The Gann fans of the DOW chart since 1982 are interesting. Setting the 1×1 angle at the top of the 2000 high provided the 2002 low at the 1×2 angle. Price tends to move in doubles and halves of a significant slope.
Now setting the 1×1 angle to the 2007 high, we can see that price bounced off half this slope on October 10th. Until this angle is broken, my assumption is that the low is in. Who am I to argue with geometry? 
Tags: Dow Jones Industrial Average · Gann Angle Fan4 Comments
4 responses so far ↓
In this post, the geometry shows that the low is in for the Dow, a amjor bottom. Yet, in the 11/7 post, you stated “nothing is bullish in the QQQQ chart”. Normally, the Dow and QQQQ move together. Conclusions seem conflicting. Am I reading this right?
Fred - Assuming the low is in, that does not mean that prices will move up from here for some period of time. Maybe prices range at this level for a few months like they did in 1987. The QQQQ price bounced at the 150% time cycle and the could be the low cycle date. I am just watching and waiting until I see real buyers in the market to consider more longside exposure.
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Also, I “assume” the low is in “until” the 1×2 angle is broken. Then I expect price to move to the 1×4 angle which has the DOW near 4500.
andy
what would the geometry suggest the dow goes UP to before it descends down to 4500? or is that readable from your chart
thanks for the updates!
almost44 - Price moving up means nothing until it goes above the 1×1 angle. I don’t think anyone expects this (even the most bullish) for years. Price is free to roam around between the 1×1 and 1×2 all it wants - forever.
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But other angles to consider are the horizontal which measures price movement, and vertical which measures time cycles. Gann found all three angle significant. If the trend changes where two of these angle meet, then it can be significant. If the trend changes when all three meet, this squareout will certainly be a turning point.