Everything, there is a law, so is trading, K line also has its law, you just don't find it.

All the analysis ultimately points to the buying and selling point, how to find this point will be the last key to solve the transaction, but also the key to determine the outcome of the transaction, that is, the "key buy and selling point position".

Gann has accumulated valuable experience in his 45 years of securities trading career, which I believe is very important for every investor involved in the financial market, including the "buy and sell point" summed up by his experience and lessons in his 45 years of trading career.

Buy on single, double and triple bottoms

Buy at double and triple bottoms, or single bottoms close to previous old bottoms, tops, or resistance levels. Remember this rule: When the market crosses the previous head and reverses, or drops slightly below it, the head or ceiling that was the selling point becomes the bottom, support, or buy. Sell at or against a single, double or triple top, and remember that the market becomes a selling point when it drops a few points below the old top and rallies to or near it. After you have already made a trade, it is important to determine an appropriate and safe place to place a stop loss order. If you don't know where to place a stop loss order, don't trade it.

Of course, don't ignore the fact that the fourth time an average or individual stock (and forex pairs too) reaches the same level, it is not safe to sell because the average or individual stock almost always breaks to the upside. The same applies to the bottom in reverse. When the stock (also the forex currency pair) falls to the same level for the fourth time, it in most cases has to break through this bottom and continue lower.

What needs to be noted here is: 1, 2, 3, there is no 4 down, the number of times that work is the greatest probability of the first 3 times, the fourth time will not work.

The meaning of double heads and double bottoms

The double ends of the average index can be in the range of 3-5 points. However, except in extreme cases, most double heads form in the range of 1-2 points. Same goes for double bottoms. If there has already been a bottom near the same level a few years ago, then the average may fall below the previous bottom by 4-5 points, but it does not mean that they will go lower, and this may become a double or triple bottom. Individual stocks will usually do double heads in the 2-3 point range, and sometimes they will do double heads in the 1-2 point range. The same is true at the double bottom; They double bottom in a range of 2-3 points, and sometimes this range is only 1-2 points lower than the other bottom. A stop loss order on an individual stock should be placed 1-3 points above a double or triple head, depending on how high the stock price is. A stop loss order should also be placed 1-3 points below a double or triple bottom. A triple head or triple bottom occurs when the average or individual stock has reached the same level for the third time. This is generally the safest position to buy and sell, as the market will move much faster when it leaves the triple top or triple bottom.

Buy when the highs move up

Buy when the market is making higher highs and higher lows, which indicates a general upward trend. Sell when the market is making lower highs and lower lows, as this indicates a general downward trend. The time cycle is always the most important. Check previous head to head, and previous bottom to bottom time cycles. Check the time it takes for the market to move up from the lowest limit to the highest limit, and the time it takes for the market to move down from the highest limit to the lowest limit.

The safest place to buy and sell

It is always safest to buy stocks after the changes identified in the trend have been established. When the stock bottomed and had a rally, there was a secondary correction, and it gained support at a higher bottom. When it starts to rise and crosses the head of the first uptrend, that is the safest buy because the market has already given signs of an uptrend. A stop loss order can be placed below the secondary bottom. The safest selling point - when the market has been rising for a long time, makes the last high point, and has the first steep and rapid decline, it will rebound and form a second top, this top is lower, and then the market will start to fall from this top and fall through the lowest point of the first decline, which is a relatively safe selling point. Because it gives a signal that the main trend has turned downward.

2-day correction and 2-day rally: In a rapidly active market, this is the most important time period. The adjustment lasts only 2 days and does not fall into a third day. This will happen many times before there is any sign of a change in trend. When an individual stock or average index adjusts for just 2 days, it is in a strong position. You will find certain 2-day movements in the table prepared for the 3-day chart. In an active, fast-falling market, the rebound will be steep and rapid, lasting only two days. (Three Yin do not eat a Yang can buy; On the contrary, three Yang do not eat one Yin, to resolutely sell.)

Remember, as long as the trend is up, stocks are never too high to buy, and as long as the trend is down, they are never too low to sell; But don't lose sight of the fact that you must always use stop-loss orders as protection. Always go with the flow, never against it. Buy stocks in strength and sell stocks in weakness.