Mastering Gann: How to Find Big Moves in Stocks Using Price and Time Cycles - April 2024

Time is the most important factor when it comes to making trading decisions, so incorporate the time factor into your trading.

W.D. Gann, a legendary trader in 1920s,William Delbert Gann was a trader who developed the technical analysis tools known as Gann Angles, Square of 9, Hexagon, and Circle of 360. W.D. Gann’s market forecasting methods are based on geometry, astronomy and astrology, and ancient mathematics.

W.D. Gann, a legendary figure in the world of trading and technical analysis, introduced a unique approach to market timing that incorporated the dimension of time alongside price. Gann’s theories and techniques have fascinated traders for decades, and his concept of time cycles remains a cornerstone of his legacy. In this article, we delve into the intricate world of Gann time cycles, exploring their significance, principles, and how traders can leverage them to enhance their market timing skills.

He was supposedly one of the most successful stock and commodity traders that ever lived. Born in Lufkin, Texas on June 6, 1878, W.D. Gann began trading in the early 1900’s, and in 1908 moved to New York City to open his own brokerage firm, Gann & Company. Using his own style of technical analysis, W.D. Gann was reported to have taken more than 50 million dollars in profits out of the markets.

Gann asserted that time cycles could predict future market movements. These cycles ranged from short-term intraday patterns to longer-term cycles spanning weeks, months, and even years.

He based his trading methods on time and price analysis. This made it possible for Mr. Gann to determine not only when a trend change was imminent, but also what the best price would be to enter, or exit that market. So accurate were Mr. Gann’s techniques that in the in the presence of representatives of a major financial publication, he made 286 trades in a period of 25 market days. Of these, 264 trades were profitable.

W.D. Gann said he believed that time was the most important factor in forecasting market movement. He felt that time would overbalance space and volume but arrest momentum. “The future is a repetition of the past,” he opined, “and each market movement is working out time in relation” to a previous time cycle.

Gann’s writings have extensive explanations to show clearly how his calculations were made. W.D. Gann’s use of Natural Law and geometric proportions based on the circle, square, and triangle are as effective today in the stock and commodities markets as they were while he was alive.

Gann Time Cycle For F&O Stocks

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