Disliked{quote} ParisBoy, you said it all. When one is focusing on "Squaring Time & Price to balance both ( to reach the Equilibrium Level)" everything become clear.Ignored
Gann Squaring Price and Time is a great concept which generates various useful tools.
Let's talk (again) about Cycles
Let's assume that we have determined the Period of the Cycle .
The Period is the distance in Time from one Low to the next.
Let's say we have determined 1 Year, 12 months . Astro guys will be happy because it is related to the Sun
A Cycle has other parameters :
the Amplitude related to Price Action is the height of the cycle from bottom to top.
the Phase Shift related to the positions of other cycles
the Vertical Shift which is the result of the Underlying Trend
Gann has never really taken into account another "Law" : the Return to the Mean
only indirectly.
Price Action returns to its "mean" when Price and Time "square" on the 45° (1 Price Unit x 1 Time Unit) Angle
Price Action oscillates around this "most important Angle" its mean
If Price Action oscillates around another Angle, Jenkins discovered that you just have to consider this Angle as the new 45° (1x1) Angle and translate your previous chart accordingly.
This way you can apply your usual gannish reasonings, principles and angles properties.
But Life is Life and nothing is perfect . Price Action too.
Sometimes Price Action is higher than your 45° Angle , hence Price Action is in Advance relatively to the Time
Conversely Price Action can be lower than the 45° Angle , then Late relatively to the Time
The general idea is to create a kind of saving account (my words) both for Price and Time.
When you initiate a new chart (because Time flows ONLY forward) or a new "cycle" you have various options
if you are in advance you have a credit
if you are late, you have a debit
anyway at the end, there will be a time where you will return to your mean squaring both price and time after compensation of your savings
Then you can open a new saving account starting from zero
This mechanism explains why Cycle periods shorten or lengthen and why at certain Time Price action rushes up or falls down sharply.
It is because both Time and Price have to reach their targets in Price or in Time
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