DO NOT TRADE OR INVEST BASED ON THIS IMAGE OR INFORMATION
DISCLAIMER: The examples below are given as demonstrations of technical analysis and are therefore hypothetical and not actual trades. They do not represent actual account results nor include the entirety of all predictions we make.
Our 2015 annual forecast based on the “foreknowledge” methods of W.D. Gann is out. We decided to post this one for 2015 on the S&P Futures. See our 2014 forecast posted April 11th of last year.
The forecast begins March 21st of 2015 and runs through march 21st of 2016. the forecast was crafted as a team during our last “Magic In The Markets” Course in early 2015. This year the forecast is a little different. For the first time since I’ve been doing the technique, Gann’s “1st Curve” and “2nd Curve” blended to create the forecast did not match. The two curves matched until October and then diverged. Since Gann had a few forecasts blow up. This is how we believe they failed in those years. So what we did was plot both possibilities after the divergence in October. Gann didn’t trade the forecast, but used it as a guide when it was certain. So in this time of uncertainty, we let the market tell us what it will do. The red line going up is most probable, the yellow going down is least probable.
Or maybe, like the young Jedi in Star Wars, 2015’s future is clouded. So how would we trade this? Simple, we would use the Gann’s entry system, the polarity lines, to confirm the entry in the direction of the forecast. Beyond that, where there may be doubt after the October divergence, wait for the market to tell you which way it will go! Even though Gann’s techniques are usually 75%+ effective, that means they don’t work all the time. Like Gann’s failed forecast where he predicted a crash in 1951, there remains a percentage of failure that even this technique is subject to. So when we get a warning sign like forecast curves that don’t match, we simply shuffle Gann’s other predictive techniques to the front of the line.
So here is the forecast. Basically down 8% from the March 21st 2015 price into around July 2nd. Then up 9% from that level into new highs around September 2nd. Then down around 3% from that price into the beginning of October. Then either up to new highs by year’s end or a slow drift down.
The beauty is that we can adapt this method to intraday trading, and accurately forecast both price and time through the day and week. See our “W. D. GANN: MAGIC IN THE MARKETS” Course.
DISCLAIMER: The examples above are given as demonstrations of technical analysis and are not trading or investment advise.