Andy Bushak introduces combining price and time analysis using Fibonacci and Gann number sequences. He argues that price and time can be treated equally in technical analysis, with the key difference being that time always moves forward while price can go lower. Bushak demonstrates analyzing support and resistance levels in both price and time using charts of EUR/USD, and discusses applying Fibonacci and Gann number sequences to price and time analyses. He also introduces the concept of analyzing price and time within defined "rooms" on charts.
Andy Bushak introduces combining price and time analysis using Fibonacci and Gann number sequences. He argues that price and time can be treated equally in technical analysis, with the key difference being that time always moves forward while price can go lower. Bushak demonstrates analyzing support and resistance levels in both price and time using charts of EUR/USD, and discusses applying Fibonacci and Gann number sequences to price and time analyses. He also introduces the concept of analyzing price and time within defined "rooms" on charts.
Andy Bushak introduces combining price and time analysis using Fibonacci and Gann number sequences. He argues that price and time can be treated equally in technical analysis, with the key difference being that time always moves forward while price can go lower. Bushak demonstrates analyzing support and resistance levels in both price and time using charts of EUR/USD, and discusses applying Fibonacci and Gann number sequences to price and time analyses. He also introduces the concept of analyzing price and time within defined "rooms" on charts.
Andy Bushak introduces combining price and time analysis using Fibonacci and Gann number sequences. He argues that price and time can be treated equally in technical analysis, with the key difference being that time always moves forward while price can go lower. Bushak demonstrates analyzing support and resistance levels in both price and time using charts of EUR/USD, and discusses applying Fibonacci and Gann number sequences to price and time analyses. He also introduces the concept of analyzing price and time within defined "rooms" on charts.
combining Price with Time using the Fibonacci and Gann number sequences ANDY BUSHAK
Price and Time
have always said that if it is the right
price, it is the right time and if it is the right time it is the right price! Price and time can be treated equally in technical analysis. Anything that can be done in price; can be done in time, except for one thing: Price can go lower, but time always moves forward. At this point, I do not know the formula for pausing time or going back in time to start over. The only thing I know to do is to look at time from the future to the present and the past. That is a whole separate article. Markets are charted with the horizontal axis displayed in time and the vertical axis displayed in price. However, when viewing a chart, price support and resistance are viewed horizontally and time vertically. The Weekly chart of EUR/USD clearly shows price support. Time is treated the same as price where time retracements can be taken off the same swings. Chart 2 of EUR/USD shows where time and price came together.
Chart 1 : EUR/USD
The easiest way for any trader, beginner
or advanced, to start using price and time in their trading is to combine it with an existing trading strategy. The knowledge of price and time may provide additional confidence or a further qualification of the trade set-up. With more experience and with trade objectives, price and time can be its own trading strategy when combined with money management. I will make a brief mention of Fibonacci and Gann sequence numbers. I believe many people know the sequence. For Fibonacci, the sequence is 1, 2, 3, 5, 8, 13, 21, 34, etc. For Gann, the sequence is divisions of 360 degrees i.e. 45, 60, 90, 120, 180 etc. These numbers can be applied to both price and time. Now, when both price and time come together, it is worth noting.
Chart 2 : EUR/USD
26
NOVEMBER 2007
Price and Time can work on a rate line.
This is where the math comes in with the
formulas price = rate x time or rate = price / time. This math gets us into Gann. Gann deals with the math in the markets. Chart 3 shows how rate lines work support and resistance levels while approaching a key intersection. Now, another way that I like to deal with time and price is to put it into a room. That is what I call it. You are basically dealing with price and time within a specific area. Lets look at this: So, very simply, if I am bullish I would like to be above the 1 x 1 (blue line) in this room. In addition, I will break this room into quadrants and have new quadrants outside this room in price and time.
Chart 3
When the rooms are broken into quadrants in this fashion, the trader can remain tight to the market. This is a very quick glimpse of Price and Time. Andy Bushak is a full-time trader and seminar leader. Andys early career included graduation from the United States Naval Academy, five years in Surface Warfare, a stint as a professional football player and with HewlettPackard. He started trading full time with a handheld QuoTrek (the original) and doing charts by hand. His method was simple: Elliott and Fibonacci.
Chart 4
Now, with more than 16 years of full-time
trading experience, his focus still remains the same to teach, you have to be able to do! His User Seminars include live trading. This is a carryover from his Advanced GET (Trading Techniques) days when the staff was encouraged to trade to live out the Advanced GET motto: Traders helping traders. Over the years, Andy has done trading seminars in Malaysia, Singapore, Australia, Canada and the United States. He has made presentations at the CME and the CBOT and at various trade shows and to various traders groups and organizations. He has provided consulting to floor traders, hedge fund managers, professional traders at banks and brokerages, as well as to individual traders. Andy can be reached at abushak@earthlink. net
