This is a monthly chart that shows important relationships in terms of price and time. As we can see, through the 2008 crisis the market plunged almost 60% and saw around 350% increase thereafter, painting an all-time high in September 2018. Currently, the 10-year-cycle is seemingly done and another big selloff in the equity market appears to be zooming. The 25%, 33.33% and 50% areas from the all-time high are potential targets and reversal zones. Selling into strength seems reasonable here.
Thank you for your reply. How do you correctly scale a chart on TradingView to then be able to correctly apply the Gann box to it?
Zoen_Trieste
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@MRZSKV, you apply the bar/price ratio in the the settings and click the lock scale bottom. I tried to explain how to find out the bar/price ratio in the comment below.
@Zoen_Trieste, Thanks again, I will give it a try. Have a great NYE!
Zoen_Trieste
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@MRZSKV, you too, mate. Let me know how it goes.
GoldenRatioTA
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Hello mate. What method do you use to square your charts before applying the Gann box? Many thanks!
Zoen_Trieste
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@MRZSKV, hi there! Firstly, there are three ways to square the chart: from top, from bottom or the range between the two. This chart shows squaring of the lowest price and squaring of the highest price. In order to make sure the right angle relationship clearly shows support in a rising market and resistance in a falling market, connect higher highs in a bullish market and vice versa in a bearish market. Getting this relationship correctly will provide sup/res points in time. The horizontal sup/res points are pretty straight forward - divide the highest selling price into 8ths & 3rds to get the 7/8, 3/8, 1/4, 1/2, 5/8, 3/4 & 1/8.