I would like to share one very effective method which will help us in taking Positional and Intraday trade - but i prefer we should use it in a positional trade to avoid less Whipsaw - the method will help us to scale the chart graphically in a more precise way and also help us to use the trend line in a more accurate way
The Method is Base on W.D.Gann and further developed by Matt Olsen (Thanks to both of them )
To use this method you should have a Square tool option in your software - I personally use Gannalyst software and it has that tool and i have also given a download link of this software in my blog
This Method takes into consideration the Previous swing major high and low points ( not the near ones but little extremes ones so that we can form a square
First we should select the high and low points in such a way that it should form a square or rectangle
once we plot the high and low in a chart we will get a square or we may het rectangle according to high and low formation
Now from the left hand side (bottom) corner of the square or rectangle draw a diagonal line which will intersect at right hand side (TOP) corner
Now do the same thing from the left hand side (TOP) corner of the square or rectangle draw a diagonal line which will intersect at right side (bottom) corner
The geometrical shape will give us two diagonal lines
1) One upward trending Diagonal line and
2) Second Downward trending Diagonal line
Once we get this diagonal lines we have to use the option in our software duplicate or copy so that we can get the same degrees of diagonal lines which we can use in the further swings
For up trending swing use the up trending diagonal by placing the diagonal on the low of the chart once the low is formed (With Stop Loss)
And for down trending swing use the down trending diagonal by placing the diagonal on the high of the chart once the high is formed (With Stop Loss)
When this diagonal are place we should see how the price behave to this diagonals and take position once the price crosses the diagonals on closing basis with stop loss
This Method works very fine because its finds the natural harmonic and DNA of the the swing by taking past swing into consideration
If we Apply this Method on a daily or Weekly Chart we will get very good Tradable swings
Please apply this method and let me know whether we can make any more improvements in this method
Thank You
If we Apply this Method on a daily or Weekly Chart we will get very good Tradable swings
Please apply this method and let me know whether we can make any more improvements in this method
Thank You