Tag Archives: Gann Angles

Best Trading Strategy

Dear Friend if you are in search of best trading strategy which can earn you 100% returns in any market condition, than your search does not end here.  I am saying this because, you are in search of Holy Grail, and if I say straight forward than the word is myth.  Let me explain you what is Holy Grail – in simple words, for every trade you are certain about outcome, so you are expecting 100% accuracy in all trades you take.  That is why I am saying if you are search of Holy Grail of trading technique than you are fooling around with yourself.

In last couple of days, I received mails regarding;

  • What is the best trading setup, which can assure me best of returns?
  • How to improve my performance and take it toward 100%?
  • Is there any method, where I don’t have to put stop loss?

Above question are my understandings of their questions, which directly, indirectly ask me the same question.  Here, I try to answer above questions, and let me confess, I answer according to my little understanding of Technical Analysis, there can be much more intricacies involved in it, which I may not be able to answer.

Trading setup:-

It is nothing but the prefix methodology to Buy, Sell or Hold the stock.  As a basic principle, trader should know in advance where to enter and where to exit, if you don’t follow this simple rule than for sure you are out of the game very soon, if not today and than for guarantee tomorrow.  Defining this entry and exit is nothing but defining trading setup.  With any method you can pre-define your entry and exit; it all depends on your knowledge, experience & comfort.  There are number tools and methods are available, you can choose according to your understanding.  Let me take you through some most common methods,

  • Based on Moving Averages like Simple, Weighted & Exponential
  • Based on Trendline, Pitchfork line
  • Based on Momentum Oscillators like RSI, Stochastic, MACD, ROC, KST and many others
  • Based on Gann Square of Nine, Gann Angles & Gann price forecasting methodology.
  • Based on Elliot Wave Analysis or Glenn Nelly’s method
  • Based Statistical calculations, which are most commonly known as Algorithmic Trading.
  • Based on Price Behavior like Candlestick Study, Chaos Theory

Above is just broad outline on trading methods, each topic requires elaborate description, which I will try to cover in subsequent articles for sure.  From above, you can take any one method of combination from it, and just back study the outcome.  Whichever method gives you confidence can be Holy Grail for you.

Let me tell you very clearly, there is no method I came across which assure you 100% return in all market scenario and I am sure with this prominent technical analyst will agree with me.  Any method can give you best returns but you have to understand its limitation too.

And to answer last question, as such there is no method in which you don’t have to keep stop loss, but yes there are methods with which you can certainly increase your risk reward ratio.  For detailed explanation about Stop loss, you can read my article  Most Hated but Most Desired part of a Trade: – Stop Loss