6 Drawing correct WD Gann angles
Drawing correct W D Gann Angles + Technical Trading article #1
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by Robert Johnson www.aawealth.com article #1
If you do not make your own hand drawn trading charts, or do not have charts available, you can go to www.stockcharts.com and print out charts to work with.
These techniques can be used on any time frame.
A properly selected and drawn angle is a form of moving average, but unlike a moving average, it can project out into the future ahead of the price action on a chart.Drawing angles correctly and the proper use of the angles is crucial in successful technical trading. Using the correct degree angles is critical to successful trading. The two angles I have found to be the most accurate and beneficial are the 45 degree and 22 1/2 degree. These are W D Gann angles known as the 1×1, and the 1×2. Using only these two angles combined with the Fibonacci retracement levels of .382, .50, and .618 produce excellent trading results. W D Gann was a technical trader and perhaps the greatest trader of all time. W D Gann used geometry and mathematics as the basis for his incredibly successful trading. W D Gann used the geometric circle of 360 degrees and the 90 degree square as the core of his technical trading. The 1×1 angle which means 1 price segment x 1 time segment, equals a 90 degree square. To divide this in half and get the balancing point, you draw an angle which is a 45 degree or 1×1 angle. The next W D Gann angle is the 1×2 or 22 1/2 degree. This angle is 1 price segment x 2 time segments, and half of the 45 degree angle. I run these two angles from major bottoms and tops on bar charts, and let the price action come to the angles for support and resistance. This combined with the Fibonacci retracements of .382, .50, and .618 when close to, or on the angles gives excellent trade signals for support and resistance.
Click Here for the best W D Gann + Fibonacci Trading Software
I DO NOT just run any degree angle along bottoms or tops and put the angle to the price action, but rather have the fixed 45, and 22 1/2 degree angles from major tops and bottoms, and let the price action come to the angles just the way W D Gann did it.
TRY this simple method on your charts and see if your trading improves.
by Robert Johnson www.aawealth.com
11 Drawing Correct W D Gann Angles + Technical trading article #3
Click Here for the best W D Gann + Fibonacci Trading Software
Drawing correct W D Gann Angles + Technical Trading article #3
by Robert Johnson www.aawealth.com
If you do not make your own hand drawn trading charts, or do not have charts available, you can go to www.stockcharts.com and print out charts to work with. These techniques can be used on any time frame.
Now you need to have the angles properly drawn as described in article #1. I will describe how to use them for support and resistance. First find the lowest low on your chart, or highest high. Next you would draw a 45 and a 22 ½ degree angle up from that low, or down from that top. The price bars should remain above the 45 from bottom, if the stock or whatever you are trading is to remain in an uptrend or bullish mode. If the bars break thru the 45 and the closing price is below the 45 for 3 or more bars, it is getting weak and reversing into a downtrend or bearish mode. You would then consider the top of that highest bar a potential top and sell.
Next you would draw your 45 and 22 ½ degree angles down from that top. If the price bars are staying under the 45 from bottom, and now also staying under the 45 from the top, it is now bearish or in down trend and remains bearish until the 45 from top is broken to the upside by 3 bars closing above 45. This would indicate a reversal to the upside and a buy. You can use the 45 alone for support and resistance buy and sell signals.
I f the price action moves far away from the 45 and heads to the 22 ½ then watch that angle for support or resistance. Many times price will reverse direction at or near the 22 ½ degree angle. These angles act as a type of moving average and can be used for buying or selling off of.
Click Here for the best W D Gann + Fibonacci Trading Software
I DO NOT just run any degree angle along bottoms or tops and put the angle to the price action, but rather have the fixed 45, and 22 1/2 degree angles from major tops and bottoms, and let the price action come to the angles just the way W D Gann did it. www.aawealth.com
TRY this simple method on your charts and see if your trading improves.
by Robert Johnson www.aawealth.com