15 Gann Techniques for Superior Stock Market Returns 🚀
Strategy
September 2024
📈 Gann was one of the greatest traders who ever lived. He developed numerous techniques based on patterns in price and time. Let's examine 15 powerful Gann-inspired techniques every trader should know.
📈 Friday Signals
If a stock hits its weekly high or low on a Friday, expect the trend to likely continue the following week. For example, if ABC stock reaches a new weekly peak on Friday, look for higher prices the next week. ⬆️
🗓 Tuesday Lows
In strongly trending markets, weekly lows tend to form on Tuesdays. Pay close attention to lows made on this day as it implies the preceding trend is intact. 📉
💯 3 Day Breakouts
A buy or sell signal occurs when a stock crosses above or below the high/low of the prior 3 days by 3% or more on the 4th day. For example, a move in ABC stock from $30 to $31.03 would qualify but not $31. 📈
📉 50% Retracement Buy Zones
After a strong run, half of the gain is a potential support level to accumulate on. For example, if ABC stock rises from $10 to $15, look to buy around the $12.50 zone on a pullback.
⏩ Trend Reversal Signals
If a correction is longer in both price and time than prior ones, it implies a potential trend change. For example, a 4 week vs 2 week decline. ↔️
✅ Previous High/Low Barrier
Once a past peak or trough is clearly surpassed, it should not be broken in the opposite direction or it signals further trend adjustment. ↔️
🕙 Trending Timeframes
Corrective phases typically last 1/3 the duration of the preceding trending phase. For example, after a 9 day rise, anticipate a 5 day pullback. 📉
Conclusion
Gann developed numerous insightful trading strategies based on patterns in price and time. By understanding and applying techniques like Friday signals, trending timeframes, and previous high/low barriers, traders can gain an edge in identifying high probability trade setups. Mastering Gann analysis can help one achieve consistently superior returns over the long run.
📮FAQ
Some Frequently Asked Questions.
See other articles
While it's easy to focus on short-term savings, some expenses are truly worth the investment. Prioritizing key purchases in areas like health, safety, productivity and long-term assets can pay off in big ways. This list highlights 10 categories where spending a bit extra makes good financial sense. Whether it's gear for hobbies you enjoy or items that protect your most valuable assets, these are costs that provide lasting value and peace of mind.
Are you dreaming of winning the Powerball jackpot? With a current jackpot of over $1 billion, it's no wonder that people all over the world are playing. But what are the best numbers to choose? And what are the strategies you can use to increase your chances of winning? So whether you're a seasoned Powerball player or you're just getting started, read on for everything you need to know about winning the Powerball jackpot!
'The Godfather' is a legendary story that offers compelling advice for ambitious business people. Originally a novel by Mario Puzo in 1969, it was adapted into an iconic film the next year.As the story followed a mafia family's business dealings, it's no surprise its memorable quotes still resonate for professionals today. Below are 10 of the most impactful 'Godfather' quotes that can empower your business strategies.