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The Incredible Analysisof W.D.Gann

Alan Oliverraoufx.com

W.D.Gann• An incredible analyst

in the 1900’s• Created several

innovative tools and techniques

• Was the discovererWas the discoverer of Time cycles in marketsa ets

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G ’ dGann’s record

• Gann attracted a lot of attention with his tradingtrading

• In front of a newspaper editor, he made:286 d• 286 trades

• 264 wins• 22 Losses for a total of 92% accuracy

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• 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 brokerthe Great depression in 1920 when his broker and then his bank went bust and he had to start all over againstart all over again.

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• In this presentation we will review just some of his workof his work

• To completely understand this man’s legacy can take years of applied researchcan take years of applied research.

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The Gann swing chartg

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A swing chart will only moveh h i h fwhen the High or Low of

Previous bar is passed.

Definition of a trendraoufx.com

S&P 500 Sep 2010

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The safest place to BUY isthe first Higher topthe first Higher top

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OOr

Then place a Stopbelow the last swing lowbelow the last swing low

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NEVER buy lower topsNEVER buy lower topsand/or lower lowsraoufx.com

HOLD higher swing highsHOLD higher swing highsand swing lowsraoufx.com

S&P 500 Sep 2010

Entry

Stop

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• Gann would pyramid on every trade.• Maximising your position then move stop up• Maximising your position then move stop up

behind each swing low.

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S&P 500 Sep 2010

Buy more

Entry

Stop

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The Square of 9q

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• Gann‘s relentless approach to research allowed him to discover an astrological approach tohim 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 rsWheat over 1000 years.

• The end result was a much better way to Ti h d d l dmeasure Time than our standard calendar

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The Ephemeris

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TimeTime

Nov 7Feb 4

Aug 8May 6

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• Gann’s method involved several requirements to a trade:to a trade:

• Time ( several ways to measure time)P i• Price

• Pattern

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S&P 500D il bDaily bars

June 21June

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TimeTime

Nov 7Feb 4

Aug 8May 6

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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.

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Pattern – The Outside ReversalPattern – The Outside Reversal

Close is belowClose is belowYesterdays low

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Time Price and Pattern on June 21

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Trade Result:Short 1105E i 1036Exit 1036Profit 69 pointsUSD $250 per point$17,250 USD per contract

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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

fanfan.

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1 x 1

StartStart

+10 days+10 Points

+20 days+20 points

+ 76 days+76 points

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• How I traded the September 11 2001 market crash using Gann strategiescrash using Gann strategies

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Mon Sep 24

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D GFC L M h 09Dow GFC Low March 09raoufx.com

Dow daily raoufx.com

Nikkei Weekly

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• Gann’s timing factor is based in several parts, based on Geometry and sometimes illogicalbased on Geometry and sometimes illogical yet powerful human observation.

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• What is the most important number in humanity and why?humanity and why?

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• 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 7th daydays and rested on the 7t day

• Ezekiel temple 1440 sq miles: City 144 sq miles• 144000 redeemed people

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GBPUSD Dailyraoufx.com

Rio Weeklyraoufx.com

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TimeTime

Nov 7Feb 4

Aug 8May 6

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• What do these basic shapes have in common?

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90• In numerology, 90 means:• Change• Change• Obstacle• Redirection

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FTSE Monthlyyraoufx.com

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TimeTime

Nov 7Feb 4

Aug 8May 6

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Gann stunned the Trading world• Here is a classic example of how Gann created

a huge following with incredible marketa huge following with incredible market predictions….

• Australian stock MQG• Australian stock MQG

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MQG DailyQ y

“MQG will go no higher untilMQG will go no higher untilit has a decent break(pullback)”

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TimeTime

Nov 7Feb 4

Aug 8May 6

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Who is this?raoufx.com

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Si ifi hi h d l ??Significant high and low??

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A Dire warning• When was the last great Depression?• 1929• 1929• When was the prior depression?

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1837

1837 to 1929 = 90 years1929 + 90 years = 2019

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Nov 07Major all time highraoufx.com

• 2007 to 2019 = 12 years2007 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 threattogether for a real threat

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Th I dibl l i fThe Incredible analysis of W.D.Gann

www.tradingwithgods.com

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