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TIME AND PRICE BALANCE
' K; s* s; c% K& \By recording the greatest reaction in Price, when the market is advancing and the
- Y# O9 p6 m7 K6 y( ggreatest Time Period of reaction occurs, you will be able to tell when the market is 8 P B* L7 P- D
over-balanced. 8 Z* J4 j5 F* i, ^7 B6 g
Examples: November Beans, May 25, high 230. June 16, low 208, a Price decline ! P3 O" I8 f1 u- N# r
of 22¢ per bushel, time 22 calendar days and 18 market days. June 21 to 24th, the
; E! d" p' y0 L' pmarket declined 3 days and the Price decline was 5-½¢. July 17, high 257½. July * H* f0 }) n: G, G
19, low 240, a decline of 17½¢ per bushel in 2 days. Price had overbalanced the
# d( Q4 ~# x [2 T6 h4 Bprevious reaction, but Time had not over balanced.
! ?2 q% m0 W) k& N) e7 a9 O( NJuly 26, extreme high 272. this was a SIGNAL DAY and a GAP DAY which was " T4 G. {% s! i* Q
an EXHAUST GAP, and you would have gotten out of the market and been short
. ?) j/ A5 z: a ^on these rules. July 29, low 259½, a decline of 12½¢ in 3 days. This had & n3 t) [. W8 |6 G6 r( \
exceeded the Time Period of the reaction on June 19 and had over balanced the 5 G+ A# k3 K7 a* ]! V2 Z9 S
Time. The decline continued to August 2, low 256, down 16¢ time 7 days. A 1- 5 }/ K+ O2 @: U* ]: |; e4 ?9 X
day rally followed to August 3, high 261½ , up 5½¢, the same as the decline from ( g& Y! e* |; d: L3 t2 _# s
June 21 to 24th. After August 3, the decline continued and when prices were down
/ Z% H0 J2 {( Cmore than 17½¢, they over balanced the Price decline from July 17 to 19th. After
+ _- Y0 i" k1 F4 Wthis, the decline was faster to August 15, low 236¼, a decline of 35-3/4¢ from 272.
8 U( ^- j$ v" pAugust 15 was a SIGNAL DAY and was also 60 days from June 16, low. This - I; H0 `5 S: }; a
was a buying indication where you would cover shorts and buy. 3 o; x5 U9 j6 J) k/ n% r
From July 26 to August 15, the greatest rally was 2 days, and when Prices * E5 R _+ ^: c- y6 g
advanced for 3 days they had over balanced the Time Period, and indicated higher + f) j3 Y' L5 z* P. D
prices; and when Prices advanced more than 5½ ¢ per bushel they had over
# ?8 H! h' M v) O* [5 Zbalanced the Price rally. + g( J* @+ M% K3 A/ p6 b) I0 _
From August 15 to 30 there was only one 2-day reaction. On August 30 the high 5 r/ Z, V4 c2 K6 b* Q
on November Beans was 254¼ , which was ½ point between 272 and 236¼. This ( \, a) N1 {3 F1 E s: D
½ point was the selling level where you would sell out long Beans and sell short. 0 n, r7 Z$ G' |" J/ z
After Prices declined for 3 days they had over balanced the Time Period. The Price + H* `( G9 V) c2 T
advance from August 18 to 22nd was 5¢ per bushel; therefore, when Prices 1 s; V9 E3 Y5 \
declined more than 5¢ they had over balanced the Price move of the previous rally. 9 T8 u/ I" n: L
October 7 to 16 Prices made lower tops and lower bottoms each day and were
+ c e( m% m' |% @4 ?down 7 days. You would apply the 7 to 10-DAY RULE and follow the market
0 n% h6 g) J( \' E0 }8 Ddown with stop loss order 1¢ above each day’s high. On October 16 the high was ; i2 j: t. i- u/ z8 [! r8 e
229-3/4. This would make the stop loss order 230-3/4. However, after the
+ i: u( y% w, F, _& r$ KSIGNAL DAY, on October 16, you should have covered shorts and bought
/ ~6 t+ y: K) B; f2 eNovember Beans because this SIGNAL DAY occurred on an exact Time Period 7 g& Q4 o) I2 I) g: F/ Z8 Y1 n
1/3 of a year from the low of June 16.
# ~3 s4 ~& h4 y! s; yFrom October 16, low, a sharp advance followed and when Prices crossed 231½ ,
+ H! \0 q8 T/ G! L( `. g% c5 {" eon October 18, which was the ½ point of the life of the option, you had another
, O1 K9 y/ Y4 k% l9 y' v BSIGNAL TO BUY, and could expect the advance to Balance the move between " W# c5 H* k; }' N6 t* I9 F( f
August 15 to 30th which was 18¢ per bushel. October 23, November Beans 4 z. M$ c/ P) p& U3 o
advanced to 245-3/4 which was slightly more than 18¢ per bushel and then reacted
' \. R6 p$ b: Y' E4 Dslightly, indicating higher Prices. $ u1 {5 w6 O: I) ]- H. d
By watching the Balancing of Time and Price, together with the other rules, it will
) l7 y7 R, F0 mhelp you to determine when Prices are reaching Extreme Highs or Extreme Lows.
* w) b5 C8 h6 r+ l. m- v7 `THE W.D. GANN MASTER COMMODITIES COURSE 7 c2 j5 b! D# K+ F6 j% q
) w' r7 Q+ Y0 @9 }# Y2 Q( [- T
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发表于 2008-11-19 08:06:24
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发表于 2008-11-19 08:17:18
发表于 2008-11-19 09:26:40
发表于 2008-11-19 11:08:13
楼主
。你千万别笑。。真的。
