# Gann Ideas, Pivot Points և Fibonacci:

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).