There are two distinctly obvious ways to draw a bear setup on this chart. It is very hard, maybe impossible, to know which of the setups is the “best” one. There are many clues, but in the end, the fractal nature of the market makes any reasonable Gann setup work, at least for a while. Having said that, let’s look at this setup:
The truly interesting thing about this chart/setup is that price has been virtually super-glued to the top of the square for months now. But, more importantly, we are now just a day or so from hitting 5th arc support. Will the support hold, and provide a springboard for higher prices? I can’t know for certain yet, but it seems rather likely. We will know quite soon in any case.
Let’s look at a bull setup from the June low for another view:
Remember: The author is a trader who is subject to all manner of error in judgement. Do your own research, and be prepared to take full responsibility for your own trades.
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Last modified: March 4, 2021 4:51 PM