when gann angles project a cycle turn

Hi friends,

First, the preliminaries:

There is ZERO fundamental content in this post. If you are not interested in charts or if you are a fundamental investor or long term position trader, please skip this post now in order not to waste your precious time. Thank you.

Now on to the discussion:

With the excellent posts and charts from many members in the Short Term Trading forum on NDO suggesting a trading opportunity, I thought it might be interesting to do some simple and quick analysis on the stock myself to answer two questions:

1. Is the current price a good price to pick up this counter?
2. Are we near to the time day for a change in trend?

By quickly drawing gann angles of 1X1 and 1x4 at two primary and one major pivot as shown on the chart below, I find there is a convergence of lines meeting almost in a symmetrical triangle, the date of convergence being the 13th Aug 2009, and at a price level of 0.15 cents.

To see whether this convergence carries any significance, I performed a very simple cycle finder run, and discovered that the 13th Aug 2009 also coincided with a projected change in the cycle trend. Since I'm using a simple cycle finder, this does not forecast the direction, but only the date of the cycle trend change. I did not go into cycle decomposition and recombination to determine the direction of the cycle change, though this would confirm the direction change. Instead, to get an idea of the cycle change direction, I resorted to the use of a common Money Flow indicator that everyone understand...that, if there is money flowing into the stock, there is accumulation and the direction of the change would probably be positive or upwards. By plotting the MFI (money flow indicator), indeed it was found that there was money flowing into NDO for the past 4 days.



Conclusion:

A clear breakout above the price of 0.15 cents with heavy volume at the convergence and cycle change date-near to or on the 13th Aug 2009 will suggest a continuation of the accumulation of this stock as indicated by the money flow indicator.

Note: There can be a run off from the projected time day by a range of + - 1 day and the time day projection is still considered valid technically. This is because we are working on an estimation and NOT precise projection as we are using a simple cycle finder only in this case.

Please read my disclaimer below my signature line. May the best prices be yours,

dascore