Overbalance between price and time

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«Wealth must always be an instrument, never a goal.»

As we can often read in William Delbert Gann’s books, a method to find crucial zones the Overbalance between price and time, which considers the movement of the price and its temporal range, and compares them with the same elements of the previous movement.

According to this method, we have to consider the movements which exceed the previous ones, in either price and time range. That means to go long when price and time of a bullish movement exceeded price and time of the previous bearish trend.

Overbalance between price and time on Comit Index. Semi-logarithmic scale.

In this Comit Index chart are highlighted the main 3 bullish movements. Duration and range of these 3 movements are similar. We should always pay a special attention to both range and time when we compare any market movement.

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