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Last week I was in Sydney presenting Safety in the Market’s Gann Jump Start Workshop and one of the highlights of the three days was the group trading session on the afternoon of Day 3. After three days of studying Gann’s Time and Price techniques, students break into groups to scan through potential live futures market trades.
In Sydney, three out of the four groups selected an ABC Long trade on the US Dollar Index (DX-Spotv in ProfitSource.)
Let’s take a look at the trade. Chart 1 below shows the setup.
Chart 1
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The potential entry date was the 24th March and the risk on the trade was $US540 per contract.
The students identified the fact that the US Dollar Index was making larger price ranges to the upside, as shown in Chart 2 below.
Chart 2
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They also identified that the US Dollar was making smaller price ranges to the downside, as shown in Chart 3 below.
Chart 3
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The US Dollar had been trading in a sideways range but there were strong time reasons for this market to break to the upside and this was shown in the days immediately after the seminar. Chart 4 below shows how the trade panned out.
Chart 4
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Within two days, the trade had reached the 100% milestone and good profits could have been banked by any who took the trade.
The most rewarding part of this seminar was seeing the students bring together the techniques they had learnt over the three days and translate that information into a profitable trade.
The Gann Jump Start is one my favourite seminars and I’m looking forward to sharing some more currency work at our upcoming Gann Jump Start seminars in April.
I would encourage all Safety in the Market students to analyse this example on the US Dollar Index and recreate it in your software to see what your Time and Price analysis was telling you. As David Bowden always said, “your hindsight will become your foresight IF used often enough.”
Be Prepared!
Mathew Barnes
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