Paul 'yogi' Nipperess BMin, click
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Blogs by Paul 'yogi' Nipperess BMin
Weekend stuff ..... trading with TIME and PRICE 11/13/2004 10:59:52 PM
Using time cycles in the marketplace is not new,
in fact, W D Gann wrote about such tools in 1927 .....
http://easy-trading-tools.00cd.com :)
Hi folks,
Most chartists focus on the price axis of their
charts, which is shown as a variable value .....
..... and that's fine, except it is really only giving
us half of the information available in any chart.
W D Gann showed us how to analyze the TIME
axis, which always progresses at a CONSTANT
rate ..... and nothing has changed about the
TIME cycles for millions of years ... every year
the cycles repeat, like clockwork.
Your own birthday is a simple example, it comes
around on the same day, every year ..... yes?
But, the best part about time cycles may lay in
the fact that NO MAN can change them ... !~!
-----
By applying some simple technical tools to the
TIME axis, some simple time cycles can be
revealed, in ANY market.
Each market has its own, individual vibration or
trigger points that will likely produce moves on
the price scale.
These time cycles may be static, fixed term cycles
or they may appear to be dynamic in the way they
appear on the charts.
Likewise, some time cycles will trigger positive
market moves and other cycles will mark the
start/end of a negative move.
Some time cycles will be more likely to produce
news or announcements, while others may simply
mark the breakout/breakdown of the price.
-----
If we know WHEN to trade, then price is relegated
to the function of calculating profits/losses.
-----
Because of its variable nature, price will move at a
different rate to time ..... sometimes price will
accelerate ahead of time, until it reaches an extreme,
then it must pause or pullback to wait for time to
catch up.
Conversely, price can also fall behind the time
constant and eventually there will be an explosive
move to make up the difference.
Gann also showed us, that when PRICE and TIME
come together, there will likely be a change in trend.
-----
However, TIME is not the exclusive domain of the
chartist ..... as it is measured independent of the
price inputs, the fundamentalists can also use
these time cycles to anticipate likely dates for
trade entries and exits.
It is now known, that such cycles are triggered
on different days of the year for different markets
and some will be more positive than others.
Any market analysis should be aimed at providing
us with better market timing ..... that is, WHEN
should we buy and WHEN should we sell?
When you ask fundamentalists to analyze a market,
they may be able to justify a fair price, based on
a myriad of complex theories, but most of them
cannot tell you WHEN this is likely to happen.
Well, time cycles are also good news for the
fundamentalists, as they can quite accurately
determine WHEN announcements and other
news may hit the marketplace ..... forewarned,
is forearmed ... yes?
..... and even better news for them, the time
cycles can be quickly figured, without looking
at any charts !~!
-----
No matter what trading approach may be taken,
there's some major advantages of using time cycles,
not least of which, is staying ahead of the trading
masses ..... ?
Knowing WHEN to trade is, at least as important,
as the price being traded, no matter whether we
are buying or selling ... !~!
-----
So, back to EBR, this week's short-term time cycles
may keep EBR flat-to-down, while the December
cycles look to be more positive.
-----
Having had plenty of experience trading with time
cycles, their uncanny accuracy never ceases to
amaze me.
-----
For the skeptix ..... read the AYO thread here, where
a long time cycle on 25102004 was posted well in
advance ..... and then, look at AYO today.
..... another one of great interest is HDR.
In May, time cycles were posted for a breakout in
HDR on 01 June 2004 and a likely high, around
06 August 2004 ..... price targets posted at that
time were 2.35 and 3.10 ..... and about 40 Perth
Traders can verify the same information was
given to them, at their May 04 breakfast meet.
..... maybe, you would like to check your
HDR chart now ..... ???
