Hello fellow traders. Using repeating time frames and range resistance I suspect this market hasn't finished selling off yet. The chart shows two sections which were very similar in price range and time from the 19/12/17 high. Using balancing time from the first range out it suggested a high could form around 28/01/18 (177 and 175 bars, see chart). That was confirmed and the market fell to the low on 02/02/18. If we look at the price and time action of the second section we notice that the market ran down 28 bars to the 50% pressure point. Notice the price and time action action of the potential third section is nearly identical. The market then formed a lower swing top and after a brief sideways movement fell to its low on 17/01/17. The current section (potential 3rd) has rallied strongly to form a lower swing top on 04/02/18 to then test the 50% pressure point again. The market is sitting right on my critical red vertical line which is 54 bars from the section top. This was the moment in the second section where the market started to decline. If my analysis proves correct we should see a reversal followed by a very dramatic sell off. This would cause a lot of panic if the price falls to $66 (75%). If the sell off occurs then I'm confident in my forecast for a low of $24 on 08/02/18
Of course I could be wrong and if the market does rally further then the potential could play out.
Ian - Aussie Trader
Also, why is there more distance between the 2nd and 3rd than the 1st and 2nd box?
I've added two points to watch for price resistance and support. It would take something (good or bad news) fairly significant for the market to reach either of those points on the 16th but I am expecting a decent high or low then. A more likely upward price would be at the $195 point if the market breaks above. I'm still finding my feet after a long break from Gann trading/forecasting so being a curious onlooker is wise :)