Time and Price Pivots - XRP
Hello traders, this chart is an exercise observing the relationship between time and price. Specifically, we are observing how past price behavior may forecast future highs and lows.
For this example I've picked XRP/USDT on MEXC since that is what I use to trade currently but this can be done on any instrument/chart and repeating this on the exchanges should yield similar results.
First let me break-down how this is constructed. If the information seems vague - I'd be happy to do a tutorial once I have enough TradingView reputation to post pictures for a tutorial to do a true break-down.
Anyway, we first start by:
Regarding angles and chart scaling:
It is important to note that this process should be done with either a locked chart scale or extreme restrain of scaling time and price bars. The above example was done on a logarithmic chart. I have not tested yet to see if the results are really any difference from a locked chart. However, the important thing to grasp is that the angles are all relative to your current scale. So when you are squaring the range, as I will mention shortly, the 90 degree angle you form is relative to your current scale and if changed will be relative to that one, and so on and so forth. There is a slightly degree of inaccuracy, but I think that mostly has to do with how TradingView tools seem to "snap" regardless of magnet settings.
Continuing on:
Take note of a few things:
Observe what happened at these moments in time. You will notice a pattern of highs and lows forming at these moments in time. The angles provide dynamic support and resistance, whilst the intersection provide us a time when the market pivots. This can be done on any timeframe.
Now, some could argue, "If I divide my chart up a million times, then of course I'll hit highs and lows."
Yes, but I didn't. In fact we only have 20 angles or so on this chart where we can derive with accuracy these pivot points. Almost all intersections are at a high or low. I would also add that these points don't mean something HAS to happen, but these should be areas of interest where it is HIGHER probability for market to shift.
Using this data we can essentially forecast potential points time where we could expect shifts in the market - a new high or low. I have March of 2023 marked as a potential area of interest next year as we have two of our major lines intersecting then.
For this example I've picked XRP/USDT on MEXC since that is what I use to trade currently but this can be done on any instrument/chart and repeating this on the exchanges should yield similar results.
First let me break-down how this is constructed. If the information seems vague - I'd be happy to do a tutorial once I have enough TradingView reputation to post pictures for a tutorial to do a true break-down.
Anyway, we first start by:
- Drawing a horizontal line on the range low and high.
- We then draw a trendline from the low to the high and observe the angle of the line.
Regarding angles and chart scaling:
It is important to note that this process should be done with either a locked chart scale or extreme restrain of scaling time and price bars. The above example was done on a logarithmic chart. I have not tested yet to see if the results are really any difference from a locked chart. However, the important thing to grasp is that the angles are all relative to your current scale. So when you are squaring the range, as I will mention shortly, the 90 degree angle you form is relative to your current scale and if changed will be relative to that one, and so on and so forth. There is a slightly degree of inaccuracy, but I think that mostly has to do with how TradingView tools seem to "snap" regardless of magnet settings.
Continuing on:
- We square the high and low of the range by forming a 90 degree angle from the trendline on the high and low.
- We then find the 1/2 angle (45 degrees) and draw these as a trend line for the high and the low
- Continue to divide the space between the angles this from both the high and low. A Gann fan with the 1/2 point aligned with the 45 degree line can be sufficient.
Take note of a few things:
- Where angles intersect the high and low of the range.
- Where angles intersect each other.
Observe what happened at these moments in time. You will notice a pattern of highs and lows forming at these moments in time. The angles provide dynamic support and resistance, whilst the intersection provide us a time when the market pivots. This can be done on any timeframe.
Now, some could argue, "If I divide my chart up a million times, then of course I'll hit highs and lows."
Yes, but I didn't. In fact we only have 20 angles or so on this chart where we can derive with accuracy these pivot points. Almost all intersections are at a high or low. I would also add that these points don't mean something HAS to happen, but these should be areas of interest where it is HIGHER probability for market to shift.
Using this data we can essentially forecast potential points time where we could expect shifts in the market - a new high or low. I have March of 2023 marked as a potential area of interest next year as we have two of our major lines intersecting then.
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.