Look for a short trade setup in EURCAD over the next two days, preferably on Feb 22nd around 13:00 GMT or Feb 23rd around 17:00 GMT. Price should stall out around the 50% Fibonacci retracement which coincides with the 3rd square root from the most recent low of 1.51402 set on Feb 18th. Should EURCAD run up to these levels it could stall out presenting a nice short opportunity around 1.55274. A stop of 231.0 Pips, the average true range, could be used as your stop, more aggressive traders may want to use a stop of 1.5x to 2x the average true range. After getting short look for a move back down to 1.53230 - 1.52600 area yielding a solid return.
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can you explain how you draw your GANN Square?
specifically, where do you locate the second point, so the arcs have best chance of resistance / support at time markers?
do you align the 2nd point vertically with the 1.25 of the fib time retracement?
or do you align the first arc with the 3rd candle (fib sequence), and since upward motion, you touch the upper close of that candle?
thanks
unique4x
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@ballsout the GANN was drawn from the low 1.51402 which at that time was set on Feb 18th. We calculate the square root based off that low and draw our GANN. We then look for the square root too coincide with a Fibonacci retracement level and preferably look for a Fibonacci Time Zone. I believe this pair has since made a new low which makes this analysis null and void.
B120626
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thanks for your reply, but what is / how do you calc a square root from the low?
when you draw a Gann square in TradingView, you have two points, the starting point, which is your low, and the second point. The second point controls the spacing of the arcs. Do you use the arcs as a visual indicator of when price action might "ride the curve of the arc", or do you not use that in your analysis?
When price falls below the 1x1 ray, do you invalidate the setup, or only after it drops below the first point's low price?
unique4x
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We do not use the arcs. We use a calculator to figure out the square root and use the GANN as a tool to visually see the square root levels on the chart.
B120626
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thanks for reply. so why not turn off the arcs?
please explain the sq root calc, as i cannot figre out how you get the 3rd root near 1.55. and what makes you choose the 3rd root? because it is near the 50% fib? why not the 61.8?
thanks
unique4x
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We like to see the arcs for visual looks.
Just Google a square root calculator, figure the square root from the low/high of whatever pair you're looking at, then add/subtract the square root from the low/high. You should then be able to figure out where each square root lands on the chart (1,2,3,4,5,etc...)
We highlighted the 50% Fib level because it was the first one which coincided with a square root as well as a possible Fib Time Zone. The 61.8% level would come into play only if the 50% doesn't hold or if the 50% level is hit many days prior to the Fib Time Zone.
B120626
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thanks but still stuck.
low was 1.514
sq rt of 1.514 = 1.23
if i add them together i get 2.744, way off the chart.
if i subtract 1.514 - 1.23 = 0.284, again way off the chart.
but if i divide the sq rt 1.23 by 100, i get 0.0123
1.514 + 0.0123 = 1.527 , which appears very close to the first horiz line of the gann square.
so do you then draw your Gann Square buy seting the first point at the low 1.514, and then scale the Gann Square so the first horiz line (the sq rt) is at 1.527, and that establishes the spacing of the horizontal squares of the larger gann square?
then since the gann square has vertical lines also as part of the square levels, 1, 2, 3, etc., you can look for alignment with fib time zones?
unique4x
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The square root of 1.51400 is in fact 1.23 but you need to convert it too Pips so the 1.23 square root is essentially 123.0 Pips which makes your 1st square root 1.52630 That should help you.
B120626
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aha ! so 123 pips in decmials would be 0.0123
thanks a lot, i could not find a good explanation of this on the internet
specifically, where do you locate the second point, so the arcs have best chance of resistance / support at time markers?
do you align the 2nd point vertically with the 1.25 of the fib time retracement?
or do you align the first arc with the 3rd candle (fib sequence), and since upward motion, you touch the upper close of that candle?
thanks