William Gann developed the 3 day swing chart in order to trend stocks because strongly trending stocks or commodities usually had reactions (corrections or downward consolidations) to the main trend of 3 days or less. In the 3 day chart, the trend is up when the market makes higher highs without crossing below the prior 3 day low. The trend is down when the market makes lower lows without crossing above the prior 3 day high. An inside day (black arrow) has no effect on the swing chart.
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