GANN MASTER FOREX

Astro Trading - course 48

• In the previous course materials we have studied a few
extremely important elements for "astro-trading".
• The astrological aspects
• Aspect types
• The natural support and resistance (planetary lines)
levels
• We start the course material this week with a practical
example of analysis in which we will use the studied
analysis techniques as well as astro reading which we
have learned so far.
• First step:
• We open a weekly chart on the EUR/USD pair and the
first thing that we notice is the price after making a
corrective rally in a major descending trend, at this
moment it went back to a descending movement. But
where did the rally end and why? In order to receive an
answer to this question we will mark all the supply
levels, studying the evolution of the price.
• If we will look closely on the left side of the chart we will
see the two congestion areas of the price where the
two supply areas formed. The first supply area formed
on the proximal line at 1.1341 and the distal line at
1.1529. The second supply area is limited by the
proximal line at 1.1545 and the distal line at 1.1675.
• If we will look closely we will see that both supply areas
were fresh supply areas.
• We know very well that the areas in which the price has
the highest likelyhood of going back are the supply and
demand areas that are fresh. A fresh supply or demand
area is an area where the price in the historical past
reacted in a representative way [made a congestion
(consolidating in a very narrow space or in other words
forming a base), ending a rally or a drop] but never
testing it again. In other words the price didn't go back
to that area touching it.
• In the concrete EUR/USD example we can see that the
first specified supply area and the one marked by us on
the chart was a fresh supply area and was created on
the 3-5 February 2015 and since then that area was
never tested until the 15.05.2015.
• If we look at the way in which the price reacted when it
reached that supply area we can see that it formed a
"Hammer" type candlestick.
• As we know, a "hammer" type candlestick is a reversal
candlestick but in our case this "hammer" had no signal
significance because a "hammer" type candlestick can
give us no signal when it is formed at the end of a
descending price movement (of a trend, a swing and so
on). This time around the candle appeared in the tip of
a price movement. For this reason the candle that
formed does not have a signal significance.
• In the day that followed, the price made a "bearish
engulfing" type candlestick.
• Only now can we talk about a candlestick with a signal
significance. We must offer a few explanations about the
"engulfing" pattern and the difference between the "engulfing"
patterns that appear in the Forex market and the stock markets
or commodities market and so on.
• A engulfing pattern is formed out of two candlesticks. The first
candlestick is a small scale one, be it a growing one or a
descending one, the second candlestick that is formed has an
opening over the maximum or minimum level of the first
candlestick (depending on the trend) and a close under the
minimum or maximum level of the first candlestick (depending
on the previous trend).
• In other words, the second candlestick swallows the
previous one practically. This definition is valid for the
stock market or the commodity market. In the case of
the Forex market, we can consider that we have an
engulfing candlestick even if the price opening of the
second candlestick is found at the opening level
(closing) of the previous candlestick and the closing
price is found underneath (or over, depending on the
trend) the price of the minimum (or maximum...) of the
previous candlestick.
We have made a chart example in order to make sure that you
understand the difference between the conditions of forming a
pattern "bearish engulfing" in the stock market and the Forex
market. Many traders consider that they know the candlestick
patterns but unfortunately the practice itself proves that they do
not know the differences between these patterns in the stocks
market and the Forex market.
• The knowledge of candlestick patterns is vital in the
activity of a trader because we cannot say that we can
read a price chart if we do not know the alphabet in
which that price chart registers itself. The alphabet that
was used (the most known charts) is that of
candlesticks. We will not insist at this moment on this
aspect. In the case in which you wish to go deeper into
it, I will send you three video recordings of the courses
held by Steve Nisson.
• I recommend that you study it closely, with a pen in
your hand. You will see how important it is to know how
to read a chart.
• The forming of that "bearish engulfing" on the
18.05.2015 was the first signal that the price ended the
rally movement.
• The massive candlestick, bearish formed on the date of
19th is the one that practically breaks the minor
ascending trend line.
• As you can see in our chart we made a platform of
"Timing solution" which allows us to make charts, from
the perspective of time, in two ways:
• -charts from the time calendar perspective
• -charts from the perspective of trading days
• This difference is one that is extremely important for a
Gann trader.
• Why?
• Because as we have said before, a price chart is built
on two coordinates:
• -price
• -time
• The markets, even the "Forex" ones are closed for the
weekend, in other words the price does not register any
sort of change. Time however does not stop, time
continues its irreversible movement.
• In other words the time axis has new time dates, that
are registered and in the weekend time on the price
axis we do not trace any new movements.
• When we wish to have an astrological analysis we have
to recall the calendar type charts.
• Why?
• Because the planets continue their movements during
the weekend as well.
• When we are making a technical analysis from the
perspective of the price action, for example from the
perspective of the supply and demand areas, this
aspect is not very important. We are mostly interested
in the price areas or price evolution.
• When we make a technical analysis from the
perspective of time cycles, planetary angles, astral
aspects and natural support and resistance levels, the
dimension of time is fundamental.
• Gann said that "time is more important than price".
• For this reason when we wish to make an astral
analysis it is very important that we use charts that
allow us to draw calendar days and not trading days.
• On short periods of time these differences are not
major. When we analyze the time cycles for years or
tens of years, the differences become extremely
important.
• In the image above we drew a chart on trading days
where we traced the Gann angles. The chart is scaled
on 45 degrees.
• In the image below we notice that we traced the Gann
angles on a calendar chart. As you can easily see the
differences are not major.
• Practically our rally ended under the 1x2 angle which
was found in the confluence area with the supply which
we mentioned at the beginning of our analysis.
• In the previous courses we have said that the Gann
angles are actually the mathematic expressions of
natural angles which form planets in their natural
movements.
• In the chart below you can notice that we traced the
natural angles of the Sun.
• Our chart proves a few important aspects:
• -First of all we can easily notice that chart is perfectly
scaled.
• -Why?
• Because the angle of the 14-th harmonic of the Sun,
overlaps perfectly over the 1x2 angle.
• The EUR/USD chart was scaled as I have mentioned
before at 45 degrees.
• Because we are talking about a financial market
instrument on the Forex market, about EUR/USD, the
conversion value of the chart is 0.0001$ per pips.
• In last week's course material we have said that the
conversion values are different for different financial
instruments.
• We were saying that in order to trace the planetary
lines for a financial instrument that is traded with a
price of over 100 dollars we will use a conversion
degree of 1,00$/point. If that respective action is
traded between 0 and 100$ the conversion degree will
be of 0.10$ per point.
• Because EUR/USD is traded at 1.xxx the conversion
degree which we have to use is 0.0001 $.
• For this reason we have traced the planetary angles of
the Sun, and used this degree of conversion.
• We will recall that the sun moves approximately one
degree per day and for this reason it crosses 360
degrees of a zodiac circle in 360 days (365 days).
• We have left the chart and Gann angles as
mathematically calculated and traced with dotted lines
and then traced the planetary Fan, the red lines thick,
in order for you to see how a chart has to look to be
perfectly scaled.
• This method is actually one of verifying the correctness
of a scaled chart.
• In other words, the astrological instruments can be
useful in the checking of usual charts of technical
analysis.
• Why is it important?
• Gann said that we cannot become successful traders if
we use wrong charts.
• Gann developed many mathematical instruments which
we can use in our daily trades.
• We must know however that all these mathematical
instruments were built as Gann gained a deeper
knowledge of astrological instruments.
• The Gann instrument angle is as we have mentioned
before, a mathematical instrument meant to reproduce
the natural angular movement of the planets.
• Let's go back to our analysis on the EUR/USD pair,
daily chart.
• We were saying that the price ended the rally on a
supply area that was found in confluence with the 1x2
angle and that is where it formed a pattern of reversal
bearish engulfing type candlesticks.
• But what else can we notice if we introduce in our
charts and natural resistance levels (planetary lines)?
• First of all we notice that the price ended its major
descending movement exactly on the longitude support
of planet Uranus.
• After ending the descending movement, the price
entered a rally and went up approximately 1080* to the
area of longitude resistance of the same planet Uranus
where the second marked supply area is found.
• We must say that also this time for tracing the planetary
lines we used the same conversion degree of
0.0001$/pips.
• Evidently we must ask ourselves: what has happened
on the 13th of March 2015 from an astrological
perspective that could stop the major descending
tendency and start that rally movement?
• It is the question that will help us understand better the
causes and not only their effects.
• We add these dates in our Ganzilla zodiac program and
we notice that on the 13th of march planet Uranus
made a conjunction aspect with planet Mars.
• In the chart below we traced a planetary line, Mars-
Uranus with a blue line but we have specially kept it
and the planetary longitude of planet Uranus, traced in
red, in order for you to see more clearly that the
conjunction aspect between Uranus and Mars offered
perfect longitude support.
• On the 13th of March 2015 planet Uranus was found at
15 degrees in the sign of Aries and planet Mars was
found at 16 degrees in the same sign.
• We also know that the conjunction aspect in general is
a beneficial aspect in which the energies and qualities
of two planets activate and manifest.
• We must say that the conjunction aspect can also bring
negative effects when this aspect forms between a
planet and another difficult planet.
• What could be difficult planets?
• Mars, Uranus,Pluto and sometimes Jupiter.
• Naturally, we ask ourselves: if a conjunction aspect is a
negative one when it happens between a planet and
planet mars and planet Mars or Uranus and the aspect
of the 13th of March, which formed between two
difficult planets such as Uranus and Mars, was it a
positive aspect?
• First of all we must remember that on Forex we trade
currency pairs.
• We trade for example EUR/USD not only on EURO but
also on US dollar.
• This conjunction aspect was a positive or negative one.
Were the negative energies activated or the positive
ones?
• If we judge from an EURO perspective the aspect was
a positive one, if we judge from a dollar perspective it
was negative.
• And still? The question remains?
• Let's analyze so that we receive a proper answer:
• 1.We found ourselves after a strong descending
movement, major: the aspect was beneficial, and it
interrupted this movement.
• Always when analyzing an aspect we must analyze it in
the context of the market.
• For example, many consider the new moon aspect as a
beneficial one and the full moon aspect is a negative
one.
• If we would consider this, it would mean that each time
that we register a new moon aspect we buy and each
time when we register a full moon we sell.
• If we would act in this way we would certainly fail.
• An aspect must be analyzed in the general market
context.
• A new moon aspect, full moon is one that changes the
presented energies.
• In the chart above we can see this principle easily.
• The price was found in an ascending movement on the
EUR/USD pair which we are now analyzing on the
18.05.2015 and registered a New Moon aspect.
• Theoretically if we considered that aspect as a
beneficial one and bought, then we would have been
wrong. We see the price has fell dramatically. Why?
• Because as I have said, a lunar aspect changes the
energies.
• Euro is appreciated in comparison to the American
dollar when we registered the New Moon aspect that
changed the presented energies and the price changed
its direction.
• If we look in the historical past we will see that on the
date of 18.04 we have seen another New Moon aspect
but also that the price was found in an ascending
movement and the aspect changed the energies and
sent the price into correction. On the 20.03 we have
registered a new New Moon aspect.
• Two days earlier, on the 18th of march the price
entered an accelerated descending movement. On the
20th of March when the New moon aspect appeared it
changed the energies and sent the price movement
upwards.
• As we can see, it is wrong to consider the general way
in which a New Moon aspect is a positive one and the
new Full moon is a negative one.
• We must always, when analyzing an astral aspect
depending on the general market tendencies or market
conditions.
• As you could see so far, our EURO analysis made a
major bottom on the longitude support of planet Uranus
when it made a conjunction aspect with planet Mars.
From that moment, the price went up 1080* to a supply
area which we have determined at the beginning of the
analysis. The price made a reversal pattern of bearish
engulfing type on the supply area, in the natural
confluence angle of the Sun in the 14 harmonic or, 1x2
angle.
• At that moment the price penetrated the natural angle
of the Sun, and this is an aspect of New Moon (aspect
0*, conjunction between the Moon and the Sun).
• The energies of the market changed and the price
entered a rapid descending movement.
• We believe that this analysis, step by step can help you
understand how to use both the technical analysis
elements as well as the astral analysis in your trades.