Joseph I. Granville. Market movement

Joseph I. Granville. Market movement

Joseph Granville - the brightest of the technical analysts - at one time was known for what appeared at seminars in fancy dress, accompanied by women in bikinis. His mother was convinced that he is destined for something special before he became a celebrity, so she invited to her home of the famous mystic Edgar Cayce. In September 1939, Keith came to uncover the past life of a young Granville and predict its future. Granville said that Cayce said that his "workwill be such that it will never be forgotten!" His father - a more balanced person - once was a banker, but, unfortunately, has lost money the family is in crisis in 1929 - experience that will make overly bearish Granville bear.

During the Second World War he served in the Granville Navy and was in the Marshall Islands to Japan when atomic bombs were dropped. After the war he worked for a printing press for 90 home. a week, barely allowing his wife and four children. At the time of his hobbies was tracking the philatelic market, and predicting the movement of prices on brand, also eventually helped him get the job of tracking the stock market. In 1957 Granville bastard tried to write "I. F. Hutton," the daily bulletins on the state of the stock market. However, he found the atmosphere in the corporation shy and retired in 1963 to produce your own newsletter.

After a couple of brilliant predictions of market movement, his reputation became so great that when, in January 1981, he predicted the market fall, and advised its clients to sell and sell short, it actually caused a big sell with the highest trading volume in the history of the New York Stock Exchange . Frustrated investors have asked the Securities and Exchange Commission to investigate, but Granville did anything wrong - its newsletter and seminar activities flourished. But then he predicted a more severe market decline in 1982 s, while others were set on a bull. Market continued to move upward, and he lost his supporters. Since then, Granville has rehabilitated his image, and his newsletter is still considered one of the best. The article "Market Movements" offers a glimpse of some of the most unorthodox ideas Granville, equating the natural movements of the market for several well-known musical works.



The stock market is a little "accidents" When the stock rises or falls, the movement stands for "prnchina." The main task of the technical analyst does not establish this cause, simply assumed that the reason there is always an analyst thinks mostly about timing, that is, when a stock is moving, but not why it is moving. Since there can be no motion without the presence of some form of energy, the study of the dynamics of the stock price leads to investigate some of the forces behind these movements, and this leads us to a brief story about simple physics.

Movement of share prices often showed a tendency to adhere to some laws of physics. You acquainted with some basic concepts, and now it's time to add some nuances that relate breakthrough, a breakthrough from a flat base, support and resistance, gaps, and the climax of the movement with the laws of motion. We have shown that stocks tend to create their own "rhythm" and the maintenance and performance with the desire to answer a mathematical treatment of the melody and music performance of great art is as much a question of timing, as well as its construction.


Bach, Beethoven and Cosma
In the universe there is a predictable order. All movements are governed by the laws of motion. Chance does not exist, the whole vacuum is filled. Bodies in motion tend to stay in motion. Body at rest tends to remain at rest. You've already seen some of these laws in action, reading the charts of stock prices. Increase follows a break up. The decrease follows a break down. Failure to reach the previous peak leads to a fall. All the gaps are filled. All these movements are based on universal laws of motion. They do not only apply to the stock market, but they are equally applicable to the laws of physics, medicine and mathematics, as well as for the music.


Jesus, Joy of Man Desires
Johann Sebastian Bach (born in 1685 and died in 1750) would be a great stock market technical analyst, if he were alive today. His great music followed the principle of each technical analysis of stock market. Today he might be the perfect issledoeamelemgrafikov stock prices. Of course, in terms of time and temperament far removed from Bach modern stock market. However, his music, consciously or unconsciously follows the direction predicted by the notes. Bach directed by inspiration, and yet his music is almost the same mathematical formula.

Below is reproduced the theme "Jesus, joy of human desire" by Bach. Because the range of eight feet (12 in the chromatic scale), number 1 will be assigned the lowest note in the above topic. If we write the theme music in the form of numbers and give the first note of the number 4, the notes will be read as follows: 4, 5, 6, 8, 7, 7, 9, 8, 8, 11, 10, 11, 8, 6, 4 , 5, 6, 7, 8, 9, 8, 7, 6, 5, 6, 4, 3, 4, 5, 1, 3, 5, 7, 6. 5, 6, 4, 5, 6, 8, 7, 7, 9, 8, 8, 11, 10, 11, 8, 6, 4, 5, 6, 2, 8, 7, 6, 5, 4, 1, 4, 3, 4, Now apply these numbers to the chart.



By checking the corresponding numbers on the chart, imagine that each number represents the fluctuating stock price, and see how the schedule should all just deal with the technical principles of the charts.

The first four digits 4, 5, 6 and 8. This sets up the gap and predicts that it will be filled. The next two digits of a pair of sevens, filling the gap. Next figure 9, and it represents a breakthrough in the upper side of the previous maximum of 8: The gap between 7 and 9 formed during this break, immediately filled a pair of eights, two eights and sevens previous pair - is rising along with the base and rising to 9 is the breakthrough bullish forecast the arrival of new highs.

Then new highs immediately overlain by the culmination of a jump to 11. Now it appeared all the numbers from 4 to 11, except 10. Fulfilling the law breaks, then write the number 10, and since 7, 8 and 10 now represent the shape of growing grounds, the support level is 10, and the level of resistance - P.



The next number over 11. This level of resistance to further increase. This level can not grow, and the next number is 8. This creates a step-down signal, the first on the schedule. Figure 8 exceed the level of support 10. This technical prediction that will be reached quite low levels, and the schedule immediately obeys. Following the fall in numbers up to 8 immediately have lower levels of 6 and 4. figure ceases to fall on the figure 4, because so far on the chart, this level is considered the main support first (lowest digit figures so far). At this point, the schedule makes a phenomenal turn phenomenal because it is very logical from a technical point of view. Because the gaps created by top-down, when it was falling from 11 (11, 8, 6, 4), these gaps are now filled with straight-line growth of 4 to 9. Taking into account the technical fact that the previous support levels 7 and 9 on the way down the levels of resistance are on the way up, climbing from 4 to 9 samples through the first resistance level 7 and gave a technical signal of further growth. Previous figure 10 partially fills the gap between the 11 and 8 on the way down. Thus, the technical requirement was to move only up to 9 to fill all the gaps from 11 down to 8. Due to the additional fact that the second level of resistance on the way back up is at 9, it was very logical that the increase this time to stop at 9.

Turn down, now perpetrated on 9 creates a bearish configuration decreasing peaks (first and highest peak at 11), as the previous rise straight from 4 to 9, there is no support on the way down to the last important support level 4, and so , the numbers go down.

The figure represents a decrease in the numbers 9, 8, 7, 6, 5, 6, 4, 3, 4, 5 and 1. Shrinking marked on the top 11, 9 and now at 6. Temporary turn up to 6 sets out the number 5 as a temporary support level. When immediately followed by the number 4, this means that the departing figure tops and break down through support level 5 gave a bearish signal, which does not allow the previous main support level 4 at this time to stay. Without a doubt, the level of support 4 is taken immediately drop to 3 for the first time, drop to 3 other bearish signal for smaller numbers, which had yet to appear, but initially was a temporary increase, the numbers 4 and 5 digits following the fall to number 3. The rise was supposed to be temporary for two strong technical reasons. Fall to 3 already gave a bearish signal, and the previous support level 5 on the way down was the level of resistance on the way up. Then the figure is over the climax to a decrease (as predicted by the bearish signal on figure 3). Just as an earlier jump from 8 to 11 on the way up was the culmination of the frequent upward movement as well and drop from 5 to 1 was the culminating part of the downward movement.

Following the culmination of the upward movement to go down quick retreat. Bach shows that when an initial jump from 8 to 11 followed by a pullback to the 8, 6, 4. Following the culmination of a downward movement is rapid growth. Now, Bach shows that after 3, 5, 7, growth point, after a marked decline to a 1. This pattern of growth forms discontinuities at the points 2, 4 and 6. Gaps in points 4 and 6 were then filled with the following in order of the numbers 6, 5, 6, 4, 5, 6, Next, figure-8, and it gives a bullish signal rise, breaking the previous high recovery 7. Repeats the whole figure with the remaining filling variations, the last remaining tear at 2 and balancing breakout m 2 to 8 with the remaining digits to fill this gap, a brilliant piece of music that should all directions, resulting from a thorough technical analysis of stock market.


Beethoven's Fifth Symphony and
Ludwig van Beethoven (1770 - 1827) also subconsciously followed the "technical" line in his music, and the first bars of his immortal Fifth Symphony to provide a good example:



Translating these notes to numbers, we obtain the following sequence: 5, 5, 5, 3, 4, 4, 4, 2, 5, 5, 5, 3, 6, 6, 6, 5, 10, 10, 10, 8 , 4, 4, 4, 2, 6, 6, 6, 5, 11, 11.11, 9, 12, 12, 11, 10, 12, 12, 11, 10, 12, 12, 11, 10, 8 12.

Now apply these numbers on the graph [see below].



It can be seen as a clear figure of the growing grounds and the growing tops, followed by rising to the climactic breakthrough peaks, are more irodolzhitelnoe double bottom that supports the second rise to a new series of peaks, the first seventeen numbers are very bullish outline shape with the curved base and break up (for point 6). This is a key signal to buy. This figure, which is followed by many stock prices, and good to identify it right away to earn a very bullish breakout from this type of curving base.


STOCK MARKET REFLECTS mixture of truth
Technical analysis of stock market is mainly based on repeated observations of many, and often can be seen that the derived truths have parallels in such things as music, medicine, physics, etc. In other words, it seems that here, and there are some laws of nature involved. You've already seen a lot of technical similarities between the movements in stock prices and a piece of music. In both there is a certain logic and order. There is a strong feeling of something that exists at the hands of just pure luck. Although n is the presumptuous to say that there is predictive power, there is more than enough evidence to warrant further investigation.

In medicine, every disease has some symptoms, allowing the doctor to put the correct diagnosis. Several diseases have similar symptoms, and less experienced doctor can put misdiagnosed simply because they missed a sign, waiting for the disease to many others. There is always a characteristic set of symptoms, which selects and correctly categorize a single disease. Same thing with the technical analysis of stock market, each market situation has a certain set of technical indicators (symptoms) correctly categorized (which assigns a diagnosis) situation. Specifications for a less experienced analyst may misinterpret the market, simply because he may miss one more indicator that properly defining the situation. We can not expect immediately to be a good diagnostician market or a good doctor without the required years of practice and training.

The study of the stock market shows the work of many physical laws and the laws of nature. Here are some of them.

l. A body in motion tends to remain in motion.

2. A body at rest tends to remain at rest.

3. The fact that goes up must fall down (gravity).

4. It takes more energy to climb up than down down (gravity).

5. In nature there are no voids.

Let's check out these truths and apply them to the market.

1. The body, which are "in motion tends to remain in motion.

With regard to the market we would call it momentum rates. If the stock over the years repeatedly could not exceed the price of 30, ions in the end she managed to make it clear that she has a point of price, which was not in the past. A move above 30, obviously, will lead the price even further. Rising price breaks through previous resistance levels have momentum, and the physical laws of motion can be profitably used for profit. It is equally possible to apply when the stock falls below the previous minimum point. Downward momentum to lead the price down, and should expect a number of new lows

2. A body at rest tends to remain at rest.

Immediately comes to mind is the basic configuration. With stocks, nothing happens, and the baseline may be a few years ... You will learn how to distinguish such actions in its basic configuration, which may be in its base a few more years, and those shares in a base configuration that are ready to break up. Shares, who literally do nothing, will have a tendency to do nothing until they begin the accumulation or distribution ...

3. The fact that goes up must fall down (gravity).

This generalization of a lot of subtleties. If the stock price rises too quickly, increasing the risk of rebound down. The rate increase is largely dependent on the level, which was taken from the start. Obviously, if the rapid growth started from a base configuration takes precedence first law of physics, called the price point will weaken soon. If a rapid increase occurs after a stock for a while growing up in price, has a priority this physical law, Mr. greater risk reduction.

It is easier to understand if we comprehend that the stock price tends to move in mpu ethane (1) base configuration, and (2) increase of the base configuration at an angle of 30 degrees, and (3) The third stage of development when the price rises nearly vertically or at utlom 90 degrees. The greatest risk of rapid decline and is just at this last stage. It is at this stage is most often used above physical law.

4. It takes more energy to climb up than down down (gravity).

Rise from 20 to 50 may take the action a year or two, but she could lose half of its promotion for several weeks.

The principle of gravitation shows that the downward force of gravity in most lands, and as we rise above the ground the force of gravity is gradually reduced, until we get more light upward momentum. When enough energy is expended on the rise, depletion occurs, and the body returns to earth, exactly the same with stocks. That is why the stock will be some time in the base (first stage) until the rising of energy produced enough (capacity Vol) to overcome the force of gravity, inertia, or price. When this happens, the action moves to the second stage increase. Rising energy continues to grow as long as does not accelerate the rise in prices and the stock will not go into the third stage, and here pacxoduetsya balance rising energy and action have nothing else to read further will file, and then the laws of gravity again become dominant. In other words, the energy required to overcome the force of gravity. Of course, there is nothing new, but these things should think about when it comes to stocks.