Monday, March 21, 2011

1245-1306

2 comments:

dchoi224 said...

hi, i do a lot of work with fibonacci and i think your analysis is very interesting. could you please elaborate on this post.

Fibocycle said...

The fan lines are not Fibonacci based in this case but are derived by projecting geometric fan lines from the lows. These are not conventional Gann lines such as 1X1 2X1 3X1 ... but are calculated using 30 36 45 60 72 degrees. This can be calculated in calendar days using the tangent of the angle such as 30 = .5774 36 = .7265 45 = 1 60 = 1.762 and 72 = 3.077.

For example
Using the Aug 27th low @ 1039.70 and projecting a 45* fan (1X1) tan = 1.00 from Aug 27 to march 21 is 206 days. Therefore 1039.70 + 206 = 1245.70 Support.

Taking the Nov. 16 low @ 1173 and projecting a 30* fan is calculated by:
March 31 - Nov 16 = 125 days
tan 30* = .5774
125 x .5774 = 72.175
1073.00 + 72.175 = 1245.17

Note how the 45* from Aug 27 and the 30* from Nov 16 both are at 1245 on March 21st...therefore there should be support in this area.

The 45* from the Feb 18th high at 1344.07 is currently at
March 23 - Feb 18 = 33 days
1344.07 - 33 = 1311

For March 23 which is 127 days from November 16th the 45 degree fan is at 1300.


Using the two lows of 1173 and 1039.70 there is a 133.30 point difference.
adding that difference to the second low = 1173 + 133.3 = 1306. A Harmonic Resistance Support level

Therefore there should be support at 1245 and resistance at 1300 - 1306 and 1311.