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.
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Telling my 8 years of experience in 5 min. A thread on how to find out high and lows of stock market.
We have seen two types of solar dates; Static(Stable) and dynamic solar dates. As per gann, the year is supposed to begin with 21st March, not 1st January.
In the calculation of seasonal time periods, we do not start calculating time from Jan 1 but calculate the time periods from the date when the Spring season starts on March 21st.
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A thread on vwap trading strategy .
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VWAP stands for Volume Weighted Average Price. VWAP is used by institutional traders to identify good entry and exit points. Conversely, when a professional trader has to get rid of a large position, they try to sell at the VWAP or higher.
- If VWAP is rising then it shows buyers in control.
- If VWAP is falling it shows sellers in control.
- If VWAP is flat then it indicates no one is controlling the market, the price is in a trading range.
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A thread on how to trade the gap up or gap down opening .
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There are three factors to monitor to determine whether the gap is real or trapped. The three factors are volume, opening price, and pullback.
1⃣ Gap and Go Trading Strategy :-
- Price gap above the previous day's high.
- Wait for the completion of the first candle.
- Volume should be high and should be helpful in the direction of gap.
- Mark opening range.
- Entry on breakout of day's high
value must be above vwap.
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A thread on Gap trading.
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Gap creates emptiness on the price chart. Price gaps are simply areas on the chart where no trading has taken place.
The gap is the biggest imbalance between demand and supply. The gap widened due to the aggressiveness by the buyers, I mean there are more buy orders in open than the supply available at the closing price of the first day.