Telling my 8 years of experience in 5 min. A thread on how to find support and resistance and do Intraday trading.
Before starting go through the concept of Fibonacci fann. 👇
Now we have the 9 sets of trend lines from a lower price point towards the
higher price point are as follows 1X1, 1X2, 2X1, 1X3, 3X1, 1X4, 4X1,
1X8 and 8X1 .
The geometrical angle made by these trend lines with the X axis in an
up move corresponding to 2X1= 63.75 degrees, 1X2= 26.25
degrees, 1X1= 45 degrees, 1X3= 18.75 degrees, 3X1= 71.25
degrees, 4X1= 75 degrees, 1X4= 15 degrees, 8X1= 82.5 degrees,
1X8= 7.5 degrees.
The geometrical angle made by these trend lines with the X axis in a
down move corresponding to 1X2= 63.75 degrees, 2X1= 26.25
degrees, 1X1= 45 degrees,3X1= 18.75 degrees,1X3= 71.25
degrees,1X4= 75 degrees,4X1= 15 degrees, 1X8= 82.5
degrees,8X1= 7.5 degrees.
Before finding support and resistance will learn what is degree factor and how to calculate it.
In trigonometry 360 degree is equal to 2 degree factor. Similarly we can say 45 degree is 0.25 degree factor.
In gann study the 180 degree is considered as factor 1. This is
because between the sun rise to sun set the solar motion happens
approximately 180 degrees and it is considered as 1 day time.
The 2nd universal concept accepted by the financial analysts is that
the supports are always calculated in a falling trend and it used to be
calculated from the high.
The 3rd universal concept accepted by the financial analysts is that
the resistances are always calculated in a falling trend and it used to
be calculated from the low.
Gann formula for calculating the support and resistance is as
follows:
a. Support = (square root of (high)- Degree factor)^2
b. Resistance = (square root of (low) + Degree factor)^2
Therefore , in this thread, we have tried to understand intraday trading support and resistance analysis using gann.
I hope you all learn something new today. I post such threads every day.
Follow me for regular stock market learning.
#Gann #StockMarket #trading
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