The S&P 500 index ($SPX) has been in a bit of a pullback. Looking at some Gann levels from the daily chart it really has been behaving pretty well. Price action has rotated between the angles and minor horizontal levels (the purple and dark brown levels on the chart below). The overhead angle currently resides around 1085 (it will move slightly as time goes by). Below the next major level is 1029.
How to use this info? The major levels provide target areas to look for entries against those levels for rotation back the other way. The small levels provide areas to take profits and move stops. The whole thing together gives a potential map of the future movement in time and price.
Good Trading
Craig
Purchasers of Advanced Get SHOULD NOT have to spend additional money to learn how GANN works re GET. The software is expensive enough!
GANN is in the name for crying out loud!
Posted by: steve brophy | February 17, 2010 at 07:55 AM
Steve you are correct, which is why the automated Gann tools are extensively taught and utilized. Those being the MOB Ellipse and the False Bar. The more nuanced use of the Gann box requires face to face interaction.
Posted by: Craig | February 19, 2010 at 06:50 AM