Gann Method Of Trading

[Theodora Wallingford]

Ganntheory was a concept developed by William D. Gann in the 1900s. He was a successful trader and believed that stock prices change with an angle. An asset can move in different angles. He noticed that price changes were related to natural geometric shapes and predicted future price movements in relation to time. This is why Gann theory is also called the "Gann Angle theory"

Gann trading strategy can still be used and, if applied correctly, can predict the movement of an asset up to 90% accuracy. W. D. Gann believed that the market follows a natural time cycle. His theory was based upon natural geometric shapes and ancient mathematics.

Gann theory states that the patterns and angles of an asset on the market can be used as a predictor for the price's future movements.

Gann noted that all angles provide support and resistance levels based on the trend. Strong support is provided by the 1 x 1. It is a major signal of a reversal when the price begins to fall below the 1x1 angled trend line.

You can quickly grasp the basics of the subject with the help of gann anglesIntraday trading using the Gann Theory. Let's look at a simple example to understand the concept. If the market is in an upward trend and does not break, it means that the market will remain in an uptrend until the angle trend line breaks.

Gann theory can be useful to traders in order to make good returns on the market. There are many Gann theory books that you can find online or offline. The books can be used to help you trade. We have provided basic concepts regarding the application of Gann Theory.

This trading strategy was developed by Gann based on the assumptions.

1) Stock market movements are governed by a time cycle

2) Markets are geometric in their design and movement.

3) A market is only affected by price, time, and range.

Traders should remember that the market moves in different angles. These angles will remain the same. These angles can only be rotated.

An asset can move from one angle to the next. This is the "Rule of All Angles". This rule states that an asset moves from one angle to another once it has achieved an angle. Most commonly, Gann angles are used to locate support and resistance lines.

It is called break when support is broken. This indicates that the price will drop. It breaks out on the other hand. This means that resistance has been broken and the price will move down.

Once a trader has set his time frame, he/she will draw the Gann angles on the stock chart. These angles can be 1X1, 2X1, 3,X1, 3X1, 1,X2, 1,X3, and so on. These lines can be used to determine the need of the trader and then they are used to interpret the price movement.

Note: Support angles that are uptrending indicate support, while downtrend angles indicate resistance.

Sometimes, a combination of horizontal and angles is used to determine support or resistance. If a stock is bullish, it may retrace to 50%. This level will serve as support for the stock.

However, if the stock is bearish, the 50% retracement level is an important resistance level. These angles are important support and resistance levels for assets that have been trading at different angles. These areas are also called price clusters.

Gann Angles at different angles, you need to have a significant top or bottom. If prices are above the trendline, it is a bullish market. A bear market if they are below. Gann believed that 1 x 1 trend lines provide major support and resistance in an up-trend, and that when it is broken it signals a major reversal of the trend.

Gann theory is an important technical analysis tool that traders use. These nine special numbers are used to set stop loss and targets for trades based on the LTP (last traded price).

These targets can be calculated on a variety of websites, as well as your stop loss. These targets can be bullish or bearish. A trader must decide which targets to pursue.

If used correctly, Gann trading strategies using Gann indicators can lead to many successful trades. Gann theory is only successful when applied correctly. This requires time and experience.

This theory will help you to analyze the market and predict future stock price movements. It is crucial to always backtest your strategy and put a stop loss in every trade.

Those skeptics, who responded to the previous articles devoted to Gann by nothing but irritation and laughter, I suggest breathing deeper, because in this final work I shall talk about the influence of lunar and solar eclipses on the market and the methods of trading according to astronomical phenomena.

The researches of William Delbert Gann's trade methods note that, despite the many-sided nature of his approaches, the key factor, determining his trading decisions, is to study the position of the Sun and the Moon relative to the Earth and the patterns that exist between these celestial bodies and the market situation.

Since solar and lunar eclipses are quite frequent phenomena and when making forecasts on a large scale such as a quarter and a month, both events can occur in the same period. Gann ranked the events in terms of their importance and the power of influence. It looks like this:

After the eclipse, identify the date when the Moon will cross the celestial equator and the date when the Moon will make a full circle and return to the place that was during the last eclipse. If in these days there are any of the above astrological events, then it is considered to be significant and potentially important for the studied market.

Mind the Moon position on this day. It is in the Leo sign, at 121 degrees according to the celestial protractor. As you see from the cosmogram above, on the same day, the Sun starts conjunction with Venus; however, the list of astrological events is far from being complete.

As you see from the chart above, this lunar eclipse really became an early sign of a strong market movement. Already on the next candlestick, February 1, 2018, we understand that the trend did not reverse, and therefore the local bottom was not formed (see step 6 of the methodology). It means that we can fully apply step 5 in the analysis and study the dates of equator crossing the Moon full circle (see step 5 in the methodology above).

As you see from the figure above, there were many astrological signals on that day. The figure above shows the square of Mars and Venus. It also shows that many celestial bodies enters the sign of Pieces. Such multiple signals as a rule result in strong volatility in the market and oppositely directed movements.

The Mars-Venus square is 100% bearish signal, according to my statistics. As you see from the chart above, on that day, February 28, there was strong volatility. The price rose at first and even broke though the previous daily high (it is market with green circle in the chart above); next, it dropped down and, eventually, the candlestick closed even lower than the previous closing level. As it clear from the price chart, bearish signal worked out quite accurately and the the cluster of planets added uncertainty and volatility to the market, so that, in general, this behavior was natural from an astrological point of view.

Unfortunately, in history, too few of similar combinations are entered into the base; but from what happened, we see, in fact, either a trend reversal or a bearish momentum. It is possible that there will be both.

The shift of the cosmogram by one day does not radically change the situation; so in order to surely understand the direction of this eclipse, we could refer to step 5 of the method and analyze the dates when the Moon will cross the equator and make a complete circle.

However, looking ahead, I can say that there are no significant signs that could clearly be interpreted as signs of directional movement on the date of the Moon crossing the equator on July 9, or at the time the Moon full circle, on July 29.

As it is clear from the figure above, 16.07.2019, on the day of the partial lunar eclipse, there are no powerful astrological events except for the semisextile of Jupiter and Saturn. However, if you look at the planets dynamics, you can see that Mercury starts its retrograde motion on this day.

As I wrote in my previous articles, this phenomenon is one of the strongest signals of the trend reversal. The coincidence of this phenomenon with the date of the lunar eclipse only amplifies this signal.

The true eclipse method aims at identifying the areas of the greatest tension in the market and highlights them among other critical levels that have been identified by means of such tools as the square of 9 and the Pythagorean method.

Of course, one of the important and necessary tools is statistics on specific combinations of planets and other astrological phenomena, and how these events correlate to the price movements of the instrument studied.

Given the fact that the market in its any aspect is the quintessence of human feelings, the application of the astrology laws no longer seems such a delusional proposition even to the strongest skeptics.

To see the Zodiac circle, you need to activate Cosmogram. It should apply Geocentric system, that is the Earth is in the center, at Angle of 180 degrees and move Clockwise. It is also important to select in the Location section the City, the time zone of which is used for the forecast (see the screenshot above).

Later, as an experiment, I suggest using the complete Cosmogram with all the twelve celestial bodies and compare it with the classical framework, applied by Gann. I think it is going to be interesting and, may be, unique experiment.

To move on, you need to understand that Cosmogram is a two-dimensional map of the celestial dome. So, it is very important to correctly identify the time and the place for the analysis, because at different times and different places the heaven is different. Historically, I draw my charts fro analysis according to the time zone of UTC + 3, which corresponds to Moscow local time.

3a8082e126