WD GANN Trading Strategies for Successful Investment and Speculation
Synopsis
Speculation or investment is the best business in the world if you make business of it, so, we must study and prepared not guess, follow information or depend on greed, hope or fear.
Success in stock market depends on knowing the right kind of rules and following them.
W.D Gann is the best Trader of 19th century, according to him if he gets last 100 years data, he can predict next 100 years movement of any stock, commodity or bullion.
His well-known books are Truth of the stock tape, Tunnel Through The air, 45 years in Wall street etc. According to him, there is nothing new under the sun, everything is just a repetition of past.
Most of the people in this industry forecast price on Y axis, based on it’s fundamental (PE, Market Value, Capital, Net profit, etc) or technical (EMAs, BB, RSI, stochastic, MacD, Eliot Wave, Fibonacci Retracement, etc) analysis, but, price is of no value without time, that’s X axis.
So, WD. GANN predicts support and resistance of any stock, commodity & bullion, on Time instead of Price.
WD GANN Trading Strategies
Based on the notion we are going to study about the cycle of 30 years, 20 years, 10 years, 5 years, 3 years, and 1 year. Where we find the movement of any instrument follows the repetition of cycle or cycle inside a cycle.- No. 7 is also very important number of the universe. So, 7 years cycle is very important.
- He is very keen on the natural numbers of 3, 6, 9, and been considered influential and energetic. So, we find the same repetition of these years too to get the prediction of an instrument.
- Along with the above mentioned cycle, he is well known for his Square of “9†and “12†which determine the future of any stock and its Target, support and resistance.
- There is nothing more than 360 degree in this universe. The geometrical Position of any instrument is always on its 360 degree or multiplication or subtraction of 360 degree angle. Whether it’s Circle, Square, Triangle, Pentagon or Hexagon. So, any movement of a stock is geometrical either on its monthly, weekly or daily chart. And each stock, commodity passes through its own life cycle, or pattern.
- So, the major support, resistance and target of any stocks are on its own 90 degree, 180 degree, 270 degree, and 360 degree angle either of its time or price on monthly, weekly or daily chart.
- 45 degree is the most important angle above all, as its 1/8th of 360 degree, and 1â„2 of 90 degree. So, basis his trend line is on 45 degree only. Furthermore, 22 1â„2 degree is also a major support and resistance, as its 1â„2 of 45 degree.
- The major important angle where a stock might react or changes its trend line are 22 1â„2 , 30, (1/12th of 360 degree) 45, 77 1â„2, 90, 112 1â„2, 120, (1/4th plus 1/12th ) 165, 210, 240 degree .....And so on....
- The other most important strategy to determine a stock movement is its co relation with time, and on square of it. If price of a stock move ahead of time, it must retrace back and sync with it. If the price lags behind, then it must catch up with time.
- The retracement must be above 50%, once it breaks below 50% retracement zone, the cycle changes.
- He, identifies, some astronomical dates, along with individual stocks’ seasonal changes. A stock must respect those dates, and changes its trend or intensifies its movement from there. And those dates are always in correlation with the universe and its degrees.
- The commonly known dates are Full moon and new moon, when the moon is placed with the sun either in 180 degree, 90 degree, or “0†degree angle with sun, and work as catalyst to the movement of a price.
- The other major cycles are Solstice, Equinox, Jupiter, Mercury, Venus, and Saturn cycle which act as major support resistance or target of a stock and its movement.