Knowing when the market traditionally (statistically) makes a High or Low can assist with your analysis and you maybe be able to put another tick into the box and trade with a bit more confidence

The statistics below show that the SPI (historically) makes a High in May (asit did this year) then trades down the Lows in June (time will tell) and then maybe .. a bounce up into a July intermediate High and down into an October low.

This is ONLY a probability – but knowing the history may assist you with looking to the future

You can add to the historical analysis by identifying and keeping track of the market heartbeat (this is the same heartbeat that GATE identified in Nov 2010) and continues to work very well

Include Price and Time Ranges that are active in the market

Knowing the historical months for making Swing tops and bottoms and combining this with your knowledge of the current time and price ranges that are active in the market will assist you to trade with more confidence.

You can see the current time and price ranges for the short term swings (weekly) as well as the longer term swings (monthly)

Pinpoint your Entry and Exit with Intraday knowledge

Knowing the time of day your market traditionally (historically) makes a seesion High/Low or what time the majority of swings are made can assist you with more favourable entry or exit prices.

Know your market – trade with confidence. Know when market may turn, when time and price ranges are repeating, and what the intraday activity may look like.

The charts below is a 8 minute swing chart as well as 2 charts – the first showing when the most session highs or lows are made , the second when the most swing tops or bottoms are made – these are 24 hour session (includes the night market)

Our 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 1^st 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 21^st/23^rd September. There is another good clusters occurs at the end of December (not shown here).

-Ron Schellings