From W.D. Gann’s Stock Market Course
COMMENT: It’s easy to overlook this investment gem in the heat of emotion in the markets. However, when prices take out new lows as we’ve seen happen over the last several years, people (as a whole) hesitate to follow their lead. The theory is that prices will turn around ‘this time’ for sure, but, that’s playing a 15% probability at best (and usually much low odds than this).
Trends are established over time and hold a good deal of momentum when they become visible to the average trader and investor. Those trends have a strong 80-85% probability of following through when they are in motion.
These are not odds to walk away from when one has the chance to put those same odds on their side. These aren’t my own opinions solely (as seen from the quote above from Gann’s own course), and, I’ve gone over the Historic Charts and proven it’s worth for myself.
Gann thought enough about the Art of Buying & Selling at New Levels to make it one of his cardinal Rules (#4):
You should follow the same path to Truth as written by Gann. It’s a fundamental Law of Truth that will work for you. Examine the markets and PROVE ALL THINGS for yourself. – George