Richard,
Thank you for your response. This will be a rather long question--hope you will bear with me. I bought VVUS on 9/3--as then in early wave 3 (since changed to an ABC correction) and used Gann box to determine S&R. Will you pull up VVUS chart in GET and in Training Mode, wipe off back to 9/3. I started the box at the 5/13 wave C low (was this wrong?) and found the 180X125 box to "fit" VVUS's price action the closest, i.e., up the 2X1 line, then up to the 4X1 line, sideways though volitile till came down to support at 1X4 line on 7/1, up to near resistance at the 1X1 line on 7/16, retrace and up again to resistance at the 1X1 line on 7/31, retrace to 1X1 support on 8/20 and lastly through that 1X1 resistance on 9/2 and strongly through it on 9/3. Next resistance was then at ~32.5 (Hope I haven't lost you yet<GG>)
Questions: Is it correct to try to keep the current "end" of the chart in the middle of the box?
Should I be trying to "fit" the price movement of the chart as accurately as possible to the Gann lines so there is a minimum of changes in direction in between the Gann lines where there is no rhyme or reason to the change in direction?
On the same chart, another "good" box is the 180X200 off the same 5/13 low. VVUS also follows the lines up and down well, BUT shows the point at which I bought VVUS to be at 1X1 resistance rather than as the previous box showing the breaking of resistance. Subsequent action proved the 2nd box to be more accurate, but with what was known on 9/2, the first box looked better. Is the fact the 2nd box is X200 vs X125 the primary factor rather than price fitting the Gann lines better?
Any light you can shed on this would be gratefully appreciated.
Regards,
Gary |
