Gann Rule Of 4
#1
Posted 30 November 2010 - 12:58 PM
Fourth time through a level of support or resistance is powerful and one should go with the direction of the professionals.
This morning two Hourly reversing candles could be the most important move for this market. If we break down below that turning point, then ES (SPX too) will violate the 'Rule of 4' on a month end topping formation which is very bearish. Meanwhile, the reversal could still hold through EOM to open up the door for a bullish 'Rule of 4' break out later. So, 3 more hours to go.
Also, this doesn't look like a 'Descending Triangle' to me. But even it is arguably, there are different schools in interpreting it. Can be bullish OR bearish depends on which market it's in. See- http://thepatternsit...Descending.html
Swing Those Lines: I can calculate the motion of heavenly bodies, but not the madness of people! -- Issac Newton
#2
Posted 30 November 2010 - 01:44 PM
Swing Those Lines: I can calculate the motion of heavenly bodies, but not the madness of people! -- Issac Newton
#3
Posted 30 November 2010 - 01:45 PM
http://www.informedt...s-part-1-a.html
http://stockcharts.c...nding_triangle_
#4
Posted 30 November 2010 - 03:21 PM
#5
Posted 30 November 2010 - 03:41 PM
There are instances when descending triangles form as reversal patterns at the end of an uptrend
vtm,
Thx for the popular resources. If everyone sees and believes it's bearish, then it's time to cover.
I use your second 'teaching video' to point out what could also happen next. (compare red pattern with my ES patterns)
Edited by iloli, 30 November 2010 - 03:46 PM.
Swing Those Lines: I can calculate the motion of heavenly bodies, but not the madness of people! -- Issac Newton
#6
Posted 30 November 2010 - 03:44 PM
Yes, that's also the hit count on Daily resistant TL: 3.FWIW, I've found on the daily and higher that a cluster of hits on the trendline tends to act as a single hit. Not always but often enough.
Edited by iloli, 30 November 2010 - 03:45 PM.
Swing Those Lines: I can calculate the motion of heavenly bodies, but not the madness of people! -- Issac Newton
#7
Posted 30 November 2010 - 04:16 PM
One might ask why can't support line hit be counted as 3 also? Since today and yest can be one hit. Well, in that case just extend the support line left to Oct 20th and count as a hit. All included additional Daily prices and that day's low still fit for the same triangle pattern.Yes, that's also the hit count on Daily resistant TL: 3.FWIW, I've found on the daily and higher that a cluster of hits on the trendline tends to act as a single hit. Not always but often enough.
Swing Those Lines: I can calculate the motion of heavenly bodies, but not the madness of people! -- Issac Newton