Gann

Gann Trading ~ Analysis Of The Weekly Chart

WD GANN Stated:
The Future Is Nothing But A repetition of the past!

He also went on to say ” The average mans memory is short. He only remembers what he wants to remember or what suits his hopes and fears He depends too much on others and does not keep a record,graph or picture of past market movements to remind him that what happened in the past can and will happen in the future,and should not allow his enthusiasm to get the better of his judgment and buy or sell on hope,thinking this time is different.”

What was he getting at? In my opinion of studying Gann, and all the past masters of the market (Babson,Taylor,Andrews etc.) he was referring to longer term charts. He had a unique way to look at these charts and kept records of weekly, monthly and yearly charts at his finger tips. In this article I will go over the Gann Method of Analyzing the weekly charts. It is up to you to find any validity in the method.

Gann Stated (Which I agree With)
“The more time period used in a chart,the more important it is in determining a change in trend. We need to refer to seasonal charts for our clues.”
What Gann did was break a weekly chart up into Quarters. So three months starting with January, February and March. Then he would use the highs and lows of these months to compare to the next three months. He called the first three month the winter quarter, the next would be the spring quarter, and so on.
He said study these quarters carefully and you will know when an important trend change has taken place. He had a very similar technique to Elliot Wave theory.
He said that is a market was turning down, it would make two, three, and four movements before it reaches a bottom. If the trend was going to reverse it would only make the first and second (Usually occurring at the Gann 50% point that holds) After a prolonged move down and a final fourth move you should begin to look for a bottom, using a Fibonacci (Propriety) Calculation. Also important are all the Gann Major dates. But lets just stick to the chart analysis here.

So our first step is to break the charts up into quarters and I will use the euro chart from 2008 to project for you 2009. We will pretend we don t know what happened;-) However the math will prove that we are not fudging the levels.

Click In Image It Will Expand.

A High In the Euro was Made and tested. Once the High Held we had a good indication of a strong resistance point. We put up a Gann Fan To project outward.
I will stop here and continue as a lesson on the super secret page that is a video. All That belong will get an email about the lesson. Okay Want to be involved sign up for the Free Reports and you will get on the mailing list.
Ciao
Tom
Enjoy The Party …Dance Near The Door!

GANN VIDEO

Gann Pivots And Fibonacci Pivots: Three Things You Should Know

Many Traders are interested in learning the Gann trading techniques for good reason. He amassed a fortune while trading. Gann is difficult to understand at first because he did write in riddles and metaphors. I have done extensive study of Gann and found some amazing things happen in the market place when using and applying his levels with Fibonacci. I will list three important keys you should start with.

Gann added an important component to the market trading equation. He added a time component, to market price. He said that when time met price the market is perfectly balanced and the move would reverse or zoom to the next level. Fibonacci levels also help gauge the markets intent. When we have a confluence of Fibonacci levels with Gann levels all the stronger the levels are. They can give us low risk areas to enter trades from. Our First Rule:

Price verse Time: The square Root Of Price is its time component. So in dealing in Foreign Exchange which is the market that I deal in. We would take the price and get its square root. If we find a key low or high we would calculate from here. A key high or low could occur at a Fibonacci retrace level the 1.382 and the 1.618 levels are good to look at(when done the proper way) for key levels to get the square root of price for the time component. Example we find a low at a 1.618 Fib extension level lets say its 1.5088. When get the square root of the price and find the factor to be 1.228. Move the decimal over one place to the right and get 12.28 or rounded down to 12. Project out 12 bars to see the next reactionary point of the market.

Be Flexible. Gann Always said be willing to trade both sides of the market. Listen to what the market is whispering in your ear. Go with the flow and don’t stand in front of a freight train.

Gann Angles: Gann angles go from a 1×1 balanced market to 1×8 super parabolic market and an 8×1 parabolic downward market. Markets that are in a “normal” condition stay between 2×1 and 1×2 Gann angles. The most important angle is the 45 degree angle known as the angle of death. If a market breaks this angle the up or down move is over and it will trade to the next Gann Angle, you should begin to fade the reversal moves once a Gann 45 degree angle is broken.

Here are three important ideas for Gann pivot points. Time is important in determining a possible change in direction. You need to stay open to market changes, listen to what the market is telling you. trade the market not your false beliefs about the market. Use the Gann Angles as a means of trading one level to another. Pay attention to the 45 degree angle.

Gann Pivots : Trading Gann With Trend Reactionary Numbers.

About Gann A Introduction
Gann was a legendary trader that was reported to amass
$50,000,000 over his trading career. It was reported that he ran a
$300 dollar account to over $26,000. Now bear in mind that the core
starting capital of $300 was a tremendous amount of money when
Gann was trading. He started trading cotton in 1902. Gann was
primarily a swing trader. He stated in his books that ”There is always
more money to be made trading with the fluctuations than holding for
the long pull.” However through further study of Gann I have found
that the long pull is just a huge swing trade. The reason I have come
to that conclusion, is because he looked at longer term charts, he
stressed “You must maintain daily,weekly,monthly and yearly data.”
In addition to that he always looked to anniversary dates, those were
very important to him. A Short term trader never look at those
charts or cares about past 1, 5 0r 10 year Highs or Lows.(Known As
Anniversary Dates)
When we apply his methods with Trend Reactionary Numbers Some Unique Things Occur. Actually down right spooky.

“Mathematical science, which is the only real science that the entire civilized
world has agreed upon, furnishes unmistakable proof of history repeating
itself and shows that the cycle theory, or harmonic analysis, is the only thing
that we can rely upon to ascertain the future.” WD Gann

Here is a case study of GBP/Chf from October 13 2010, a Gann Date go back and Look at 1 year earlier.

Down Below I show A Gann Completed Market Map With The TRNs Marked
in Blue.

In the process of writing an E book and making videos on how you can project this Gann Map.
Enjoy The Party…Dance Near The Door!