Category: Money Tips Date: 2005-12-19
The third trading rules, trading under the percentage Naishi. Gann believed that as long as the comply with city potential, there are two kinds of market trading methods:
1) If the market conditions at a high level taking 50%, is a buying point.
2) If the market conditions has risen 50 percent in the bottom is a selling point.
In addition, a percentage of the market top or bottom of the level of, often become the market's major support or resistance, the following percentages of the level of a few worthy of special attention.
1) 3 ~ 5%
2) 10 ~ 12%
3) 20 ~ 25%
4) 33 ~ 37%
5) 45 ~ 50%
6) 62 ~ 67%
7) 72 ~ 78%
8) 85 ~ 87% of the percentage among the many, 50%, 100% and 100% of the market multiples Jiewei important support or resistance level.
Gann in the design of his fourth trading rules, on the financial markets have done a very wide range of statistics, he will rebound in the market or adjust the sale summarized as two points:
1) When the main trend of the market going up, it took three weeks for the adjustment if the market price is a buying opportunity.
2) When the main trend of the market down, if the market price of a three-week rally there is a time to sell.
When the market rebounded to adjust or reverse trend has emerged, the Gann considered in the following time must pay attention to the development of the Urban Potential:
1) When the market up or down more than 30 days, pay attention to the next city, a trend has peaked or bottomed out time should be for 6-7 weeks.
2) If the market rebound or adjust more than 45 days to 49 days, the next one which requires attention and time should be 60 to 65 days, according to Gann's experience 60 to 65 days for a rebound in times of adversity or adjust the magnitude of the maximum average time.
In a secondary city, among the market will usually be divided into three sections or four sections to rise. In a downtrend, the market will be three operative paragraphs, or even decline in waves, Sec. This is the meaning of a trading rule, when the upward trend began, never Do not think the market will only increase in a wave peak, usually the market will go up, adjust, up, adjust, and then rose once it possible has completed the overall trend; On the contrary, In the downward trend in exactly the same. Gann's view of this trend on the market with the Elliott wave theory is very close. Wave theory, in a rising figure in the promotion of five waves, of which there were three increases downstream, two counter-current adjustment. This point, Gann and Elliott cross-checked against observations. However, a trend in the study should be how many sections of the waves, Gann's view there does not seem like Eliot mandatory down, Gann that in certain market trends, the waves may occur, Sec.
