The correct application of the window of time in investing

In some comments on the stock market and foreign exchange market, we often hear the term window of time. Many friends may understand the meaning of the window of time, but not all friends understand how to apply the window of time correctly. Today, let's talk about the correct application of the window of time. The window of time is an application method of cycles. The use of cycles is different from different theories and different technical analysis tools. The cycles applied in the wave theory are based on Fibonacci numbers. In Gann's theory, the division and application of cycles have his unique definition. The window of time we often refer to is actually the Fibonacci number example commonly used in wave theory. The Fibonacci number example is the simplest number 123 as the basic number series. By adding the last two digits of this simple number example, 1 + 2 = 3 2 + 3 = 5 3 + 5 = 8 5 + 8 = 13 8 + 13 = 21 + 21 = 34 21 + 34 = 55 34 + 55 = 89 55 + 89 = 144, you can get Fibonacci numbers. Examples 3, 5, 8, 13, 21, 34, 55, 89, 144... and even infinity.

Then what is the use of this example? When we analyze price trends, we all hope to detect the turning point of the trend in advance, that is, the bottom of the trend. In actual combat, some important top-to-top times, bottom-to-bottom times, and top-to-bottom times mostly appear on the numbers of this example. For example, we often see that the top of a price trend corresponds to a previous high point, which is often 34 days and 55 days, or 13 weeks and 21 weeks, etc., or a trend starts from the lowest point and ends in 13 weeks, 21 weeks, 34 weeks, or 55 weeks. Therefore, during the operation of a trend, we will pay close attention to the times when inflection points may occur, and generally refer to those places that are prone to inflection points as windows of time, which are basically synonymous with Fibonacci numbers.

The basic theory of the window of time is not difficult to understand, but its practical application has certain skills.

First of all, the cycle analysis of the time window is a method that belongs to the wave theory. The analysis of the three elements of the wave theory, form, proportion, and period, should be combined with the wave pattern. When the price trend reaches a time window, we must first observe whether the trend pattern has a top and bottom pattern. If there is a possibility of a bottom in the wave pattern, then if there is a time period with the probability of a top and bottom, the probability of a bottom is very large, but if there is no obvious top and bottom pattern characteristics in the pattern, there is a time window, which cannot be used as a criterion for judging the bottom, because the importance of the pattern, proportion, and period in the wave theory decreases in turn.

Second, the cycle principle of the window of time is not strictly applicable to the trend of that time level, that is to say, as large as the monthly line and as small as the 5-minute chart, we can apply the Fibonacci number to find the top and bottom, so which one shall prevail? Generally speaking, the size of the cycle should be used together, because there will be small cycles in the large cycle, and they are not contradictory. For example, a 21-day cycle is exactly a five-week cycle, but the possibility of a bottom appearing on the first day of the fifth week is greater. Therefore, in application, we should first study the large pattern and the large time period, and then use the small cycle to find the specific time when the price trend may reverse. For example, this month is 13 months away from the previous high point, and now the price is rising, so there may be a top this month. If the price is falling, the possibility of a bottom is relatively large. For example, we can see from the big pattern and the big cycle that the monthly line may have a top this month, which is the specific week. Then we have to use the weekly line to calculate, which can be calculated from the previous high point. If it is pushed to a certain week, it is more likely to have a high point this week, or from a low point that appeared after the high point 13 months ago, to see which week of the month is an important time period, find the specific week is the intersection of the two big cycles, and then look for it from the daily line. Look at the day of the week and The previous high and low points of the short-term trend are corresponding to the periodic points, so that it can be basically judged that a turning point may occur on that day.

Third, use the window of time, be careful not to advance, it is best to lag, for example, this week is an important window of time, and there may be an inflection point in the price pattern, but if we enter the market on Monday to find a top or a bottom, then if the bottom appears on Friday this week, then think about it, five days, how much the price change will change, we can't afford such a big error in the price, the high point of the pound against the yen in early June this year, we originally calculated that it was corresponding to the previous high price of 21 weeks, but we made an empty order at the beginning of the week, and it ended up being repeatedly tossed for a few days, and I also wrote in the Friday strategy that it would be fine to survive today's empty order in England and Japan, but it happened to be on Friday night in England and Japan Under the stimulation of the news, we hit a high point above 205 in an instant, and we quickly fell back after knocking out our stop loss. As a result, we missed a large part of the market. Therefore, if we use the time period to calculate that there may be a bottom somewhere, it is best to wait for the trend to appear after the panic plate to basically confirm the bottom. But if there is no panic plate, then be careful, because any relatively large bottom will not appear very gently. If you place an order in advance before the panic plate appears, it is very likely that the stop loss will be swept away when the panic plate appears. If there is a bottom on an important time window and then enter the market, there will be no problem of sweeping the stop loss back. At the same time, you can also use the bottom that has already appeared as a stop loss point, and the relative operation difficulty will be reduced.

Fourth, the Fibonacci sequence can also help us determine the time when a local adjustment pattern ends (because a large adjustment can form a trend in itself), such as a local price trend adjustment, how long will it take to adjust? While studying the adjustment pattern, we can use the time period of the timeshare chart to count, such as 21 hours, 34 four hours, etc. If the falling point of an adjustment pattern happens to appear on a small time window of the timeshare chart, we can also use the convergence point of this pattern and time as the entry point. In addition, sometimes the price adjustment is completed by consolidation, how long will it take for the consolidation pattern to break through? This can also be calculated using a small time window, such as the daily level of small consolidation zone is often 5 days, 8 days or 13 days. Intermediate adjustment time is about 21 days, which helps us find a better time to enter the market.

One-year time window turning day (with * is the magic number)

January: 6, 15, 21, * 25 July: 8, 15, * 1 9, 23

February: 6, 15, 21 August: * 6, 8, 15, 23

March: 6, 15, * 20, 21 September: 8, 15, * 1 8, 23

April: 6, 15, 21 October: 8, 15, 23, * 31

May: 6, * 1 2, 15, 21 November: 8, 15, 23, * 28

June: 6, * 1 4, 21 December: 8, 15, 23, * 31

The 13th and 5th lines are not ordinary, and the time and space coordinates are captured. Granville's Eight Rules, Fibonacci's hiding and rape.

The short-term moving average is thirteen, and the window of time is not simple. To judge the strength and weakness of stocks, the thirteen moving average weighs one stroke.

If the share price crosses thirteen and rises steadily along that line, the upside will be extremely broad, if not limited.

After the stock price has risen sharply, I am most afraid of the weakening of the thirteenth line. It means that the market will end and I am always ready to flee.

If the stock price breaks thirteen, it will be resolutely eliminated and completely cleared. Medium-term moving average thirty-four, don't underestimate it.

Three or four wears fifty-five, and the moving average swap is expected. After the bulls are arranged, the official market will not be launched.

Long-term moving average 55, medium and long-term trend demarcation station. Bull-bear divide, Gann cycle window time.

Only when the stock price stands at fifty-five can it be possible to go up. The critical point for the stock price to start is early Zhou Quan on the 13th and 5th lines.

Where the stock price is located, space-time coordinate measurement parameters. Different types of stocks, the shape results are the same.

All stocks that can rise sharply, the patterns before the rise appear together. The law of stock price rise, the 13th and 5th lines break the mystery.

Not being greedy or impatient is the way to win, and it is not difficult to follow the picture. Strong and weak, often empty the warehouse, and wait for the rabbit to have more land.