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
Or
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
1x1
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
GBPUSD Daily
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
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
www.tradingwithgods.com