This section of tutorial give you a guide on how to use the G-Graph on the Win4D Advance software.

Trends

An underlying assumption in all technical analysis is that the hitting gaps tend to move in a trending fashion. Trends, along with support and resistance are the basics of almost all-technical analysis. A trend can be loosely defined as continued gaps movement in a general direction. From this loose definition, one can further embellish it with the notion that continued doesn't imply a certain time frame but it does imply some time frame. Historically, those time frames have been referred to as Major or Primary or Secondary, and Minor. Note that there is no hard rule as to how long a trend must take place to qualified as a trend. Note also that there is nothing in the rulebooks that suggest that more than one trend can exist at one time. This is true within a single system number and even more broadly true across multiple system numbers.

Another notion that shouldn't be missed within the definition of a trend is that of gaps movement in a general direction. Trends come in three basic flavors, Up, Down, Horizontal. All three of these are trends although the latter is many times over looked. How you play each of these trends is a bit different and requires recognition.

Time Frames

We alluded to there being two trends occurring within a given time frame and their being referred to as Long term and Short term. The best way to understand these is to consider a few graphs that show them and to remember that trends are relative only when considered in the context of time frames. A time frame is some specified period of time where trends are recognizable. Note that this loose definition allows one to argue that all two trends can exist on time frames as short as a month and as long as a years. Let's take a look at these two extremes and explore the notions further.

Here’s a long-term chart of system number 0127, for almost 2 years continuously downtrend. As the annotations explain, there was a very long term down trend in place but that down trend line was violated some time back in May this year. A down trend line is distinguished by the fact that a number of the top points below the trend line connect to the line being drawn. Once the down trend line is broken, then the trend is either sideways or is up. It takes a while to determine which is the case.

In this system number 2478 graph, we are clearly in a short term down trend as evidenced by the down trending channel, for almost 5 months continuously down trend. Please take note of the break in the trend line and the zero point. If you did not study the graph carefully, you would have got burn until now. Therefore, we would always recommend that you stop playing when the trend is broken within the 5% gap allowance.

You may not see a perfect trend very often, but when you see it, you can take advantage of it. Below is the graph for system number 0345, sometime known as short gap trapping. Take note of the annotation area.

Next lesson, I will touch when to stop playing on a number base on indication of G-Graph.

This G-Graph is the most advance graph for analysing 4-D statistic. It is avaliable in the Win4D Advance software.