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Random article: Gann Forex levels
Gann levels represent crossing of Gann angles. These levels do not have name as such, but since W. D. Gann repeatedly mentioned importance of levels in the crossing point, we will call them Gann levels. “Gann levels” is not a price line, but is a price area. This analytical method underlies Murrey levels theory. But Murrey took only one constant cycle and price line as the ground, whereas cycles change. That is exactly why Murrey Levels do not always work as we would like them to and often rebuilding of levels takes place. To get Gann levels, square is drawn, and the squaring level is chosen depending on cycle. On the image we see “Square 4”, in drawing square we get the first five levels (horizontal lines) Taken as drawn on the picture, these levels will not be helpful in forecasting price, though Murrey took this representation as the ground. These levels only show price zone, where price is located.
The market price of each movement in a certain period of time can be represented in the form of candles, possessing the opening, closing, high and low prices. Appearing one after another, Japanese candlesticks show traders information about the market movement. But as it is well known, analysis of Japanese candlesticks is subjective and even the brightest candle patterns are not always triggered with absolute precision. Therefore, analysis of individual candles and their combinations has some features. 1. The place where candle pattern occur The first in the such feature of this type of analysis is the o place where candle pattern occur on chart. Prior to opening a position, you should carefully study the market situation that preceded appearance of combination of candles. For example, the pattern "dark cloud" that emerged near the strong resistance level, should be interpreted more as a reversal pattern rather than "bearish" absorption showed outside the scope of resistance. The same way, formation of "doji" after a prolonged trend is a much more significant model than if a candle occurs on a flat market.
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