Financial Markets Forecast Update

I commence with my gratitude to The Creator

When The CRASH of the Markets to Begin?

Everybody is anxious to know, if the price target was correct. 

Well there is concept about price, coined by Master Trader W.D. Gann, it is called LOST MOTION.

Let me just quote from his book, "“As there is lost motion in every kind of machinery, so there is lost motion in the stock market due to momentum, which drives a stock slightly above or below a resistance level. The average lost motion is 1 7/8 points.  

When a stock is very active and advances or declines fast on heavy volume, it will often go from 1 to 1 7/8 points above a halfway point or other strong resistance level and not go 3 points. The same rule applies on a decline. It will often pass an important resistance point by 1 7/8 points but not go 3 full points beyond it. ” (W. D. Gann Stock Market Course, chapter 10). 

Now let me give away one of my secrets, on how to calculate the lost motion on any price. Since the markets have evolved greatly over the period of 80 years, since the active days of trading of W. D. Gann, so have the rules of price cycle and time cycles. At that time Dow Jones Industrial Index was trading at 100-200 price range. I, therefore, multiply the price attained by the technical or geometrical/mathematical patterns and then multiply it with 1.875% and up-to 2.236%. For example, the price target of 1,668 multiplied by 1.875% gives you 31.27 points. I, therefore, shall add 31.27 to 1,668, which gives me a price lost motion target of 1,699 to allow "the price move" beyond my price target.

Therefore, I ought to be patient to see, if price moves any price up to 1,697-1,699 and reverses, then the price target generated by mathematical pattern is correct. So next couple of days, are very important, giving 3 days lost motion margin for the time cycle, with the price lost motion allowed a price below 1,699 area.