Michael Jenkins - The Geometry Of Stock Market Profits
Thanks a lot.
Do you have Michael Jenkins - MTA video ?
In May 2009 Mr. Jenkins gave an hour and a half presentation before the Market Technicians Association in which he explains many of his proprietary methods and showing how to calculate many of the highs and lows since 1998 exactly to the day and within a few cents of the actual price. Thanks
BWT what charting platform did he use to calculate the degrees etc?
Thanks. But I have read the book over 10 times and still can't understand a thing, except for the fibo projection.The answer to this question is on page three of the book in the Acknowledgement. I would recommend Ensign as it has all of the features necessary to apply this method. You should probably read and reread the book and and apply the method page by page as it is really not that difficult to follow.
Having thought about my earlier post which probably wasn't very helpful other than the point that any application is difficult, I will try to answer your question as best that I can. However before that I want to tell you a relevant story regarding this subject. This was told by Tim Morge regarding a rivalry that existed between Dr Andrews (Median Lines) and WD Gann in their days. There was one day when Dr. Andrews heard in the next room WD Gann talking about the magical 45 degree angle that would be able to predict price movements. Dr. Andrews being a mathematician challenged that notion because a 45 degree angle is dynamic and not static as it is dependent on the dimensions of the measurement. In other words, the slope of a 45 degree angle is different between a rectangle and a square. Herein lies the issue of the ratio to apply to price/time i.e. the conversion factor. The problem that you will notice is that both Gann and Jenkins talk in simplistic terms of using a 1:1 ratio in examples but we know in practice there are specfic scaling actors dependent on the instrument. Unfortunately they conveniently skip through this point. The question is do they actually know or is it a trade secret that do not wish to divulge.Frankly, Who can tell me how Michael Jenkins sets his time/price scale in his book 'Square The Range Trading System' ? I don't see how he set his diameter when he draw a circle on his price chart. His circles can be easily adjusted to an ellipse.
No, Jenkins actually *does* address this ... he uses the slope of the first move away from an extreme as the 1:1 line. Perhaps you should read his work more carefully. The "instrument", btw, doesn't matter; it applies equally to stocks, futures, bonds, etc.... The problem that you will notice is that both Gann and Jenkins talk in simplistic terms of using a 1:1 ratio in examples but we know in practice there are specfic scaling actors dependent on the instrument. Unfortunately they conveniently skip through this point. The question is do they actually know or is it a trade secret that do not wish to divulge. ..
Are you actually saying that there are no scaling (conversion) factors involved as they are strictly 1:1 ratio and this applies to all instruments? Can you please point to the page that he actually says this.No, Jenkins actually *does* address this ... he uses the slope of the first move away from an extreme as the 1:1 line. Perhaps you should read his work more carefully. The "instrument", btw, doesn't matter; it applies equally to stocks, futures, bonds, etc.
I am not a student of Gann and so forgive my ignorance if I am going on the wrong track. Based on what you have said, the fractals of 8 applied against the range of prices would theoretically mean an almost endless combination of probable scaling factors. This in my view is not a very practical solution.The " squaring out " of Price and Time has little to do with a "square" but a lot with the Pythagorean equation. a^2 + b^2 = c^2.
Which from a "gannish" point of view can be translated as : Price^2 x Time^2 = (Angle (1x1)^2.
The improperly named "45° angle" is the (1 Price Unit x 1 Time Unit) Angle and is in fact also a moving average which describes (relative) Speed, Acceleration, Momentum and Sentiment.
The "scaling" question can be resolved by using the octave system version 2 of Gann.
Version 1.0 was the division by 8 of the distance between a high and a low.
Inconvenient was :
a) which high and which low ?
b) every time price makes a new high or a new low everything has to be recalculated.
At the end of his life Gann has improved the system by developping a "fractal of price"
0/10, 0-100, 0-1000, 0-10.000, 0-100.000
you just have to divide these "fractal of price " by 8 which gives you the octave ( the specific vibration) of the instrument whose prices fluctuates in this "fractal".
Each octave can be divided by 8 in sub-octaves.
This version was popularized by TH Murrey (Murrey Math).
Some well informed people have written at the time that Murrey has "borrowed" his system from Gann
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