The New Gann Swing Chartist by Robert Krausz, MH, BCHE
This is more than an article that teaches technical analysis. It's also a story about how one professional trader, a New Market Wizard, came into possession of a rare technical method, and the steps he took to turn it into a valid trading plan. Here, then, is Robert Krausz's Basic trading plan, one of four published in his book, A W.D. Gann Treasure Discovered.
To many market participants, technical analysis is the foundation of any technical trading plan, when in fact, market analysis and trading are two different modalities. Market analysis can determine whether important information such as the trend has changed direction or the market has reached support. The trading plan, however, will have specific rules for you to take action, and therein lies the difference. The market analysis can tell you when and why to take action; the trading plan tells you what action to take.
It is the blending of these two modalities that is a key step toward becoming a successful trader. Every aspect of the two modalities — the market analysis and the trading plan; the entry and exit rules; money management and other details — must be in concert. Analysis is the handmaiden for trading, and not the other way around. If your technical work signals that the trend has changed direction, then that signal should be the same reason for you to take action in the market.