Advanced Market Geometry Techniques

Market geometry may be viewed by some as old school technical analysis, but again, simple things work best. First thing one needs to do when analyzing a chart under this approach is to look for previous consolidation area and to project trend lines from that areas because usually former support becomes resistance and former resistance becomes support around those levels.

Looking at how price reacted in the past may give you clues about what it is going to do in the future, as history is repeating. Under this approach you don’t need to know any Elliott Waves theory rules, you don’t need to look at any indicator/oscillator in order to have an idea about prices, but merely looking at price behaviour around some important levels in the past gives you an idea about the possibility of those levels to represent something in the future.

There are many approaches to market geometry techniques and one of the most important contributors are Bryce Gilmore and his “Geometry of the markets” book. Under such an approach it is believed that markets evolve in cycles, repeating ones, but not necessarily cycles like circles or something like that, but time areas/zones that are repeating over and over again. W.D Gann was also a fervent believer in cycles and geometry of the markets gives you the perfect tool for that.

Under this chapter you will see different analysis on a series of three recordings, trying to explain to you step by step what to look for when trying to do a market geometry analysis and this chapter ends the advanced trading strategy and concepts project.

Leave a Reply

Your email address will not be published.