Explain Gann’s views on the relationship between price and volume in trading.

Explain Gann’s views on the relationship between price and volume in trading. Gann suggests that the volume received for market orders determine price in ascending markets, while the volume received for limit orders determine price in descending markets. How does Gann’s preference for directionality affect his view regarding price and volume behavior.? 15 Questions on Volume and Price Theory Explain 16 Chapter 2 Trade Rate Spreads Explain Gann’s view on trade rate spreads.? How do Gann’s preferences regarding price and volume directionality affect the way in which he evaluates bid-ask spreads.? Explain how these two factors could cause the market to generate two possible market-making quotes for an order. Explain how the bid-ask spread may be affected by some of Gann’s views on trade rate spreads.? 17 Describe the Market making process Explain how Gann evaluates price spreads.? In what way does Gann’s view on market making affect the way in which he evaluates bid-ask spreads.? Explain how Gann expected his views on the market-making process to affect price spreads in the long run. Explain how his views on market making affected his views on a market’s share of market-making.? 19 Chapter 3 Order types Explain the difference between market orders and limit orders.? Explain the use of stop losses, limits, and take profits on limit orders.

Harmonic Vibrations

? Explain how Gann’s approach to the order book affects the price he receives on limit orders. Explain Gann’s view that the best market maker participates in all market regions.? 21 Chapter 4 Price Action Explain the nature of price patterns, such as triangles, engulfing/upside, and reversal.? What trading rules govern the buying of a moving average? Explain how one can trade using a strict rule set. Explain the different types of trading strategies, such as swing trading, scalping, and day trading.? Gann also discusses the history of the market making activities of Merrill Lynch and the United States Postal Service, as well as the reasons for current market microstExplain Gann’s views on the relationship between price and volume in trading. “The two of them are related, but they are not identical. Perhaps both are just reflections of your emotions regarding price, but the two are not the same. Price is a reflection of your expectations (and thus your emotions are reflected therein also), whereas volume reflects the willingness or unwillingness to buy at a given price. Trading the exact same order five times for a given market (two orders to buy and three to sell with all shares held by you) will result in different prices. As for volume increases, your emotions can vary widely depending on whether you are an aggressor (someone who buys into positions, expecting to profit at that price or lower) versus one whose intentions are defensive (your objective is to get out of your previous position at a profit.) This is really the basic nature of market psychology. We can’t deny that market participants (both traders and investors) do affect price from time to time.

Retrograde Motion

A simple example works well. There are four traders who bought above our suggested price. An opposing group of traders have started to sell at that price. If a trader is willing to drive the price below his proposed target, there is no doubt that he will be successful in the end. If he were to buy in instead, we can find that there is a large probability of a price recovery between now and the end of the trade. The point is that price and volume are not completely identical even though they are inter-related. Some people will always tell you the volume is determined by emotions. We recommend that you learn how to look at this. If you believe that, you will of course make the correct conclusion.”, Pompilando says. Pump-and-dump tactics; how should we deal with them? Given Pompilando’s experience in Wall Street, he is able to analyse the manipulative efforts of pump-and-dump tactics when they are applied to both stocks, crypto-currencies and index futures. Explain Gann’s views on the relationship between price and volume in trading. How has that changed for swing traders? Swing traders normally trade less than day traders.

Trend Reversals

Additionally, swing trading is typically frontrunning by definition so you are shorting the market rather than trying to help the market make a higher price. That helps to limit the potential profit on the long side of a trade. Thus most traders limit their risk to the amount of potential profit they can tolerate being “laid out” on a trade. This is why traders limit risk by position size, and by making trades in click to read more of a few dollars often employ stop-loss orders to limit losses when the price moves against them. This was not necessary in the old Gann era where futures contracts were single priced and all had the same bid and offer prices. Historically the only true futures market was for bonds where it was almost impossible to move the price. It’s the open interest that dictates the prices, and an infinite number of contracts add up to the market price. The same is true of stocks, but it’s possible to time your trades as interest in the shares moves during the financial cycle. Read “Technical Indications: Old School” and “Technical Indications: New School” to update the concept of trading the futures market on price movement instead of trading on futures spreads. To Trade On Prices or Volumes? Ask yourself “how do I figure out what to do with these prices?”, rather than”how do I figure out what to trade?” Rather than trading “on” the spot price and having to think about how much different prices are on the various time frames, ask yourself “what do I think that bid/ask is and is that what it looks like to me?”. That’s your market. You will often see prices on the different time frames reverse from the spot one and it’s up to you as a trader to determine how much to trade on that particular time frame. For instance, an intra-