William D Gann Technical Analysis Made Truly Understandable
For the past decade or so there have been a number of books claiming to make understanding Gann easy. Most investors we have spoken to are of the opinion that these books failed to reach such a lofty but laudable objective. We are of the same opinion. The books we have read have certainly not been easy to follow and in many instances Gann's techniques have been mixed up with other less powerful methods of analysis which have watered down the effect of Gann's genius.
These series of W D Gann lessons will introduce students to this simplified approach which will transform the beginner or even seasoned trader into a profitable trading machine within a matter of months. The method can be profitably applied to all of the worlds speculative markets.
ANGLES FROM LOWS
Gann Angles are trend lines or lines of resistance which take both time and price into account.
They are drawn from important tops and bottoms and can be applied on long term monthly and weekly graphs and short term daily graphs. An Angle taken from a bottom which occurred many years ago can be very relevant to the current price action.
If a Gann Angle is broken on the upside, then higher prices are indicated.
If the Gann Angle is broken on the downside, then lower prices are indicated.
WORLD MARKETS OMINOUSLY LINE UP
This week’s analysis of the world’s stock markets evoked the feelings of excitement I had back in 1972 when I first investigated the relationship of percentages to the movements of stocks and their indices. This discovery has lost none of it’s effectiveness over the decades. In fact it has been sophisticated in a fairly simple fusion where all tops of bottoms can be detected often well in advance of important turning points. Recently analysis for the ‘Horizon’ Buying Service provided the exact lows for over 30 stocks during 2012/2013 having a success rate of well over 90%
In my initial studies in 1972 I went back to 1928 and the Wall Street crash to test the effectiveness of applying set percentages in finding tops as determined by Gann. The result can be seen on the chart under highlighting where the set percentages fell isolating the exact top of the previous bull market and the start of the biggest bear market in hitory. It is interesting to note that Gann foretold this top a year earlier. At the time I thought this was miraculous but now find it commonplace in our own endeavours.
(Please ignore the dates at the bottom of the chart)