Gann-angle intersections and half-range zones

Knowledge first, then a required stop

The historical plan is framed in two phases. The first phase is accumulated knowledge and patience. Stop-loss orders are the second, required control.

That knowledge is applied to one completed swing. Half-range cuts of the prior range and Gann angles from the swing pivots are used together to locate where a reaction is expected to hold before the prior swing can resume.

The balancing point and later recuts

Half-range support is the latest high minus 50% of the distance from the prior low to that high. That 50% division is the balancing point, treated as the most frequently tested support or resistance inside the range.

Most reactions were said to finish in the 45-50% band of the prior swing. Orders were therefore staggered through that range instead of being parked on one print.

If price continues through the balancing point, the next reaction is looked for at 62-1/2% (5/8) or 63%. The same range may also be cut at 75% and 100%. Those fractional cuts of a prior swing are the Fibonacci retracement grid used in the workflow.

Price-versus-time lines from the pivots

Gann angles are price-versus-time lines from swing pivots that locate reaction levels. From the second pivot they are drawn at 23 1/2, 45, and 63 degrees. A 45-degree line is drawn from the third pivot the other way.

Their crossings mark the retracement-zone ceiling and floor. The retracement zone is the price channel between those angle intersections and the half-range cuts, where a reaction is expected to hold before the prior swing can resume.

Two illustrated swings

One illustrated swing used a January low of 31.00 and a June high of 44.25. Half of the 13.25 range put the 50% zone high at 37.625 and the 63% zone low at 35.905.

One illustrated index swing ran from 370.65 on 22 June 1991 to 396.64 on 28 August 1991. That placed 50% at 383.50 and 63% at 380.00. October lows closed inside the 63% band for two sessions before the prior advance resumed.

Time checks and a close outside the zone

Time checks named anniversary dates of major turns and a seven-month window for a minor reaction. A 10-to-14-day span was treated as a normal reaction, or 28-to-30 days if that span is exceeded. Later watches sat at 45 or 49 days, 90-98 days, and 120-135 days.

A close outside the retracement zone, after the first support or resistance test, is read as a possible trend change. A later close back inside the zone was shown as a secondary test rather than an automatic invalidation.

The close-only stop and capital rules

A close-only stop at the 66% cut was specified so that a 50% entry that fails as a reversal would leave about 16% of capital exposed. That stop is judged on a closing print at a deeper retracement cut, and it tests whether a pullback has become a reversal.

Accompanying capital rules include risking no more than 10% of trading capital on one trade, always using a stop-loss, and not canceling that stop after the trade is placed. The stop-loss order is a precommitted exit, including a close-only stop beyond the retracement band, that bounds capital before entry and while the position is open.