Gann trend following techniques

In Continuation with Previous Article W.D. Gann Trading Techniques – I

 Trend and trend following techniques: In fast advancing markets, in the last stage of the campaign, reactions get smaller as stocks work to higher level, until the final run has ended. Then comes a sharp reaction and a reversal in the trend. Same happens in the bear market. Once you are convinced that a trend is in force, do not wait too long to go with the trade. Early in the trend buy/sell a stock which is already strong/weak.

• Fast moves generally come from bear market bottoms.
• These moves usually run three weeks up, then move sideways three to five more weeks, and then accelerate followed by another sideways movement.
• Under fast moves the first signal to trend change is overbalance i.e. reaction gets larger compared to the earlier ones, specially in the fifth wave. Watch the changes in momentum of price - is the market/stock gaining less points in more time? If the market is trending up, then it should go up more time than it goes down. And vice versa.

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