The Gann Technique in Today's Trading

Traders today may follow the gann analysis when trading in any market. Although this method refers to mathematical principles, it is basically used more on forecasting market trends and not on the trading activities per se. Just like Gann himself, traders can filter information about the market and concentrate on studying where the trend is going instead. As a trader, he made used of indicators that reflected the hourly, the daily or the weekly movements of the prices in the market.

The three day trend lines that he used indicate that a one-day line indicator may have more swings than the other two days. Traders can also ascertain the direction or the trend by looking into the highest and the lowest prices over a definite period of time. The Gann technique may be used by traders who would like to concentrate on the swing type of trading. There are specific swing patterns as well as retracement points that can be expected to happen in between given trading periods. Traders have to be keen in making moves once they are able to follow through the patterns of highs and lows.

Gann did not pay much attention to the opening or the closing positions when developing charts (Gann trading software), but instead he concentrated on marking the highs and the lows which he connected through a line indicator. Traders who would like to succeed in using his technique have to abide by the rules such as trading by the trend lines that are indicated. However, it is important for them to realize that even if their trend line indicates that the market is up, this may not actually reflect what is happening in the market at a given time. Traders though can decide to buy after they see that the market has confirmed that they indeed have a double bottom. They can sell on the other hand if the market confirms a double top.

There are still other rules that traders have to follow if they would like to be swing trader like Gann. It may take them some time before they can master this trading technique in order for them to earn higher profits from their activities. People who are new in the trading market can be aided by software programs that can help them in creating charts with accurate data. However, there is still a need for new traders to learn and to understand how they can benefit from using the Gann technique in analyzing the market trends.

How Gold and Silver Provide a Safe Haven in Today's Troubled World

The reasons for holding precious metals as a relatively safe haven for one's personal wealth are numerous.

One common investing thesis for buying precious metals is that these intrinsically valuable commodities can hold their value in times of rising price levels. This characteristic can help American savers keep pace with credit expansion and paper currency debasement.

Diversify Out of the Dollar

For example, precious metals can provide a safe haven in terms of the diversification they offer relative to holding U.S. Dollars in cash or Dollar-denominated assets.

Physical gold and silver investments can take up a core position in an investment portfolio since they offer an easy way to have some wealth stashed out of Dollar-denominated assets. These hard assets also provide a viable alternative to holding foreign currencies or foreign equities.

Basically, precious metals allow investors to engage in a new way of thinking, where investment priorities are anchored to real value and permit advance planning for troubled times.

When the Dollar Bubble Bursts

In much the same way that market bubbles have been blown in various asset classes over the last 40 years, largely via Fed sanctioned interest rate manipulation, the overvalued U.S. Dollar seems like yet another bubble waiting to burst.

Basically, the value of silver has been artificially deflated in U.S. Dollar terms via price control implemented using contracts traded at global futures exchanges.The symbolic investigation of this so-called conspiracy by the CFTC just passed its fourth year.

Under priced assets like silver will eventually lead the way back to what will very likely be the largest bubble the world has ever seen. The U.S. Dollar and the U.S. bond market appear destined for a long overdue crash.

Various factors point to this outcome. They include such things as: intrinsically worthless paper wealth, high frequency trading, a world where MF Globals can exist, the threat of taxation, and rampant money printing - otherwise known as Quantitative Easing.

Competing With the Banks for Credit

Major international banks have benefited disproportionately compared to the individual investor from credit expansion in recent years. Banks enjoy better profits from cheap money and can buy future cash flows very inexpensively.

Meanwhile, consumer credit has contracted leaving consumers holding the bag in many cases. People are also unable to consume as much because of a rise in general price levels and the failure of the troubled financial system to purge itself of bad debt.

If at any point the American consumer and banks are equalized with additional credit infusions, the tide will then begin to turn. Consumers can then free up more discretionary income as America goes back to work.

Nevertheless, until the two groups are made equal, credit will neither expand nor contract. Instead, credit supplies will stay constant, although prices will continue to rise relative to consumer incomes.

Precious metals provide a safe haven investment that can often help compensate an investor for such price rises. Furthermore, if at any point the system balances and allows for credit expansion to extend to Main Street, then precious metals investors will typically benefit.

For more articles like this, and to stay updated on the most important economic, financial, political and market events related to silver and precious metals, visit http://www.silver-coin-investor.com