When the trader uses Gann angles
so he do that in order to forecast resistance and support so it is considered
the most popular way he used. So he is going to trade when he when he
determines the time period ( monthly , weekly, daily) so the trader is going to
draw the three main Gann angles 1*2,1*1,2*1, from main bottoms and tops. And by
this technique, the analyst can read the movement of the market inside this
framework.
So from this framework we find
that downtrending angles provide the resistance while the uptrending angles
provide the support. And the trader is able to determine whether to bur or
support or even sell at the resistance because he or she knows definitely where
the angle is on the chart.
Rule of all angles means that
traders note how the market rotates from angle to another one. And by this rule
you should know that when the market breaks one angle, it will move towards the
coming one.
There is another way to determine
the support and resistance, by combining angles and the horizontal lines. for
example , the combination will set up a key resistance point because
downtrending angles will cross a % 50 retracement level, the same in this area
which becomes a key support point because the uptrending angles will cross a
%50 level.
And sometimes you will see many
angles clustering near or at the same price, when you have a long –term chart,
and they are price clusters, so the more important support or resistance by
more angles clustering in a zone.
I hope you find some important
information in Gann indicators I intent to divide Gann angles to three articles
in order to understand it well.
No comments:
Post a Comment