William Delbert Gann is considered by some to be one of the greatest traders of stocks and commodities of all time. He correctly forecasted that the 1909 September wheat price would reach $1.20, Black Friday of 1929, and the 1930s Great Depression, just to name a few of his calls.
One of the core principles of technical analysis is that prices move in trends. Subsequently, the goal of technical analysts is to identify the trend in its very early stages of development. While experienced traders may nod their heads in agreement, often beginners face difficulties identifying the trend on the price chart. Lack of experience and practice is to blame, of course. The trend is identified once the turning points of the market are spotted. The technique of spotting the tops and the bottoms on the chart is not clear to everyone and the procedure can become an unpleasant process of trial and error for newbies.
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