I don't often use Gann but when I do its not because I'm thirsty.
The monthly chart is a wave count that I have been evaluating. It's not my preferred count but is still valid, especially if I see more three wave moves (see comment below).
The red line drawn from the lows is a true 45 degree angle which according to Gann provides support. As you can see, the Gann angle was tested in 6/2012 and price make a significant bounce. If a contracting triangle is unfolding, this angle should hold once again and will NOT be broken. If so, price should continue 3 wave rallies and 3 wave declines UNTIL cycle w.e is complete.
Other uses of the Gann angle help locate potential turns in the market. In this example, the next major turn is where the Gann Angle meets resistance that was established by w.III circle peak. That point projected forward corresponds to 7/2017. Certainly that is far into the future but it's not to far off from some of the cyclic work that calls for the Bear market in equities to end in 2016.
Some readers may recall this chart. In each case, we have an all-in-one movement with equities leading followed closely by commodities. How this resolves is of interest to me because , as most recently, commodities are leading equities down. Should commodities slide prove meaningful then the Gann angle in GreenHaven should break leading to a very bearish outlook for both commodities and equities alike.
Best of Trading
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