William Delbert Gann
, better known worldwide as WD Gann is a legend in the world of stock trading. He was one of the most successful ever lived, stock traders.
WD Gann was born on June 6, 1878 on a farm about seven miles from Lafkina, Texas. He was the first of 11 children Sam Houston Gann and Susan Gunn. Gann Family lived in a very small house with no frills. They were poor and the young Willie walked seven miles in Lafkin over three years to attend school. His father was a farmer in Angelina Country. They are all worried about the price that will bring their cotton. If you asked a young Willie, Does he like when he grows older, and work the soil in eastern Texas, he probably would have said no, he did not think so – he wanted to be a businessman.
But the work he could perform on the farm was more important for the family, so that William had never finished elementary or secondary school. As the eldest son las imposing on him a special responsibility, and those years of work on the farm, perhaps marked the beginning of his habit of hard work.
Several years later, William worked in the brokerage firm in Teksarkane and in the evening attended a business school. In 1903. William made a fateful move to New York at age 25. Gunn began trading on the commodity and stock market. In 1908. He opened his own brokerage office “WDGann and Co.”, at the corner of 18th Street and Broadway.
During the First World War, William Gunn predicted November 9, 1918., Kaiser’s abdication and the end of the war. WD Gann, which traders know today, appeared in the “Roaring Twenties”.
Landmark predictions and Trade Record
Using your own style of technical analysis, Gunn earned more than $ 50 million profit on the exchanges! In today’s market it would be approximately 500 million dollars! After many decades of incredible success, Gann moved to Miami, Florida, where he continued his research until his death on June 14 1955.
Gann based his methods of trading on the “time” rather than “price”, like many of today’s systems. This allowed Hanna determine not only when a change in trend, but also the best price to enter or exit the market. Gann’s methods were so accurate that in the presence of the core financial audience, he made 286 trades over the 25 trading days, both on long and the short positions. Of these, 264 transactions were profitable! In 1933. Gann made 479 trades during the year. 422 were profitable, and 57 were unprofitable. Revenue at its capital amounted to about 4000%. In most cases, Gunn gave in advance the exact prices at which certain stocks and commodities would be sold, with prices close to the then prevailing values, which were not affected.
During his career, Gunn repeating these incredible sales achievements, giving extraordinary predictions for the set of markets for the year ahead. Gunn used the law of nature, and geometric proportions, based on the circle, square and triangle, which are equally effective at today’s stock and commodity exchanges, as well as 50 years ago. His methods work in any market and time interval. His methods seem to be many traders a bit unusual, even mystical, but in the last century to confirm himself again and again.
His instructions were supernatural
As WD Gann was a “scientist Wall Street.” He could predict the peak year bull market. One of its remarkable achievements was the forecast for shares in 1922., Released in December 1921. The forecast indicated the first peak of bovine vaprele wave, the second peak in August and the last vertex and the end of the bull market 8-15 October, and is not as strange, the average prices of twenty industrial stocks reached their highest levels on 14 October and were down 10 points in thirty days that date. Gann predicted a big decline during November. He said in the forecast: “10-14 November panicky decline. During this period, there is a serious reduction in stock, many will fall by 10 points or more in four days, and 14 November had been achieved the lowest average price for the 1,500,000 shares traded on the New York Stock Exchange.
People were amazed by the results of the remarkable predictions Gunn, based on pure science and mathematical calculations.
His expertise lies in its own words.
“For the past ten years, I have all my time and attention devoted to speculative markets. Like many others, I have lost thousands of dollars and experienced the usual ups and downs inherent in the novice who enters the market without prior knowledge of the subject. Soon I began to realize that all successful people, whether they are lawyers, doctors, or scientists who spend years in study and research their profession or trade, before earning this money. ”
These words Gunn forever go down in history because it was a great man of his time, which stimulated thinking and research. History repeats itself. Greed and the desire of big profits do not change. They are inherent elements of human nature, and these elements affect the average person and lead to losses in investment or speculation. This is one of the valuable lessons that we learned from Hannah. Without a doubt, the name B. D. Gann was indeed a legend in the world trade.
William Delbert Gann was born on 06 июня 1878 in Lufkin, Texas. His father, Samuel Houston Gann, was a teacher, selling horses and cows. He also owned a small billiard club.
His mother, Susan Rebecca Gann (nee Trevation), devoted all his time raising VD Gann and his younger brothers and sisters. She taught the young William to read through the Bible book, which later had an enormous impact on his thinking about the nature of financial markets.
His family was poor. Samuel, Susan and their eight children lived in a small house, and young William to get to school every day, walked seven miles in three years. Gunn never finished high school.
In 1894, William Gunn, aged 16, he left teaching and began to look for work. He became a peddler (selling newspapers, food) in the train, which traveled between Texarkana and Tyler, Texas. He also worked at the cotton warehouse.
In 1901, he worked at a brokerage firm in Texarkana, and married his first wife, Rena May Smith.
In 1902, the first born daughter, Nora. 1902 was also the first year, when Gunn made his first deal in cotton.
In 1903 Gann moved to New York. He was already 25 years old.
In 1905, the birth of his second daughter, Macie Burnie. September 12, 1905 in a local newspaper Gunn gives his view on the movement of prices of cotton. In 1906, Gunn worked as a broker in Oklahoma.
In 1907 Gann made more money on the prediction of panic in the stock market and falling commodity market.
In 1908, aged 30 years, Gunn divorces his first wife and marries a 19 year-old Sadie Hannify. Together with him in New York and move his two daughters. This was the year when he investigated a «Master Time Factor». He traded on two accounts. First, open at $ 300, brought him $ 25,000 for three months. The second started with $ 130, brought $ 12,000 for nearly 30 days. Since that time acquired a reputation for Gunn unusually talented trader.
In 1909, in Gann with Sadie was born their first child, a girl who was named Velma.
In 1910 Gann wrote his first book “Speculation profitable profession. He also publishes a newspaper «The Busy Man’s News», and later his famous «Supply and Demand Letter».
In early 1914 Gunn predicts a world war and panic in the markets. In 1915, a son named John.
In March 1918 Gann successfully predicts the end of the First World and the Kaiser’s abdication from the throne. His predictions were published many of the leading newspapers of the time, including the «New York Times». In 1919 he started working for themselves. He publishes «Supply and Demand Letter», which includes predictions for the stock and commodity markets. In 1923 Gann wrote «Truth of the Stock Tape». This book was rated by many as the best book on the market. Over a period of 60 days, Gunn was on cotton more than $ 30,000, beginning with a starting capital of $ 1000.
In 1927 Gann wrote the novella «Tunnel Thru the Air». Gunn wrote it as a statement of his discoveries. These discoveries have been hidden in the twists of the plot of the book. For many years, traders try to unlock the secrets of this book, but few succeed. In the «Tunnel Thru the Air» Gunn predicts the Second World War, in particular the attack of Japan on the United States.
In 1928 Gann successfully predicts the top of the bull market on Sept. 3, 1929 and follow the greatest in the history of panic.
In 1930 Gann wrote «Wall Street Stock Selector». In this book he describes the state of the market from 1931 to 1933. In 1931, Gunn became a member of the New York Rubber Exchange and the New Orleans Cotton Exchange.
In 1932, Gunn gives her client a recommendation to buy shares, while the base of the Great Depression.
In 1936 Gann wrote «New Stock Trend Detector» and buys them is designed all-metal plane “Silver Star”. He was the first in the United States, who owned a private metal airplane. A few years later he bought a few airplanes. His pilot for 19 years was Elinor Smith. Gunn also buys real estate and high-speed yacht.
In 1937 Gann wrote «How to Make Profits Trading in Puts and Calls». In the same year he divorced his second wife.
In 1940 Gann wrote «Face Facts America». In this book he explains why Germany lost the war and why America should not engage in war. It also underlines the great problems that he sees in the “New Deal” of the American government and its consequences.
In 1941, Gunn became a member of the Chicago Mercantile Exchange. He spends campaign against Roosevelt and his New Deal. It was a time when the U.S. government had a huge budget, and Ford has stopped production because of the crisis of overproduction.
In 1941 Gann wrote «How to Make Profits in Commodities». The authors of the original edition of 1941 were VD Gunn and his son John.
In 1944 Gann married a third time on Londi, who was 30 years his junior. Gunn treated her like a queen (much to the dismay of their children). Gunn moved to the warmer climate of Miami in Florida. There he sells, is engaged in property investment and continues to teach its students.
In 1948, Gunn sold his company to Joseph Lederer in San Luis (Missouri).
In 1949 Gann wrote “45 Years in Wall Street». Based on the merits of the book «The International Mark Twain» makes him an honorary member of the Company. In 1950 Gann wrote «The Magic Word». This was his contribution to biblical literature. May 23, 1951 Gunn, along with Ed. Lambert founded the «Lambert-Gann Publishing Company». This company has published all the books and courses Gunn.
Gunn revises and reissues «How to Make Profits in Commodities», removes the name and photo of John from the book. Updated edition in 1951 was a huge success. At the age of 73, Gunn had surplus funds of $ 500 a day for his consultancy services.
He sells «W.D. Gann Research, Inc. »C.C. Loosely in New York. In 1954, at the age of 76, Gunn buys high-speed boat, calling it «The Coffee Bean / Coffee seed” in honor of the success of the transaction Mercantile Exchange. «Great Master Course» Hanna sells for $ 5000, and in 1954 the price of an average house.
Gunn takes a heart attack, and after the survey had detected gastric cancer.
In 1955, Gunn returned from one of his many trips to Cuba, where he loved to buy Cuban lottery tickets and play at the races. He felt sick and very weak.
Son John took him from Florida to New York, where Gunn was placed in a hospital Methodist Church in Brooklyn.
VD Gunn died at 15:20 pm June 18, 1955 at the age of 77 years. Kids Hannah agreed to bury him with his second wife Sadie, in the Masonic section of the cemetery «Greenwood» in Brooklyn, in the alley overlooking the backbone of Manhattan and his beloved Wall Street. (John Gann was a pilot during World War II. He spoke very strongly about his father, especially after he married a third time. John Gunn died in 1984.)
Numerology Gunn
William D. Gann used to trade many schemes: the square of 9, range 24, schedule 360, square 144, hexagonal graph, the range of 72 and many others. It is also used in his work astrological charts, such as the square of 52. The average man, as a rule, much easier to understand the trading scheme than astrological charts.
Each scheme is designed for a specific time period, so you need to choose the correct scheme for its time period. Square of 52 is used for weekly charts, as was 52 weeks. Many of the ancient Games, were also associated with this number. Thus, in a deck of cards 52 cards, which are divided into 4 suits of 13 cards each, as in one time, 13 weeks. At the roulette wheel 36 sectors associated with the deans of astrological cycles.
Weekly schedule – one of the most reliable indicators of trend, it shows us the changing trends for each scheme. Always analyze the time and price changes in the square 52. This is not a predictive tool, since the predictions are made using cycles.
Use this scheme during the formation of all the important market tops and bottoms. This will give you an idea of the important time periods and price levels. When they coincide, we are witnessing a trend change.
“The square of nine”
In the section titled “Time and price point of resistance in accordance with the squares of numbers” Gunn wrote:
Market-based instruments tend to squares of different numbers, points of the triangle, the squares of their bases and tops, or to an intermediate point of the various squares according to the period of time.
Therefore, for us it is important to examine the levels of resistance according to these numbers. The squares of each number and the intermediate point located between the square of one number and the next is very important. For example:
The square of 2 = 4, square 3 = 9. The intermediate point between 4 and 9 = 6.5.
Square 4 = 16; squared 5 = 25.Promezhutochnaya point between 16 and 25 = 20.5.
The square of 6 = 36; square 7 = 49: The intermediate point between 36 and 49 = 42,5.
The square of 8 = 64: the square of 9 = 81. The intermediate point between 64 and 81 = 72.5.
Square 10 = 100, square 11 = 121. The intermediate point between 100 and 121 = 110.5.
Square 12 = 144, square 13 = 169. intermediate point between 144 and 169 = 132.5.
If we carefully examine the number of the “Square of Nine” or “odd and even graphs, we see that the squares of the same in the same corner of the center. Odd squares 1,9,25,49,81 and so forth, go from the center down to the lower left corner. Even the squares of 4, 16, 36, 64, 100 and so on, go from the center to the upper right corner.
Since the distance from 16 (four squares) to 25 (five squares) is 180 degrees around the schedule, it becomes clear why Gann was expecting a change in trend rates of 180 degrees or “on uglu180. Likewise, he expected the changes to 90 degrees (half a square) and 360 degrees (two squares).
Square progression seems to work better with three signs. If you study the market with the price, containing the four characters, then try to reduce the number of characters to get the number that you can use the chart. Similarly, if you study the market instrument with a low price, then add a zero or move the decimal place to get three significant mark.
Investigate the use of “square. Nine “in the calculation of price support and resistance.
Gunn gave clear instructions about where to expect such support and resistance, to “Kvadrat Nine”. Gunn repeatedly returned to the corners, because they describe the geometry of the square (0, 90, 180, 360 degrees), which can then be placed in a circle. Thus, the well-known term “squaring the circle” becomes a reality.
Placing these corners of the squares of natural graph from the center, one step from a natural square to the next is 180 degrees. Middle between the squares is reached at 90 degrees and a full cycle or circle of 360 degrees is two full square from its starting point.
The first example describes the market of the December contracts for wheat in 2002
Maximum of 319 was made in early January. In early May, the market observes a minimum at around 283, 05.
Calculate the square root of this movement. The square root of 319 = 17.86
Square koren283, 05 = 16,84
17,86 – 16,84 = 1,02, which is within, 02 completing the square. It is easy to see at the “Kvadrat Nine”, found 319 just right in the corner, rising up from the center towards 12:00 hours. Then 180 degrees, or directly opposite the bottom, is at least 283.
The following example describes the S & P-mini contracts on electronic trading, this is a smaller version of the stock index S & P.
The market showed a maximum of 7 January at around 1178.5. Interim least the subsequent peak was recorded February 20 at around 1073.75. then on March 19 the market rose to a double top at elevation 1177.5. Then on May 7 market made a lower swing to 1,045.75.
I follow the formula of the square root, we obtain the following meanings:
The square root of 1178.5 = 34.33
The square root of 1073.76 = 32.77
34.33-32.77 = 1.56 or only 06 of the movement of 1,5 square or 270 degrees.
The next move back to 1177.5 obviously also be 270 degrees.
Then:
The square root of 1177.5 = 34.31
The square root of 1045.75 = 32.34
34.31-32.34 = 1.97 or only .03 of motion in 2 full square or 360 degrees.
It is easy to see at “square. Nine “location 1178 on the right side just below the angle from the center towards the 3:00 o’clock. The first movement is obtained at least 270 degrees counterclockwise to 1074. Second minimum – 1045 is located near the peaks in 1177 and 1178.
Main and Serial Cross
“Square. Nine “or as it is called the” Pythagorean Cube “or” calculator odd squares is considered one of the most important trading tools Hannah. Gunn used the “square. Nine “ring dates from above, it can rotate around the center. This ring is allowed to shift the dates of the values most important tops and bottoms.
No rolling ring date calculator “Square of Nine” can not be synchronized with the current market vibration.
Then continuous schedule presented at the December corn. According to Hanna, we have put together the December contracts for corn, forming one continuous contract for grain, containing only the December contract. The main maximum is shown in this chart on December 28 200g. Price $ 2.62.
Gunn has repeatedly described the main Cross (angles of 90, 180, 270 and 360 degrees) as the most important point of support and resistance. The second most important was the Ordinal Cross (angles of 45, 135, 225 and 315 degrees).
Counting time on the calculator for the main peak in the price of 262 (Price changed to a three-digit value), we moved the price of Main Cross and ordinal Cross so that they are in harmony with the vibration of the market. To do this on “Natural Squares Calculator” moves the center ring so that the line of zero degrees was the price of 262.
Now we have created a new Chief of the Cross and Ordinal Cross. Main numbers moved from 249 to 245 ½, from 233 to 229 ½, from 218 to 215 and from 204 to 201 ½. Ordinal numbers Cross moved from 257 to 253, from 241 to 237, from 225 to 221 and from 211 k207. From that moment on, any reference to the number of main sequence and Cross will refer to the “displaced” numbers.
From the main peak in the 262 market made the first move down to point number 2 on the 243, keeping within the 2 ½ cents on the support of 90 degrees Chief Cross. Then he made 2 more attempts on the same level, finally rose from the triple bottom to the maximum, marked by number 3. Price at point number 3 is 252, that is exactly equal to half the distance from the number 1 to number 2 and also 45 degrees ordinal Cross.
The next move is down to point number 4 on the price, which is located at 180 degrees Chief Cross. Gunn said that the most powerful angle is an angle of 180 degrees, making it a place for a potential rally. Rise to the point number 5 stopped at 241 ½, that “non-displaced” ordinal Cross provides resistance.
The next move down to number 6 stood at 220, which is located in one cents of 225 degrees ordinal Cross, from where the rally back up to number 7 to the old base of 230, which again is 180 degrees of Main Cross.
Again the movement down through the old foundation on the price of 220 and 270 degrees of Main Cross to 315-degree support ordinal Cross on the price of 206 ½ – point number 8. Rally back to number 9 back to the old price of the base and 225 degrees of the ordinal numbers.
The final movement to the base at point number 10 goes up the price 202 ½, which is located within a single penny from 360 degrees of Main Cross and next after the beginning of costs 262.
Of these 5 waves down amounted to almost exactly 135 degrees on the calculator. They were from number 3 to number 4 (from 45 degrees to 180 degrees), from number 7 to number 8 (180 degrees-315 degrees) and the number 9 to number 10 9225 degrees-360 degrees)
Synchronized solar time.
Then we show how to use the mobile ring dates for “Calculator natural squares to move the time so that it was in harmony with the date of maximum or minimum of the market.
As an example, the same schedule for the December corn with a maximum, marked on December 28, 2000. At the price of 262.
“Natural squares calculator has a separate – the ring. Which allow to move the main sequence and the Cross (the ring degrees, which indicates where the generated intersection) separately from the ring dates.
To align the calculator natural squares, we rotate counterclockwise ring dates so that the red date bear market – 28 December (the date of maximum in the 262) was at the same angle from the center of the angle of zero degrees. Properly done, the angle of zero degrees or right side of Main Cross should be on the price of 262 and continue on the red date – December 28.
Now we have established the calculator in harmony at a price and time to this peak and we expect that trending and the finishing motion will fluctuate in accordance with this, if we utilize the maximum or minimum as a starting point.
From the date of December 28, set a maximum price of 262, we can now introduce the concept of synchronized solar time (SST). In this example, the natural division of time Gunn calendar year were re-installed from the equinox and solstice time to the natural divisions of the SST with the beginning of December 28. The table below shows the natural time SST and their corresponding squares prices.
One-eighth SST 10 February 252Ѕ
One fourth SST 27 March 246
Three-eighths SST 13 May 236
A second 29 June 230
Five-eighths of August 14 221
Three quarters Sept. 29 215
Seven-eighths of November 13 207
The complete cycle of 28 December 201 1 / 2
In addition to the natural divisions of the SST, each day after December 28 is combined with the square of the price, which is on the same corner as the center of this date. In other words, every day from December 28 in a bearish market ring dates creates a current angle of SST, which coincides with the square slightly different prices. For example, on January 20 would be square in the upper right corner with the price of 257.
The first maximum of the rally, marked by number 3 on the chart, reached the 252 mark. This rally is exactly half way back from a minimum of 243 to a maximum of 262 and up against the displaced ordinal Cross. In addition, the peak of the rally took place on March 2, which coincides with the square of the price of 249,5. The market rally is 3.25 cents, then immediately turns around and comes back completely below the current SST.
Market makes a minimum number 4 on the mark of 229 on the corner of 180 degrees from 262. In addition, this minimum falls on the date of March 30, which is within 3 days to be on the corner of 90 degrees on December 28. This is the general case and shows how the natural SST is the best place to observe price reversals.
Next maximum number 5 raised on April 16. This is the first time since March 2, when the price was able to climb back to the current SST. Maximum – 241.5 happening on April 16 just on the corner of the current SST
From this maximum the market accelerates the decline and can never more return to the current SST, which in itself is a strong sign of the weakness of the market. Has already been explained by the vibration of the price of the displaced and order the Main Cross for the rest of the reduction. Final least 202.5, marked number 10, occurs within a single penny from the angle of 360 degrees. In addition, the minimum occurred on 25 June, which is within 4 days of the angle of 180 degrees on December 28. Again we have an example of the main changes in the trend that emerges from the natural SST and the price of the Main Cross.
The combination of natural and current “synchronize solar time” (SST) and displaced the Main Sequence and the price of divisions is extremely important for understanding the market vibration. This example is from the December corn proves that using the correct high or low on the market, we can harmonize “natural squares calculator” to determine the vibration, which is currently sold on the market.
The most important predictions:
November 1928. – In the annual survey predicts the end of the big bull market shares on Sept. 3, 1929, and a huge panic, follow. Here is an excerpt from this prediction: “September shows the largest drop in the year. Undermining the confidence of investors, the audience will try to get out of the market, but it will be too late … ‘Black Friday’ indicates the panic fall in the stock market with a very small corrections up. Selling “short” would be most beneficial. You have to sell shares in the short and build a pyramid sales all the way down. ”
«Wall Street Stock Selector». The spring of 1930 VD Gunn wrote the «Wall Street Stock Selector», which was published in June 1930. This book was the head – “Investor’s Panic”, which describes the 1931, 1932 and 1933. … Read excerpts from it on the pages 203-204 … The predictions were confirmed panic fall in the market from 1930 to 1932. In April 1930 DJ30IA sold at 297 ½, it fell to 40 ½ to 8 July 1932.
The election of a member of the New York Mercantile Exchange. In March of 1931. – Elected member of the New York Stock Exchange rubber, New Orleans Cotton Exchange and later became a member of the New York Mercantile Exchange.
Methods of Gann
Methods of VD Gunn may be called complex, complete. Pulling one of its methods and working only with him (how often it is done now, such as Gann angles), you will not get serious results. He linked his work on the financial markets with the study of global, fundamental laws of the universe, calling all this “Law of Vibration.” In his work «The W.D. Gann Technical Review »v.1, he said:” The law, which I use, provides information not only about these long cycles and fluctuations, but also predicts a daily or even hourly movements of shares. Knowing the exact vibration of each stock individually, can I determine the points at which each of them expects strong support or resistance. ”
His expertise lies in its own words: “During the past ten years, I have all my time and attention devoted to the speculative markets. Like many others, I lost thousands of dollars and experienced the usual ups and downs inherent in the novice who enters the market without prior knowledge of the subject. ”
And again: “Soon I began to realize that all successful people, whether lawyers, doctors or scientists have spent years studying and study their profession or trade, before earning money from it.”
Gunn encouraged his students to study, to explore the market. He repeatedly said that history repeats itself, but human nature remains unchanged. Greed and the desire of big profits do not change. They are inherent elements of human nature, and these elements affect the average person and lead to losses in investment or speculation. To successfully invest in stocks or speculate in the commodity markets you should have well-developed plan, as well as rules that have already proved themselves in the market 50 years or more. After studying the rules, you must delete the “guesswork”, “expectation” and “fears” and follow the rules. Then you can make a profit!
Cycles
History repeats itself. The basis of forecasts Gunn was the position that history repeats itself. In his novel “Tunnel through the air”, he said: “My calculations are based on the theory of cycles and on mathematical sequences. History repeats itself. What I have always been convinced, it is to know and predict the future of whatever we had, you just look at what happened in the past and find the correct base or starting point for the calculations. My belief in this statement (that the future is only a rehearsal of the past) supported by the Bible:
Ecclesiastes 1:9: “What has been is what will happen and what was done, what will be done, and there is nothing new under the sun”.
Again Ecclesiastes 3:15: “What happened, then and now is, and what will it already, and God He shall call the past.
This sends a strong message that everything works according to past cycles, and that history repeats itself in the lives of people, nations and the stock market. / Gann, W. D., “The Tunnel Thru The Air”, Lambert-Gann Publishing Company, Pomeroy, 1927, pages 75 and 76. /
Gann emphasized the importance of the 10-year cycle and the different divisions (harmonics) in this series: “10-year cycle repeats itself again and again, but the biggest increases and price reductions occur at the end of 20-year and 30-year cycles, and then again in end of the 50-year-olds and 60-year cycles, which are the strongest. / Number 3 Master Forecasting Method, «Forecasting», November 1935, page 6, 7 /
And also: “For the forecast for the year 1929, I compared the 1919 – 10 years ago, in 1909 – 20 years ago, 1899 – 30 years ago, and 1869 – 60 years ago, having greatest cycle ….” / Number 3 Master Forecasting Method, «Forecasting», November 1935, page 8 /
The numbers in the analysis
Gann was a rare mathematician. He was a pupil numbers, numerical theories and numerical progression. As the study of his works begin to understand that some numbers occupy a dominant place in his method of trading for the reasons of various kinds: some – religious and spiritual, while others – the historical and the third – psychological. Most often he cites such numbers as 7, 9, 12 and 144. Number of 3,5 Gann considered as important as it is half of 7-ki, as in the Bible, it appears many times (Gann believed it – the most important book of all time). Also, the squares of numbers figured prominently in his works: 16, 25, 36, 49, 64, 121 and 144.
Hanna Instruments
Gann believed that between the time and the price is an ideal ratio, if the price rises or falls at an angle of 45 degrees to the time axis. This angle is denoted by “1×1″ and corresponds to a unitary increment in the price for each unit time interval.
Fan Gann (Gann Fan)
Lines of Gann Fan (Gann Fan) are built at different angles from an important base or top of the price chart. The trend line of 1×1 Gann considered the most important. The price curve above this line is a sign of the bull market, and below it – a bear. Gann thought that the ray of 1×1 is a powerful support line when an upward trend, and breaking this line considered as an important signal a turn. Gann emphasized the following nine basic angles, the angle of 1×1 is the most important:
1X8 – 82,5 degrees
1X4 – 75 degrees
1×3 – 71.25 degrees
1×2 – 63.75 degrees
1×1 – 45 degrees
2×1 – 26.25 degrees
3×1 – 18.75 degrees
4×1 – 15 degrees
8×1 – 7,5 degrees
The considered ratios of price and time increments to have corresponding angles in degrees, X and Y axes must have the same magnitude. This means that the unit interval on the axis X (ie, hour, day, week, month) must correspond to the unit interval on the axis Y. The simplest method of chart calibration consists in checking the angle of inclination of the ray of 1×1: it should be 45 degrees.
Gann noted that each of the above-listed rays can serve as a support or resistance depending on the direction of price trends. For example, if an upward trend ray of 1×1 is usually the most important support line. If prices fall below the line of 1×1 indicates the trend turns. According to Gann, prices should fall to the next trend line (in this case, the ray of 2×1). In other words, if one of the beams broken, we should expect consolidation of prices near the next ray.
Line Gann (Gann Line)
Line Gann (Gann Line) is a line drawn at an angle of 45 degrees. This line is also called “one to one” (1×1), that means one price change per unit of time.
According to Gann’s concept, the line at an angle of forty-five degrees represents a long-term trendline (ascending or descending). While prices are above the ascending line, the market holds bull direction. If prices hold below descending line, the market is characterized as a bear. Intersection of Gann Line usually signals of the main trend. When the price during the upward trend down to this line, time and price become fully balanced. The further intersection of Gann Line is the evidence of breaking of this balance and possible changing the trend.
To build a Gann Line is necessary to define two points.
Grid Gann (Gann Grid)
Grid Gann (Gann Grid) represents trends built at an angle of 45 degrees (Gann Lines). According to Gann’s concept, a line of forty-five degrees represents a long-term trendline (ascending or descending). While prices are above the ascending line, the market holds bull direction. If prices hold below descending line, the market is characterized as a bear. Intersection of Gann Line usually signals of the main trend. When the price during the upward trend down to this line, time and price become fully balanced. The further intersection of Gann Lines is an evidence of breaking of this balance and possible changing the trend.
To build a Gann Grid must specify two points defining the size of cells
Market vibration
Description of the vibrations being reported in the WD Gann in the first half of the 20 th century and how to evaluate them Billy Jones 20 years ago, working on the same principle and on the market today.
This confirms the fact that Gunn was right when he wrote:
Human nature never changes. For this reason, history repeats itself, and the markets are almost exactly the same under certain conditions, year after year and in different time cycles.
The first graph, shown below, displays the wheat market in May 1998. Which is the same product and in the same month that Billy used in 1982. It begins with a maximum of 29 August 1997. and continues with a period of 36 trading days of the 21 th of October, 11 th December, and February 4, 1998.
In the example, which used Billy, the market was trading up 36 cents every 36 days. This was an example of the market traded at an angle of 1 X 1, moving to the degree of change of one cent per day. In the example below, the market traded down 18 cents every 36 trading days. This corresponds to the corner of 1 X 2, with the movement of the market down to the degree of change of 0.5 cents per day.
One interesting reason for this less steep line is that markets are moving faster at higher levels than at low levels. This laid the same principle as in the centrifugal force. The farther an object is from the center or “0″, the faster it must move in order to maintain an equilibrium balance.
In the example used the May wheat, it is trading at price levels of $ 3.40 to $ 4.00 per bushel (35.2 liters). In the example used by Billy Jones, it was trading at $ 4.50 – $ 5.75 per bushel.
In addition to trade very close to the average number of vibrations of the price of 0.5 cents per day, the market provides for trading in the vibrations of the top of fluctuations within a day or two after starting 36 trading days.
The second chart shows the pork market in October 2001. The minimum was recorded before – September 20, 2001. Addendum 36 trading days yields 9 November 2000., 3rd January 2001. and the 26th of February 2001.
Gann angles on this chart is the angle of 1 X 2 built up from the base. Scale graphics – 10 cents per pound. Therefore, the angle of 1 X 2 from the base moves up to the degree of change of 5 cents per pound.
The combination of the angle of 1 X 2 and counting 36 trading days as indicated by vertical dotted lines determine within three trading days of the substantial basis fluctuations.
Horizontal dotted lines indicate that at least these days the “vibrations” are significant because they are not overcome by subsequent market movements. If a trader is in a long position in the deployment of stop orders, which take into account the angle, and swing down these days, it can be obtained as a result of a very large profit.
WD Gann wrote in his book “How to make a profit on commodity markets”:
Most of the money is swing trading or long-term positions, which follow a certain trend, while this trend continues upwards or downwards.
This is a classic example of a technique which allows the trader to do what Gunn said in the above dictum. He also in his book described several trade deals, when he received a huge profit, following market up or down with the corresponding movement stops.
W. D. Gann was a curious man. He noted many parallels within the different areas of the phenomena of nature and science. For example, Gunn noted the analogy between the periodic law in chemistry and harmonic octave in music.
Keyboard music has a fundamental octave of seven notes, and each octave repeats these seven notes in a higher or lower tone or number of vibrations. Items that are listed in order of when their atomic weights, tend to repeat fairly simple properties in every 7th element, like the notes in the musical spectrum.
Hannah is interested, above all, because these profound laws and characteristics were also common features everywhere in the markets.
In the accompanying schedule of wheat for the May 1981. Note, it was 6 th June, when it was at least on this chart. Also note that marked trading days of July 29, 18 September, 10 th November and 5 January (from the minimum they would have been 36th, 72nd, 108th and 144th days, as marked).
Was built under the angle of 45 degrees from the base and the angle of 45 degrees, down, connecting the selected days.
Pay attention to the fact that the bullish side of the market, every 36 trading days, the price is 36 cents! On the bearish side, every 36 trading days the price is reduced by 36 cents! This pattern does not end, because it can be extended to 180 th, 216 th and 252 th trading day.
It is worth noting that, once these 36 days were over, the price is not traded below the lows of the days when she was on the bull side, and not traded above the high these days, being in the bear side (see dotted lines on the graph). The study shows that this phenomenon in the 36 trading days, repeated to compete in markets from time to time with minor modifications.
Let’s look at some statistics:
36 trading days x 7 = 252
225 minutes in a shopping day (wheat) x 36 = 8100
8100 = 360 square degrees, or 90 x 90
Carefully looking at the schedule for the May wheat, we can see a harmony and rhythm.
Not whether it had the same properties, which are found in the musical octave, the periodic law of chemistry or color spectrum? Gunn insisted that “vibration” is the leading factor.
Gunn said:
Through the law of vibration every market instrument moves in its own distinctive sphere of activity, with regard to intensity, volume and direction, all the essential qualities of its development is characterized by its own level of vibration.
Market-based instruments, like atoms, are really centers of energies, so they are controlled mathematically. They create their own field of activity and strength; power to attract and reflect, which explains why some market-based instruments at the same time move the market and become sluggish at other times. Thus, to speculate in a scientific point of view, is absolutely necessary to follow natural laws.
Vibration is fundamental; nothing is exempt from this law, it is universal, therefore applicable to every class of phenomena on the earth.
Therefore, I certify that each class of phenomena, whether in nature or in the market, must be subordinated to the universal laws of causation, harmony and vibration.
Trade Zone
Many methods Gunn, used them in their trading and technical analysis, have gone unnoticed after his death. In the study of his old charts and records some of these methods have been disclosed. Do not know why Gunn does not mention them, unless it is believed that they required a lot of time to test and confirm its reliability. Notwithstanding this reason, we believe that some of these methods are interesting and useful for trade and market analysis.
One of these techniques – “Zone System”. This is a fairly simple method, and certainly he deserves attention. As you can see on the graphic example below, which is taken as a timetable for the May wheat, the Zone system uses an angle of 45 degrees [1 x 1], the delayed up from various points of the earlier motion under consideration. These zonal lines will divide the continuing movement of three important sections, or zones, which, after it had been established, will not be changed. Initially, other lines will also be used, but after a while, some of these lines will be discarded, and you can select a main unit that will remain the same throughout the market movement. Experience, as in most cases, to generate trial and error. As with most systems, the Zone System works best in a trending market (bullish or bearish), but not at a bleak side market in periods of consolidation. As soon as the movement is gaining momentum, and the trend has been established, the main zonal divisions become final. The ideal shopping zone, established in the early movement, will not change as we move the market. The same is true for areas of sales. This means that you had to buy the May wheat (see the example) at 472 and it turned out, it would be a good buy, given the subsequent increase in prices. You’ll have similar results if you buy at 492 or the subsequent movement in the area shopping. Shopping should be implemented as the market moves down to the shopping area. You should sell when the market moves in the area of sales. If you are a short-term trader, then you must buy in the area of buying and hold until the price reaches the area of sales. At this time you should sell and go into the short side. If you are a long-term trader, you have to buy whenever the market enters a zone of purchases, adding to your position, while the general movement will not be completed. The implementation of input and output can be used by different methods. It is assumed that you will use the graphical
system of “one on one. In this case, the angle of 45 degrees defines a zone. If you are using a different unit price and time, it may be necessary in the other corner, but not 45 degrees, to set the correct zone. Zone system can be used in conjunction with a mechanical method of Gunn and an indicator of the trend line.
These methods can be used for both short-and long-term time scales. Must be remembered that this is just one more technological tool, which is designed to help you analyze the market. It should be used in combination with other methods of technical analysis that will allow you to trade successfully.
Pyramid market
Communication costs and time
Analysts methods Gunn spent years studying old charts and records in the search for the secrets of Gann, and countless people continue to claim they have found new nuances technology Gunn, who escaped from the others. Perhaps someone and found
Don Hall has published a book and developed a system called the pyramidal point (Pyrapoint), which seems to be based on the principles of Gunn. The purpose of this article is to take one of the ideas used in the work of Don, and present it from different points of view and do on the basis of this conclusion.
Geometric Gann angles are a trend-lines drawn from obvious top or bottom under some angles. The most important angle is 45gradusov, which means that the slope of the line is one unit price per unit of time. (Note: Depending on the size chart, the line might look like, and maybe no, held at an angle 45gradusov). Many analysts Gunn used the phrase “the square of time and price” in the method of the Don, it is expressed as follows:
Price = Time squared or P = t 2
This relationship between price and time can be represented graphically, as shown in the diagram below. Values of time 10, 20, and 30 are marked by arrows.
For clarity, let’s take a visible top or bottom, which arose at the price of 400. According to the theory, the essential point is a mathematical bunch. Start a new curve of time in this time point, and it will give us the expectation of future top or bottom, which should appear on this curve. This principle can be expressed as, “When the price meets time, change is inevitable.” This ratio “price meets the time” shown in the following diagram.
Since the visible top or bottom in P, if the price meets the curve at point (A), then it will do so at 18 bar. Time point (A) equals the square root of the price at the point (A). Price point (A) equals 324. The square root of 324 is 18.
If the price meets the curve at point (B), then it will do so at 20 bar. Time for a point (B) equals the square root of the price at the point (B). Price point (B) = 400, so the time for B = 20 bars.
If the price meets the curve at the point of ©, then it will do it at 22 bar. This is a very interesting concept!
Remember that the price and time are related by the formula: P = t2 or t = square. root (P)
The slope of the trend line
Now we will go further and determine the slope of the trend line obtained using the relationship of price and time. Let’s look at the following model:
As was shown in the previous section, the next time the curve will need to go t bars to achieve the price P. At time t +1 price meets the curve at the price of P1. Now, let’s find the slope of the trend line that connects the P and P1 (shown in blue).
P = t2
P1 = (t + 1) 2 = t2 + 2 t + 1 = P + 2 t + 1
Slope = (change in price) / (change time)
Price Change = P1-P = P +2 t +1- P = 2t +1 = 2 t +2-1 = 2 [t +1] -1
Changing the time = t + 1
Therefore, the slope of the P and P1 = (2 [t +1] -1) / (t +1) = 2-1 / (t +1) = 2-1 / sq. root (P1)
If we give all the prices to a three-digit numbers, then they will be in the range [100 ... 1000]. With price limits in the slope formula, we can get a tilt range as follows:
For the price P1 at 100, the slope of the rising trend line to 100 = 2 – 1 / 10 = 1.9
For P1 of 1000, the slope of the rising trend line to 1000 = 2 – 1 / 100 = 1.99
The slope of the rising trend line in the middle of this price range is 2 – 1 / sq. root (500) = 1.96
Let’s call this trend line line in 45grad. Because we expected the slope, using one unit of price change from P to P1 with one unit of time t. For this line of 45o, the slope is mainly equal to 2. I think this explains why Gann used 2 cents as a range of price grid on its daily charts. This arrangement of the scale naturally gave Gann angles in 45grad. with a slope of 2 cents per day bar. I showed that 2 is the slope of the rising trend line at 45o, which is obtained from the ratio of price and time specified in the formula: P = t2.
You can obtain this result for the slope of the descending trend line from P1 to P:
The slope of P1 to P = (- 2 t – 1) / (t – 1) = (- 2 [t - 1] – 3) / (t – 1) = -2 – 3 / (t – 1) = – 2 – 3 / (square root of (P) – 1)
For the price P equal to 100, the slope of the descending trend line and 100 = -2 – 3 / 9 = – 2.33
For P equal to 1000, the slope of the descending trend line to 1000 = – 2 – 3 / 99 = – 2.03
Again, the slope of the descending trend line approaches the value – 2. Consequently, – 2 is a good approximation to the slope of 45o for the descending trend line.
Application of the pyramidal points
Now let’s see how the above calculations can be applied to the price chart. I used these calculations to develop a tool for analysis in ESPL, which holds the horizontal lines at the settlement price levels, and nearly vertical curves through the calculated time intervals. This forms a trapezoidal grid similar to the previous illustration. (Don Hall calls them “squares”). Diagonal lines connect the corners of the trapezoid for the trend line support and resistance.
Below is a daily chart JNPR with the start of construction of a trapezoidal grid at the highest peak. All price levels, time intervals, and trend lines are constructed mathematically on the basis of two initial values: price – $ 244.50 and the date – 16.10.2000g.
The graph is represented much more than can be explained in this article. However, we point out the main characteristics. Horizontal price lines are designated on the left, which is the degree of rotation around the Square of 9. This is described in the book of the pyramidal points, but it is not possible to explain in this article. Note that in this example, the time line is almost vertical. This is some kind of construction method, described in the book, which uses a vertical line. The curve of time generates the left and right sides
trapezoid, and price levels form the side of the base and top.
Time: Time is measured by time curve, which relates to price. Remember: When the price meets time, change is inevitable. Note for the first time, when the line is designated 12 in the base and 16 at the top. If the price meets time to 720 horizontal, then the time for change would be the 12th bar from the top. If the price meets time to 540 horizontal, then the time for change would be the 13th bar from the top. For the 360 horizontal change in the time it would be in the 14th bar. For the 180 horizontally, the time change would be in the 15th bar. At 0 tench, it would be at 16 bar. That is why the top line of time is marked 16, and the bottom line is marked 12. Starting with 16, for each 180o reduction through time is reduced by one bar, or 180o for each increase, by increasing the time at the bar. Please note that the market has really felt the change when the price met with the curve of time, marked from 12 to 16!
Price 12 – 16 temporary lines used to obtain predicted values for the following time lines, which is labeled 25 – 31. As the price meets every curve of the time, the new curve of time is calculated based on the price. Each of the curves of time demonstrates excellent correlation with the change in the market when the price meets the line of time.
Price: visible maximum – $ 244.50 is the basis for the calculation of horizontal price levels, which are shown. Remember: the market is looking for these price levels, and you can calculate these costs in advance. Notice how the market fell to 540 horizontal, up to 180 horizontal, fell to the 900 level, up to 540 level fell to 1080 levels, and rose to the 720 level.
Trend lines: the descending trend lines in 45o, shown in red create a price channel, or as Don calls him – “road pricing”. Emerging trend lines in 45o, shown in green create a “road pricing”, which goes in another direction. Red lines – a resistance line above which should close the market to change direction from bearish to bullish. Green Line – is a support line, below which should close the market to change direction from bullish to bearish. We used the rising trend line drawn below the lows in an uptrend, showing support, and the descending trend line drawn above the highs in an uptrend, to indicate resistance. The advantage of the above tools is that the diagonal trend lines are computed in advance, and the market seems to agree on their movement with them. Price should be up and down the channels. The more you study the examples, so I think the more you will enjoy this tool.
Intraday charts
Technique pyramidal points can also be successfully applied to intraday charts. The size of the price range that is used on the daily chart, it will be too large for use on the intraday chart. No problem. Don points out that there are squares within squares. All you need to do – is to divide the price range in half, quarters, or eight parts. The time interval is calculated from the price, and will not change.
One point that needs to be clear: If the calculated interval is 11 bars, as the price is 121, what is the intra-day time frame should I use? If you use 1-minute bars, we have the curves
time 11 minutes. If you are using 2-minute bars, the curves of time would take place in 22 minutes. At 5-minute bars, the curves of time are carried out in 55 minutes. The choice of intra-day format of bars depends strongly on the time interval calculated for the next time curve.
To solve this problem, I displayed a 1-minute chart and use the cyclical instrument to measure the rhythm of the cycle from base to base, from the top to the top and from the base to the top. When I found the width of the cycle, which seems appropriate to catch the multiple turning points, I found the number of minutes in the cycle. I use this formula to assess the use of intra-day time frame.
Within-day time frame bar width = cycles per minute / sq. root (P)
Example: At 1-minute chart JNPR I found a cycle in 65 minutes, when the price was about $ 133. Therefore, the time format bar = 65 / sq. root (133) = 5.6 minutes in a bar. Thus, 6-minute schedule or, possibly, 5-minute chart should show good results using a tool of pyramidal points. In the study of 5-minute chart we really find excellent correlation. In this example, I used a smaller price intervals for the separation of 180o-s intervals in eight parts.
Look at the graph, and you will see how the price moves up and down trend channel. Notice how the trend changes occur at or near vertical curves of the time, and how the market is looking for horizontal price levels. This is a detailed diagram of the price movement is calculated in advance of the visible peaks reached January 12, at 9:35 am.
Market Geometry Gunn
Howard Arington WD Gann developed several unique methods for the study of price charts, and the central part of its methods were geometric angles of price and time. Let’s look at how you can use the intersection of the primary Gann angles to predict the time reversal of price movements. I do not know whether to use this technique Gunn himself, but to me it seemed interesting and I want to present it to you in the form, as I understand it.
In my example I’ll use the daily chart of “JDS Uniphase”. I do not give any investment advice, but only show the progression of his thoughts, to detect the timing of the market, using Gann angles. The basic principle of this theory: upward angle of Hanna will be placed on the schedule at a significant reversal minimum, and downward angle of Hanna will be available at a significant turning point of the maximum. Initially we are interested in the intersection of lines 1×1 with horizontal lines, and the intersection of two lines, 1×1. In this example, these intersections are marked with red arrows.
For clarity, the first picture I showed only the intersection lines of 1×1. However, I also regard the line 2×1 and 1×2, and their intersection, and show them to my pictures on the daily chart JDSU. I started with a clean graphics JDSU and first tried to find an appropriate balance between price and time to be used as a line of 1×1. For this I use a special tool Gunn graphics program “Ensign Windows” and set the default settings to show only the corners of 1×1, 2×1 and 1×2. Also, I check the option to use the value of the maximum or minimum bar to accommodate the top. 1×1 lines drawn in blue, while the line of 2×1 and 1×2 are shown in red.
The first peak was placed in a substantial minimum 05.10.1998g. I adapted accommodation through 1×1, so it is visually in line with market movement. I tried to develop a trend going on along these lines, or they provide the support and resistance. The greater the correlation can be found, so they are better suited. Since the peak is placed on the schedule, the program shows the relationship between price and time as the number of vertices. I see this number and try to choose a value price and time 1×1, which is a derivative of the unit price, or has some relationship to the number of Gann, Fibonacci number, or part of the circle. My first vertex 05.10.1998g. coincided with the value 1×1 equal to 21.0. This means that the line of 1×1 is increasing at a rate 21 cents a day. I am satisfied with the value 21, because it is a number sequence Gunn, and the number of the Fibonacci sequence.
To accommodate additional peaks Gunn from recent significant highs and lows, I will expand the range of bars. I find the new value of 1×1, as the volatility of JDSU in 2000. much more than in 1998. I find that the slope of the 1×1 at 60 cents for one bar fits, and I want to use the 60 as the value of 1×1 for all vertices in subsequent studies. It fits the number 60, because it is also an entire part of a circle of 360 degrees, while 58, 59, 61, and 62 are not. I added the upward peak in the minimum of 15.12.1999g. and the downward peak at the maximum of 21.01.2000g. to see how the intersection of costs and time may occur.
I noted the intersection, which predict a time, turning the red arrows. Vertical green lines carried by the red arrows to the intersection for better visibility. Note that the reduction of the line 2×1 (cool red) was a useful intersection with all four lines from the ascending peaks Gunn conducted from minimum 15.12.1999g.
Gann Angles also provide support and resistance, and many of these points were marked by horizontal blue arrows. As seen from the example, when the angular line is crossed, then the price will move and consolidate at the next line.
For this example was taken daily chart of JDSU, but I am sure that similar results can be obtained as for any other marketing tool, as well as other temporary format. However, you yourself must carefully study the feasibility of the proposed technology for its trading strategy. In addition, I do not believe that the proposed study is an unconditional and final, and I hope that you, your research, be able to find something new and interesting.
The use of graphics programs
Technical tool “Gann Squares” in the graphics program “Ensign Windows” is a very flexible and can be used to show trends, timing, and price levels. “Squares Gunn” indicate the possible time and price movements from important highs and lows. To build the “Gann Squares” on the schedule required start and end points. Since “Gann Squares” indicate the possible values for the future of bars, it is often useful to move the bar graph to the left, so that the right of the graph was a clean place. To construct the “Gann Squares” on the graph move the cursor on the chart to the starting point. The starting point in the general case is an important maximum or a minimum on the graph. Then the cursor reaches the right, until the desired end point is not reached. The starting and ending points are corners of the square. Endpoint is often located on the right edge of the graph. Let’s see, looks like a form to establish the parameters of the instrument.
Price
Kvadrat Gunn “may hold the horizontal lines on the price levels shown in the horizontal tagged list. These price levels are similar to those that could be built using Fibonacci price levels. Should follow the trend, to change the direction of price levels Squares Gunn.
Time
Kvadrat Gunn “may hold the vertical lines in the intervals shown in the vertical tagged list. These vertical lines are similar to those that could be built using Cyclic tools. Follow the trend to change the time intervals Squares Gunn.
Tool Square sausages with horizontal price levels and with vertical time intervals is shown below.
In our example, the parameters 1/8-oy, 1/4-y, 3/8-oy, and Midpoint were tested for both horizontal levels, and for vertical intervals. Thus, our square is divided both horizontally and vertically into eight parts. Lines 3 / 8 and 5 / 8 are shown in red.
Another type for Squares Gunn “would test parameter radial lines, which is shown in the example of filling out a form for the parameters. When the option is awarded fan Lines, the tool moves from a horizontal and vertical lines for the Gann fan lines from the four corners, as shown below.
Fan lines held prior to the angles of the same eight points on the perimeter of the square used in the horizontal and vertical lines in the previous example. Horizontal marked list select the point used by two radial lines, the apex of which is on the left side of the square. Vertical marked list select the point used by two radial lines, the apex of which is on the right side of the square. A common configuration for these fan lines would have to maintain two corners on the left side, but to remove two corners on the right side, without checking all options in a vertical list of options other than the perimeter.
In addition to the prediction of time reversal at the intersection of the primary Gann angles, which were considered above. Gann Lines also provide support and resistance, many of which can be easily detected in the above graphic example.
Gann Squares
Now let’s look at the results of the next study that I conducted. I decided to place the tool “Square Gunn” on the chart with a vertical mid-point
a maximum of 7 January 2000. The square was placed with the left edge of the January 7, and stretch so that the horizontal mid-point aligned with a minimum of 13 September. The base of the square was placed at least 13 September. The following is a picture that I received.
Measurement of
I placed the left edge on 7 January 2000. and handed the square, so that the horizontal midpoint to align with a minimum of 13 September 2000. Interestingly, a maximum of 16 January 2001. coincided with the point 3 / 4 square! This time is indicated by a red arrow above the side of the square, indicating the highest high in the chart.
I also noticed that on 6 January 2000. Moon was! On 13 September, it was full moon.
Support and Resistance
Arrows are marked on the chart support or resistance provided by radial lines, which are held from 4 corners of the square. From the above graph shows that the price movement is not accidental, but is quite susceptible mathematically sound forecasting.
Reverse engineering
In my example, I used the GUI tool “Square Gunn, drawn from recent peaks at 5-minute chart JNPR. Maximum was 6 February 2001. and amounted to $ 106.50. Let us apply the technique based on the theory of the square root (see “Pyramid of the market” at number 18) to obtain the projected price:
1) The square root of 106.50 = $ 10.320
2) subtracting 1, we obtain 9.320
3) The square of 9.320 = $ 86.86
Price 86.86 is 180 degrees around the square Hanna of the Nine of the price of $ 106.50. Therefore, since I have two prices, which independently provide 180 degrees, I will choose the width of the square of 180 bars. This result showing 1×1, 1×2 and 2×1 fan lines from the four corners of the square Gunn.
The left top corner is a smaller peak trend at around $ 106.50. Lower right corner is at 180 degrees on the price of $ 86.86 and at 180 bars to the right. Note a few key points:
1. Red Line 1×2 from the top left corner stopped the restoration of 138 bar on the price of $ 98,875.
2. Red Line 1×2 from the lower left corner stopped the fall of 97 bar on the price of $ 92.
3. Two red lines 1×2, referred to in paragraphs 1) and 2) and stopped the restoration of the bar 186 to the price of $ 96.75.
4. Trend is moving up and down on the two red lines 2×1 right-hand corner.
The example also shows the construction of the pyramidal points, started with the same at the top of the trend. The design of the pyramidal points includes a number of horizontal price levels bright blue, pale red and green diagonal lines, and turquoise vertical lines. Here we can see how the two tools work together
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