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I know about the use
of equal ranges when it comes to comparing price ranges with previous
price ranges. I have learned about this equal range business from
many traders. We can all witness it from time to time. And yes, it
does seem to be when I am observing the markets movements. Unfortunately
I don't know which range is going to make it to the 100% level of
the previous range. The market might make it half way, or it might
even trade right through the 100% level like a hot knife through butter,
easily. However, there some good uses for the study of price ranges,
in particular the retracement levels. I am sure we all love a 50%
retracement to be at the beginning of our trend.
What I have been noticing
lately, well, actually I noticed this a long time ago but haven't
looked at it as seriously as I am now, is the ranges of TIME that
the market trades in. Let's forget about price for a while and look
at the ranges in time that are clear and evident in the market. Let's
look at the Australian SPI for example.
You will discover in the following
TIME chart that the high of 3373 made on the 10th of July is in fact
when the TIME started to turn the trend. Compare this TIME chart with
the PRICE chart and you will see two completely different pictures.
In the TIME chart the high
of 3376 made on the 3rd of October was in fact a DOUBLE TOP in TIME
with the 3373 high made on the 10th of July. You will also see that
the high of 3414 made on the 7th of November is in fact a LOWER TOP
in TIME to that of the 3376 and 3373 highs.
TIME CHART
PRICE CHART
Happy trading,
Solomon Thallon
HotTrader, Australia
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