Stocks & Commodities V. 28:11 (8-9, 87): Letters To S&C by Technical Analysis, Inc.

Letters To S&C by Technical Analysis, Inc.

GANN AND THE TIME FACTOR

Editor,

I am writing from Mumbai, India, and am a subscriber to S&C magazine. I trade index futures, options, and equities. I have been following the technicals for three years and am a keen student of them.

I liked Koos van der Merwe’s article in the August 2010 S&C, “Gann And The Time Factor,” and the way he highlights the importance of the x-axis on a chart (which is mostly overlooked by analysts all over). Most of the studies I have found are on the y-axis (price).

I personally follow Elliott wave analysis along with time (that is, number of bars) taken to form a particular wave in any degree. I compare it to the previous wave of the same degree and I examine its Fibonacci relationship while confirming the time taken. I have read some books on Gann and have tried to implement the technique using our Nifty index.

I also liked van der Merwe’s previous articles on Elliott wave analysis published in earlier issues of S&C.

The Gann squares I applied to our index have worked well and have shown good results on daily charts using an important low or high. I look forward to more articles of this sort from van der Merwe in S&C. I would also like to know generally if we should apply the Gann box on a weekly chart from a particular important pivot low or high. How would that be helpful while analyzing the same chart in a lower time frame — that is, daily or hourly?

Nilesh