The Market Makes A New High

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 6^th 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 29^th 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