Noel
Campbell

David Bowden has said many times in the past that when it comes to Gann analysis, ‘Your hindsight will become your foresight, if used often enough’. There is great benefit in students just taking the time to pour over charts and find examples of the market proving the rules.

This week’s article focuses on the Aussie Dollar contract traded through the Chicago Mercantile Exchange. A Safety in the Market client from the analysis used in his own trading, identified the following examples of equal ranges. It’s great to hear our clients out there making Gann analysis work for themselves, on markets across the globe.


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The Aussie Dollar contract formed a Double Bottom in September 2001 at 0.4803. The First major leg out from this bottom ended at 0.5772, early in June 2002. This gave a first major range out from the low of 969 points. The market made a low in August 2002 and from here began the second major leg up, which topped out at 0.6178, early in March 2003. This gave a range of 964, only 5 points difference.

The market made a sharp two week pullback off this 0.6178 top and made a low at 0.5829, in the same month. The market advanced making a third leg up, topping out this time at 0.6799. The size of this third leg was 970, giving us ranges of 964, 969 and 970. The market has made a large lunge forward off the next significant low, 0.6336, which came in early in September 2002. If a bull cycle is to run out in a maximum of 4 sections, we are looking for a cycle top on the Aussie shortly.

This last run up is currently 1086 points, which is beyond our 100%. It would be wise to calculate out the 125%, 133% and 150% milestones, using the 964-point range, to get price targets to watch for a top. We can review this in a couple of months to see what eventuates and the relationship to this important range.

Until next week......

Noel Campbell