Numerous articles and books have been written about WD Gann. I was lucky enough to read some of his original writings back in the 1990s. I researched Gann եմ I have my own version of the Gann system. The most important phrase I read from Gan is, “Time is the most important factor in analyzing and forecasting market movements.” I could not agree more. In this article, I will look at how I exchange key points using Fibonacci levels իմ my time versus Ganns principle.
The first points you need to find are what are known as swing points. The swinging point is the last highest or lowest. There must be at least 8 large numbers between them to be considered moderate swings. You can use less points difference, they are not so significant. After discovering one of these levels, you move to the left side of the chart (going back in time) to find the other. I’m going to use EUR / USD prices with dates so you can find what I’m doing և apply the analysis. Looking at the latest price data (today is 1/27/09) we have a personalized shirt made on December 18, 2008 at the level of 1.4720. We move to the left և find the lowest of’s on October 27 և 28 1, 1.2330. Now we have to work with the swinging points. We will find the basic levels of support և resistance to change Fibonacci ratios. Then find the key points for each day to see if there are any deviations.
The formula for finding Fibonacci points is as follows. Take the highest և subtract the lowest to find the oscillating range. It will be 1.4720 – 1.2330 = .239 big numbers. Fibonacci coefficients are .382, .618, .8200 (my ratio), 1.382,1.618,2.236,2.618,3.618 Now we take the range and multiply by the coefficients..239 * .382 = .091298 Now we will take the highest. Raise or subtract the Fibonacci factor. Thus, the first level of support will be 1.4720-.0913 = 1.3807 The next level of support will be .239 * .618 = .147702 1.4720-.1478 = 1.3242 Next level .239 * .8200 = .1964 1.1965-. just the low level made on January 23 to caress my back was 1.2765)
If you want, you can continue to use the other coefficients. They will be fine as long as the shirt is not taken off or made new.
So when we calculate these levels, we will define the daily key points to see if any overlapping is happening (for me the overlap is 33 points + or – is), then I will give you the price class for my time segment. Remember that these Fibonacci levels have gone down, these same levels will now act as resistance on the way up. If they are violated, they become supportive again. Let’s move on to the key point formula and see how we apply it to Fibonacci key levels.
The key point formula I’re going to pass has been used for as long as I’ve been in the market (20+), ‘this formula was taught to me by a guy who has been in Forex since 1976. As King Solomon said: There is nothing new under Ar ”The key point formula takes on a new meaning when we have overlaps at Fibonacci levels. They become much stronger to use the reaction points. Here is the formula.
We must first calculate the baseline. I calculate the key point on a daily basis as we use daily data. (You can use this in any time frame, just keep the time sequence the same և I would not go for less than 30 minutes) Pivot Formula = High + Low + Close / 3 = x base axis
2x-high = support 2x-low = resistance
I’m going to choose today’s trading session (yesterday’s daily bar) to calculate. 1/26/09 Open 1.2974 High 1.3205 Low 1.2860 Close 1.3135
1.3205 + 1.2860 + 1.3135 / 3 = base axis 1.3066 2 * 1.3066-1.3205 = 1.2997 Support level 1 2 * 1.3066-1.2860 = 1.3272 Resistance level 1
Support Level 2 Main Axis – (R1-S1) 1.3066- (1.3272-1.2997) = 1.3066-.0275 = 1.2791 (Very Close to Fib Level) Support Level 3 Low -2 x (High Base Axis) 1.25 (2860-). -1.3066) = 1.2860-2x.0139 = 1.2860-.0278 = 1.2582:
Resistance 2 axis + (R1-S1) 1.3066+ (1.3272-1.2997) = 1.3066 + .0275 = 1.3341 Resistance level 3 High +2 x (axis-low) 1.3205+ (1.3066-1.2860) = 1.3066-1.2860)
So these are our daily levels, և we’re going to draw them on the charts with our old Fibonacci support levels, which became your way of rising your resistance levels. So how do we exchange these key points? Well, the rule of thumb is to go for a long break at the top and shorten them during the break. Easier said than done, because these are just some of the goal setting shareware that you can use to sell back and forth a few times, cutting you just the way they do. To prevent this from happening, you need to give yourself a 35 point stop loss (so if the market breaks or goes down, stays above or below the axis for more than 12 minutes or as short as a 35 point stop. You need experience. With Market Momentum 🙂 This is where my version of the Gan time zone pricing rules come into play. You can follow using the hourly charts, I’m going to describe how I sell these units. This is what is known as discretion, not system. However, you can now develop your own rules for selling these items. My experience has shown me that if trading moves fast to money, we are on the easy side of the market և we will exit when the market starts to slow down. (I am using the Deadline Stop procedure).
Let’s get into it; The data points that came up for me were the Fibonacci point from 1.3242, which coincides with my daily key point of 1.3272. I would like to see how the market responds to these levels. I’m going to write what’s in my daily trading diary so you can see how I traded in the market today. It should be noted that I have several basic systems that I use to trade. This is what I call a semi-commercial system because it’s a bit discretionary. This is the environment I’m used to being in; Because I have been trading in the interbank market for many years, it requires a lot of discretionary trading, as you do. markets. You should only try this if you have a good amount of trading experience. I still have tough, fast rules that I stick to when it comes to discretionary trading. Here are the rules of my time. I will use today’s trading script. It would be the opposite if we traded at the level of support. This is what I call the 15 minute rule. I divide 15 minutes into 3 five-minute time frames. Your market is trying to break the resistance level և fails. You sell the level minus 7-9 points. (our level is 1.3242-9 points) So you would be trading at 1.3233. You expect a quick return (the market is reversing և trying to resist again). (usually less than 1/3; this is a pyramid’s. Always a smaller’s). market carefully. Wait 5 minutes, if not in money (your defeat) close the trade քաշ withdraw.
At 9:15 a.m. EST Market is trying to reach the maximum paid level of 1.3244 at 1.3242 Fib. It can not stand. I am selling 3 units for 1.3231 euros. I will return to the pyramid at the level of 1.3250. I have over 39 S / L points. (Slightly above the key level of 1.3272 at 1.3281) Get a profit at the level of 1.3130. The market closes in the five-minute bar with 1.3239. 9:20 The market is trying to reach the height of 1.3244 և can not overcome it, I miss the price bid of 1.3238. I will not add at this moment. The market closes with 1.3219. There is no feedback yet. 9:25 We are a little narrow in the money market, I will sell a little if I see the level of 1.3235 40. The market in this bar is closing at the level of 1.3217. 9:30 The euro is trying to get 1.32 և pay quickly. It ends again closing at the level of 1.3215. The market is a mess և it can go in any direction at the moment, if we can not rise above 1.3258, I still think we can return to the 1.3150 value zone. 9:35 The euro is trying to break the level of 1.32 35 և is quickly rejected. I wanted to get them higher. Its closing is high of 1.3227. I can not add even if we break the 35 level I am currently in with my stop collection. 9:40 The euro is trying again 30 levels և fails, it is 3 times, we close 1.3215 9:45 narrow range trade 1.3215 1.3230 9:50 Still narrow range trade 1.3211-1,3231 9 : 55 Finally we break 1 index և we close 1.3231 9:55. .
10:00 We descend to the level of 31 1.3140 stop on the spot.
10:15 The market is taking me out with 1.3153.
So I’m exchanging key points. As you can read from the above, I never got that speed, I was a little vigilant because experience has shown me that the longer I stood higher, the more chances I had to try the next level of 1.3272.
My optimal trade would be to sell the First Resistance at 1.3240, if the market goes down to 1.3208, then it will return to the level of 1.3260, where I would sell again. Then quickly fall to the level of 1.3160. Everything in 20 minutes. Trades like this often happen if you know what to look for (what you’re doing now). But today the market made me work for my money. Congratulations Tom!