Rumble in the jungle – And the winner is…
The way the weekly candle carries on fighting with the horizontal square line at 1089 - isn't it really according to the textbook?! See Complete GUNNER24 Trading and Forecasting Course page # 49. Since exactly at that horizontal the long and the short signals are facing each other with 92 % each. See Forecasting Course page # 47. That's comparable with two heavy weight boxers who in the tenth round face each other just punching without any guard.
This once one of them is bending his knees, next time the other one is getting a black eye... In the end the upwards trend should win because the double arc is broken on lost motion basis. At the moment, our most beloved upwards trend is leading on points. ES # closed the week above the horizontal square line, to be precise. On Friday whith the stock market closing, correspondingly we went long at 1091.50. The SL is at 1031. Please, work here with the reverse and double technique. The target continues being 1212.
But we will always have to keep at the back of our minds that the stock market on monthly level should actually submerge. But for the ninth successive month it makes develop the current initial impulse which corresponding to the rules leads to a significant high in the 13th month. That will be March, 2010.
That means in the final analysis we have to buy every dip. Next week, correspondingly I'd like to deal with the monthly charts of the stock markets and with the question what it means if instead of 8 Candle Up we get a 13 Candle GUNNER24 UP on monthly basis. And that's what everything indicates with the new November high.
Europe – The Dachshund tail
Let's look at the weekly FDAX # in detail today. From March to April, 2009, the FDAX # formed a "irregular" 6 Candle GUNNER24 Up Setup which has been very convincing not only in the past but also for the future it will give a perfect forecast.
The places where in the past the price has complied with the schedule were marked green in the chart. The top so far which happened four weeks ago fell almost exactly on the important time line between the second and the third passed square where we are now.
The situation: The weekly FDAX # is located in the bullish part of the setup precisely within the important second double arc which gives few resistance. Several times it has closed within it, its target is the 3rd double arc at 6478 which according to the appearance at present, we should reach by the end of March / beginning of April, 2010.
With the long candle 3 weeks ago a 1 Candle GUNNER24 Down has formed which we don't either consider nor pay attention to since at the moment it is not very important for the total forecast. That GUNNER24 Down Setup is not relevant unless the market within the coming two weeks should break the Setup-anchored Gann Angle downwards. But during the last 3 weeks the price has tested the anchored Gann Angle successfully and performed according to the rules exactly the way it did in July. Thus, in the third test it should rebound from it again...
Therefore, the total outlook continues long through April, 2010.
With the GUNNER24 Forecasting Method, for a general estimate of the market you need but 5 minutes – Early FDAX # trading – 5 minute chart – Part 1
Consider the day yesterday and examine the significant lows and highs and count the candles there, according to the initial impulse rules.
The initial impulse at the low is 13 candles long and the correspondingly installed GUNNER24 Up Setup shows the target of the 2nd double arc to be reached.
On the other hand that means in this time frame we are in a down trend since our main target, the 3rd double arc was not reached.
The question now is at which high within that 2nd double arc does the downwards-directed initial impulse begin. Is it at the first or at the second high?
For that purpose, at first we check the first 5 Candle Down Setup and we realize it doesn't make sense.
The installed 12 Candle GUNNER24 Down Setup at the second high replicate the price course precisely.
We recognize all the correspondences of the setup with the price also by the green checks. At the moment, the price follows the lower line of the 2nd double arc upwards. But since the price has closed within that double arc and follows the lower line of the double arc we may speculate on a soon final break of that double arc.
Since this Setup is a GUNNER24 Down we are expecting a continuation of the trend, and generally we are looking for the short entry.
Next week, you'll learn how to implement profitably this market estimation and how to make $ 1.500 US in just three hours with the GUNNER24 Trading and Forecasting Software.