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The Dow on July 30 declined so the forecast on the 60 minute time frame to return to the Median Line at 11750 will occur a few days late but should still occur. To read this forecast see the post for July 30. In today’s post I am again using the Pitchfork but now I am using it on the 10 minute chart for the Dow Jones Industrials, eSignal symbol $INDU. Again I expect the price to return to the Median Line. The estimated price for the Median Line is 11540. The price should return to this price on August 1 when the Median Line should be touched.
Dow Jones and Pitchfork
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Here is a chart for the Dow industrials. This uses the eSignal symbol $INDU. The chart shows the MarketWarrior Mars lines and the Pitchfork. The majority of the time, a market will return to the Pitchfork Median-Line. The current Dow 60 minute chart has not yet returned to the Median Line. Based on the size of the daily high low range, I can forecast the $INDU will rise to the Median Line either on July 31 or August 1. The market will then make a swing top just above the Mars line and on the Median Line. The price target for this forecast move is 11750.
60 Minure Dow Chart
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Here is another example of the MarketWarrior Siderograph. This is a planetary index originally created by Donald Bradley. MarketWarrior software allows for the index settings to be changed so a custom planetary index or Siderograph can be created for each market. The chart below shows the Siderograph for the daily interest rate charts. The turning points in the Siderograph indicates a change in trend (CIT) in interest rates but the turning point is sometimes the opposite of the index. On the first chart below, there are three arrows that connect a top or bottom in the index with a CIT in the interest rate prices. In this case the relationship was a direct correlation and Siderograph tops correlated with market tops and Siderograph bottoms correlated with market bottoms.
Interest Rates and Custom Siderograph 1
The next chart continues the historical look at the custom interest rate Siderograph. On this second chart I have drawn three more arrows connecting tops and bottoms in the Siderograph with the interest rate market.
Interest Rates and Custom Siderograph 2
The final chart below shows a forecast for the interest rate market based on the Siderograph. The major dates in the forecast are labeled “A”, “B” and “C”. I have forecast the interest rate prices to make a small set of swings sideways until “A” at August 7, then fall until “B” on August 22 and then move up to “C” on September 5. I will be watching these dates for trading opportunities.
Interest Rates Custom Siderograph 3
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Here is another chart showing a custom version of the Bradley Siderograph. The Siderograph is a planetary index that can be customized for different markets. In the sub-chart, on the first picture below, is the Siderograph that has been customized for the Lean Hogs futures market. There are four vertical lines drawn on this chart. The vertical lines marks where the Siderograph changed direction. Each of the vertical lines correlated with a change in trend. I have labeled the lines 1, 2, 3 and 4. Line 1, 2 and 4 is close to a top. Line 3 is close to a bottom.
Lean Hogs and Siderograph
The next chart below shows the future of the Lean Hogs Siderograph. There is only one vertical line drawn by the Siderograph. This line is labeled A and occurs on October 21. This does not mean the price will move in the direction until October 21, it simply means that the Lean Hogs Siderograph does not pick another change in trend until October 21. I will be watching this date for a change in trend.
Lean Hogs Siderograph 2
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The Bradley Siderograph is a planetary index that uses a variety of planets to create an index line. This index line can be adjusted and modified to create a custom index for different markets. On the two charts below, I show the MarketWarrior custom Siderograph for gold. On the first chart I have added the gold-Siderograph in the sub-chart. The MarketWarrior Siderograph draws vertical lines marking where the Siderograph changed directions. Each vertical line on the chart below correlates with a market bottom in gold. I have labeled these lines 1, 2, 3 and 4.
Gold Siderograph
The next chart shows the future vertical lines drawn by the gold-Siderograph. There are three future lines labeled A, B and C. Line A marks August 25. Line B marks September 12 and Line C marks September 23. I will be watching these three dates for change in trend in gold.
Gold Siderograph 2
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Written by:
Patrick Mikula CTA
Mikula Forecasting Company
www.MikulaForecasting.com
support@MikulaForecasting.com
Copyright © 2008 by Patrick Mikula All Rights Reserved.
Here is a chart that shows the interest rate on the 30 year bonds and the planet lines for Saturn.This is a daily chart that cover eight months. On this chart I have added the heliocentric Saturn lines. Using the numbers 1 to 7, I have labeled the places where the interest rate touched a Saturn line and made a change in trend (CIT). Notice the numbers 1, 3 and 5 saw a CIT on the top Saturn line. If you look at number 7, you can see the Saturn line is just above the current bond interest rate. Based on the pattern seen on this chart I expect the 30 year bond interest rate to rise to approximately 4.75% and then have a decline.
30 year Bonds and Saturn
end.
Written by:
Patrick Mikula CTA
Mikula Forecasting Company
www.MikulaForecasting.com
support@MikulaForecasting.com
Copyright © 2008 by Patrick Mikula All Rights Reserved.
Here I am going to discuss using planet lines for support and resistance. The first chart below shows cotton futures. The planet lines drawn on this chart are geocentric Venus lines. I have added the numbers 1, 2, 3, 4, 5 and 6 to identify where the cotton market made a change in trend (CIT) on a Venus line. This shows that over five months, there were six times when a CIT that occurred on a Venus line.
Cotton and Planet Lines
The next chart shows the Swiss Franc futures contract. The planet lines drawn on this chart are Mars lines. On the chart below 1, 3 and 4 shows where a change in trend (CIT) occurred on a Mars line. The number 2 shows where the Swiss Franc found a support price level on the Mars line. This shows the Swiss Franc found a CIT or support price level, on a Mars line, four times in the past four months.
Swiss Franc and Mars Lines
end.
Written by:
Patrick Mikula CTA
Mikula Forecasting Company
www.MikulaForecasting.com
support@MikulaForecasting.com
Copyright © 2008 by Patrick Mikula All Rights Reserved.
Here is an example of using the Gann swing chart on a 5 minute chart for the Dow Jones symbol INDU. The Gann swing chart will make several small turns during the trading day that do not amount to much, but the Gann swing chart will usually identify the largest swing during the day. The first chart below shows the 5 minute chart for July 24. You can see on this chart, the largest down swing during this day was identified by the Gann swing chart.
Gann Swing Chart 1
The next chart shows the 5 minute chart for July 25 for the same symbol INDU. During this day you can see the Gann swing chart again made several small turns but again did identify the largest swing. On the chart below, the largest swing was a down swing from 10am to 1pm. The value of the Gann swing chart, is that it will usually identify the largest swing either up or down using the day.
Gann Swing Chart 2
end;
Written by:
Patrick Mikula CTA
Mikula Forecasting Company
www.MikulaForecasting.com
support@MikulaForecasting.com
Copyright © 2008 by Patrick Mikula All Rights Reserved.
Here are two charts that have been lined up so their time scale is in alignment. The top chart is gold futures and the bottom chart is crude oil futures. As crude oil has risen higher and higher, I have seen the swings in crude oil become the dominant cycle in more and more markets. This means that other markets have come to mimic the cycles in crude oil. This includes the metals, coal stocks, uranium stocks, utility stocks and wide variety of other items. On the two charts below, I have drawn a line starting from the crude oil tops and bottoms up to the top of the gold chart. The swing change in trends, labeled “A”, “B” and “C” identifies where the gold market mimicked the crude oil market. The change in trend labeled “D” is the most recent change in trend in crude oil and this seems to be a significant top in crude oil. You can see on the gold chart that gold is now mincing this down swing and gold is starting to fall. As long as the crude oil price stays high, markets such as gold will continue to mimic the cycles in crude oil.
Crude Oil and Gold
end.
Written by:
Patrick Mikula CTA
Mikula Forecasting Company
www.MikulaForecasting.com
support@MikulaForecasting.com
Copyright © 2008 by Patrick Mikula All Rights Reserved.
Here is a simple example showing the ability of W.D. Gann’s Square of 9. This example will show the method described in chapter 3 of our book “The Definitive Guide to Forecasting Using W.D.Gann’s Square of Nine”. The chart below shows the Soybean contract for November 2008. I have started the Square of Nine on the cycle low on the first trading day of April 2008. The zero line seen on the chart below at the price 1060 represents the zero degree angle on the Square of 9 overlay. I have added the 90 degree increments which represent the price levels where the soybean price has moved around the face of the Square of 9, in 90 degree increments.
Notice the top “B” has occurred right on the second +90 degree line. This means the price moved a full +360 degrees around the Square of 9, and then moved 90 degrees more. The top +90 line where the top was made is at the price 1630. Next I expect the price to decline to the previous top at “A”. I would round this forecast to the closest Square of 9 line. So my forecast for the current decline would be down to the +180 degree line at the price 1270. This is labeled “X”.
Square of 9 Chapter 3
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