Home Forex Markets Gann Wheel Middle Wheel (3) Advanced Application: Cooperation between Long- and Short-cycle Linkages and Trading Volume

Gann Wheel Middle Wheel (3) Advanced Application: Cooperation between Long- and Short-cycle Linkages and Trading Volume

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Gann Wheel Middle Wheel (3) Advanced Application: Cooperation between Long- and Short-cycle Linkages and Trading Volume


Abstract: This article mainly introduces the long-term and short-cycle linkage of Gann’s wheel and the use of the combination of the wheel and the volume.

Advanced Application of Gann Wheel Middle Wheel

William Gann(William D. Gann)As mentioned in his analysis of the wheel within the wheel, the cycle is the cycle of time and price. For cycles of time, the unit can be hours, days, weeks, months, etc. Long-period, medium-period, and short-period cycles overlap each other.

The core of the round-in-round is the relationship between time and price. Accurate time and price forecasts are difficult to match with other technical analysis. More importantly, unlike the round-in-round, most market technical analysis analyzes the behavior of investors in the market, so the first of the three major assumptions in technical analysis is that market behavior covers all information and becomes technology. The basis of analysis, and if this precondition is not recognized, any conclusions derived from technical analysis are invalid.

This means that general technical analysis cannot escape the shackles of confusing market funds. It is conceivable that when the large institutions in the market are fighting against each other and the trading volume is shrinking, the role of technical analysis is often greatly reduced, and in the end it is often almost the same as the probability of a coin toss.

In contrast, Gann’s wheel-in-wheel analysis also has particularly significant limitations. That is to say, at the important starting point, the time and price are already in the position of wedge, which means that each subsequent price or time node will have a coincidence. This makes it difficult to judge the highs and lows that really matter. In order to fill the gap of Gann round, the author will provide the method of long and short cycle linkage and use with volume, which will help us better understand the importance of the current node.

The author will not repeat the basic usage of the Gann wheel in the text, so if the reader has not fully understood the basic usage of the Gann wheel, you can first read the author’s Gann wheel (1) (2) content presented.

The most essential chapter in Gann’s theory——Gann’s Wheel of Wheels (1)

Gann Wheel (2) Angle Analysis and Practice, Coordination with the Twenty-Four Solar Terms (Take the US dollar as an example)

The use of Gann round, the middle round and the trading volume (for example, the Shanghai Stock Exchange Index)

Shanghai Composite Index monthly chart:

The author selects the Shanghai Stock Exchange Index2018year10month low2449point as the starting point, after which the index goes through35High point after a month3723.8point, which is also the starting point of the wheel within the wheel180°, time0° (Fig.37), time and price are both at important levels, forming stage highs.However, it should be noted that the above judgment of round-in-round cannot fully confirm the validity of the important high point.2449The point as a starting point is already at the confluence of time and price, which is equivalent to a significant decrease in the effectiveness of time at that point.

Gann Wheel Middle Wheel (3) Advanced Application: Cooperation between Long- and Short-cycle Linkages and Trading Volume

However, if we observe3723.8The trading volume at the high point can be found, and the trading volume has been greatly enlarged (2015The largest monthly volume in 2018), while closing the long upper shadow, which further confirms the signs of bullish momentum. therefore,3700It is likely to be an important high level in the long-term, and then the Shanghai Composite Index exceeds20%entering a technical bear market.

Gann Wheel Middle Wheel – Long and Short Cycle Linkage (Take Gold as an Example)

Gann Wheel Middle Wheel (3) Advanced Application: Cooperation between Long- and Short-cycle Linkages and Trading Volume

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