Leonardo Fibonacci is considered to have discovered a number sequence where each successive number represents a sum of two preceding ones: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc. Two points must be set for this tool to be drawn. Lines of the Gann Grid are drawn at an angle of 45 degrees. One point must be set for Gann Fan to be drawn. Gann supposed the ray of 1x1 to be a powerful supporting line at an ascending trend, and breaking of this line to be an important turn signal. If the price curve is above this line, the market should be considered as bull market, if it is below, it is bear market. Gann considered the trendline of 1x1 (45 degrees) for a very important one. Gann Fan represents a set of trendlines drawn from one point at different angles. Gann Line represents a trendline drawn at an angle of 45 degrees. Standard deviation influences the width of this channel. Standard deviation is the way of volatility measuring based on statistical methods.
Lines of the equidistant channel are always parallel. The linear regression method allows to have a statistical demonstration of such logical conclusions. If the trend is ascending, one can logically suppose that the next bar will be a bit higher than the preceding one. Linear regression is a statistical analysis tool used for forecasting of future values on basis of available data. Two points must be set through which a trendline will be drawn. Unlike for a simple trendline, an angle must be set for this line to be drawn. Trendline by angle helps to explore trends in price changes. Trendline helps to explore trends in price changes.
One point must be set for this object to be imposed. Vertical line can be used to mark various borders in the time axis and to compare signals of indicators to price changes. Horizontal line can be used to mark various levels, particularly, those of support/resistance.
0 kommentar(er)
