Currency ConverterOur newest blog post is by Ron Schellings, creator of GATE Software. He has agreed to show us examples of Gann Analysis through Excel. We are excited to share this with you and encourage you to learn more about this powerful toolkit. Find out more at www.gatesystem.com.au or through us here. Thanks Ron!
The Price Range (and sub divisions) from the First Range is often very good to watch.
Watching the Time Cycle from the first range out can be equally profitable. Here is an example of how GATE can assist in the analysis of determining when the next Swing may occur.
A good example of this is the first range out on the SPI after the 1st Nov 2007 All Time High.
The Current first range out comes from the 13 March 2009 Low (3111 on the SPI) which was 94 Calendar Days and 973 points using a monthly swing chart. An alternative range to use is the first range out formed from the weekly swing chart which was 38 days and 745 points.
The following is an analysis using these ranges and to test how the market has reacted to them.
This chart shows the two time cycles referred to.
The next extract is a test to identify the frequency with which these 94 day cycles (with a tolerance of 3 points) has occurred using the monthly swings made in the market. This shows how both the 94 Day Cycle and the 973 Price Range were active before and after the first range out was formed.
The First Range Out using the alternate (Weekly Swings) also shows some good opportunities of repeating.
Once these cycles have been identified and confirmed to your satisfaction they can be plotted on a chart for further verification and also into a GATE Calendar which is a convenient way for to remember of when the next cycle is due.
(I have included the 137 day count from the first range out after the 6880 high).
These time cycles are easily put into the GATE Day Count Calendar (or Monthly Calendar) where it becomes very easy to see when a Cluster of Future Dates occurs. The example below shows a Cluster around the 21st/23rd September. There is another good clusters occurs at the end of December (not shown here).
-Ron Schellings
