens too many times to be coincidence.These arevery strong points of support and resistance.Square of 4The square of 4 can be used exactly as the square of 9.In all aspects it is identicalexcept that it is an even square instead of an odd square.IMultiple Price ProjectionsWhile the square of 9 and 4 are excellent for giving resistance at the ends of naturalcircles which represent squares of the center, it is difficult to use these square with verymany past lows and highs.One disadvantage also of the square of 9 and 4 is that theyare designed for expanding waves and not for contracting waves.Contracting wavesare when prices are coming down.Both the square of 9 and 4 are like a shell startingsmall at the center and getting bigger as prices get higher.To overcome these problemsa sheet was designed to give multiple price projections and to allow for both expandingand contracting waves.This sheet also allows for Fibonacci price projections withcounts of actual days.This is one of the most valuable sheets in the Excel template.Here is how the sheet works.It allows for three prices to be placed in the spreadsheet on each row: 1st price, 2ndprice and 3rd price.There are 8 rows down so it gives you a potential of 24 points touse for forecasting forward.It is very easy to add rows to this spreadsheet using thecopy and paste routine, so you could actually add as many points as you wished.Ineach of these slots, you place past highs and lows of historical data.We have found itan excellent tool to place all the highs and lows of Elliott wave in this spreadsheet.Tryto keep the same degree.For example make up one 8 row for the major degree which isa monthly chart going back 15-30 years.Make up another 8 rows for the intermediatedegree which is weekly chart going back for 5 - 10 years.Then you should make upanother 8 rows for the minor degree which is a daily chart going back 3 - 5 years.Inthis module also allows for variable lengths in projections.We have it programmed forthe wheel numbers of 45, 90, 120, 144, 180, 216, 240 and 270.These can be changedto other counts.Excel will only do daily price projections, so for weekly and monthly,you will have to change these settings to multiples of the daily counts.For weeklyprojections you might put in much larger counts for example put in the following 45 x5 = 225 days, 90 x 5 = 450 days, 120 x 5 = 600 and so on.For monthly counts youwould put in 45 x 30 = 1350 days, 90 x 30 = 1800 days, 120 x 30 = 3600 days and sofile:///C|/uploads/Business/StockMarket/WD%20Gann%20Course/Chapter%2014.htm (2 of 4) [7/12/2006 9:05:50 PM]New Page 1on.The counts forward give you important probably future cycle points.The bigger thedegree, the more important the cycle is.The biggest advantage of this module is thatyou can match up several futures dates that are within 3 days of each other.The morematch ups you get the more important the cycle is.When you get a major, intermediateand a minor degree to match up to the exact date, you have a very important cycle.This module can also be used to forecast forward price and time of a bottom or top.You set the 1st price to a major bottom, for example 225 in March 95 Corn.Now setthe module to forecast forward the following: 225 hours, 225 days, 225 weeks, 225months.Therefore you would set it to the following days: 225/24 = 9.375, 225 x 1 =225, 225 x 5 = 1125, 225 x 30 = 6750 days.When the points in time are reached checkthe price and if it is a multiple, harmonic or Fibonacci ratio of the bottom price, then itis a significant point.If the difference from that price and the bottom is a Gann circlenumber, then it is significant.FIBONACCI PRICE FORECASTINGThis module also has an important function of forecasting Fibonacci price points.Thisis how it works.If you want to forecast out the Fibonacci ratio in price of an A, B, Cwave you would put in A as the 1st price, B as the 2nd price and C as the 3rd price.From the 3rd price the module will forecast forward a predetermine ratio of the C and(B - A).The Fibonacci ratios are.382,.500.618, 1.000, 1.382, 1.5000, 1.618, 2.000,2.382, 2.50 and 2.618.The module will also give you the difference in price between(B - A) and C.If it is a perfect circle number for example 45, 90.120, 144 etc., then itprice has more validity.If you make the 1st price equal to the 2nd price then you wouldbe getting ratios between only the 2nd and 3rd prices.You would also be getting thedifference in price between them.The more cluster of prices that match up in the 3price projections the more it is a confirmation of an important future pivot point.TheseFibonacci ratio numbers are variable, so you can change them to specialized numbers.( See Exhibit 14.1 and 14.2 in the printed Gann Masters Course).PATTERNOne of the secrets of price forecasting is pattern formation.Knowing where you are inthe pattern formation.The secret is that virtually all markets continually form the sameprice patterns If you know where you are in this pattern formation then you knoweverything you need to know to make big money in the markets.(See Exhibit 14.6 inthe printed Gann Masters Course).The square of 9 and 4 chart can also help you get an idea of the end of every wave.(See Exhibit 12.1 and 12.2 in the printed Gann Masters Course)ABC Fibonacci Price ProjectingIf you want to know how strong the market is and where a wave is going and where totake profits use the ABC ratio method.We have set up such a module in the Excelspread sheet for this purpose.(See Exhibit 14.3 in the printed Gann Master Course)PROJECTING FROM SEVERAL SINGLE POINTSOne of the best methods of forecasting is to forecast time from a set of single pointssuch as highs and lows.The Excel spread sheet can be used for this also.See Exhibit14.5.TIMING FROM DOUBLE OR TRIPLE POINTS in the printed Gann MastersCourse).USING THE MASTER OVERLAYSThe master overlays should be used to forecast price based on market days.You shouldcreate the following overlays on clear plastic in the scale of your charts.45, 52, 72, 90,file:///C|/uploads/Business/StockMarket/WD%20Gann%20Course/Chapter%2014.htm (3 of 4) [7/12/2006 9:05:50 PM]New Page 1120, 144, 216, 240, 270, and 360.They should be used in two different ways.One is toplace them on highs and low.This is using it the variable way [ Pobierz całość w formacie PDF ]