Gonçalo Moreira, CMT
Independent Analyst
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 MoreiraLatest Live Videos
Editors’ Picks
AUD/USD gains momentum above 0.6500 ahead of Australian Retail Sales data
AUD/USD trades in positive territory for six consecutive days around 0.6535 during the early Asian session on Monday. The upward momentum of the pair is bolstered by the hawkish stance from the Reserve Bank of Australia after the recent release of Consumer Price Index inflation data last week.
EUR/USD: Federal Reserve and Nonfarm Payrolls spell action this week
The EUR/USD pair temporarily reconquered the 1.0700 threshold last week, settling at around that round level. The US Dollar lost its appeal following discouraging United States macroeconomic data indicating tepid growth and persistent inflationary pressures.
Gold: Strength of $2,300 support is an encouraging sign for bulls
Gold price started last week under heavy bearish pressure and registered its largest one-day loss of the year on Monday. The pair managed to stage a rebound in the second half of the week but closed in negative territory.
Ethereum fees drops to lowest level since October, ETH sustains above $3,200
Ethereum’s high transaction fees has been a sticky issue for the blockchain in the past. This led to Layer 2 chains and scaling solutions developing alternatives for users looking to transact at a lower cost.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.