NAB – About To Get The Sack?

Noel Campbell

This week I've come across some very interesting analysis on NAB and the potential for another great set-up. A few weeks back in Trading Tutors Newsletter I wrote about the great set-up on JHX. The stock bumbled around the old low that formed a double bottom and in the last week it has rocketed back up, proving the set-up to be completely valid and readers can verify this work was all done in advance.

As a Gann trader I understand the importance of looking for set-ups where you have both massive time and price pressure. Gann states that if a trader knows how to identify trades where you can combine time with price, you will then know how to succeed. When David Bowden quotes that statement he goes on to say that this is a powerful statement. The simplicity of the statement underlies its excellence and value.

Chart 1 is the daily bar chart of NAB taking the market action over the past two years. You can see where I have run a horizontal at the level of an old important top, which occurred in July 2004 and came in at $30.98. NAB has been in the news recently and the share price over the past few days has accelerated rapidly to the upside to reach a recent top (Friday 13 May) at $31.11. This article is being penned on Monday 16 May where the market reached a high of $31.09 today. With many months between these two tops they are well within the parameters that allow them to be defined as a clear potential double top. That is what gives us some price pressure. Now it is time to turn the focus to time pressure.

click chart for more detail

Upon closer inspection of the chart you will see where I have run Time by Degrees back from the recent high where there are some beautiful clear turns running back 90, 180, 270, 360 and 540 degrees. That is the kind of harmony that gets me very excited about the potential for a great trade. For those Safety in the Market traders who are serious about one day calling themselves, a professional trader, it is essential that time becomes a big part of your analysis and trading plan. Once fully understood, it gives you dynamite power to back up your more traditional price set-ups. I wouldn't be without it. Remember to trade any set-up with solid trading plan rules, but I hope you can use this information wisely to turn a very handsome profit if it all comes to fruition.

Until next week......

Noel Campbell