Do you want to get some motivation to change your trading and financial life? If a boy who had a large family with little money managed to get his life better, so can you. So, who was the guy? His name was William Gann. Most of the experts accepts that, he was a remarkable trader of all time. This guy created a lot of trading techniquesand the interesting
thing this strategy is using today. There are a lot of indicators in MetaTrader that is named after him.
When does it All Starts?
He was born in the year of 1878 and lived around in cotton warehouses in Angelina. He was the first of 11 children and his family had a lot of financial problems that influenced his education. That’s why he worked on the farm instead of going to school.
Trading Techniques and Indicators
Gann found the best mathematical and geometrical methods to use when forecasting prices. He used angles. He thought that the angles on a chart might be strong or weak, depending on their shape. And he was right!
Anyone can use Gann’s approach in their trading, to get success in his trading techniques traders must use a bigger time frame.
Gann made a lot of tricks to sell things. You can use them if you want to make a trade. He only died 66 years ago, but they're still useful.
Gann's Trading Rules
- If all the prices for this week are high, then people will expect prices to be high next week too.
- If the low price for the whole week is achieved on Friday, then the next week will have a lower price too.
- In a market that is trending upwards, Tuesday will be the lowest day.
- If the market is going down a lot, then the week's high prices are usually on Wednesday.
- When the price of something is higher than before, it means that prices will go up.
- When the price of a product is lower than it has been in the last four weeks, this means that prices will be going down.
- In an up-trending market, if prices break the 30-Day Moving Average and stay under it for at least two days in a row, this means that there will be a much more significant correction.