Corey Rosenbloom at Afraid to Trade is one of the few people I have seen who use Gann inflection points like I do. Here's his recent post on Gann inflection points, and the chart he posted:
Showing posts with label Gann Inflection Points. Show all posts
Showing posts with label Gann Inflection Points. Show all posts
Sunday, December 19, 2010
Wednesday, July 28, 2010
$$ Gold's 65 Week Moving Average and Gann
Since 2001, Gold has not spent any serious time under its 65-week moving average except for about 4 months in latter 2008. Generally, Gold finds support at its 65-week moving average. Accordingly, a retreat to the 65-week moving average is usually a great time to buy Gold.
This week, Gold's 65-week moving average currently sits at $1080.03 and is rising about $5 per week. In addition, my Gann Square of 9 shows an important inflection point at $1088.50 which can also serve as the basis of support.
We are currently experiencing a correction in Gold from the peak of $1265 in June. Gold traded as low as $1159.50 today. If $1132.25 (another Gann inflection point) does not hold, look for Gold to test its 65-week moving average at or near $1088.50. Should Gold find support there, I will likely initiate a long position.
$SPX - Gann Inflection Points
The next Gann inflection point on the S&P is 1144.25 +/- 1.5 points. I derived this from my personal Gann Square of 9 calculator. Should the S&P experience significant resistance at this level, I will likely initiate a short trade.
On the Dow, the next Gann inflection point is 10,732.50 +/- 15 points. For the NASDAQ composite, the next Gann inflection point is 2353 +/- 4.5 points.
Note, should price break through these inflection points with little resistance, then these inflection points can serve as support levels on any subsequent correction, and can be excellent long entry points if they do provide support.
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