Navigating Markets with Gann Fans: A Step-by-Step GuideWelcome to our comprehensive tutorial on placing and utilizing Gann Fans. In this step-by-step guide, we'll dive into the practical aspects of Gann Fans, a powerful tool for assessing non-horizontal support in resistance for technical analysis. We will thoroughly explain how Gann Fans are placed and what pitfalls to avoid when placing them. Whether you're new to Gann Fans or looking to enhance your trading strategy, this video provides actionable insights and a real-world example to help you harness the potential of Gann Fans with confidence. Join us as we demystify Gann Fans and empower you to navigate market swings with precision and skill.
Trendanalyisis
The Value of PriceA basic concept in price action trading is that when it comes to the analysis process of price, some candles are more valuable than others.
By "more valuable" I mean, some candlesticks have more weight in the analysis process of price than others. Before I explain which candles
have more inherent value, let me explain a bit of price action philosophy.
When it comes to an asset's price, or even the market in general the price action trader believes that it is a living breathing entity.
Just the same as you and I, the market's movements differ from day to day and past behavior does not predict future behavior. That said,
just like you and I, the future behavior of an living breathing entity is much easier to predict if based on the analysis of recent behavior.
So in other words, if I were to predict your next move, it is much easier and practical to base that analysis on your recent behavior, rather
than your behavior 2 years in the past.
So this core philosophy pretty much dictates how you can set values to price. Simply put," Current price is more valuable than past price in
terms of the analysis process". So if you were to predict the future direction of the price of an asset, it is wise to analyze current price rather
than past price; simply due to the fact that past price has less weight in terms of the analysis process than current price.So for example,
if your analysis of price for the last 3 months was stating that price will rise in the future; however this week's price is stating that price will
fall, the price action trader will not hesitate to sell as dictated by their analysis of current price.
So the next time you find yourself confused about the future direction of price due to conflicting signals. Ask yourself, " what is current price
telling me about the future direction of price?" and let past price stay where it belong, "in the past."
That's it!
Have a great day!
Ken
LIQUIDITY RUNSLiquidity runs occurs when price gives a false break out below a support or above a resistance and the purpose is usually to take out the stops or liquidity lying around those areas. This liquidity is then used by market makers to open their large positions in the opposite directions. When a false break out occurs below a support, stop losses belonging to retail traders are wiped out and retail break out sellers get trapped. The opposite happens at a resistance level. Liquidity run is my favorite strategy when I'm anticipating market reversals or at times retracements like what happened with dollar pairs yesterday (5th Dec 2022).
Knowing if a trend is still valid or is beginning to failin the above image you can see, that when all moving averages do not cross or overlap one another, this indicates a strong trend/price sentiment in this direction, even after a major pullback, you'll notice the moving averages still dont cross or overlap.
also on the chart image ive touched upon the very popular 1, 2, 3 trading pattern and highlighted that there's a not so obvious 4 reset wave before the 1, 2, 3 pattern starts again, the trick is check to see if the phase 4 wave causes any of the moving averages to cross/overlap before setting up your 1, 2, 3 move! because if they have crossed or one of them is overlapping the other, this signals the trend is weakening and the market may be looking at beginning a range or and new trend in the opposite direction.
INDENTIFYING TRENDS LONG/SHORT TERM!!Just wanted to share a little insight into identifying trends and positioning yourself in the market for minimising risk and maximising profit! Its import to identify trends both short and long term to understand which direction price is heading and possibly reversal points. Top down analysis mixed with key levels and trend patterns is how I look at the market without getting to technical, and candle formations from these areas is where I look at entering positions.. everyone has there own trading style and this is just what works for me, I don't like to over complicate it with a million indicators, trendlines etc. I recommend finding a strategy that works for you and sticking to it, there are a heap of different ways to trade...
Technical Analysis Vocabulary!!!BINANCE:CRVUSDTPERP
Hello guys these are some of the trading terms/concepts I apply when trading;
1. BOS : Break of Structure - when price continues to break previous structure and at the same time continues the current trend. A line drawn from recent structure to the current breakout denotes the BOS.
2. CHoCH : Change of Character - when price changes its trend. A line drawn from the last high (for downtrends) or low (for uptrends) of the previous trend all the way to current price action identifies the CHoCH.
3. Liquidity : The buildup of stop orders residing on a trendline of equal highs, lows, trends, or wicks. This is money that can be taken out.
4. Bullish Order Block/Supply Zone : An area of the market where price fell from - highlighting the last bullish candle before the drop in price.
5. Bearish Order Block/Demand Zone : An area of the market where price rose from - highlighting the last bearish candle before the rise in price.
6. Consolidation : An area of the market where prices were oscillating in a corridor - highlighting indecisiveness in the market for that period of time.
- Joel.
Please like and follow to get more ideas/tutorials like this, I'd also love to know what you think about my idea😃.