How to forecast trend reversal date using W.D. Gann study?
Why we do this time analysis? To forecast the trend reversal date, to forecast market top formation date and to forecast market bottom formation date.
How to forecast trend reversal time? This process uses two Gann formula.Two relation establishing tool know as offset and squaring.
How to start this analysis?
You need 4 data
Previous month High formation date and price
Previous month low formation date and price
Post data collection you need to calculate the price range(i.e.difference between high and low) , time range (i.e. trading days between high and low formation date and calendar days between high and low formation date)
Use the 1st Gann formula to convert numbers to degree (i.e. Price range to degree, calendar days to degree and trading days to degree)
Use the 2nd formula to find the numbers falling in same degree trend line.
Now you are 90 % done to achieve the time forecast:
Just add the numbers you got from 2nd formula to the low formation date and high formation date to get the trend change date.