Gann Trading Rules for Yearly Cycle

* The first year of a decade is the year to look for a bear campaign to end and bull market to begin.
* The second year, is a year of a minor bull market or a bear market rally.
* Year three is the start of bear year, but the rally from the second year may run into March or April, or if the second year is a decline, the decline from the second year may run down and make bottom in February or March of the third year.
* Year four is to be a bear year, but it ends the bear cycles and lays the foundation for a bull year.
* Year five is the bull year, the year of ascension.
* Year six is a bull year in which the bull campaign which started in the fourth year usually ends in the fall.
* Year seven is a bear year (but note that 1927 was at the end of a 60 year cycle and that there was no decline).
* Year eight is a bull year. Prices start advancing in the seventh year and reach the 90th month of the decade in the eighth year. This is very positive and a good advance usually takes place in this year.
* The ninth year of the decade is the strongest of all bull years for bull markets. The final bull campaign culminates in this year after an extreme advance, and the prices start to decline. The bear market usually starts in September to November.
* Year ten is a bear year. A rally often runs until March or April, then a severe decline takes place until November or December, when a new cycle begins and another rally starts. (Look for such cycles in the Indian indices).

In a strong rally the lows of the reaction end above the top of the previous rall y. The duration of the quick counter trend moves is three to four days on the indices and three to five days on the stocks. A movement exceeding the fourth day indicates the trend may go into a consolidation or reversal whereas reversal is higher top and higher.

bottom compared to the previous day or vice versa. Bar reversals at cycle ends are extremely important points for reversal in the trend. A stock or commodity can correct more than four days and then continue the trend. This next correction (countertrend) in time will likely be seven to ten days.

* Smallest complete cycle is 5 years.
* Minor cycles are 3 years and 6 years.
* Always watch for change in the 59th month.
* Bull or bear campaigns seldom run more than 3-3.5 years up or down without a move of 3-6 months of one year in the opposite direction, except at the end of a Major cycle, like 1869 and 1929.
* Many campaigns culminate in the 23rd month.

The purpose in trading is not to make pick exact highs and lows. The purpose is to make money. Always have a plan. The opportunities are many in the markets, and you will miss many. But do not worry or fret about missing an opportunity, as another will be along shortly. Trade from a plan and do not react to the markets. Knowledge, discipline, courage and hard work are the requirements of skilful trading.