W.D Gann Trading Concepts1983631

William Delbert Gann became very popular in the fibonacci trading world because of the accuracy of his methods in predicting the trends of the prices in the market. He made use of geometrical figures that allowed him to determine the patterns that the prices are taking. He also had considered the time element in plotting where the possible price movement will be. Traders today still make use of the trading concepts that were developed by Gann throughout his trading career.

People who would like to succeed in their trading business just like Gann will have to practice not only hard work but also self-discipline. Traders have to be able to curb their tendency to over-trade or to be greedy to want more profit because in the end, they are bound to lose more. They have to understand the psychology of traders so that they may avoid the usual errors that traders commit such as wrong trading moves which were based on their feelings and not on their accurate projections of the market through reliable market trading software analysis tools.

W.D Gann mentioned the use of the time by degrees concept in his analysis of the market. He believed that by counting time by the degrees in a 360 degree circle, the time element is kept uniform which will make the projections more accurate rather than making use of the changing seasons or the days in a year. It is vital that the traders are able to see the cycles that indicate the movements. Traders may also use the swing charts that Gann developed if they are monitoring the trends over a three day period. This is particularly helpful in analyzing short term market movement of prices. Gann also made use of squaring the price into the time element and then squaring the time element into the price. This is done in order to determine the highs and the lows and traders can do this by calculating and marking their trading charts. He also indicated the retracement levels through the geometrical figures in his chart. Though he has applied the golden ratio principle, he had paid attention more to the 50% level where most retracement may likely be expected.

Traders today still make use of the geometrical figures that represent the concepts of W.D Gann when it comes to analyzing how the market is moving. The geometric proportions which he practically based on the circle, the square as well as on the triangle are still being used by those who are trading in the commodity software and the stock market too.

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