The purpose of this chart is to give you a
roadmap of where your stock is likely to go. The foundations of
this chart go back almost 100 years and were developed by the
famous trader W. D. Gann. The lines on this chart are
customized to the price action of this particular symbol (1).
Typically a stock will move one or two of these lines at a time
(3,4,5). You need to examine each chart to see what the
characteristics are for that specific symbol. If I am buying a
stock, I will come to this chart and count two lines up to see
where this stock is likely to go on the next move. I will also
look to the left, to see where the significant areas of Support
and Resistance have been in the past (2).
At the bottom of the chart, you will see volume bars. Blue
bars show volume on up days, and red bars show volume on down
days. The line, running across these bars (6) shows a 20 day
moving average of volume.