Hello Traders! Welcome to this blog.
First, you should be proud of yourself for taking this effort of reading this blog and expanding your knowledge, and investing your time in learning how to maximise your profits. Not all traders are this serious, so congratulations for making it up till here.
Second, in this blog we will explore how you can have that extra edge in making profits when using the IQ Gold Gann Levels, just by learning price action patterns.
We will see some commonly forming price actions with real market examples, and how you can anticipate its breakout and place your profit target with the Gann levels for a profitable trade setup. Read till the end for we have some tips to share with you.
Let's start!
☑️ Inverted Head & Shoulders
Here, the price accurately formed an inverted head & shoulders pattern, whose neckline perfectly aligned with the Gann level (Gann Minor R2), as marked in the picture. When the market broke the neckline (the Gann Minor R2 resistance level), it reached its target: Gann Major R2 directly with strong bullish move, breaking the Gann Major R1 on its way. If you knew the pattern, you would have waited for that perfect breakout timing, and placed a buy order at the right moment, placed your TP at any one of the next Gann levels, and gradually moved your TP to the next one as the market moved bullish till the Gann Major R2. You would also have exited the trade at Gann Major R2 if you remember (or read) our IQ Gold Gann Levels user manual carefully, because we have mentioned about these powerful overlapping zones (under the Secret Tip section).
☑️ Symmetrical Triangle (THE MOST commonly formed Price Action Pattern)
Here, you can see that the price hit the Gann Major R1, moved bullish, and formed a symmetrical triangle perfectly on the Gann Major R2. The price was hitting the upper trendline preparing for a breakout. As this was a bullish symmetrical triangle, after accumulation, there was a high chances for a trend continuation (bullish) after the breakout. Hence, waiting for the breakout, placing a buy trade after the breakout, and placing your TP at Gann Minor R2 would have an easy thing if you knew about this price action and had the Gann level guidance.
The price eventually reached the Gann Minor R2 and formed a doji perfectly at that level, signalling a trend reversal giving you a cue to exit your trade if you were holding it. No other indicator can give you this much clear and precise prediction of the levels where the price reacts so accurately. Knowing the price action is an added advantage that can keep you ahead and profitable.
Here is another example of bullish symmetrical triangle aligning perfectly with the Gann levels. Do you realise how easily you could have gained those pips if you knew the price action, and had the IQ Gold Gann Levels guide?
Now here's a quick fun quiz for you, can you find the symmetrical triangle pattern in the chart below? Can you see how the price reached the target that aligned perfectly with the Gann level?
Screenshot the image, mark the symmetrical triangle along with its target, and comment below. Let's have some fun, shall we?!
Now, if your mind is still not blown by how amazingly you can gain pips with this simple knowledge of price action, we have more examples for you. Keep reading...
☑️ Rising Wedge
The price again perfectly formed this amazing rising wedge pattern here aligning with the Gann Levels. In a rising wedge, the price generally breaks the lower trendline and goes bearish. As the price was touching the lower trendline here, you could have waited for that perfect breakout moment, entered a sell trade with your TP till ... Yes! You guessed it right! GANN MINOR S2!!
The price broke the lower trendline, tested the Gann Minor S1 before breaking the support and reaching the Gann Minor S2 sharply with a strong bear candle. Yes, it's that cool to trade price action with the IQ Gold Gann Levels!
Hence, we consider it almost mandatory to have a basic knowledge of chart patterns and even candlestick patterns when using this indicator. The market shows good price action signals around these levels to help you anticipate what could be the market's next move for profitable trade entry.
💡Tips: Where to learn this price actions? We are planning to bring a comprehensive guide on this soon along with a cheat sheet, till then you can have look at this YouTube Playlist for video tutorials.
Happy Trading 😎
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RISK DISCLOSURE
Trading financial markets carries inherent risks and may not be suitable for every investor. This indicator is designed as a tool to assist in trading decisions but does not guarantee profits or prevent losses, which could exceed your initial investment. Past performance is not a reliable indicator of future outcomes. Users are encouraged to fully understand the risks and seek independent financial advice if needed. Any trading decisions made using this indicator are at the user's discretion and responsibility.
