Written by:
Patrick Mikula CTA
Mikula Forecasting Company
www.MikulaForecasting.com
support@MikulaForecasting.com
Copyright © 2008 by Patrick Mikula All Rights Reserved
The chart below shows a Gann Square of 144. This is a square grid that is 144 bars wide and 144 price units high. Also on this chart is a stochastic momentum indicator in the subgraph. When using the Gann Square, it is often the case that market turning points occur where multiple lines cross. On the chart below, the soybean prices are in a downtrend. In a downtrend you want to sell into the market tops that represent temporary counter trend up swings.
On the chart below, I have labeled 3 tops that occurred where lines are crossing on the Gann Square and the stochastic is overbought, indicating a top. At points A, B and C on the chart below you would sell the market short.
Gann Square of 144
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