1. Concepts on Gann Trading Technique
Traders have long been using various trading techniques throughout the decades although
there have been various changes that have occurred in the different markets such as
commodities, stocks or futures. Whatever type of markets traders engage in, they can make
use of the gann trading in analyzing the direction of the assets and this would help them in
making a more accurate prediction that may bring profits to them.
There are three elements that are taken into consideration when applying the concepts of
gann square of nine and these are the pattern, the price and the time. New traders have to
understand that they will have to take note of the past, the present as well as the future in
any trading activity. Traders have to determine where the market was in the past and where it
is at the present considering the top or the bottom points and so that they may forecast
where it will possibly be in the future.
Traders who make use of the Gann Trading Technique have to make use of the angles as
their tools. They may do this by drawing it manually or through the use of software programs
that can aid them in their analysis of the trends in the market. However, traders have to know
how to make use of the angles on the charts or on their computer screens. They can make
use of the trend line to determine the upward or the downward movements of the prices.
Traders may be able to predict when changes may be expected because the speed at which
the trends move happens at a regular speed or interval. This allows them to determine
possible dates in the future when they can buy or sell their assets.
However, the Gann angles do not predict the market movements but it helps the traders to
identify where the angle will be in relation to the elements that are considered. Traders also
have to take note of other factors that may affect the trends in the market. Certain geo-
political situations for example may have an impact on some assets that are being traded
around the world.
Just like any other tools that are used by the traders, the Gann Trading Technique can be
effective if they use it properly. However, they have to be open and understand the concepts
and the elements of pattern, price and time that include the past, the present and the future
whenever they transact assets in any market.
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