Content Advisor at FXStreet

Wed, Feb 13 2013 11:00 GMT
Type: Webinar
Duration: 0 h, 45 min
Moderator: Vicky Ferrer
Summary:

A historical approach to trends, from Dow to Elliott, Gartley and Gann. None of these great contributors subscribed to the adage "The Trend is Your Friend". Moreover, their legacy releases us from that idea.

Whose friend is the Trend?
A Historical approach to trends

Abstract:
Buy low and sell high? Buy high and sell even higher? Trend is an abstraction, almost irrelevant... What is the legacy of the forefathers of TA?

Charles Dow:

Some of its basic tenets:
- The primary trend is inviolate
- The averages discount everything
- The theory is not infallible
- The averages confirm each other
- Volume confirms the trend


Some of its basic tenets:
- The primary trend is inviolate
- The averages discount everything
- The theory is not infallible
- The averages confirm each other
- Volume confirms the trend

Ralph Nelson Elliott
Rules & Guidelines
The sequence is constant across all timeframes
Time as less Important that form
Actionary movements are the most profitable
The market spends more time in corrective mode than in impulsive mode Alternation and equality are pan of the market structure

and Fibonacci...
The sequence
The ratios

H.M. Gartiey

'The best investment opportunity"
Occurs with a 1/3 to 2/3 reversal
The "sweet spot' is one of low risk to high, reward relationship
Much better that a H&Ss
Offers strong reasons to stop and target placements
Volume confirms the pattern

Gann:
Added time dimension
Multiple confluences
Finding turning points

Conclusion:
Trend Trading strategies are based on the assumption that markets do trend, but its purpose is to find key turning points.

Two choices become very good at finding turning points or develop a method where entries are of second importance.

Related content:
Where Is The Dow Going?
How To Use Gann Indicators
Elliot Wave principle

Author: Gonçalo Moreira



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