CLOSING NOTES
The 32-bit version of the Fibonacci Trader is now
ready, so check out the Web site if you have not ordered
the upgrade yet. In the very near future the Fibonacci
Trader Web site will be available in an Italian
version due to our Italian distributors good work. More
details on this in a later issue.
And speaking of international friends, I would like to welcome our Dutch readers who own the Fibonacci
Trader program. We now have users in virtually
every country in Europe.
This issue will look at some intraday techniques
using Intel, and our next issue will look at some interesting
ideas for intraday plans, particularly the T-bonds.
The five tables shown on the next two pages are each based on an initial start of capital using 50% margin
and trading 1,000 shares. Therefore, the intial account size is equal to what it would cost to trade 1,000 shares
at that time. A commission equal to 12 cents per share round turn is included. The plan handles less or more
shares but the percentages stay the same. No dividends or interest is included.
This month the focus is
using the Gann Basic Plan for
trading stocks with an eye to applying
Multiple Time Frame techniques
to intraday trading. Take a
look at Chart 1, a daily chart of
Intel. This first example shows
the classic setups for a trade from
the Basic Plan. We are using techniques
that have been discussed
in our previous issues.
To begin, the market forms
two rising valleys, 1 and 2, an
early sign of a bottom in the market.
Next the daily HiLo Activator
flips to the long side on 10/9.
This action occurs between the
first valley and the peak. Notice
that as the second valley forms,
the HiLo Activator acted as support.
This is a very positive sign.
Next, on 10/21, as the peak is surpassed, the trend turns to up according
to the rules from the Basic
Plan.
At this point, the daily trend
is up, and what a trend it is! In
fact, the trend continues higher for
21 days with clear support from
the HiLo Activator. So let’s now
take up trading the intraday time
period, knowing that the daily
trend is up, and that the slope is
up, as well as there is support from
the daily HiLo Activator.
Chart 2 is a 13 minute/78
minute/Daily plan. We’ll still be
using our standard format in that
the dashed Gann Swing line is a
down trend, and the solid Gann
Swing line is an up trend. On
Chart 2, the High time frame,(the Daily) HiLo Activator is plotted.
Looking at Chart 2, we can see that
on 10/9, early in the day, the 13
minute Gann Swing Chart went
long, and by the close the daily
HiLo Activator flipped to an
uptrend.
Go to Beginning >>> The professional Gann Swing plan
|
