Traders can pay attention to the angles that reflect the interrelationship of time and of price just like the way Gann has interpreted it during his trading time. Traders can make use of the Gann Technical Analysis as a way of making forecast as to the possible movement of prices in any type of market. They can check on the geometrical figures that are formed after determining complete cycles in their trading charts.
When using the Gann Technique, traders have to observe whether there is an increase or a decrease in price within a given time period. The angles should fall at 45° to the scale of the time element. One angle is considered as 1x1 which corresponds to one unit of price for one unit of time. With this geometric figure in the trading charts, traders are able to determine the areas where they can make decisions. The various levels or areas for possible decisions may be determined in advance.
As the pre-determined levels are reached, traders may decide to buy, to sell or to hold their position depending on the daily movement of the prices that they are monitoring. However, traders should not make the determined areas as a point of buying and selling because they need to consider other market factors as well. What is important is that they are able to understand the relationship of the low price and the high price in order for them to make the right trading move at the right time.
Fibonacci trading can identify when the future lows and highs may be expected and this would give them the opportunity to make decisions. Traders though have to get the most accurate data such as the actual trading prices rather than quoted prices. They may also benefit if they have accurate data for the past five years at least. The accuracy of the data may determine the success in the use of the Gann Technique in analyzing price movements. Traders may be wasting their precious time and resources if they do not make use of the latest and the most accurate data. When using the Gann Technical Analysis of price movements, it is important that traders remember what has happened in the past because it will happen again in the future. Experienced traders know that the market prices move in cycles and if they can predict accurately the future highs and lows based on the past highs and lows, then they may profit from their trading activities just like the way gann trading did during his trading years.
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