Articles for: ASX

The recent articles in this series on Santos (STO:ASX) have been inspired by a lesson from the WD Gann Stock Market Course where he teaches his Mechanical Stock Trading Method and tests it over a 15-year period in US Steel.

This newsletter goes to a wide readership, and traders of all levels of ability follow these articles. I aim to write information that will suit people at these different levels.

A diversified approach is important in any investment strategy. There are varying levels of diversity from Macro to Micro levels. It is commonly accepted that using a combination of property, stocks and cash is a sound diversification strategy on a macro level.

Trading a break of a trend line is one of the oldest technical trading methods around. Like all trading signals, it has its share of false breaks. However, there are a few simple methods to help weed out these false signals.

I have written before (in Issue 317) on the subject of what are called Geometric Angles or Gann Angles. These are part of the 3rd dimension of Gann analysis, also known as ‘squaring time and price.’ If this sounds totally confusing, don’t worry. Think of a simple trend line. It is a line joining 2 tops or 2 bottoms and extended forward. The difference with a Gann angle is that it moves at a fixed rate and is thus not dependent on a second top or bottom in order for you to draw the line. You may find it helpful to review the earlier article.

I had an interesting email this week from a client – Naresh:

…from India and had been following your mails regularly.

I did attend the safety in the market course 5 day trading congress with Mr. David Bowden.

Considering your recent article , don’t you think that we are at a very strong resistance level of 50 % retracement of the total fall and the current up move is about to finish as we are very near to the time by degrees date as well

Shall appreciate your reply for better understanding .

Regards

Naresh

What if China’s warning of a double dip recession were to come true? What would you do? When would you do it?