Friday, December 18, 2009

Chart Art: "Updated Gann Fan Grid of the SP500 Dec 18"

From Afraid to Trade:

In following up on last night’s post on the “Gann Fan and Volume Update on the S&P 500,” I wanted to show a quick updated “Gann Fan” Grid of the S&P 500 - it’s also showing a critical level to watch at the 1,120 level which is - as we all know - a major inflection point in the market. Let’s take a look.

Using a 2 point input to construct the lines, I’m using TradeStation’s default Gann Fan indicator starting with the 1,576 October 2007 high and creating the angles “down right” if you want to replicate this chart....MORE

From Wikipedia:
William Delbert Gann (6 June, 1878 – 14 June, 1955 - also known as W. D. Gann),[1] was a finance trader who developed the technical analysis tool known as Gann angles. Gann market forecasting methods are based on geometry, astrology, and ancient mathematics.[2] Opinions are sharply divided on the value and relevance of his work.[3] ...