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Re: That Magic 45 Degree Angle
In Response To: That Magic 45 Degree Angle ()

Here's the deal ... and why angles have a bad rap.

Take your example of a 45 ... that is/was a 1x1.

In other words, that is one price move per one time move.

Assume you have a one day grid. And, say you're charting corn at one penny per grid.

Therefore one penny up per day would be a 45 degree angle.

I just keep adding to my rolls of (what was once) K and E paper.

However, assuming that you do not have perfectly square grids ... and you have something other than one penny per grid (let's say 2 pennies per grid) ... obviously a 45 degree angle is NOT a 1x1.

Taking a simple computer generated chart and attempting to affix a 45 degree angle to it .... well, it ain't a 1x1. Therefore, it has no merit, other than some pretty little line that one draws upon their pretty little computer generated chart.

When you actually are keeping 1x1, 1x2, 1x3 or 2x1 (two time grids per price grid), 3x1 (3 time grids per one price grid), etc.

You just might find how accurate they are.

However, drawing some angle on to a chart that has no time/price correlation ... well, once again, that's just some other pretty little line that one draws on their silly little computer screen.

Very little merit ... yet, it is a great way to lose a whole bunch of money.

Messages In This Thread

Re: That Magic 45 Degree Angle