Nice range, eh? I thought I'd give an example of squaring a range that doesn't require any fancy Gann square. This method is simply taking a range or price and counting out x amount of bars. If it's a lot of bars, I'll also mark off divisions. (Essentially recreating the Gann square time levels.) I'll count of bars from the start and end of the range. In the chart below I measured off a range of 276 pips. The reason I chose that range is because it was the first move out of the double top. Double tops/bottoms can be tricky. This time it happened to work out from the first top and I haven't worked out the second one yet.
After marking off the range of 276 pips, I then counted out 276 bars. Price fell hard right down to that time marker. A bone fide go long signal. So I waited for the bar to close and went long. Interestingly enough, 276 x 2 = 552 and price had gone 547 pips from the first stop. A near perfect time-price squaring of 276 bars of time and 276 x 2 pips.
Is this a major turn? I don't know, but at worst it's a good counter trend trade for a few pips. And that's what it's all about in the end... forecasting areas of possible/probable reaction, evaluating the trend, and then risking accordingly. In this case since I'm going against the trend, the trade amount is small with a tight stop. As of this writing, it's up 50 pips. Not too shabby.
