Don't be selfish

Support and resistance levels

Friday, 31 January 2014

Support and Resistance is one of the most important concepts and more widely used in the world of public trading in the foreign exchange market, especially, support and resistance levels are undoubtedly one of the most important tools used in technical analysis of financial markets.
Despite the ease of drawing support and resistance levels, but that there is a big difference in the ways of its drawing and using, every trader has his own best way.
The concept of support and resistance commonly used in technical analysis of financial markets, as prices tend to stop or reversal at support and resistance levels anticipated in advance.
Let's see a real example of the support and resistance levels on the chart below:

As shown in the previous chart, levels of support and resistance serve as barriers for the price.
What is the level of support?
It is a specific area on the chart had stopped or reversed downward price them several times. It Called support because it supports higher prices, when penetrating a certain level of support, it turns into a resistance level.
Support area resembling ground stop or bounce then prices.

What is the level of resistance?
It is a certain price level; the price has been stopped or reversed up several times. It is called resistance because it resists high prices and constitutes a ceiling for the price, and when breaking through the resistance level, it turns into a certain level of support.
It is important to remember that there is always a level of support or resistance is perfect. It is also not every breach of the support is an opportunity to sell, not every breach of the resistance is an opportunity to buy, it's not that simple, but requires time and expertise to distinguish between the true from the false breakout.
Importance of trading using support and resistance levels
support and resistance levels play an important role in financial markets and considerable interest to technical analyst and trader, because the majority of traders and even adults of them, paying great attention to these levels, it is important regions to open new deals and profits taken it for open positions.

If you see satellite economic channels or relay Economic newspapers or magazines you often will have heard these labels and concepts frequently.
Three rules to identify support and resistance levels:

  • ·         The more stops, or a reflection of the price at the level of support or resistance given the greater importance of this level.
  • ·         Must be reflected in the price or stop at the level of support or resistance to a given two or three times at least.
  • ·         Levels of support and resistance levels are of the most important new old.
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Gann Astrology

Thursday, 23 January 2014

I tracked down what Gann talked about and read in his files about relationships and planetary motion under the name of (the astronomical way of Gann) attached to the workshop and I read most of the interventions of the commenters and did not settle for even looked at most of what has been written about Gann and his astronomical  and non-astronomical style and when I said that the style of Gann was based on astrology because I noticed after studying of some of the books and astronomical references to try to understand the style of Gann as follows ..

Jean divides the circle as (Pharaohs) divided past into 12 part where to take the Pharaohs year twelve months and every month is a three (periods) and every period is divided to ten days to become the year three hundred and sixty days .... They added five days considering them holidays (each tower has three aspects of astrology) as well as (Gann same division of the circle).
And attention to the number 7.... As the number of (7) in the Babylonian civilization an important role because they have discovered seven planets include (the sun, moon and Mercury and Venus and Mars and Jupiter and Saturn) ...  the Babylonians care in the day 7, 14, 21 and 28 of every month (Gann same attention of numbers).
the Greek civilization Came and adopted the same circuit as the Pharaohs divided with the addition of twelve towers and put each tower in a particular section of this circle to deduce the motion of the planets (as found in the special incantations of Gann himself).
Symbols of the towers, which are used by Gann are the same ones used in astrology (your luck today).
And towers in astrology is divided into several divisions, including divided into four sections which constants and capsized and animate and of two bodies (as in astrology), and each set includes three towers (Quartet relationship also Gann says).
And the Babylonians divided Earth into three concentric zones ... In astrology they divided the circle of the towers into three sections and they are (fire, dirt, air and water) every four towers in the group (the tripartite relationship as Gann stated).
Most of what has been written about Gann is inaccurate information and we will find while checking it illogical and wrong ... So that no one wrote a full curriculum for a genius style of (Gann) despite the passage of those years. Because they choose by their moods angles between planets until consensus reality and ignoring the other angles.
Even the division of the relationships between the planets and constellations in the astrology of the relationship coupling and hexagonal and square and triangular and interview (adopted by Gann).
When we see what on the above (and this summary of what has been concluded) it is clear that Gann gathering between the Planetary Science and towers of various civilizations and science of astrology and drew them a certain style of trading commodities and stocks (astrology)
Let us take an example:
According to an interview with a friend of William Gann, as she said, "There was one of the most exciting and the most surprising calculations signed by the committees during the summer [1909] when he predicted that the price of wheat in September will reach $ 1.20, and this means that it must touch the figure before the end of the month September and in Chicago on September 30 (the last day) of wheat was sold on the same day at a price of $ 1.08, and it looked as if the expectations are not fulfilled. Gann said: that it the price of wheat did not reach today to $ 1.20 at the end of the session, it will prove that there is something wrong and I will accounts and change my whole life style. And I do not care what the price is now, but it should be up today for the price of $ 20.1. 'In the last hour of trading wheat price rose quickly to $ 20.1 at the end of trading up to the expectation and Gann mechanism to settle at this figure. "
According to his followers, it was the degree of health committees up to the expectations of 85%.
Gann also made predictions on the election of the U.S. president and the beginning and end of the two world wars.
Is not all this astrology?
And there is a question.... Is now there a proof that the planets effect on human beings (other than what is going on about the effects of the sun and moon) with it is not scientifically proven.
And that there was no one scientific proof of the effect of the planets on the human ... How can they affect commodities or stocks.
I do not deny the influence of the planets on the nature and life around us as the sequence of the day and night and tides and eclipses and find out the times etc... It is not reasonable to say that the planet will be located in the tower as well as your condition will be such and such....
When looking for a way, we must identify the correct parameters to move forward and do not care about the search for delusions and even if we found something we find him and they are in illusion.
Gann hid his secret family and did not give him to one, and let everyone looking on his own way ... Since the scripts and talismans Gann confirms that his is a witty astronomer and astrologer... To look after him the right way and see what the outcome of the search ... Through my experience with Gann methods we should look behind (astrology) firstly with the full knowledge of the historical movements of goods and stocks ... The knowing of the nine square (what is not only a calculator) ... The secret is to find the corner to know bottom or the top.
We must not deny another essential thing ... Is that Gann was considered the sole reference in his time ... What was known in his age just declines , Fibonacci ratios , Point , figure far as I know ... And because the situation is hardly different now ... There are experts decide to start and end their operations by numbering the Elliott Wave ... There are those who take Harmonic its own decision ... There are those who take special strategies as indicators of liquidity and the determination and the Charts relative strength patterns and others in their trading ... There are who trading by their  ignorance, if they shot , it would be good and if did not hit, they waiting patiently and do not sell until the price rises again ... From this point , the time have disagreed .... And we came to the proper method for Gann ...; I think the rate of health does not exceed 50% and not 85% as was Gann-day.
And I'm still a researcher for the style of Gann-trading … I hope that you find good information through my article and I hope for you the success forever.
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Fibonacci Numbers and its relationship with Gann trading

Monday, 20 January 2014

Many traders make great use of the sequence of the Fibonacci number as a trading tool and between those traders, W D Gann. This is because the Fibonacci number sequence and golden ratio is very important in nature.
Gann achieved a lot of profits and won millions through using the numbers, so any trader can use it and maximize his profits.
So how they applied to trading?
Fibonacci numbers and the Golden Ratio:
Leonardo Fibonacci writes and creates the Fibonacci and they are named as his name in 1202, it introduced the Hindu-Arabic numerals to Europe for the first time, in which Europe was still using the roman ones.
There are two Fibonacci percentage retracement levels which are considered the most important ones for trader 38.2 % and 62.8%. And there are other important percentages 75 %, 50 % and 33 %.
1 – Fibonacci numbers define exit numbers:
We can place a stop loss above the tight zone which denotes support and resistance if three or more Fibonacci price levels come together in that area.
So it give important areas that act as support and resistance , and in this way it allowed trader to get pre-defined in a disciplined manner exit points.
2 – Position size is decided by Fibonacci levels:
By Fibonacci numbers you can define the size of position taken, when you prepared to take the risk which is depending on trading, because the distance from stop is difference on all traders in monetary terms.
3 - Profit objectives are defined by Fibonacci numbers:
Traders can use Fibonacci numbers for profit objectives once a pattern completes against a Fibonacci price area.
So you as a professional trader can use Fibonacci numbers to achieve two things, first, allow you to have specific stop loss and profit objectives in advance.

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How to choose the best EA in Forex

Wednesday, 15 January 2014

Trading in Forex, including the purchase and sale of currencies of diverse countries, and which is essential in order to achieve profits, and includes trading in this market on the currency pairs. In order to correct the movement, the investor requires economic and financial information, the latest developments in interest rates and the latest news concerning the countries belonging to the currency traded. One source of such data is a program of foreign currencies, and it helps you in the study of information on a variety of countries, monitoring trends in the foreign exchange market, gives input for direct exchange rates and does online trading.
Program of the Forex: about what you should be looking?

In order to be successful in the foreign exchange market, the process of selecting two things are very important - the trading platform in the Forex and program which you use it. While trading platform must provide quick and reliable service, the trading program must be easy to use so you can get on the market data and analysis, without any additional problems. It can be chosen program of the Forex with a difficult task and there are a lot of trading companies in foreign currencies, and all competing in order to make you work with it.
When choosing a program of the Forex, you have to think about the following:
Characteristics: You must choose an easy Forex EA you to use, and should be commensurate with the characteristics of your active lifestyle. For example, if you are trading in the foreign exchange market as a hobby and do not have the required time, you should choose a program of the Forex, which you can access via the Internet. This will enable you to make trades and manage your account from any computer wherever you are.
Security: the Forex EA must be designed at the highest levels of data protection, integrity and privacy. The program must provide a way to encrypt, and that will protect your account information, such as date of operations and balance, and personal data from hackers. And the program also prevents the entry of not allowed others.
Technical Support: You must have a program in the Forex in advance by the company can provide technical support services and convenient maintenance, and the company is also to raise backup copies of basis data on a daily.
Stop: The program must be trustworthy and have limited downtime, and in the absence of (server crashes), then you must make sure that the company offers technical support to fix the problem as soon as possible.
It will help you to ensure the availability of all properties in the previous program of the Forex you have chosen to increase the chances of success when trading in foreign currencies. Progress (Easy-Forex) trading software on the network to enable you to implement your trading in an effective manner, reliable and safe.
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The secret of Gann angles

Sunday, 12 January 2014

Many clever traders used Gann angles tool because it allow them to identify their entry and exit levels for great profit potential.
By the fact of studying the past Gann based his investment strategy, so as he assumed that we can predict the future:
1. There are only three factors relevant to market movement which is: Time, price, and range.
2. He considered that markets are cyclical in their nature.
3. Gann considered that market also geometric in their function and design. He sees that the movements of the markets are a reflection of human nature and it is constant over the time.
Gann’s Techniques and use of angles:
Basing on the previous ideas, Gann used three ways to predict the behavior of the market:
1. Time study, by looking at historically reoccurring dates which are derived from natural order.
2. Price study, by using support, resistance lines, pivot points, and angles.
3. Pattern study, by studying swings of the market and trend lines in addition to the reversal patterns.

Gann Angles:
In order to use Gann angles you should practice a lot, and I will give you now the basics of what you need to do:
1. Determining the units of time- you should look at the distances in which the movements of price occur, and then study charts in order to be able to determine a time unit.
See how the angles perform by putting them in the test.
The intermediate time frame (3 months) is better than daily or multiyear, it tends to produce the accurate patterns amount and it is considered the best frame to focus on.
2. Determining the high or low from drawing the Gann lines-
You should use other technical tools like Fibonacci levels or pivot points in order to achieve the best way of the above.
Gann found vibrations or price wings by analyzing charts using tools like Fibonacci numbers.
After you did the previous things you should decide which pattern to use:
1. The 1*1, 1*2, 2*1 are most common patterns, and considered purely variations of the slope of the line.
So remember that these numbers indicate the numbers of the slope and the units, for example, 1*2 is half the slope of 1*1.
2. The main basic role for Gann is that markets are cyclical in their nature so look for repeat patterns on the charts, to be able to trade.
3. In order to trade you should look for patterns and the direction will be downward on right of the high point or the right of the low point.
So we can conclude that Gann angles are important for predicting support and resistance levels.
The best formation for Gann:
Gann Angles are nine which he was using them, and when the angle is 45 degrees, price move identically in synch to time and that is the optimum balance between time and price.
So the following angle will then provide the next level of support or resistance if one of these lines is broken.
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