Successful Double Arc Trading

Beside the start of the initial impulse and the breakout of the 1st square, the double arcs produce the most profitable and the safest trades from the trader's point of view.

Double arcs are the targets to be expected in a GUNNER24 Setup. The double arcs are very strong price and time magnets that determine whether the trend is going to pause, to accelerate or to end there at the double arc in order to turn.

Whenever a double arc is being reached there’ll be an important mathematical connection between time and price because that’s when the emotions of the price setters bundle up in a price at a certain time. In those cases always arises a strong tendency towards a change. Normally we can join trading the current trend along a double arc until the present trend is being stopped to turn, again by a GUNNER24 Horizontal, Diagonal or at a Gann Angle.

For successful double arc trading we always consider several time frames simultaneously, starting from the big picture – a setup in a long-term time frame – like for instance the weekly, daily or the 8 hour silver setup shown here:

Then we try to find some optimum entries into the current trend by means of the setups with the shorter-term time frames.

Above at the 8 hour 8 Candle GUNNER24 Up, we can see that silver fell back to the 1*1 Gann Angle after the 10/12 high following the angle upwards until reaching the first double arc. On 10/17 for the first time silver was quoted within the first double arc then following the double arc resistance downwards in a more or less orderly way before on 10/20 the weekly low was made very precisely at the important 1*2 Gann Angle. A couple of significant 8 hour highs arose on 10/18 (first square-line resistance) and on 10/19 (resistance of the upper line of the first double arc).

Since the rebound from the 1*2 now silver seems to have broken upwards the first double arc by weekly close so nothing seems to be in the way of a further rise, at least from the sight of several 8 hour candles.

According to the GUNNER24 Trading System – we always may/have to expect a change in trend at a resistance double arc (!) – we might go short immediately "on spec" at the candle that for the first time is to be seen within the first double arc. Yet it’s a matter of the candle that marked the weekly high within the first double arc on 10/17.

That may absolutely make sense depending on the size of the account and on the chosen instrument with the corresponding preparedness for risk and setting the stop loss that is specific for the trader. And in this case it would have been most profitable. But as soon as someone trades futures or high leveraged instruments he rather attaches importance to a double secured entry into the trend.

That security is always offered by the setups in the lower time frames. That’s where we look for the optimum signals to enter into the current trend.

1 hour down setup:

It’s a real money maker. Just imagine you’re regarding this setup while the top candle of 10/17 is forming in the 8 hour time frame.

1. We’re looking for a good short-entry. 2. This 2 candle down in the 1 hour chart is very valid because after the formation of the top on 10/12 and the following break of the first square followed by the break of the first double arc silver is clearly driven upwards by the 2nd double arc, and its ascent is braked by the 1st double arc. 3. Correspondingly we know that the 1st and the 2nd double arc are existing and important. 4. And we’ll receive the first valid short signal in case the 2nd double arc is clearly broken downwards again. 5. That happens after the high of 10/17 has been formed at a clearly identifiable resistance Gann Angle!

That one is newly reached at the high of 10/18 corresponding exactly with the horizontal square line resistance in the 8 hour setup again! 6. If we only just follow the absolutely simplest rule now which is to join trading the clear break of a double arc in the trend direction and cover the position when the next double arc in the trend direction is reached there’ll be two very beautiful short trades resulting from this setup.

7. The third short entry at the top on 10/18 might follow because we know that silver A) reached again the resistance angle in the 1 hour setup and B) in the 8 hour setup it reached the horizontal square line resistance SIMULTANEOUSLY. The same resistance in two different time frames = nearly almost we can trust such a signal!

Important: Near the 5th double arc we always have to reckon with an end and a change in trend. Using this realization and combining it again with the 8 hour setup we can suppose that there is THE SAME SIGNAL AGAIN in two different setups. It’s the final low of this trend, very precisely at the 1*2 Gann Angle of the 8 hour setup.

A 15 minute down setup:

Here you see a setup that is depicting a complete 360° circle rotation. The setup ends EXACTLY at the end of the setup – in terms of time as well as price! It’s the third setup that is pointing to a significant low on October 20!

Like always, in the significant highs you are looking for a meaningful down setup that may depict the downtrend. Here we’ll scrutinize the high of the 18th. It’s a setup that is easy to be found: We drag the blue arc from the high to the low at the 19th candle (very close to the 21st candle!) so we get a setup where you may simply use any break of a double arc for a short-entry. According to the rules (as seen before) you’ll cover the position when the next lower double arc in the trend direction is reached. Corresponding with the personal risk limitation pattern at least four of the five possible double arc trades are supposed to be considerably profitable. Only the last trade in case of the break of the 5th double arc is expected to go into the – usefully set - SL and thus into minus.

Both 5 minute setups:

Parallel to the setups above the very active intraday traders may augment the trading frequency with the present 5 minute setups. They are very appropriate for the futures trading with a high investment of capital for traders who don’t like to be in the market for a long time but are keen on the money.

You just look again for a down setup at a significant high. There you simply trade again the break of a double arc in trend direction covering by reaching the next lower double arc. Three out of three traders are winners here. As very often, the market turns finally at the 5th double arc where we may apply an up setup. In addition I also sketched in the entry and the exit of the blue arc short-trade…

The final low 5 minutes down setup:

It’s a little tricky to find this 5 minute down setup during the active trading and even trickier to evaluate it. It doesn’t start at the absolute high candle of the October 20 high but one candle later. But including this subsequent candle we can measure a 5 candle initial down impulse that will throw out the final low of the 10/20 at the 5th double arc of this setup. I think you need to see the further day course to recognize the complete validity of the setup because very obviously silver pays much attention to the supports and resistances of the third, fourth and fifth double arcs.

Thus it’s the fourth setup (beside the 8 hour, 1 hour and 15 minute down setups) that indicates the low of 10/20 as the "definite low" of the last downtrend.

Conclusion: The trend in the 8 hour time frame has changed, so we have to speculate on long the coming days.

Be prepared!

Eduard Altmann