Using Gann Angles to Navigate Price Corrections

By: readtheticker | Mon, Feb 27, 2012
Print Email
WD Gann

Using Gann Angles to interpret price corrections is superior to Fibonacci retracements levels and or Fibonacci fans for the simple reason Gann Angles measure both time and price.

When price rises it is normally a slow grind upwards, however when price falls its very fast. Very much like a fishing rod. Price action suffers a slow grind up the rod until it begins to bend, and then a sudden and rapid decent along the fishing line. The collapse of price can actually be used to your advantage, as it must climb back up into the main trend channel and this is where you jump in. (see below).

Fishing Rod

When price collapses, many will say 'who will catch the falling knife', because those that try might lose their fingers. Let the large accounts (Wyckoff Composite man or Mr Market) catch rapid falling prices, let them form a base of (re) accumulation. You should a let little time pass before you enter the price pattern that you think will be correction within a long term upward trend. The use of Gann Angles during the price correction phase is an excellent tool for determining the correct time to enter the (re) accumulation phase before the trend continues.

See the chart for examples...

SPY Gann Angles
Larger Image

 


 

readtheticker

Author: readtheticker

readtheticker
www.readtheticker.com/
www.readtheticker.com/Pages/Blog1.aspx

We are financial market enthusiasts using methods expressed by the Gann, Hurst and Wyckoff with a few of our own proprietary tools. Readtheticker.com provides online stock and index charts with commentary. We are not brokers, bankers, financial planners, hedge fund traders or investment advisors, we are private investors.

LEGAL DISCLAIMER: The material is presented for educational purposes only and may contain errors or omissions and are subject to change without notice. Readtheticker.com (or 'RTT') members and or associates are NOT responsible for any actions you may take on any comments, advice,annotations or advertisement presented in this content. This material is not presented to be a recommendation to buy or sell any financial instrument (including but not limited to stocks, forex, options, bonds or futures, on any exchange in the world) or as 'investment advice'. Readtheticker.com members may have a position in any company or security mentioned herein.

Copyright © 2011-2014 readtheticker.com

All Images, XHTML Renderings, and Source Code Copyright © Safehaven.com

SEARCH





TRUE MONEY SUPPLY

Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/