In a quarterly time frame, when a particular stock crosses the high or low of the last quarter (in the quarterly chart) it’s should be considered as an early indication that the underlying trend is trying to reverse.Īlso Read: 15 Gann techniques which every trader should know.When the price is in a choppy phase, or in a consolidation phase, if a sudden volume spike is found there, it’s an advance indication that trend is likely to change.(Not the right place for investment/entry, the price may fall). Don’t ignore a Double Top & Triple Top signal on a monthly chart, after a minimum gap of 6 months.( advance indication for mid-term investment) Don’t ignore a Double Bottom & Triple Bottom signal on a monthly chart, after a minimum gap of 6 months.If a price is rising for 9 consecutive day’s at a stretch, then there is a high probability of a correction for 5 consecutive days.Any stock which is trading below this 50% level is not that useful for investment. 50% of the last highest selling Price is the strong support area.If subsequent correction is greater than the previous correction both in terms of price & time magnitude, this is an advance indication that trend is changing.3 below the last 3 days high) (vice-versa). (Traders can buy it on the 4 th day and place an SL order Rs. When price crosses the high of the last 3 days it tells us about much higher prices on the 4 th day.When the price starts rising from a particular level, Rs.100 or 100% rise whichever is earlier becomes a strong resistance.If the market rises for 5 consecutive days, there is a high probability that correction will be lasting for 3 days.In an up trending market, if the prices break the 30 DMA & remain below it at least for 2 consecutive days, it tells us of a much greater correction (vice-versa).When the price breached the low of the last four weeks, it’s an advance indication of more lower prices.When the price crosses the high of the last four weeks, it’s an advance indication of more higher prices.If the market is in a strong downtrend (if the main trend is down), the weekly highs are generally achieved on Wednesday.In a highly uptrending market weekly low is achieved on Tuesday.If the low price for the entire week is achieved on Friday, expect a much lower price next week.If the high price for the entire week is achieved on Friday, expect higher prices next week.Among the many indicators and technical tools, WD Gann laid down some basic rules to be followed for trading: –
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