Price and Time Numbers
Monday, October 26th, 2009One of the most important things we do is squaring of price and time. For those of you who’ve read my book, we only touch on it there but the best pivots come with a balance of price and time. If we want to know how strong one of our turn windows is going to be, all we need to do is see if it validates with a good ratio of price and time. If the numbers are more heavily weighted to time, it can and will still turn, but the results won’t be long lasting.
Why is price and time so important? Because Gann told us that when price and time square, the pattern changes. Since Gann didn’t have to deal with a myriad of intraday charts, I’ll add that the direction of the pattern changes. We may or may not get a reversal, but the direction will change. Depending on how the numbers line up will determine the degree of the change.
Gann only had to deal with daily, weekly and monthly charts. It was a simpler time as he did not have to deal with hourly or 5 minute charts the way we do. Gann also kept perfect precision by scaling and drawing charts by hand. It would be totally impractical to do that on any intraday chart. So how do we know we are right? The numbers don’t lie; the markets speak to us in a language of numbers and cycles. When they start to line up, important things happen. Keep this as a reference, it’s a good start. By no means is it complete as we’ll add to it over time.
Fibonacci – 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987 etc.
Lucas – 7, 11, 18, 29, 47, 76, 123, 199, 322, 521, 843 etc.
Golden spiral, sq roots – .618, 1.618, 2.618, 4.23, 6.84, .382, .786, 1.12, 1.27, 2.05, .236
Important Gann 45, 90, 180, 270, 360
Geometric/Gann - 22.5, 67.5, 135, 225,315
Sacred Geometry – 1.414, 1.732, 2.236, 1.90, 1.1755, 3.14
Multiples of 144 – 288, 432, 576, 720 etc.
Astronomic 88, 177, 182, 188, 241, 365, 414, 615