Click Here for the best W D Gann + Fibonacci Trading Software

Drawing correct W D Gann Angles + Technical Trading         article #4

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.

Having described the proper angles and their use in the first two articles, I will explain combining the Fibonacci retracements along  with the angels for buying and selling opportunity’s in this article.

When a stock or whatever you are trading has been in an uptrend, then makes a top and starts down, you can calculate price zones to watch for it to stop and reverse back to the upside. These are Fibonacci retracements of 38.2%, 50%, and 61.8%. So if the bottom price on your chart was at 20 and the price worked its way up to 100 then stalled out and started down, it would have moved 80 points. You would calculate .382X 80 = 30     .50X80= 40    .618X80= 49    Then subtract each from the high price of 100 to get the Fibonacci retracement zone to watch for support and a reversal back up.  100-30= 70      100-40= 60      100-49=51 .  So when the price falls to 70 you would be watching for signs of a reversal back to the upside and a continuation of the uptrend. If the price keeps going lower, the next zone to watch for reversal up is 60, and if it does not reverse there, you watch the 51 area. Many times prices will reverse at one of these retracement zones. You can do the same calculations in a falling market for retracements to the upside. When the price retraces to one of these pre calculated price zones and is also resting on or near the 45 or 22 ½ degree angle, you then have two technical indicators at the same point showing you the possibility of a price reversal is very strong. Properly drawn angles along with Fibonacci retracements can give very strong buy and sell signals. When you see these signals  over and over you will become more confident and trade better with just technical indicators the way one of the worlds greatest traders W D Gann traded.

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