Look for a minor 2 to 3-bar rally against the trend.
Place your stop above the recent swing high of the rally. Why Trade 6 Fails (and How to Avoid It) gann trade 6
A break above the high of the previous day (in an uptrend) signals the correction is over. Step-by-Step Execution The Buy Setup (Long) Look for a minor 2 to 3-bar rally against the trend
Ideally, the price should hold at a Gann "natural" support level, such as 50% of the previous swing. Step-by-Step Execution The Buy Setup (Long) Ideally, the
Ensure the market has recently broken a major resistance level and is trending up.
Look for a minor decline lasting 2 to 3 bars.
Gann often divided market moves into sections. Trade 6 typically occurs in the "second section" of a bull or bear campaign. After the initial breakout (Trade 1 or 2), the market takes a breather. This breather is your entry point. 3. The 3-Day (or 3-Bar) Rule