Many methods Hanna used them in their trade and technical analysis gone unnoticed since his death. In studying his charts and records of old some of these methods have been disclosed. Do not know why Gann did not mention them, unless he felt that they required a lot of time to test and validate its reliability. Regardless of the reasons why we believe that some of these methods are interesting and useful for trading and market analysis.
One of these techniques - Zonal System. This is a rather simple method, and certainly it deserves attention. As you can see in the graphic example below, which is taken as a timetable for the May wheat, Zonal system uses an angle of 45 degrees [1 x 1], the delayed up from various points of the earlier motion. These zone lines are continuing to divide the movement into three major sections, or zones, which, after being installed, will not be changed. Initially, other lines will also be used, but after a while, some of these lines will be dropped and you can select a main unit that will remain the same throughout the motion of the market. Experience, as in most cases, to develop by trial and error. As with most systems, Zonal system works best when the market trend (bull or bear), but not in the bleak outboard market during periods of consolidation. As soon as the movement gains momentum, and the trend was set, the main zone divisions are final. The ideal shopping zone, established in the early movement will not change as the market. The same happens to the areas of sales. This means that you should buy the May wheat (see the example) on the 472 and it turned out to be a good purchase, given the subsequent increase in the price. You will have similar results if the purchase of 492 or during the subsequent movement in the area shopping. Purchases must be carried out as the market moves down to the shopping area. You should sell when the market moves in the area of sales. If you are a short-term trader, you should buy in the area of purchases and keep until the price reaches the area of sales. At this time you should sell and go into the short side. If you are a long-term trader, you have to buy every time the market is a shopping area, adding to your position, while the overall movement will not be completed. To implement the input and output can be used different methods. It is expected that you will use the graphical
system of "one on one." In this case, the angle of 45 degrees defines a zone. If you are using a different unit price and the time it may need a different angle, rather than 45 degrees, to determine the correct zone. Zonal system can be used in combination with mechanical methods and indicators Hanna trend line.
This method can be used for short-term or long-term time scales. It must be remembered that this is just another technological tool that is designed to help you analyze the market. It should be used in combination with other methods of technical analysis that will allow you to trade successfully.
One of these techniques - Zonal System. This is a rather simple method, and certainly it deserves attention. As you can see in the graphic example below, which is taken as a timetable for the May wheat, Zonal system uses an angle of 45 degrees [1 x 1], the delayed up from various points of the earlier motion. These zone lines are continuing to divide the movement into three major sections, or zones, which, after being installed, will not be changed. Initially, other lines will also be used, but after a while, some of these lines will be dropped and you can select a main unit that will remain the same throughout the motion of the market. Experience, as in most cases, to develop by trial and error. As with most systems, Zonal system works best when the market trend (bull or bear), but not in the bleak outboard market during periods of consolidation. As soon as the movement gains momentum, and the trend was set, the main zone divisions are final. The ideal shopping zone, established in the early movement will not change as the market. The same happens to the areas of sales. This means that you should buy the May wheat (see the example) on the 472 and it turned out to be a good purchase, given the subsequent increase in the price. You will have similar results if the purchase of 492 or during the subsequent movement in the area shopping. Purchases must be carried out as the market moves down to the shopping area. You should sell when the market moves in the area of sales. If you are a short-term trader, you should buy in the area of purchases and keep until the price reaches the area of sales. At this time you should sell and go into the short side. If you are a long-term trader, you have to buy every time the market is a shopping area, adding to your position, while the overall movement will not be completed. To implement the input and output can be used different methods. It is expected that you will use the graphicalsystem of "one on one." In this case, the angle of 45 degrees defines a zone. If you are using a different unit price and the time it may need a different angle, rather than 45 degrees, to determine the correct zone. Zonal system can be used in combination with mechanical methods and indicators Hanna trend line.
This method can be used for short-term or long-term time scales. It must be remembered that this is just another technological tool that is designed to help you analyze the market. It should be used in combination with other methods of technical analysis that will allow you to trade successfully.
Forex Magazine
based on www.lambertganneducators.com
based on www.lambertganneducators.com
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