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TIME AND PRICE BALANCE ( u" D+ a: f+ `4 t) E
By recording the greatest reaction in Price, when the market is advancing and the
/ s, B* N8 e6 g! O4 t' ^+ Dgreatest Time Period of reaction occurs, you will be able to tell when the market is 0 ]( b( B& w; G# Q+ \2 x' B9 L& F
over-balanced. , W% U0 }9 {4 h+ T2 P! y- |- V. |( D
Examples: November Beans, May 25, high 230. June 16, low 208, a Price decline * v+ O3 K* s# Z( _0 B5 n4 Z& P
of 22¢ per bushel, time 22 calendar days and 18 market days. June 21 to 24th, the
1 J/ `5 z$ Q! u6 k5 {. D smarket declined 3 days and the Price decline was 5-½¢. July 17, high 257½. July
* \6 R" B2 t0 \' X! p( J% \19, low 240, a decline of 17½¢ per bushel in 2 days. Price had overbalanced the
. T- G# \8 i: `0 g5 E5 M# e( x5 xprevious reaction, but Time had not over balanced. 6 J" u$ P5 \8 [7 X+ T7 Y2 }; ]
July 26, extreme high 272. this was a SIGNAL DAY and a GAP DAY which was . b$ @9 W/ d+ M$ p# `; U
an EXHAUST GAP, and you would have gotten out of the market and been short 6 L$ Q3 {; G% N% ~4 s% I
on these rules. July 29, low 259½, a decline of 12½¢ in 3 days. This had 6 w+ }" ^1 s) ]4 C
exceeded the Time Period of the reaction on June 19 and had over balanced the
- z7 c q/ ]5 A' }% MTime. The decline continued to August 2, low 256, down 16¢ time 7 days. A 1- - J9 J |+ C: g, O+ x
day rally followed to August 3, high 261½ , up 5½¢, the same as the decline from
$ @3 g8 \5 p5 v2 T yJune 21 to 24th. After August 3, the decline continued and when prices were down
$ E8 V. b( W4 K, g, c& {more than 17½¢, they over balanced the Price decline from July 17 to 19th. After t% ~, L" s5 a2 t" \
this, the decline was faster to August 15, low 236¼, a decline of 35-3/4¢ from 272. 4 S; r- I. n, E
August 15 was a SIGNAL DAY and was also 60 days from June 16, low. This
4 k' u3 b) S6 S; s- T: G! z; Xwas a buying indication where you would cover shorts and buy. V# m- j; Y; v$ @
From July 26 to August 15, the greatest rally was 2 days, and when Prices
6 [' a4 J5 O0 J& oadvanced for 3 days they had over balanced the Time Period, and indicated higher 8 z! [6 g0 j& R* w9 R: [
prices; and when Prices advanced more than 5½ ¢ per bushel they had over
- d7 H) I3 v% }" j0 Obalanced the Price rally.
& a; n+ P& E& c From August 15 to 30 there was only one 2-day reaction. On August 30 the high C9 y! G+ R' u2 }9 |' P
on November Beans was 254¼ , which was ½ point between 272 and 236¼. This : W( d( _, c. K1 `. i: z
½ point was the selling level where you would sell out long Beans and sell short.
( |6 e+ K: [* K5 I4 CAfter Prices declined for 3 days they had over balanced the Time Period. The Price ' K, ]! y5 u8 B; \+ z* ~% M
advance from August 18 to 22nd was 5¢ per bushel; therefore, when Prices 5 r% W9 Z" G. h1 p
declined more than 5¢ they had over balanced the Price move of the previous rally.
4 L7 ]5 h9 t6 p: FOctober 7 to 16 Prices made lower tops and lower bottoms each day and were 3 r5 V; o! c1 T" i) m% l( H
down 7 days. You would apply the 7 to 10-DAY RULE and follow the market 9 w9 b; [, J L; I& |$ j' U
down with stop loss order 1¢ above each day’s high. On October 16 the high was
# c Y2 m1 Q) s3 s) }229-3/4. This would make the stop loss order 230-3/4. However, after the
: W5 i4 h3 E) z) S7 z; K0 kSIGNAL DAY, on October 16, you should have covered shorts and bought * K$ Y% B: F+ }$ E9 Q
November Beans because this SIGNAL DAY occurred on an exact Time Period
) A, O2 s6 H* s( r9 X S1/3 of a year from the low of June 16. 4 ?1 y3 v6 H& Z( X! E# t
From October 16, low, a sharp advance followed and when Prices crossed 231½ ,
# q2 i) V3 q& U8 son October 18, which was the ½ point of the life of the option, you had another # i4 H1 O: I2 a2 a
SIGNAL TO BUY, and could expect the advance to Balance the move between ( ~( i/ E/ U, C3 _8 n
August 15 to 30th which was 18¢ per bushel. October 23, November Beans
@6 l! m7 v" O1 A) u) E( @& \+ nadvanced to 245-3/4 which was slightly more than 18¢ per bushel and then reacted
) O, H; ^( ~$ t8 |8 Lslightly, indicating higher Prices.
5 \$ x# x* R' z Z5 { By watching the Balancing of Time and Price, together with the other rules, it will 9 o0 w r4 ~# O+ D
help you to determine when Prices are reaching Extreme Highs or Extreme Lows.
4 A7 M2 U4 X9 W3 eTHE W.D. GANN MASTER COMMODITIES COURSE ! L0 U3 K8 ]9 |8 G6 ~
& ~" x! `* ]; E! M
[本帖最后由 yay 于 2008-11-19 00:07 编辑 ] | 
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