DAX40 - huge bullish explosion possibleHello everyone. Despite the Ukranian-Russian crisis, I spotted a possibility for another quick and large bullish movement, which could be the first of a series. I would like to introduce something ... abstract to you.
My analysis is based on the famous W.D. Gann, and I am using the Square of the range. I will upload a seperate tutorial in which I will elaborate and explain how I set it up exactly. For this post though, I will limit it to the very basics.
Where do we start? I've been tracking and trading the DAX40 for an eternity, and after I got a bit bored of its non-directional, highly volatile ups and downs, I finally spotted another bullish build up, that looks very promising to me.
As some of you may know, and if you didn't, you will after reading this: W.D. Gann did not only rely on the price axis, but also on the time axis. Hence each square of range is divided in 5 "time" segments which are meant to influence the direction or intensity of the underlying assets moves. "Once time is up, price will be down." - W.D. Gann, but wat does that mean?
It's easier than it sounds: once price hits one of these time verticals, a move is likely to turn around entirely.
This theory is based on Gann's theory of waves, harmony, cycles and vibration - which is in all things, even in the stock markets, as he claims.
As can be seen, the graph did in fact turn around each time it hit one of the time cycle verticals:
Given the fact we just passed one of these time targets, that could leave us wondering if it will turn around again this time.
But, time targets are not the only method this analysis relies on. Which leads us to the more commonly known variable: price, or the y axis. What seems to be a mess of lines and angles, in reality is very simple and well structured. Let me break it down to its basics for you (a more detailed explanation will follow in the next "tutorial" post):
Each of these lines represents something very common: "Resistance", and "support". Nothing too crazy, right?
But how does it work? Basically, if price touches one of these lines, each of these lines is supposed to act as a (future) resistance or support line/level. In this case, there are quite a few obvious examples where said lines acted as resistance or support.
Since price is coming DOWN on this highlighted line, it is supposed to function as a support line.
And now this is where it gets interesting. We have:
A) a support line, that has already supported the price several times in the past.
B) our vertical time target, which is supposed to change the current bearish trend into a bullish one, AND
C) a second support line price has failed to penetrate in the last couple of days.
These crossings of (usually) two major support lines in combination with the time target tend to be very efficient and reliable. Of course, in this scenario, volatility is quite insane right here, as we've seen intraday volatility of roughly 3-5%. Which makes me cautious on this one. Usually I would just try and get in, but this time I will significantly lower my position size, and greatly extend my stop loss, in order to give my trade more space to manouver and to avoid getting stopped out too early and watching it take off without me later.
I'm using 10% position size here (1/10), and extended my stop loss by 1000% (10 times). In numbers (nominals) this trade is just like any other. I'm using a tenth of my usual position size, but ten times the stop loss i usually do, which nets me at the usual max risk, but with ten times more space before getting stopped out.
Now that we discussed the entry, let's move on to the final part of this analysis. The target.
My first target, is of course the 0.833 horizontal resistance price failed to penetrate twice in the past. Based on Gann's so called "seven times base" theory, my intermediate target is the 3-times-base and the final target would accordingly be the 7-times-base.
The idea behind this is very simple and it's easy to set up:
Gann's "base" is defined by the first eighth of the initial wave.
The green arrow represents the current wave we are in. The first impulsive move of that wave will define the base. It's the first eighth of the whole bullish wave.
In order to determine my final targets, I will just extend this base seven times, just like this:
Depending on the count people may refer to it as the 4th and 8th base, or the 3-times-base and the 7-times-base. Both mean exactly the same though. It just depends on whether you count from the very bottom of the first move, or from the very top of the first eighth. I know, this may sound confusing, so I uploaded one last screenshot for you.
At the end I wan't to provide a more commonly known, and conservative indication that we could in fact see a hard reversal here. I spotted a RSI(7) divergence in the daily timeframe, which can be seen here.
If you made it till here, I wanna thank you for reading all this, and I hope to inspire you a bit with Gann's abstract way of thinking. Feel free to critisize anything, we are a community, and communities should be constructive. Criticism is welcomed, especially if you are a fellow Gann-trader ;)
Gannanalysis
Simple Method To Square Time And Price On Chart (Gann)This would not be possible if there was no relationship between the time and price axes on the chart. Most traders fail to learn how important TIME is in relation to PRICE.
The most important requirement to do this successfully is in making sure there is a proper chart scaling method being implemented and that both the chart and tools are scaled correctly.
A chart that is properly scaled in this way will suddenly exhibit geometrical patterns and shapes that were not visible beforehand.
These boxes can be pulled endlessly to reveal macro/micro fractal movement trend reversals.
Keep in mind that due to the nature of this trading software and the lack of understanding by those who build it - it is not made to scale properly in understanding this key relation between p = t ^2. Therefor, whenever you move the chart and sizing around, you will have to redo everything.
Gann Percentage Movements IntroductionW. D. Gann described many types of numbers that he calculated on a daily basis. He worked mainly with percentages based on the dollar and the number of months and weeks of the year in accordance with Astrology.
Some of his more popular numbers were:
6.25%
12.50%
18.75%
25%
33%
37.5%
50%
62.5%
....and so on.
He also wrote about the rule of 8, 9, 10 and even numbers. For this simple example we are using 6.25% and Bitcoin as the asset.
''One of the greatest discoveries I ever made was how to figure the percentage of high and low prices on the averages and individual stocks. The percentages of extreme high and low levels indicate future resistance levels.''
W.D. Gann 1949.
Gann 90 Degree Angles Part 2This is a short follow up from a previous video I shared using the time = price ^ (2) lunar fixed point in time law of 90 degree angles.
”Mathematics is the only exact science. All power under heaven and on earth is given to the man who masters the simple science of mathematics.”
”Mathematical science, which is the only real science that the entire civilized world has agreed upon, furnishes unmistakable proof of history repeating itself and shows that the cycle theory, or harmonic analysis, is the only thing that we can rely upon to ascertain the future.”
- W.D. GANN
GANN AMAZING SECRET METHODThis is based on the 90 degree fixed mathematical law or universal rule.
Method: Use the trend angle tool and mark a low/high trend line. Next, take note of the angle. Then, subtract 90 from the angle to arrive at the second angle degree number that you will then draw to arrive at 90 degrees in the prediction of future trends.
His master class text is posted below.
Sleeping Giant will wake up - EOS 8.5 $ Target EOS 8.5 $ Target is coming by 1st quarter of 2022, I can see some accumulation on EOS on volume indicator, some buyers are preparing for the pump.
you can see Gann Fan is on uptrend, our target is 8.5$ for the coming months, the 5 dollars is a good entry before the bullish rally for altcoins.
$AMZN end of bull run - WARNING !!! Amazon made a lower high in July and gapped down after earnings on July 29.
Bad sign !!!
Refering to the Dow Jones Transportation (DJT) index declining for the past few months, this is a weak sign of the general economy. Transportation is very sensitive to the economy and as everyone knows, you need transports to shops finished products from one place to another, particularly for a business like Amazon. One exception would be software companies to an extent that they do not need to rely on transportation to deliver their products, they just do it over the internet in most cases.
Fedex and UPS have also gapped down and trading sideways recently.
Where to from here? I would expect businesses like Amazon, Etsy, Ebay to soften their sales and share price should be going sideways or down. I don't foresee the bull run to continue for a while.
I'm expecting a minor correction in the markets (SPX & DOW & IWM) next few weeks or so.
CLM2022: A 1-year Forecast Further to the earlier idea, we are now seemingly approaching the final extension zone, and with another 15% increase, the odds for mean reversion become much better. The market seems to be in an exciting area and is definitely worth our attention.
Staying tuned for further developments on this one.
DOGEUSD: Mapping the Next Bullish WaveFurther to the last idea on this pair, we are now mapping the next potential wave higher. This wave is very coveted and, consequently, has crippled probability; however, the fractal nature of the post-ATH correctional formation evidenced through the repetitive waves is indeed very fascinating and worth our attention.
Enjoy!
75 USD clear target for crude oil.The crude oil market is anticipating since three months, the inevitable inflation. The US government decided not to fight anymore the inflation but to deal with it. This strong bullish trend of the crude oil is the big indicator of the bearish trend in the bonds and the dollar market. Nothing can stop the raise of the yield rate.
Corn: A Potential Fade Approaching Corn seems to be in the final stage of a bullish run here. In terms of % gain, it is almost at the psychological 100% increase area from Mar'20 low. Short risk exposure is becoming more risky at these levels. With another push higher, some decent supply inflows are expected.
TSLA: Post Split Update Further to the earlier idea shared before the splitting of this stock, here's an updated version of the chart showing the same levels but adjusted for the split. The structure of this market suggests a completed 3-wave impulse sequence, which is now being corrected by profit-taking and short selling. The current correctional formation is seemingly completing the A leg of a potential ABC correction. Approximate movement and supply and demand areas are highlighted for convenience. In case of suggestions or questions on this TA idea, drop a line in the comments section below. Staying tuned for further hints on the price direction of this exceptional stock.
TSLA Share Price Trading In ThousandsTSLA price action has been heavenly for bulls and agonising for bears; the price of the stock has increased more than by 1000% in just a few months. The above chart is an attempt to illustrate that increase by taking a locked price to bar relationship of $5 per 240min of trading. The result is quite simple yet elegant — an easy roadmap to navigate for the upcoming year at least.
CLQ0: Mapping Bullish ContinuationFurther to the earlier ideas on the August delivery contract, I would like highlight the fact that it has now become the front contract of the Crude Light futures curve, and that it did so while being traded at plus 100% from its YTD low. When the June delivery contract went into negative, this contract was trading at around $20/bbl. Two months later it is trading above $40/bbl and seemingly bulls are still very much confident in their holdings. Buying the dips towards the 150% area from YTD low seems reasonable. This would mean another 25% gain from $40/bbl. The chart shows all of the relevant details on the above.
CLQO: Up by 100%! What's next?Further to the earlier idea related to CLQ2020 contract in which there was a 100% up projection within certain time, it is now established that this contract traded the 100% up area from its YTD low, and that it is currently working the offers at this key zone. The sudden downside for long exposure that we saw earlier on today is most likely an effect of traders squaring off long exposure via profit booking. If aggressive bears are unable to gain momentum in this key area, the buy stops will surely increase the counter momentum. Staying tuned in for more.
Gold is going into a black hole.Hi guys
This is time and price analysis for gold using WD Gann square of 144.
As you can see on chart the price is well controlled by the shaded triangle which is 1/3 and 2/3 angles showing that gold is in a very week position trading below the 1/1 from the low.
Ptice and time was just square on Monthly and weekly chart.
Monthly chart in the link below.
I put on chart where and when i am expecting a tradable low for a last rally.
Kindly like and share.
Good luck.