How To Trade W.D Gann Square - Balancing of Price & Time
|This is a follow-up article of our earlier W.D. Gann Square & Astrology Trading Force Analysis posted last week.
There are always many noise in the market. And as a Trader, we are often confused on which direction the market is heading onto. Just a few days ago, I was still perplexed by the two totally different cycles acting on each other (astrological force heading down & W.D. Gann Square price harmony force heading up) Today, we have the answer on which direction we should act on & trade.
The Heading Up Force that is unfolding in the market:
The W.D Gann Square Harmony comes from the following:
(Direct Quote from W.D. Gann Commodity Course)
The Major Top on Dow Jones Index Futures (YM) is 26,684, while the lowest is 23,088, giving 3,596 points of price movement
Counting from the Top Date 29th January 2018, plus 35.96 trading days gives 29th March 2018, which is just 2 trading days ago as of this article is being written.
While the downgoing astro forces did move down the market further yesterday, a move from 23,928 (yesterday open)to 23,644 (close), and As of this moment of writing, the YM price is slightly lowered and trading at 23,593/23,595, which is just 23,595 (entry) - 23,088 (level to place stop loss)= 507 (risk of betting on this W.D. Gann Square) away from the ultimate bottom. This might sound to be a bit large for a gap to place stop loss on. But in comparison with possible profit target of 25,600 - a full rebound acting on the price harmony force received from the WD Gann Square, the potential reward is 25,600 (profit target) - 23,595 (entry) = 2,005 points (potential profit), which gives a 2,005 (potential reward) / 507 (risk of taking this opportunity) = 3.95 : 1 reward to risk trading ratio.
As a trader, we should always find shelters to long or short in the market, and hoping our analysis of the market is correct and that the immediate future that will be manifested as wished.
A good shelter should be a entry place where it is close to an effective stop loss.
Generally speaking, we are not God and we have no way to know 100% sure how the market will be going...we can only varies our bet from high chance of getting one direction or having a high reward to risk ratio.
people who try to demonstrate they can know the market direction continuously over 70-80% is a hoax. in reality, they are also guessing based on certain experience they have.
But when scenario like this arise, when we can see a reward to risk ratio starting to get above 3:1. it is very valuable for us to consider taking these High Reward Low Risk Opportunities.
In our W.D Gann course offered to our students, we teach proprietary techniques (non-black box formula) in how one can set Effective Stop Loss and calculated Pre-determined Reward-to-Risk-Ratio on the moment BEFORE our students pull the trade and thus they are able to continuously engage in High Reward Low Risk Opportunities, so that after the course our students can still grow their trading capital using our Proporietry Pre-determined Reward-toRisk Ratio Formula. and This is the only sensible way to trade in your trading career in the long run.
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