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 for gold futures that shows a Gann Square of 144 and a stochastic in the subchart. When starting a Gann Square, you need to select a significant top or bottom to start drawing the Gann Square. On the gold chart, the Gann Square starts drawing at a significant top.
When using the Gann Square, you are looking for turning points to occur at the points on the square where multiple lines cross. You also want to see the stochastic either close to 100 for tops, or close to 0 for bottom. On the chart below, I have labeled three points A, B and C which identify where these situations occur.
At point A the gold market made a top against several Gann Square lines when the stochastic was close to 100.
At point B the gold market made a bottom against several Gann Square lines and the stochastic was very low near zero.
At point C near the end of the chart, the gold market is making a top against several Gann Square lines and the stochastic is close to 100. Over the next few days, the market should move down forming a top at point C.
Gann Square of 144
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