Continuing with the themes from yesterday’s outlook post, today I want to look at the various time frames of the VLE. First the long term range from 1990 to 2002. Notice how price never went parabolic as the Nasdaq did in 1998-2000. Therefore it did not really correct until the summer of 2002 when it had a nice shakeout down to the 1:2 Gann angle. Price recovered quickly and is above the slope of the 1990-2002 range. I don’t believe price could be much more bullish than this.
Price is also bullish on the 2005-2007 range. The 50/50 point hits next weekend with price currently above this point.
The retrace off the July low from the July 2007 high has been exceptionally bullish. Price remains above the 4:1 angle of the Gann fan.
And finally, the square of 90 (ninety days from high) is about to complete. It is a good idea to watch early next week for a change.
Post Modified: August 17th, 2008 at 10:49 pm
Tags: Gann Angle Fan · Market Cycles · Price Retrace · Square of Range · Value Line Arithmetic Index (VLE)No Comments
0 responses so far ↓
There are no comments yet...Kick things off by filling out the form below.