Concepts on Gann Trading Technique by pepep25

VIEWS: 0 PAGES: 1

									Traders have long been using various trading techniques throughout the
decades although there have been various changes that have occurred in
the different markets such as commodities, stocks or futures. Whatever
type of markets traders engage in, they can make use of the Gann Trading
Technique in analyzing the direction of the assets and this would help
them in making a more accurate prediction that may bring profits to them.

There are three elements that are taken into consideration when applying
the concepts of Gann and these are the pattern, the price and the time.
New traders have to understand that they will have to take note of the
past, the present as well as the future in any trading activity. Traders
have to determine where the market was in the past and where it is at the
present considering the top or the bottom points and so that they may
forecast where it will possibly be in the future.

Traders who make use of the Gann Trading Technique have to make use of
the angles as their tools. They may do this by drawing it manually or
through the use of software programs that can aid them in their analysis
of the trends in the market. However, traders have to know how to make
use of the angles on the charts or on their computer screens. They can
make use of the trend line to determine the upward or the downward
movements of the prices. Traders may be able to predict when changes may
be expected because the speed at which the trends move happens at a
regular speed or interval. This allows them to determine possible dates
in the future when they can buy or sell their assets.

However, the Gann angles do not predict the market movements but it helps
the traders to identify where the angle will be in relation to the
elements that are considered. Traders also have to take note of other
factors that may affect the trends in the market. Certain geo-political
situations for example may have an impact on some assets that are being
traded around the world.

Just like any other tools that are used by the traders, the Gann Trading
Technique can be effective if they use it properly. However, they have to
be open and understand the concepts and the elements of pattern, price
and time that include the past, the present and the future whenever they
transact assets in any market.

One way to trade commodity markets and the forex markets is by using Gann
trading techniques. However, both of these techniques are mathematically
calculated through gann square of nine. This means that not only do you
try and predict turning points based on the price but also based on the
calendar.

								
To top