I have decided to help make a more in-depth analysis covering CSE:LHS since the stock is fairly new. The chart above is where we are currently sitting, which is on the bear side of the gann box but we will get into that later.
How I start drawing Gann Boxes:
Things to remember about Gann's time cycles:
Step 1:
Draw the first Gann Box from Low to High so an entry point can be established on the pullback.
Step 2:
Clone the Gann Box over to find entry once a support line is reached on one of the increasing angles about the 45 deg line. I use other indicators to confirm entries and exits. In the chart below we can see support is reached on Dec 13, 2017, but MACD hasn't come close to crossing. The actual breakout is on Dec 28, 2017, when we see strong RSI, Stoch crossover and MACD crossover to confirm entry. Oddly enough this date is shortly after the Winter Solstice which Gann says is a date to watch for. Digging further we see a high made when it reaches one of the trading cycle counts of 23 which is right after the 22nd degree.
Step 3:
The cycle has ended with The Box now broken and invalid since the creation of a new all-time high. We can expect an inflection point here and we can now redraw the Gann Box from the low to this new high. Oddly enough this Gann box has a cycle of 77 trading days and if we look above at the important dates we are pretty close to Gann's cycle.
As you can see we break the bottom of the box and again have to redraw the box to establish a new position if we can see movement onto the bull side of the box.
Step 4:
Since the creation of the new box and cloning the box over we can see a few things. We begin with the inflection upward along the strong trend line which is confirmed by rising RSI and Stoch crossover. However, this rally doesn't last since we soon break down into the bull side and consolidates until we reach a new ultimate low.
Step 5:
Since the Gann Box has become invalid once breaking through the bottom we can now redraw a new dynamic Gann box which end's up being our most current. From here we will analyze this one a little bit further.
We can see a few things after we create a new box. We have reached an inflection point where a rally starts moving and continues along the bull side of the box. An entry here is promising since the indicators are confirming a strong trend is imminent. Eventually, we break below the 45-degree angle and enter into the bear side where a trade would be closed.
If we look at this pullback we can see that it hits an area of support when we apply Fibonacci. We eventually break below the 1x1 angle but are able to make a nice gain should we choose to.
Present Day Look:
Pay attention to where the close is relative to the angles and what the indicators are telling us.
Looks like we are on the bear side of the box with a weak trend and the indicators do not look promising.
Well, that is it for me on this. Tell me what you guys think, don't be afraid to start a conversation with me if you have charts and ideas to share.
How I start drawing Gann Boxes:
- Use the dynamic Gann box tool and draw from high to low or low to high;
- Configure the settings to show only 1 & 0.5, set all others to zero and turn angles on.
Things to remember about Gann's time cycles:
- Days of interest and should be watched are significant days in a given solar year. Any of the solstices and equinox's (Dec 22, March 21, June 21, Sept 23) and their important angles which are in increments of 15 from these days. This means that 15 days after these significant days in a solar year.
- Gann used degrees in a circle to compute cycle lengths. The 360 degree in a circle is approximately the same as 365 days in a year. So he used 180 (half a circle), 90 (a quarter of a circle), 45 (1/8 of a circle), 135 (90+35), etc.
- He also used eights of 90 for shorter cycles to calculate the trading days in a cycle. 1/8 of 90 is 11.25 days, 2/8 is 22.50 days, 3/8 is 33.75 and 4/8 is 45 days. 5/8 is 56.25, 3/4 is 67.50, 7/8 is 78.75 and 8/8 is 90. If we round these numbers we trading day counts of 11, 22, 34, 45. 67, 79, 90.
Step 1:
Draw the first Gann Box from Low to High so an entry point can be established on the pullback.
Step 2:
Clone the Gann Box over to find entry once a support line is reached on one of the increasing angles about the 45 deg line. I use other indicators to confirm entries and exits. In the chart below we can see support is reached on Dec 13, 2017, but MACD hasn't come close to crossing. The actual breakout is on Dec 28, 2017, when we see strong RSI, Stoch crossover and MACD crossover to confirm entry. Oddly enough this date is shortly after the Winter Solstice which Gann says is a date to watch for. Digging further we see a high made when it reaches one of the trading cycle counts of 23 which is right after the 22nd degree.
Step 3:
The cycle has ended with The Box now broken and invalid since the creation of a new all-time high. We can expect an inflection point here and we can now redraw the Gann Box from the low to this new high. Oddly enough this Gann box has a cycle of 77 trading days and if we look above at the important dates we are pretty close to Gann's cycle.
Step 4:
Since the creation of the new box and cloning the box over we can see a few things. We begin with the inflection upward along the strong trend line which is confirmed by rising RSI and Stoch crossover. However, this rally doesn't last since we soon break down into the bull side and consolidates until we reach a new ultimate low.
Step 5:
Since the Gann Box has become invalid once breaking through the bottom we can now redraw a new dynamic Gann box which end's up being our most current. From here we will analyze this one a little bit further.
We can see a few things after we create a new box. We have reached an inflection point where a rally starts moving and continues along the bull side of the box. An entry here is promising since the indicators are confirming a strong trend is imminent. Eventually, we break below the 45-degree angle and enter into the bear side where a trade would be closed.
If we look at this pullback we can see that it hits an area of support when we apply Fibonacci. We eventually break below the 1x1 angle but are able to make a nice gain should we choose to.
Present Day Look:
Pay attention to where the close is relative to the angles and what the indicators are telling us.
Well, that is it for me on this. Tell me what you guys think, don't be afraid to start a conversation with me if you have charts and ideas to share.
Comment:
Realized that I was missing a trading day count in the gann cycle.
The cycles are as follows:
90 Day Cycle - 11, 23, 34, 45, 56, 68, 79, 90
180 Day Cycle - 23, 45, 68, 90, 113, 135, 158, 180
The cycles are as follows:
90 Day Cycle - 11, 23, 34, 45, 56, 68, 79, 90
180 Day Cycle - 23, 45, 68, 90, 113, 135, 158, 180
The trading day counts for 180 Days are 23, 45, 68, 90, 113, 158, 180. As you can see by some of the dates we are closer to the 180 Day cycle.
Looking forward we are actually approaching the end of the 180 Day cycle.