Further study on DJI, I found those amazing symmetry in time.
According to Gann’s theory, only when sufficient time have passed will the market make its strongest move.
Time study is an attempt to find the when it is sufficient. Following analysis will demonstrate the power of time study:
Fibonacci number: 0,1,1,2,3,5,8,13,21,34,55,89,144
Drop 1: 13 trading days, note the strong divergence on FI, it means investors are buying up on up days, reversal is imminent.
Subsequent rise lasted 54 days, on 55 days, it broke below the daily trend line. 55 is a Fibonacci number. The fall after is dramatic.
Drop 2: lasted 8 days
Drop 3: lasted 21 days and form a lower low comparing to drop 2 bottom. However on the FI index, a divergence is observed, subsequently a rally ensured.
Also note recent peak to peak is exactly 13 days.
Conclusion: DJI is obeying the Fibonacci in Time, next to watch is 34 and 55 days from peak.
Lesson: No need to trade all the time, only trade when there is a very high chance of success and trade big and meaningfully. Trading frequently doesn’t mean more profit, it means hard work, working against the odd and taking chance of a trade that is not perfect.
Happy trading,
Shi
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