Friday, 28 June 2013

looks like a small reversal bar (inverted hammer in candle terminology) at 162 which is the first 1/8 level above 144 (square of 144) It really is bears' for the taking now,with the angles and moving averages all set up.....will they drop the ball  again ?


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2 comments:

  1. Anonymous28 June 2013 at 12:18

    hi, I really enjoy your work. I am more a quant than a technician, so apologies for ignorance, but what is the basis for the 1/8th relationship in your post, and how is the 144 level determined? thank you and regards.

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  2. Chartrambler28 June 2013 at 12:29

    Hi and thanks. Its based on Gann's belief in cycles and numbers. 144 was one of his master cycle numbers that the markets tend to follow in terms of their price and time movements.So if a stock is respecting this number you divide it into 1/8 and 1/6 divisions to find support and resistance.162 is 9/8 x 144.You can do the same with time eg count 162 days from a low or weeks.

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