Written by:
Patrick Mikula CTA
Mikula Forecasting Company
www.MikulaForecasting.com
support@MikulaForecasting.com
Copyright © 2008 by Patrick Mikula All Rights Reserved.
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One of W.D. Gann’s basic claims about the finance markets was that major tops and bottoms will usually occur near a 1×1 angle which functions as a balancing point between price and time. The chart below shows the Dow Jones 30 Industrial average. On this chart, is the MarketWarrior indicator “Gann 1×1 Lines” which automatically draws Gann 1×1 lines on a chart. You can see that the previous 2 significant pivots occurred on or very near a 1×1 line. These are labeled “A” and “B” on the chart below. You can also see the minor pivots will usually not form on a Gann 1×1 line.
Gann 1x1 Line
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MarketWarrior has an indicator named “High Low Reversal” which does a good job of locating reversal change in trend (CIT) points. The chart below shows the current Gold chart with two indicators. The first indicator is the High Low Reversal indicator. You can see the reversal points that are identified by this indicator on the chart below. They are labeled A, B, C and D. The second indicator is a 200 bar moving average. This moving average has proven to be a very good support and resistance price level. On the current price chart, the price has fallen to the 200 bar moving average. I believe gold will find support on this moving average. A good buying opportunity in gold will occur if the High Low reversal indicator identifies a bottom CIT while the price is on the 200 bar moving average.
Gold and High Low Reversal
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