Market
Overview: S&P500 Futures
Rules quoted in the
newsletter and report are from W.D.Ganns own books and writings that
are available for anyone to verify. In each case we have quoted the
page and book for referencing so that traders are able to learn the
techniques and see the application on the charts.
Thursdays
trading saw new higher prices again with the market reaching 1397.3.
At some point in the next few days we shall see a minor pull back
which may provide a fantastic opportunity to enter the market. With
the week coming to completion our focus should be on how to take some
profits from this up run.
With
6 higher top bar days out of the last 7 we can see real strength in
this bull move. We are due for a pull back which we hope to see
early next week. For traders who entered the market long as the
reversal of trend was confirmed at 1378 on Tuesday their trades are
sitting in profit.
Lets
take a look at where we are right now.
Part
1:- Swing Charts & Trend Direction
Daily
Trend:-
The
daily swing chart is confirmed as long with higher swing bottoms and
tops being made. The low of the 6th March was anticipated
and now a new bull trend is progressing.
Weekly
Trend:-
The
weekly swing chart is still confirmed long with higher swing bottoms
and tops also being made. No change to this chart
Trend
Conclusion:-
Always
remember that we are essentially looking to make profits by trading
the daily swing chart trend. We gain further confidence when
the larger weekly swing chart trend is also in agreement. At the
moment this is the case.
Kind
Of Charts You Should Keep.
You
Should always keep up a daily high and low chart with opening and
closing on it and keep your trend line (Swing overlay) on it. You
should also keep a 3-day chart separately, and a weekly high and low
chart. You should have a monthly chart going back 15 to 20 years so
you will know where important tops and bottoms are, where old
resistance levels have been made. This is often very helpful.
Master
Commodities Course – W.D. Gann – Page 2
Resistance
Cards & Geometric Angles
Strength/Weakness
In The Market
The
market is sitting just on the 2x1 angle which indicates a strong
position. It is worth noting that prior to the February 29th
correction or down run the market was trading above this line. We
certainly need to monitor this movement as any weakness back towards
the 1x1 angle could indicate a imminent change in trend.
Geometric
Angles
After
long years of practical experience, I have discovered that
Geometrical Angles measure accurately Space, Time, Volume and Price.
The first and most important angle to draw is a 45 degree angle that
moves up 1 cent/point per day. This is a 45 degree angle because it
divides the space and time periods into 2 equal parts. As long as
the market stays above the 45 degree angle, it is in a strong
position and indicates higher prices.
Master
Commodities Course – W.D. Gann – Page 67
