Don't be selfish

Practical Gann applications on the Forex Charts

Saturday, 27 September 2014

First: models
According to Gann, models always reflect the study of patterns of price movement , For example the trend is bullish when price penetrates the summits and will be bearish when it broke bottoms , so trader can get this information from the movements of the market and the size of its movements and time of the move, this reflects the price (move, size, time, duration) which are associated with the pattern, in addition to that trader can  draw these patterns
from chart using analysis of the well-known forms and models .
Second: Price
Gann considered the price is the fluctuation of the targets on the chart, as well as the angles and percentage proportions of those points.
After forming the chart, the trader creates the price information that will be used to predict tops and bottoms, For example: if the price moves 100-150 points before the summit, then we predict that the price will move from the bottom 100-150 point.
Conversely, if the price went down 100-150 points from the top, and then followed by another top, the trader can expect the price to fall 100-150 points also. If the market moves on those perceptions, the market is in this case a balanced.
Third: the angles
The use of angles is very important part of the amazing Gann tools and methods, the market has always  a basic design and shape , so angles have a very important role in configure the basic shape or design, and insisted on taking Gann-specific patterns or specific sizes to each market (per stock or currency) to maintain that relationship, and therefore he choose price range that has been in agreement with the geometric design or formula., It is depends mainly on a 45 degree angle to split a significant map in prices and areas.  This angle represents because they represent X1 time and usually it is referred as Angle X1, one unit from the price with one unit of the time. He also used other angles to suit with the price and time division. This angle is defined as angle1X2 and it represents one unit of price with two units of time. And all of these angles are important because they indicate support and resistance. It also has the predictive value of this trend in the future, and the activity and the direction of the price. And all are Things must be known to the expectations of the market, which could be in the future.
Fourth: The points and percentage correction ratios
Beside Gann angles, Gann also gave the trader levels moving with time, where are correction percentage points in order to provide supports and resistances  that remain fixed as long as the market is still in shortage price range, it is recognized that Gann had put ratios correct of the rule, which states that the prices of most of the right steps to 50%. Other divisions, 25% and 75%, with 50% of the level that occurs most often.
Gann believed that traders would be  successful if they used tools prices which determine those ratios such as drawing lines between points, angles, and correction ratios to find the Support and
the combination of the two (angles, and ratios correction) provides a tool for trader to determine support and resistance that must be worked out.
Annual dates:
Gann used to use annual dates as an important tool of his tools, and depends where the historical periods in which there are important tops and bottoms market,
This combination of information affect the seasonal of the market because usually Annual dates
recur in the future.
Cycles of time:
As we mentioned earlier, Gann tried building analysis tools that were in the design Specified for the market. When he looked at the annual dates, he saw a series of courses for a period of one year. In geometric terms, the cycle represents a circle for a period of one year Or 360 degrees, Based on the geometric relationship to the market, Gann also divided the year into Four quarters to be important to the timing of those periods. Each of those quarters represents a cycle of 90-day, and a cycle of 180 days, and 270 days cycle. In use
For a period of one year in the cycle and the distribution of this cycle on the circle, where you will find a number of these cycles line up (preferably three or more) at one point in The appropriate time in the future. The number of cycles Called time cluster, this time is the main group that Used to predict tops and bottoms. Cycles of time a large part of the analysis of Gann
To predict the future price, and should be accompanied by valid prices indicators that determining the Market expectations.

No comments:

Post a Comment