The secret of Gann angles

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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Gann Wheel

W. D. Gann stipulated that numbers and angles are related with tops and bottoms of the financial market.

In this article we will talk about Gann Wheel and what it is to help us to know something about one of secrets of Forex… it is not secret in its literary meaning but any trader in the field of Forex trading should know something about Gann and his tool in predicting, analyzing, and trading through Forex.

Wheel within Wheel as W. D. Gann called it sometimes, so we consider Gann Wheel as an analysis technique of the market.

The definition of Gann wheel is a circular numerical chart, this wheel start from the center with 1 to complete one cycle by filling up 24 parts of the circle with 24 incremental numbers in a fashion of anticlockwise.

The number goes up to 360, by widening the process up to 15 circles. So you say what is the benefit of this in Forex market? I will answer that the market support and resistance level as well as market reversal days are predicted by using this chart. So when you use it you can predict the market reversal days in addition and more important thing is that you can know the market support and resistance levels.

Inside the circle, the square is formed, and we have inner circle and inner square, as well as outer square and outer circle in which the Fourth Dimension is working out price movements are proved.

So far, we have covered the inner square (low coordinate and historic high on the square itself), and the inner circle (the earth’s Orbit around the sun).

All the planets and the Zodiac are included in the outer circle, and it is starting on March 21^st at the lift side of the square. So all 12 Zodiac symbols around the wheel will be placed by moving from that point clockwise in 30 degree parts of the circle.

The Gann student will be able to examine planetary longitude relationships to coordinate of price on the square of 9 and complete the outer circle, and the square of 9 will be now an outer square.

So by these way planetary positions to prices relating to coordinate on the square of 9 and also to degrees of a circle can be converted. Hard aspects to both square of 9 and Zodiac longitude can be also examined.

As Gann told us that the dates when stocks are first traded in stock exchange and the dates when companies are incorporated causes them to make bottoms and at slightly different dates which are for seasonal changes.

Every stock and commodity in the market moves in its own sphere of activities through the law of vibration as Gann said. So the own rate of vibration of stocks and commodity characterizes the essential qualities of its evolution.

They are (commodity and stocks) like atoms, which are the center of energies, and they are controlled automatically. Stocks and commodity create their own field of power and action, through power they attract and repel, so we can notice well why certain commodities and stocks at times lead the market and at other times they turn dead. Vibration is universal and fundamental because nothing is exempt from its law and it is considered applicable to every class of phenomena on the globe.

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Movies expose the financial world on Wall Street

Films talked about the mysteries of the financial world and tricks that occur, especially in the "Wall Street."

Do you want to experience in the world of big money and the stock market and you do not know what to do? You can start watching these movies, which I discussed well all financial transactions for most U.S. banks in "Wall Street" between prosperity and financial crises.

1 - The Wolf of Wall Street:

"Scorsese" Enters with a  new film which deals with the life of a billionaire, "Jordan Belfort", who lived lives of noisy in America eighties and nineties after that brighten his star in "Wall Street", and has been linked in the end with FBI and a lot of other issues, the film is based on the "Belfort" memoir by himself, starring "Leonardo DiCaprio."

2 - Wall Street 2 : Money Never Sleeps:

The story of this film talks around the figure of stock trader "Gordon Gekko" who spent too long sentence in prison before he finds himself outside the financial world which dominated on it one day, during his quest to repair his strained relationship with his daughter, "Gecko" makes an alliance with her fiancé, "Jacob ", where the latest sees in the character of " Gordon", the man, who is trying to walk in his footsteps.

3 - Rogue Trader:

It is Based on the story of the reality of the lives of two staffs were working in the bank "Barings", the accountant "Nick Leeson" and "Ewan McGregor" carrying out the work of the British genius simulation for the money.

4 - Margin Call:

Film tells the recent financial crisis that occurred in America in 2010, in a series of "Lehman" banks, which went bankrupt, the film features a group of Hollywood stars such as "Kevin Spicy", "Demi Moore" and "Zachary Quinto."  

5 -  Cosmopolis:

The film revolves around the life of the young man, "Eric Baker" (Robert Pattinson), who at the age of 28 years, inherits a lot of money that will make him  an arrogant billionaire, , and after this he is heading to the state of "Manhattan" for follow-up work, and there he sees one of the girls and a love story arises between them in, but he is exposed to several risks losing his fortune entirely evacuated in stock, "Wall Street", what will he do?

6 -  Arbitrage:

The film is about the story of a billionaire in "Wall Street" runs a lot of banks in addition to being a felon and trying to cover his financial crimes by crooked ways, at the same time accused of murdering his mistress so he tries more than a complicated way to prove his innocence.

7 - The Bonfire of the Vanities:

different Treatment of the social classes in "New York" city , from the beginning of the financial world in "Wall Street" to the surrounding countryside, and so on through "Sherman McCoy" (Tom Hanks), who is his mistress "Maria Ruskin" beat black boy with his car, and ignite things with a series of distorted newspaper articles about the incident and their lavish of illegal money.

8 - American Psycho:

The film based on the novel of the same name, starring "Christian Bale" and "William Dafoe" and "Samantha Mathis," tells us the story of the young man, "Patrick Bateman" yuppie in "Wall Street," that person is unbalanced mentally, and that because of his mad he commits serial murders.

9 - Too Big To Fail:

It Discusses the financial crises experienced by America, , "Lehman Brothers' Banks collapse, as well as global markets at risk, and the pursuit of" Washington "to save the economy before the collapse of the state. 

10 - Quants: The Alchemists Of Wall Street:

A rare look inside the minds of geniuses invented large financial models, but they are destroyed and replaced by "Wall Street" in the money market, a documentary film about a 45-minute inner workings of financial analysts in "Wall Street."

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Technical Analysis Tools

Relative Strength Index (RSI):

The RSI measures the ratio of up - movements to downward -movements and adjusts the calculation to reflect the index within a range from 0 to 100. If the index was 70 or more, financial tool will be considered as it has entered within the scope of the large number of buying operations (a situation where prices have risen more than market expectations). It is Taken from the relative strength index of 30 or less as a signal to enter a financial tool within the scope of the large number of sales (a situation where prices have fallen more than the market expectations) ..

Stochastic oscillator:

This indicator is used in determining the conditions of the large number of acquisitions / large sales operations in the scale of 0 to 100%. The index is based on the observation that in the upward trend, closing prices of the studied periods tend to be concentrated in the upper part of the scope period. And in reverse, while prices fall in a strong descending trend, closing prices tend to the proximity of the lower level of the period studied scope.   Random accounts give two lines; % (K) % and (D) are used to identify areas of the large number of acquisitions / frequent sales on the chart. The spacing between the random fluctuation line and the price movement of the underlying financial tool gives a powerful trading signal.

Moving Average Convergence Divergence (MACD):

This index includes a drawing of the two momentum lines of the market. The line of this index is the difference between the average of basic movements and the signal line or launch line, and which an exponential moving average of the difference is. If the index moving average intersects convergence -spacing with lunching line, it takes this as a sign of a possible change of the public trend of the market.

Number theory:

Fibonacci numbers: a series of Fibonacci numbers (1, 1, 2, 3, 5, 8, 13, 21, 34,) composed by adding the first two digits of the number to reach third. The ratio of any number to the next number is larger than 62%, which is a common Fibonacci retracement number. Unlike 62%, which is 38%, are also used as a Fibonacci retracement number.

Gann numbers:

W. D.  Gann was a trader in the stock and commodity works in the fifties and who collected more than 50 million dollars from the markets. He earned his fortune using methods that he developed for trading financial tools based on relationships between price movement and time, known time / price equations. There is no easy explanation for Gann ways, but the bottom line is that he has been used angles in charts to determine support and resistance areas and predict the times of changed future trend. As also he used lines in charts to predict areas of support and resistance. 

Waves:

Elliott Wave Theory. Elliott Wave Theory is an approach to market analysis based on repeated waves models and Fibonacci series of numbers. Elliott wave form shows ideal progress of five waves, followed by a decline of three waves.

Gaps:

Gaps are left areas on the bar graph where it never gets any trading. Upward gap formed when the lowest price on the trading day higher than the highest price of the previous day. And downward gap formed when the highest price for the day is less than the lowest price of the previous day. Usually upward gap is signal on the strength of the market, while the gap downward to indicate the weakness of the market. Breakaway gap is a gap in the price is formed upon completion of an important price pattern. And it is usually begun to refer to the price movement task. Fugitive gap is a gap in the price usually gets near the middle of an important market trend. For this reason, also it called a measurement gap. An exhaustion gap is a gap in the price you get at the end of an important trend and indicate that the trend in the end.

Trend:

Trend refers to the trend of prices. The high peaks and turns indicate into an upward trend, while the low and descending peaks and turns indicate declined trend which determines the extent of the current trend. A breaking line Indicates usually to a reversal in that trend. Horizontal peaks and turns are of the characteristics of trading within a narrow range.

The most common technical tools:

Coppock Curve: it is an investment tool used in technical analysis to predict lower levels in the downward market.

Directional Movement Index (DMI): technical indicator and is commonly used to determine if the currency pair takes a public trend or not.

Unlike fundamental analysis, technical analysis does not care much for any factors "for the larger picture of" affecting the market, but focuses on the activities of the financial instrument market.

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