The Incredible Analysis of W D Gann

August 1, 2017 | Author: John Kent | Category: Financial Economics, Investing, Financial Markets, Market (Economics), Economics
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The Incredible Analysis of W D Gann...


The Incredible Analysis of W.D.Gann

Alan Oliver

W.D.Gann • An incredible analyst in the 1900’s • Created several innovative tools and techniques • Was the discoverer of Time cycles in a ets markets

G ’ recordd Gann’s • Gann attracted a lot of attention with his trading • In front of a newspaper editor, he made: • 286 trades d • 264 wins • 22 Losses for a total of 92% accuracy

• He is reported to have made $50 million US by his death in 1955. • Even more remarkable as he traded through the Great depression in 1920 when his broker and then his bank went bust and he had to start all over again. again

• In this presentation we will review just some of his work • To completely understand this man’s legacy can take years of applied research research.

The Gann swingg chart

A swing chart will only move when h the h High i h or Low off Previous bar is passed.

Definition of a trend

S&P 500 Sep 2010

The safest place to BUY is the first Higher top


Then place a Stop below the last swing low

NEVER buy lower tops and/or lower lows

HOLD higher swing highs and swing lows

S&P 500 Sep 2010

Entry Stop

• Gann would pyramid on every trade. • Maximising your position then move stop up behind each swing low.

S&P 500 Sep 2010

Buy more

Entry Stop

The Square q of 9

• Gann‘s relentless approach to research allowed him to discover an astrological approach to trading. • He H once n spent p nt 3 years r studying t d in 7 ddays a weekk in England reviewing the price movement of Wh t overr 1000 years. Wheat rs • The end result was a much better way to measure Time Ti than h our standard d d calendar l d

The Ephemeris

Time Feb 4

Nov 7

May 6

Aug 8

• Gann’s method involved several requirements to a trade: • Time ( several ways to measure time) • Price Pi • Pattern

S&P 500 D il b Daily bars

June 21

Time Feb 4

Nov 7

May 6

Aug 8

Price • Gann had an important rule for Price: • Always look half way between a high and a low for a potential reversal.

Pattern – The Outside Reversal

Close is below Yesterdays low

Time Price and Pattern on June 21

Trade Result: Short 1105 E i 1036 Exit Profit 69 points USD $250 per point $17,250 USD per contract

The Gann Fan • Gann confirmed that Time and Price can balance out’ out and this leads to a potential trade. ‘balance • To do this, he created what we call The Gann fan. fan


Start +10 days +10 Points

+20 days +20 points

+ 76 days +76 points

• How I traded the September 11 2001 market crash using Gann strategies

Mon Sep 24

D GFC L Dow Low March M h 09

Dow daily

Nikkei Weekly

• Gann’s timing factor is based in several parts, based on Geometry and sometimes illogical yet powerful human observation.

• What is the most important number in humanity and why?

• At one stage in his trading research Gann called 144 his most important discovery. • Page 1 of the Bible: God created all things in 6 days and rested on the 7tth day • Ezekiel temple 1440 sq miles: City 144 sq miles • 144000 redeemed people


Rio Weekly

Time Feb 4

Nov 7

May 6

Aug 8

• What do these basic shapes have in common?

90 • • • •

In numerology, 90 means: Change Obstacle Redirection

FTSE Monthlyy

Time Feb 4

Nov 7

May 6

Aug 8

Gann stunned the Trading world • Here is a classic example of how Gann created a huge following with incredible market predictions…. • Australian stock MQG

MQG Q Dailyy

“MQG MQG will go no higher until it has a decent break(pullback)”

Time Feb 4

Nov 7

May 6

Aug 8

Who is this?

Si ifi Significant high hi h andd low?? l ??

A Dire warning • When was the last great Depression? • 1929 • When was the prior depression?


1837 to 1929 = 90 years 1929 + 90 years = 2019

Nov 07 Major all time high

• 2007 to 2019 = 12 years • C Combining: bi i • 1837 to 2019 = 90 years and • 2007 to 2019 = 12 years/144 months • We now have two major cycles expiring together for a real threat

Th Incredible The I dibl analysis l i off W.D.Gann

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