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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers

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To: marcos who wrote (13648)6/16/2006 6:36:11 PM
From: E. Charters  Read Replies (1) of 78419
 
cyclesresearchinstitute.org



Tops, bottoms and consolidations:

* Tops usually take time to form. Spike tops are less common compared to spike bottoms. Tops are marked by extreme movements in medium and small stocks. They will rise by even 20% in a day. These are called blow offs. Because of this short-selling on extreme top is risky.

* Divergences will appear at the top but they cannot be used for timing the trade. Time cycles shall indicate when the actual reversal will start.

* In bull market watch for a correction which is greater in both price and time than the previous corrections in the move up. (Opposite in the downmoves).

* Highest probability of support is that the corrections in the uptrend will all be very close to equal.

(hmmmmmmmmmmmmmmmmmmmmmm)

* Swing objectives - add the range to move to the top of that move to find out the target for the next upmove or reverse in the bear market.

* Square of numbers and 50% of the difference between those squares are significant support and resistance, but cannot be traded by themselves.

Gann says that there can be nine mathematical proofs of any point of resistance

1. Angles from top and bottoms

2. Angles running horizontally i.e. the previous tops and bottoms

3. Time cycles (vertical angles) (Press a short sale if there are three or four days of sideways movement after a high day and this is followed by a down day with high volume where low is lower than the low of the sideways movement and when this coincides with expiry of time cycles)

4. Crossing of important angles originating at zero

5. Crossing or coming together of angles from double or triple tops or bottoms

6. Crossing of double or triple tops or bottoms

7. Past resistance/ support

8. Volume of sales

9. Squaring of time and price.

EC<:-}
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