From the mba think tank encyclopedia (https://wiki. Mbalib. Com/)
Gann fan
Jiang's angle overview
The gann fan, also known as the gane line, is a relatively common technical analytical tool for domestic investors, but it is no doubt a pity that some stock analysis software is not well known because of the unique nature of this tool, and that operators do not have access to the powerful measurement of the market effectiveness of the jiangn line. The angle is an important component of the jiangn theory series, which has a very intuitive analytical effect, and helps analysts to make clear trend judgements based on the transversal trend lines provided by the angle. Thus, the angle is a low-cost, good-quality analysis that anyone can easily learn with little time。
Turning to the meaning of the angle, jiang declared: "when time and price form the quadrilateral, the market is running. " to indicate that the angle is not a general trend line and that the concept of two degrees of space at time prices leads to a unique system of analysis. Thus, analysts have pointed out that the angle is the greatest invention of jiang, which opens up a pattern of time and price irreconcilable but indissociable, even the most valuable part of technical theory from an operational point of view。
As a result, the construction of the jiangn line requires a four-sided concept, the so-called quadrilateral, with 45 degrees of the diagonal as half of the quadrilateral, which represents a balanced relationship between time and price, and a major market shock if the balance is reached by the time and price of a given model。
The jiangn line reflects the relationship between price and time in the jiangn theory。
The most important concept in the jiangn theory is the relationship between the jiangn line and the price movement。
The jiangn line was built on the x-axis for a price on the y-axis for a symbol “txp”, t for a time and p for a price。
The jiangn line is priced by unit of time and unit of price, and each is determined by the relationship between time and price. From the obvious vertes and bottoms of the map, they cross one another and form the relationship between the rims. Not only are they able to determine when prices will reverse, but they can also indicate where they will reverse and constitute a wonderful harmony between time and price。
The basic ratio of the jiangn line is 1:1, i. E., the price runs one unit per unit time. In addition, 1/8, 2/8, 1/3, 3/8, 4/8, 5/8, 2/3, 6/8, 7/8, etc. Each line has its corresponding geometry。
The rate of fluctuations in the angles of jan
Jiang's angle draws a set of rays based on fluctuations. These points on the line form the support and resistance of the market. If the market breaks through a line, the point on that line will in the future constitute the backbone of the market; on the contrary, if the market breaks a line, the market will be held back in the future。
Here, let us be clear about the difference between the angles of jiang and geometry, which are not directly linked. As a general rule, the 1x1 line of the jiangn definition is the 45-degree angle previously known. However, this cannot be done when drawing charts on a computer because, if one x 1 is used as 45 degrees, it can cause a large error or even result in an error. This is because computer stock analysis software has different scales, and the ratio (volatility) defined by 1 x 1 may vary。
In view of this, the article's use of the jan's angle fluctuations and the use of methods and techniques were based on its own "stock chaser" software. In theory, it also applies to other analytical software, but i have not compared the differences in detail。
So, what's the rate of volatility
The market has two perspectives on volatility:
First, the magnitude of price increases or decreases in the market unit time。
Second, how many cycles, i. E. Frequency, do markets operate at some time。
The first description should be chosen for application on the janian angle. There is a non-negligible concept of unit time, which relates to the time-axis scale of the charts, but also to charts of different time scales, such as the dailies, the weekly graphs, the lunar graphs, the chronograms. Some analytical software is now extended to seasonal, annual and customized lines。
Because of time differences, the volatility rate varies, meaning that it is not fixed. Investors may have a particular interest in a particular type of time-scale chart according to their needs in order to take advantage of the timing of their transactions, but it is suggested that investors should more often combine their time-frame analysis。
Here's my personal method of calculating volatility。
In the book jiangn's perspectives and time window, reference was made to the algorithm of the volatility rate, although it was initiated to determine the unit price of the market (it was also the only book in the country that presented the volatility algorithm). Let me introduce the algorithm in the book。
In its view, the method of calculating the volatility rate of the upward and downward trend was the method of calculating the volatility rate。
The fluctuations in the upward trend are calculated by dividing the distance between the bottom and the bottom in the upward trend by the time between the bottom and the bottom. The rate of fluctuations in the downward trend is calculated by dividing the distance between the top and the top by the time between the top and the top in the downward trend. And draw them as coordinates on paper。
Increase in volatility = (second base - first base)/time distance at two bottoms
Decreased volatility = time distance (second top - first top)/two tops
I've been simplified by the formula. In practice, many errors were found, especially in domestic markets。
I propose an amendment: using average fluctuations in one trend over a period of time as the base for the next trend, and then 8 minutes of this rate of volatility, to arrive at eight small fluctuations, and then to draw up an angle on the basis of these fluctuations
How to draw a jane angle
The rise is a straight line from the bottom of the market to the top right; the fall is a straight line from the top to the bottom right of the market. Draws the angles of jan to be as simple as possible. The right starting point should be selected from the price side, and the time when the relatively high and low price was generated was also important。
Select a trend and calculate the volatility over time。
The selection rate must be carefully calculated, which would be crucial for subsequent analysis. To master the method of setting volatility rates, it is necessary to work hard。
In fact, there are two things that need to be noticed in order to use the gang angle correctly:
1. Correct volatility。
2. Right start position。
So let's look at the right start. Where do we start drawing this angle? As you know, the rise is a straight line from the bottom to the top right; the fall is a straight line from the top to the bottom right. Which of the many tops and bottoms should be chosen as the starting point of the jiang's angle? Here again, the top and bottom of the long, medium and short cycles are involved。
Remember the length of the period selected in calculating the volatility rate, which is generally mathematically related to the time the angle is suitable for use after drawing. There is also a method that can be used in conjunction with the use of indicators to assist in the search. It is suggested that you start with a long-cycle selection point and then shorten it to a shorter one。
The angles drawn should be as simple as possible. The right starting point has two meanings: first, the high, bottom point of the market, and second, the important time of the market. Generally, the vast majority of people begin with the first approach, and it is difficult to start with important times. I personally suggest that the starting point be chosen first in terms of price, which is also important when relatively high and low prices arise, in line with the requirements of the second approach. Therefore, for these reasons, it is relatively easy to use prices as a starting point。
The difference between the ernst line and geometry
It is important to understand the issue, starting with the angle of jiang's own production. In the age of jiang, when all the drawings were made by hand, jiangn had hired more than 30 staff to deal with the work, using the equivalent of the current 8x8 drawing paper, which allowed him to pre-draw a set of upwards or drops of the jiangn line on the basis of the 8x8 scale, i. E. Squares, followed by a continuous marking based on the ratio of the time price. This is done in one unit of time by one unit of price, which is done in a 1x1 line. At this point, the 1x1 line corresponds to 45 degrees in geometry。
Generally, however, market prices operate in a highly irregular manner, with a set of numbers at a fixed rate, which is naturally less effective in all trend analyses. The angle and geometry of jan, however, are divided here。
We know that geometry has nothing to do with time, and if the 45 degree angle of geometry is the equal of time to price, then the 45 degree is 1 x 1; but if the time below the 45 degree angle is not the equivalent of price, then the 45 degree cannot be called the 1x1 line. It is hard to imagine how a geometrically time-neutral application to the market can be properly analysed? I don't know. In fact, the 45 degrees of jane must be 1x1 line, the 1x1 line must also be 45 degrees angle, while the 45 degrees of geometry may not necessarily be 1x1 line, which is determined by the ratio of time to price rather than by a graphic or computer image。
As a result, jiang has placed particular emphasis on the importance of time, observing price changes within a given time period and taking into account time and price space at the same time, which are different from geometrical angles, and dynamically observing stock price changes depending on time and price. For example, in the case of the same time, the equity price for some equities is $40, while for others it is $10, and the difference cannot be equated at the same rate. It is feasible for the former to operate at a rate of one dollar (time) per day, that is, one x one line, while the latter should operate at a rate of one dollar per day, that is, one x one line. Although the equity price is not the same, it is one x one line, which reflects the true picture of the two different equity prices according to different patterns and cannot be achieved by applying a geometric (static) approach。
Thus, the analytical significance of the ernst line captures the different rates of volatility for each stock price and correctly reflects its potential pace from a unique perspective。
A tool to reflect the correlation between time and price
Jiang's angle, the gan's line, is the most intuitive tool in the jiang's theory of the interrelationship between time and price. According to jane, time equals price, price equals time, time and price can be converted to one another, “when time and price form a quadrilateral, the market is in a state of emergency”. The jiangn angle is a movement for defining prices in time units and price units, each of which is determined by the relationship between time and price, extending and drawing from significant high or low points, divided into upward and downward angles, typically with nine angles, providing support pressure, with the symbol “txp”, i. E. “time x price”。
The meaning of the janian angle lies in the perfect combination of time and price, which is based on the ratio of time to price system. Its base ratio is 1:1, i. E. A unit of time corresponds to a price unit of 1 x 1. It is also divided into 3 and 8 units, respectively, and these angles constitute back-to-back or upward support and resistance positions. A line of 1x1 indicates a unit of time equal to a unit of price, a line of 1x2 indicates a unit of time equal to two units of price, and a line of 2x1 equals a unit of price, so push. In the upward angle, the greater the slope, the greater the angle, the greater the value of the equity
The role of the janine line compared to the trend line
In daily graphs and graphs analysis, many analysts use various trend lines and even channels to predict markets, with clear results. However, the trend line is created on the premise that, after a fairly complete pattern of market dynamics, it is linked to one another by certain points of volatility, which is called the trend line. It is clear that the trend line can only exercise its analytical role once the market has developed, and that the trend line analysis appears to be inactive if the trend is not clear or before it is formed。
When the trend is over, the potential opportunities are wasted. It would be nice to be able to grasp the emerging trends in the near future!
This function is performed by the jiangn line. The difference between the jiangn line and the trend line is that it is forward-looking, known, and that it is tied to certain specific angles is the opposite, because the value of the jiangn line is reflected precisely in a mechanical angle, with its own rules of volatility being found at the right starting point, and the disorderly market price fluctuations being controlled by the jiangn line。
It is clear that the jiangn line was established at the bottom or at the top soon after the market had taken shape (to determine the right starting point) and then to find a specific time-to-price ratio (proportional fluctuations). When such a group of jan lines, which foresee future trends, emerges immediately, it is necessary to observe the developments of the market carefully, or to extend it to a certain angle, you will be surprised that the jiang line has found a reversal in market prices at a given time and has followed it to the next reverse zone. It is clear that the forward-looking and known nature of the jiangn line is not comparable, while the delayed reaction of the trend line makes its function more prominent。
Application of the jane angle
