This post provides another example of the Gann Fan analysis discussed here.
This chart shows the NDX range from the take off in 1995 to the end of the bull market. Note how the correction into 2002 moved all the way down to the 1:16 slope. This is double the move of a normal market move. My assumption is that the move from 1995-2000 was actually twice the slope it should have been. A normal market would have followed the 1:2 angle and ended around NDX 2600 in 2000. There has been a lot of talk about the “wealth” destroyed by the bubble. But when you look at the chart you see that only a small part of this was a “bubble” in the time domain. Also, since a correction would have gone to the 1:8 line in March 2002 anyway, it is possible we are right where we should be at this time (even if the bubble didn’t happen).
Post Modified: July 8th, 2008 at 9:00 am
Tags: Gann Angle Fan · How To · Market Cycles · Nasdaq ChartsNo Comments
0 responses so far ↓
There are no comments yet...Kick things off by filling out the form below.