The Incredible Analysis

of W.D.Gann
Alan Oliver
W.D.Gann
An incredible analyst
in the 1900s
Created several
innovative tools and
techniques
Was the discoverer Was the discoverer
of Time cycles in
markets a ets
G d Ganns record
Gann attracted a lot of attention with his
trading trading
In front of a newspaper editor, he made:
286 d 286 trades
264 wins
22 Losses for a total of 92% accuracy
He is reported to have made $50 million US
by his death in 1955. by his death in 1955.
Even more remarkable as he traded through
the Great depression in 1920 when his broker the Great depression in 1920 when his broker
and then his bank went bust and he had to
start all over again start all over again.
In this presentation we will review just some
of his work of his work
To completely understand this mans legacy
can take years of applied research can take years of applied research.
The Gann swing chart g
A swing chart will only move
h h i h f when the High or Low of
Previous bar is passed.
Definition of a trend
S&P 500 Sep 2010
The safest place to BUY is
the first Higher top the first Higher top
OOr
Then place a Stop
below the last swing low below the last swing low
NEVER buy lower tops NEVER buy lower tops
and/or lower lows
HOLD higher swing highs 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 Maximising your position then move stop up
behind each swing low.
S&P 500 Sep 2010
Buy more
Entry
Stop
The Square of 9 q
Ganns relentless approach to research allowed
him to discover an astrological approach to him to discover an astrological approach to
trading.
H n p nt 3 r t d in 7 d k He once spent 3 years studying 7 days a week
in England reviewing the price movement of
Wh t r 1000 rs Wheat over 1000 years.
The end result was a much better way to
Ti h d d l d measure Time than our standard calendar
The Ephemeris
Time Time
Nov 7
Feb 4
Aug 8
May 6
Ganns method involved several requirements
to a trade: to a trade:
Time ( several ways to measure time)
P i Price
Pattern
S&P 500
D il b Daily bars
June 21 June
Time Time
Nov 7
Feb 4
Aug 8
May 6
Price
Gann had an important rule for Price:
Always look half way between a high and a Always look half way between a high and a
low for a potential reversal.
Pattern The Outside Reversal Pattern The Outside Reversal
Close is below Close is below
Yesterdays low
Time Price and Pattern on June 21
Trade Result:
Short 1105
E i 1036 Exit 1036
Profit 69 points
USD $250 per point
$17,250 USD per contract
The Gann Fan
Gann confirmed that Time and Price can
balance out and this leads to a potential trade. balance out and this leads to a potential trade.
To do this, he created what we call The Gann
fan fan.
1 x 1
Start 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 crash using Gann strategies
Mon Sep 24
D GFC L M h 09 Dow GFC Low March 09
Dow daily
Nikkei Weekly
Ganns timing factor is based in several parts,
based on Geometry and sometimes illogical based on Geometry and sometimes illogical
yet powerful human observation.
What is the most important number in
humanity and why? humanity and why?
At one stage in his trading research Gann called
144 his most important discovery. 144 his most important discovery.
Page 1 of the Bible: God created all things in 6
days and rested on the 7
th
day days and rested on the 7
t
day
Ezekiel temple 1440 sq miles: City 144 sq miles
144000 redeemed people
GBPUSD Daily
Rio Weekly
Time Time
Nov 7
Feb 4
Aug 8
May 6
What do these basic shapes have in common?
90
In numerology, 90 means:
Change Change
Obstacle
Redirection
FTSE Monthlyy
Time Time
Nov 7
Feb 4
Aug 8
May 6
Gann stunned the Trading world
Here is a classic example of how Gann created
a huge following with incredible market a huge following with incredible market
predictions.
Australian stock MQG Australian stock MQG
MQG Daily Q y
MQG will go no higher until MQG will go no higher until
it has a decent break(pullback)
Time Time
Nov 7
Feb 4
Aug 8
May 6
Who is this?
Si ifi hi h d l ?? Significant high and low??
A Dire warning
When was the last great Depression?
1929 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 2007 to 2019 12 years
C bi i Combining:
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 together for a real threat
Th I dibl l i f The Incredible analysis of
W.D.Gann
www.tradingwithgods.com