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¤ The first target is the previous Wave Four near the 1110 area.

¤ Chart B shows the sell point and subsequent action.




T-58
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Type Two Buy in March 93 Canadian Dollar

¤ In chart A, the March 93 Canadian Dollar is completing a Five Wave Decline.

¤ The Elliott Oscillator shows clean divergence.




A B


Previous
Wave 4
·

New Wave 3 ø




±
Buy
Divergence




¤ Buy on the cross of a trend line or DMA (Displaced Moving Average) with a stop
under the lows.

¤ The first target is the previous Wave Four high near the 80.00 level.

¤ When prices trade to this level, one can tighten stops and monitor the software gener-
ated Elliott Wave counts for a new Wave Three in the same direction.


T-59
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Type One Buy in August 93 Gold

¤ Chart A shows a completed Wave Four. The Elliott Oscillator confirms this.

¤ The Profit Taking Index is greater than 35 (at 47) which indicates a potential for a
rally to new highs.


B
A
PTI




ï Buy
±
Wave 4
Channels




¤ The Wave Four channels are holding prices which further supports the rally poten-
tial.

¤ Buy on the cross of a trend line or DMA (Displaced Moving Average) with a stop
under the Wave Four low. The target is for new highs above the 390.00 level.

¤ This usually sets up a Type Two sell situation (seen on next page).



T-60
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Type Two Sell in August 93 Gold
(with one FALSE signal)
¤ Chart A shows a completed Wave Five sequence with the Elliott Oscillator confirm-
ing with clean divergence.

¤ Sell on the cross of the DMA (Displaced Moving Average) with a stop above the
Wave Five High. The first signal was a false one, and the position was stopped.


B
A
2nd
· Sell
1st Stop
False Sellø




ï Previous
Wave 4




Divergence




¤ The second sell signal caught the entire decline. Look for the previous Wave Four
low near the 360.00 level as the first target.

¤ The first sell signal was a false signal. This was due to a sub-division or extension in
the Fifth Wave.

¤ See the next page on how to handle false signals caused by sub-divisions.




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Handling False Type Two Signals
(Caused by sub-divisions or extension in the Fifth Wave)
¤ The main or normal Elliott Oscillator (Tom's 5-35) provides confirmation on the larger
degree Five Waves.

¤ Since the Fifth Wave extended and sub-divided, a false signal was generated on the
first sell signal.



2nd
·Sell
False Signal
ø


ö
Extended or Sub-
Divided Fifth
Wave




3
Extension Elliot Oscillator 5
5
4 4
ö
ö Smaller
Main Four
Four


Main 5-35 Elliott Oscillator 5
4
ö
Main Four



¤ When you see false signals caused by extended or sub-divided Five Waves, use an
Extension Elliott Oscillator (Tom's Extended Oscillator 5-17) to see the divergence
inside the sub-divided waves.

¤ The other way is to wait for the software provided price projection before entering
the short. The price projection is shown as -5- (a number with a dash on either side).




T-62
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Type Two Buy In Dec 93 Copper
(With FALSE signal caused by sub-division or extension in the Fifth Wave)


¤ The software shows Dec 93 Copper completing a Five Wave sequence.

¤ Buy on the cross of the DMA (Displaced Moving Average) with a stop under the lows.




Previous Wave 4 High
·




¬
«
False Buy Signal
Buy



¤ The first buy signal was a false one and the position was stopped.

¤ The second buy signal caught the rally. Now look for the previous Four high as the first
target.

¤ The first buy signal was a false signal. This was due to a sub-division or extension in the
Fifth Wave.

¤ See next page on how to handle false signals caused by sub-division.


T-63
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Handling False Type Two Buy Signals
(Caused by sub-division or extension of the Fifth Wave)
¤ The main or normal Elliott Oscillator (Tom's 5-35) provides confirmation on the larger
degree Five Waves.

¤ Since the Fifth Wave extended and sub-divided, a false signal was generated.




Extension 5-17 Oscillator
4
4 5
Divergence on
extension
3



Main 5-35 Oscillator

4
Divergence on a larger scale
5


¤ When you see false signals or extended or sub-divided Five Waves, use an Extension
Elliott Oscillator (Tom's Extended Oscillator 5-17) to see the divergence inside the
sub-divided waves.

¤ The Extension Oscillator (5-17) allows the user to handle sub-division or extensions
within the Fifth Wave.




T-64
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Power of 60 Minute Charts
The Daily Dec 93 Bonds completed a major top around 122.10. The 60 minute chart is
shown below for the same day.

Using the 60 minute chart, one
í Major Top could have entered a short posi-
Daily Dec 93 tion at 12124 within a few ticks
Bonds of the all time high.

When the Elliott Wave count is
not clear on the daily, the 60
Blown Up on
minute offers a better resolution
60 Minute Chart
and provides excellent entry and
exit points.




Dec 93 Bonds
Major top on Daily
® Sell
60 Minutes ê


«
DMA




The 60 minute traded in a clean Five Wave rally with
clean Oscillator divergence. Sell the cross of the DMA
with a stop above the high.




Divergence




T-65
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March 94 SP 500

The Daily March 94 SP 500 is
shown completing a Wave Five
Major High
Daily Mar 94 ® High.
SP 500
The 60 minute chart shows a
Fifth Wave also being completed.

One could have entered a short
position at 48080 just a few
points off the all time high.
Blown Up on
60 Minute Chart




March 94 SP Sell
Major High on Daily®
ê
500 60 Minutes




The 60 minute chart shows the completion of a Five Wave
sequence with clean Oscillator divergence. Sell on the cross
of the DMA.




T-66
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May 94 Cocoa - Power of 60 Minute Charts

The 60 minute chart shows the
completion of a Five Wave se-
quence. The daily resolution was
Daily May 94 Cocoa
not very clear.

The 60 minute chart would have
provided a long entry a few ticks
off the low.


Blown Up on
60 Minute Chart «




May 94 Cocoa 60 Minutes




The 60 minute chart shows a clean divergence with Five
Waves. Buy on the cross of the trend line.
Buy ¬




Divergence




T-67
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Nov 93 Soybeans

The daily chart made a major
high.
Major High
Daily Nov 93 í
Soybeans The 60 minute chart showed the
completion of a Five Wave se-
quence. One could have entered
a short position at 730 within a
few cents of the major high.


Blown Up on
60 Minute Chart




Nov 93 Soybeans Major High on Daily
í
60 Minutes




The 60 minute chart shows the completion of a Five Wave
sequence with clean divergence. Sell on the cross of the DMA.




Divergence




T-68
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Type Two June 94 DM - 60 Minute Chart

60 Minute June 94 D-Mark
Sell
í
See chart below




Completed Five Wave sequence with clean divergence on Elliott
Oscillator. Sell on the cross of the DMA.




Divergence




60 Minute June 94 D-Mark
Sell
í




§ Previous Wave 4




The first target is the previous Wave 4 low at 5870.




T-69
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Type Two May 94 Crude Oil - 60 Minute Chart
60 Minute May 94 Crude Oil


Previous Wave 4
í high near 15.00



Buy
í
The software shows a completed Five Wave sequence with clean
Oscillator divergence. Buy on the cross of the trend line. See chart below




Divergence




60 Minute May 94 Crude Oil



Previous Wave 4
í




T-70
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May 94 60 Minute Chart of Cocoa

¤ The software shows May 94 Cocoa completing a Five Wave sequence.

¤ The Elliott Oscillator shows divergence between the Wave Three peak and the Wave
Five peak.



60 Minute May 94 Cocoa


©
Sell




§ Previous Wave 4 Low




Divergence




¤ Sell on the cross of the Trend Line with a stop above the high.

¤ The previous Wave Four low at 11.50 is the first target.

¤ Once the prices trade to this target, tighten stops and monitor the software for a new
Wave Three in the same direction.




T-71
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June 94 Gold - 60 Minutes

¤ The software labels the new high as a Fifth Wave.

¤ The Elliott Oscillator shows clean divergence between the Wave Three and the Wave
Five peaks.



60 Minute June 94 Gold




§ Previous Wave 4




Divergence




¤ Sell on the cross of a Trend Line with a stop above the highs.

¤ Now look for the previous Wave Four low near the 3860 level as the first target.




T-72
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June 94 Swiss Franc - 60 Minutes

¤ The software labels the 60 minute Swiss completing a Five Wave Sequence.

¤ The Elliott Oscillator shows clean divergence between the Wave Three and the Wave
Five peaks.


60 Minute June 94 Swiss Franc

§Sell




Previous Wave 4¬




Divergence




¤ Sell on the cross of a Trend Line with a stop above the highs.

¤ Now look for the previous Wave Four low near the 6990 level as the first target.




T-73
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Yen Cash - Weekly Wave Count



Sell on the break of
the trend line
ê




Clean Wave 4 Rally to the 50%
PTI > 35
Fibonacci Retracement Level




«
Elliott Oscillator
to Zero




Sell
ê




T-74
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Weekly Swiss Franc Cash - Double Top

We have a perfect looking Wave Four except for the Profit Taking Index. When the
Profit Taking Index falls below 35, it increases the odds for a Double Top.




Profit Taking Index is less than 35.




The Profit Taking Index indicates
the potential for a Double Top.
The market has also broken the
Wave 4 Channels.




Oscillator pulled back to zero




See the next page for subsequent action.




T-75
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Weekly Swiss Franc Cash - Double Top
PTI less than 35


Sell based on Double
Top potential




When the Profit Taking Index (PTI) is less than
35, in increases the odds for a Double Top.




Double Top
§ Sell




T-76
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Type One Sell Setup on Ford Motor (Weekly)

¤ Chart A shows the weekly chart of Ford Motor Completing a Wave Three decline.
The next phase is a Wave Four rally with the Elliott Oscillator pulling back to the
zero level.



B
A




Look for a rally in Wave
Prices rallied in
Four plus the Elliott
Wave 4 to the
Oscillator should pull
50% Retracement
back to the zero level.
Level




¤ In chart B, the prices have rallied to the 50% Fibonacci Retracement level. The El-
liott Oscillator has traded to the zero level, indicating the relief of an over sold condi-
tion. See the next page for Type One Sell.




T-77
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Type One Sell in Weekly Ford Motor

¤ Chart A shows a completed Wave Four. The Profit Taking Index is greater than the
minimum requirement of 35 (it is at 47). This indicates a new low in Wave 5.

¤ The Wave Four channels are holding prices showing a large potential for a fast de-
cline in Wave Five.


B
A

Wave 4 Channels
·




Stop

Sell
·


PTI




¤ Sell on the cross of the Trend line with stops above the Wave Four high. The target
is to new lows below 25.00

¤ Chart B shows the subsequent sell off in Wave Five.

¤ This usually sets up a Type Two Buy. See next page for subsequent price action.




T-78
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Type Two Buy in Weekly Ford Motor
Following a Type One Sell (As seen on the previous page)

¤ Chart A shows the software generated Wave count. A Five Wave sequence is com-
pleting plus the Elliott Oscillator is showing good divergence.

¤ Buy on the cross of the DMA with a stop under the lows.



B
A



Previous Wave 4
New Wave 3 ø
·




±
Divergence
Buy




¤ The first target is the previous Wave Four high near 37.00.

¤ When prices trade to the target, one can tighten stops and monitor the software
generated Elliott Wave counts for a new Wave Three in the same direction.




T-79
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Cross-Referencing to Weekly Data

¤ The following chart shows the September 93 DMark completing a clear Wave Four
profit taking decline.

¤ The Elliott Oscillator is to zero and the Profit Taking Index is greater than 35 (at 46).




Sept 93 DMark
Daily




See The Weekly Chart
on the next page




The Wave Four channels are also holding.
¤ All of this should set the stage for a rally to new highs.

¤ Now lets check the weekly on the next page.




T-80
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Cross-Referencing to Weekly to Daily

Sept 93 DMark
Daily The daily chart shows the
potential for a new high.
But, the weekly does not
agree.




IN THIS CASE, the weekly
overrides the Daily




DMark Weekly Weekly shows Wave 4 over and the
market selling in Wave 5 to new lows




PTI > 35


To new lows




Elliott Oscillator
to zero



T-81
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Cross-Referencing Pays Off
DMark Weekly CAN YOU GUESS WHAT THE
WEEKLY WILL DO NEXT??
See next page for answer.




Sept 93 DMark The Daily completed an ABC Wave 4
4
Daily correction as shown on the weekly chart




The market declined to new lows
as suggested by the weekly chart




T-82
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Subsequent Action on Weekly DMark
Sept 93 DMark
Weekly

· Previous Wave 4

Buy on cross of
trend line




Divergence




Once 5 Waves are complete, the
market changes direction and
trades to the previous Wave 4




Previous Wave 4 Target
·




ï Buy




T-83
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Alternatives In Elliott Wave Analysis
LOCALIZED ELLIOTT WAVE COUNTS:
This option allows the user to force
the software to start an Elliott Wave
count from any point on the chart. In
certain cases, the market tends to
make a low and rally off this low with
great momentum. However, since the
software uses the entire data in deter-
mining the Wave count, it may be a
while before the software logic fits the
current market action into the Wave
Count.

By Localizing the Elliott Wave
Count, the software can be set to ig-
nore any past data and only use
data from the current pivot selected
by the user to derive the Elliott
Wave counts.

ALTERNATE COUNTS

The Alternate Elliott Wave Count sequence allows the user to have the software display
various alternate wave counts. Three different Alternate Wave Counts are offered. We will
discuss these various alternate Wave counts in detail.


The major purpose of the Alternate Wave counts are to provide
the user with a second opinion at crucial junctures.




T-84
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ALTERNATE 3 (Long Term)
Once the Original (default)
Wave analysis detects a Five
Wave sequence, it continues to
ORIGINAL (DEFAULT)
look for a rally in the opposite
WAVE COUNT.
direction with the previous
Wave Four as a minimum price
target. Even if the market fails
to rally to this target, the routine
Continues to look for still continues to look for this
a rally to emerge. pattern until the low of the
® original Wave Five is taken out.
The following example shows
the March 95 Soybeans with the
Original (default) Wave count.

From the low of Wave 5, the
software continues to look for a
rally in the opposite direction
with a price target near 610 (previous Wave Four). If the market rallies strongly to the
target, the software will pick up a new Wave Three rally.

The only way the software will abandon this routine is if the prices actually makes a
new low. Then the new low becomes the new Wave Five.


The ALTERNATE 3
routines provide a
longer term count as
shown to the right.




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The following chart shows the market making a new low as forecasted by the Alternate 3 (Long
Term) Wave Count. Listed below are our recommendations of when to use the ALT 3 Long
Term Wave Count : A) If the rally from the end of a Five Wave (low/high) Sequence fails to gen-
erate a Wave Three in the opposite direction,
we recommend you display the Alternate 3
(Long Term) Wave count.
B) If the market momentum meets the param-
eters of the ALT 3 routines, then the software
provides an Alternate Wave count which repre-
sents a longer term view. When such an Alter-
nate Count is displayed, the user should be
very cautious and anticipate the potential for
another new low.
C) There are many cases when the param-
eters are not met and the ALT 3 (Long
Term) Wave count is the same as the De-
fault Wave Count. Under this scenario, the
user should stay with the original default count.



ALTERNATE 2 (Short Term)
This provides the user a short term break down of the Original Default count. For ex-
ample, when the default count tracks a major Wave Three rally, the ALT 2 (Short Term)
wave count provides the 5 waves inside the major Three. This is used in taking profits
at the end of a major Wave Three.


ALTERNATE 2
Original (Default)
Short Term Count
Wave Count.
Shows the smaller
Shows a Major
degree Five Wave
Wave Three in
structure inside
progress.
the Major
Wave Three.




T-86
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ALTERNATE 1 (Aggressive)
The Original (default) Wave analysis continues to stay in a Wave Four until the Wave Four over-
laps Wave One by 17% in commodities (0% overlap in stocks and indexes). Many times even
when the Profit Taking Index drops to a very low number and the Oscillator has retraced 38%
over the Wave Three Oscillator peak, the software still delays switching the Wave Count.
The chart on the left is the
October Bean Oil with the
ORIGINAL (DEFAULT) original Wave Count. As
WAVE COUNT. you can see, the Wave Four
channels are crossed, the
rally is overlapping Wave
One and most importantly
the Oscillator has retraced
more than 138% (38% in
the opposite direction) of
the Wave Three peak.
Yet the software has to
continue to label the rally
as a Wave Four. Eventu-
Oscillator exceeds 38% of
ally this count becomes
W 3 peak
invalid.


í W 3 peak


The Alternate 1 (Aggressive) Wave count was designed to end this long drawn out Wave
Four count and aggressively switch to a Wave Three count in the opposite direction The
ALT 1 (Aggressive) Wave Count is recommended when the following occurs:
A) Any rally that is labelled as a Wave Four by the Original (default) Wave count becomes
a suspect wave count when it breaks the Wave Four channels and the Oscillator exceeds
38% in the opposite direction of the Wave Three Oscillator Peak.
B) About 65% of the times, such conditions are also accompanied by a Profit Taking Index
below 35.
Under such conditions, we recommend you use the ALT 1 (Aggressive) Wave count to
view an alternate wave count or a second opinion. The next page shows an example.



T-87
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ALTERNATE 1 (Aggressive)
The following chart shows the
ALT 1 AGGRESSIVE same October Bean Oil with the
WAVE COUNT. ALT 1 (Aggressive) Wave count.
Here, the software re-labels the
decline as an ABC. The software
logic drops the idea for a Five
wave decline and instead con-
centrates on the new rally
phase.
Concentrates
on the new
Please keep in mind that the ALT
rally.
1 (Aggressive) count should only
be used when the Oscillator re-
traces more than 38 % in the op-
Oscillator exceeds 38% of
W 3 peak posite direction from the Major
Wave Three peak. In this ex-
ample, the Wave Three Oscillator
í W 3 peak peak was minus 262. The 38% in
the opposite direction is +99.


The 38 % level where the oscillator exceeds can be drawn by using the Retracement tool in
the Drawing Tools.

OVERLAP PERCENTAGE (OPTION):

By default, he software automatically allows a 17% price overlap between Wave Four and
Wave One for Commodities. For Stocks and Indexes, the software switches to a 0% over-
lap.

The traditional Elliott rules do not allow any overlaps at all. However, from our extensive
research, we have found that many commodity contracts tend to overlap and still con-
figure to clean Five Wave sequences. However, you can change this overlap percentage
based on your beliefs. Once you have changed the overlap, GET treats the Elliott Wave
counts as Alternate counts.

ALTERNATE WAVE COUNTS ARE DISPLAYED IN GREEN BY DEFAULT
TO DISTINGUISH IT FROM THE DEFAULT COUNT DISPLAYED IN BLUE.

T-88
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1 - 3 % OPTION - While labelling Elliott Wave counts, the default count allows the
software to label Wave One anywhere between the start of the Five Wave Sequence and the
50 % of the length of (0 - 3). In some cases the software picks a pivot that is at the higher
range and Wave One is labelled well into Wave Three. The user can override this and limit
where Wave ONE is labelled as shown on the figure on the right.
USER SELECTED 3
3
3 DEFAULT 3

Wave One labelled
inside 50 % of the
length of Wave One labelled
(0 - 3).
1 inside 20 % of the
length of
(0 - 3).


1
2

2
Start of Five Wave sequence


OPTION SET
DEFAULT Wave
TO 20%. Wave
One labelled in-
One labelled in-
side 50% of the
side 20% of the
length of (0 - 3)
length of (0 - 3)




T-89
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Gann Techniques
W. D. Gann ”

For some reason or the other, everything relating to Gann seems to have a mysterious flair.
Many publications carry this tradition and compose their material in a hard to understand
manner. To fully understand this technique and to believe in it, one has to ignore this mystical
taboo and dig into the inner-works of this collection of techniques. We will try to keep our
presentation as simple as possible.

W.D. Gann used a collection of techniques. From our work, we have come to the following
conclusion: the reason Gann was so accurate in his predictions was not due to any one single
technique. It is due to his ability to use the right tool at the right time. He was a master at this.
He was an excellent mathematician and had a quick working mind. As an example, he could tell
when a market was overbought without ever using an indicator. The Stochastics is a well known
mathematical based formula to represent an overbought/oversold condition. Perhaps, Gann
could calculate such an indicator in his mind by looking at the prices.

The GET approach is to take only the easily applicable Gann techniques and improve them.
Then add concepts to enhance them and, finally, reduce them to computer equations. Since
computer equations are structured and straight-forward, you will also benefit in applying them
manually.


Gann Angles And Lines ”

We are all familiar with trend-lines. The main disadvantage of a trend-line is the requirement of
at least two price points to connect the line. The Gann angle/line approach requires only one
pivot price point and various lines can be drawn from this point. The concept behind Gann
angles are described below.

Price swings caused
by trader™s emotion
(greed & fear)




Appropriate angles contain their price swings




T-90
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Gann Angles And Lines

When prices rally off a low, the rate at which the market rallies and fluctuates is controlled by the fear
and greed combination of the mass public trading that particular market. The fear and greed causes
swings in the markets. This human behavior goes from one extreme to another in cycles of various de-
grees. These varying cycles can be defined within the parameters of certain angles originating from the
price lows.

The task is to find the appropriate set of angles which can define the various cycles that represent the
fear/greed swing of traders involved with an individual market.




Incorrect Approach




Altered Price Scale
Same geometirc angle failed
to contain prices when the
scale is altered.



The appropriate angles were not found overnight. It took Gann several years. With the help of comput-
ers and the right concept, we have been able to calculate the angles for most commodity futures traded
in the U.S. and some overseas markets. Our angles are based on the past five to ten years of data. The
core angle for each market is constant and does not change over time. The sensitivity and vibration may
alter slightly, but the core angle has stayed the same.

The GET approach is to use constant angles for each market that define that particular market's price
fluctuations caused by the fear/greed emotions of traders. This is illustrated on the next page.



T-91
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A Real-Time Example

True Gann Angle Ratio




Altering price scale will not


Altered Price Scale
change true Gann Angles




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