Hi friends,Now we can know whether VMG has been overbought or...

Hi friends,

Now we can know whether VMG has been overbought or oversold. With the price thrown down continuously for many days, is VMG oversold? Can we know whether it is oversold enough for accumulation?

The legendary trader WD Gann taught that prices of stocks will move in eighths, and that price will want to move from a period of being oversold identified as the 0/8 price level and then move upwards to the overbought region denoted by 8/8. Very oversold areas are denoted by -1/8, -2/8 and very overbought areas are denoted by +1/8, +2/8.

By casting the price in the MM Trading Frame showing the price of VMG displayed into eights according to this principle, we can see that as of yesterday, the price of VMG had fallen to -1/8, the very oversold area, where it has a good chance of rebounding in the not very distant future.

Together with the positive divergence between the price and the money flow indicator which I had recently posted in this thread, these are positive signs that prices will likely to recover and soon, something that we can look forward to.



May the best prices be yours.

dascore