Gann Indicators and Analysis, Gann Technical Analysis Blogs

Friday, February 27, 2009

Trading with Gann Fans

Gann Fans, developed by Gann, are one of the most widely used tools by Gann himself to exploit the relationship between price and time. Gann fans derive their existence from Gann angles, there are 9 major Gann angles and 1 x 1 or 45 degree angle is the single most important one. Know more about Gann Angles. Gann fans are used by traders to find support and resistance levels, trend changes and major price-time junctions.

Thursday, February 26, 2009

Rising or Inclining Wedge Formation

Wedge formations are one of the difficult formations to identify. They look like symmetrical triangle formation but unlike symmetrical triangle they have strong bullish or bearish bias and have slop. Wedge formations can be trend-reversal or trend-continuation patterns which favor long-term traders, as they usually take 2 to 4 months to form. Note that wedge formations have a high failure rate than others.

Wednesday, February 25, 2009

Ease of Movement Indicator

Ease of Movement or EMV is a momentum indicator which shows the relationship between price change and trading volume. Many traders trading stocks, futures and currencies use this indicator to generate buy and sell signals. Ease of Movement indicator was developed by Richard W Arms Jr. and is closely related to Equivolume charts. The formula for calculating EMV is

Ease of Movement = Mid Point Move / Box Ratio

Tuesday, February 24, 2009

Weekly Stock Market Letter, 23 February 2009

The Week Ahead: Although the White House continues to favor a privately held banking system, nationalization seems to be gaining the upper hand as many believe this to be inevitable. President Obama will address Congress on Tuesday while Ben Bernanke begins his two day testimony on Capital Hill. The Case Shiller House Price Index is also released. Existing home sales data is out on Wednesday. Durable goods and new home sales data are due by Thursday. Lastly, a preliminary look at the nations GDP for the fourth quarter on Friday will be closely watched.

Monday, February 23, 2009

Different Risks Associated with Investing

Investing in financial instruments is a risky practice. It is this risk that often corresponds to the return, the more the risk taken the more the possibility of return. There are more than one risk associated with every investment. Here are some important ones.

Thursday, February 19, 2009

Trading Using Gann Grids

Gann grids are one popular tool used by traders to analyze strength of trends and to predict trend changes. Gann grid is used for squaring up time and price and is based on the most famous Gann line, the 45 degree or 1:1 Gann line which shows a strong long-term trend. It is an easy to follow indicator helpful for investors, long-term traders and swing traders.

Symmetrical Triangle formation

Symmetrical triangle formation is one of the most common and reliable triangle chart pattern which indicate market indecision and possible breakout. The volume of trades tends to diminish as the formation develops and the breakout is noticeable with a sharp increase in volume. With symmetrical triangle formation, the breakout can be bullish or bearish. The pattern supports all kinds of long-term and short-term traders trading all financial instruments.

Wednesday, February 18, 2009

Weekly Market Letter, 17 February 2009

The Week Ahead: The holiday shortened week opens on the heels of the passing of the second stimulus plan for the economy. Markets will also digest the auto makers bailout plans on the Tuesday deadline. The FOMC Minutes from the last Fed meeting are due out Wednesday along with import prices and housing starts data. The Producer Price Index, jobless claims, and leading indicators arrive on Thursday while Friday rounds the week out with the Consumer Price Index.

Tuesday, February 17, 2009

What is Average True Range?

Average True Range or ATR is one popular volatility indicator which can be used by traders of all kinds. It was introduced by J. Welles Wilder in 1978 in his book “New Concepts in Technical Trading Systems”. Although the indicator was developed for commodity futures market, it can be used to trade all financial instruments including stocks and forex currencies.

Monday, February 16, 2009

Advantages of Trading Fixed Income ETFs

Fixed income Exchange Traded Funds (ETFs) offer many advantages to traders over bonds, mutual funds and other similar instruments. Know more about Fixed Income ETFs. Below are some advantages of fixed income ETFs.

Friday, February 13, 2009

Trading Using Gann Lines

Gann lines is one widely used and simple indicator for finding support and resistance levels, and to analyze trend strengths and to predict trend reversals. Gann lines are derived from Gann angles; in fact almost all Gann applications like Gann fans and Gann grids are derived from Gann angles. Know more about Gann angles.

Thursday, February 12, 2009

Bearish Upside Gap Two Crows Pattern

Upside gap two crows is a bearish market reversal pattern which indicates the end of an uptrend and start of a downtrend. This three day candlestick pattern closely resemble two crows pattern; the difference is in third day candlestick which opens above the second day candlestick and closes below the same candlestick without completely filling the gap.

Wednesday, February 11, 2009

What are Fixed Income ETFs?

Fixed Income Exchange Traded Funds (ETFs), also known as bond ETFs, track performance of fixed-income securities usually bonds. They offer the traders the flexibility of trading stocks and same time offer benefits from investing in bonds. Fixed income ETFs were introduced in 2002 and now there are a number of ETFs available in this category which track broad bond market or track specific sectors like government, mortgage-backed or corporate bonds.

Tuesday, February 10, 2009

Tips for Investing in Bear Market

Most investors are afraid of investing when the prices are falling or at bottom. But many others, especially value investors, take this as the good opportunity to invest. Here are some tips for investing in bear market.

Monday, February 9, 2009

Weekly Stock Market Review Letter, 9 February 2009

The Week Ahead: Unemployment reached its biggest monthly decline in 35 years with nearly 600,000 jobs lost accelerating plans for economic stimulus via TARP II by the new administration. Look for testimony to Congress from both Ben Bernanke and Timothy Geithner on Tuesday regarding the financial crisis. By Thursday new weekly jobless claims numbers come out along with the retail sales and business inventory figures.

Friday, February 6, 2009

Gann angles for Time Price Analysis

Gann angles, originally known as Geometric Angles, are some of the major tools used by W.D. Gann to profit from the market. These angles can be used to find support and resistance levels, to analyze the strength and direction of trends and to predict price reversals. Gann angles are drawn from high or low points of a trend and are representations of time to price relationships.

Thursday, February 5, 2009

Bearish Two Crows Candlestick Pattern

Two crows is a bearish market reversal pattern which indicates the end of an uptrend and the beginning of a downtrend. This is a three-day candlestick pattern which resembles dark cloud cover pattern and evening star pattern. Bearish two crows pattern includes a bullish (clear/white) of first day, and a small and long bearish (black/colored) candlestick on second and third day respectively.

Wednesday, February 4, 2009

Stock Trading Using A/D Indicator

Accumulation/Distribution or A/D indicator can be used to trade stocks, currencies and futures. Know more about Accumulation/Distribution Indicator. It can be used to both confirm and predict price trends. A/D is a simple indicator to follow and to use and offers better results when used in conjunction with other indicators. A/D can be used for both short-term and long-term trading; short-term traders like day traders should use intraday charts.

Tuesday, February 3, 2009

ETFs as Flexible Investment Instruments

Exchange Traded Funds (ETFs) are multi-purpose investment instruments which can be used to achieve various portfolio goals. The diversity, simplicity and low-expense of ETFs make them flexible instruments to handle. ETFs are mainly used to achieve following portfolio goals.

Monday, February 2, 2009

Accumulation/Distribution or A/D Indicator

Accumulation/Distribution or A/D is one of the most widely used indicators for predict and confirm price changes. This is a leading momentum indicator which tracks the relationship between price and volume of a stock or similar instrument. Accumulation/Distribution indicator derived from a simpler indicator, On Balance Volume (OBV) indicator, and is used by all types of traders including day traders.

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