the DNA of any move in a liquid asset is the initial impulse move off of a low or a high. In that, all else will take fold.
below we have a chart of the EURO w/ nothing on it…
here’s the four things we need to do to give birth to ALL of the trend lines on the EURO from the most recent low…
- now, we draw a VECTOR (vectors have both a PRICE and a TIME) off the low into the first high. that is the bold blue arrow and is the DNA
- draw a 45 degree angle UP from that low point. (the famous GANN 1×1) that is the bold purple line
- draw a 90 degree angle from the top of the blue arrow to connect to the purple line. that is the light blue line …
- draw a 26 1/4 degree line up from the low and, note, it intersects the square exactly in the middle. That is the red line ..(the famous GANN 2×1)
- now simply copy/paste these lines into the future to give rise to all future turns …
is it possible to trade every hit of these lines? I would submit “no” but perhaps someone out there or some computer program can … for me, they are simply a very powerful roadmap to follow. I’ll look for a pattern and I have, in my head, “gates” or “intersections” to follow …
our “short zone” worked and we have had a very feeble 5 day rally … 1.3500 could have done it but I still “feel” a little higher might be in the cards.
hope you enjoyed
