15 Gann Techniques for Superior Stock Market Returns 🚀
Strategy
April 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
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