How can Gann Theory improve your technical analysis?

Gann Theory is the geometry of TIME and PRICE. Traditional technical analysis emphasizes price and ignores time. Gann looks for setups where TIME and PRICE are 'in balance.' For example 90 points up in 90 days. Balance! Or 180 points up in 90 days. There is a relationship between TIME and PRICE. The Efficient Market Hypothesis tells us that markets are always in balance to the degree they are "efficient." That is wrong! Gann believed markets are in balance momentarily at tops and bottoms, otherwise they are trending.

Gann Theory is a group of ideas and methods that tries to find important help and push levels, directions, or possible changes in money markets. It uses shapes like angles, squares and fans along with looking at time and cost.

Skip Gann Theory and study The Austrian school of economics. Austrian economics predates Gann Theory by five centuries and provides a more classical and comprehensive approach of rightly analyzing the market economy. Praxeology further refined ideas of Austrian economics and predates Gann Theory by nearly two decades. Both Austrian economics and Praxeology are complete as a classical philosophy and overshadow what Gann Theory would later lay claim for. Gann Theory would better be viewed as an addendum, an after-thought of study, to Austrian economists such as Frederic Bastiat, Ludwig Von Mises, Murray Rothbard. and Friedrich Hayek. Gann Theory could be compared to the "Economics for Dummies" version of Austrian Economics.

Gann Angles are added to cost charts. They help find possible trendlines and places where support or resistance might happen. The most common Gann Angle is the 45-degree angle, representing a 1:1 connection between time and cost. Other angles, like 1x2 or 2x1 show different time-price ratios. Gann Angles are used to find out the direction of trends and possible change points.

Gann lines are the same thing as trendlines with one important difference: With Gann lines you know the slope of the line you are drawing. You establish that the relationship when you define the 1x1 (45 degrees). Every other Gann line is a derivative of that 1x1 line. If the market is moving up on the 1x1 line and suddenly starts moving up more aggressively, there is a good chance that it is moving up on a 2x1 (twice the slope of the 1x1). Or maybe 3x1. The steeper the angle, the less sustainable the rally. If the rally is going to last, you want the market to move up on a 45 degree line (1x1). In parabolic rallies, the move can be near vertical (8x1), which is unsustainable.

All comparisons should be first justified against the Gold and Silver market. Secondly, it then becomes critical to leverage private lenders for financing the world's most influential news publications to admonish specific market decisions causing a push of decision-making toward sectors of the economy that enhance a trader's probability of pattern-matching. There are known patterns that all traders relay on and esoteric patterns that become trade secrets. By using apps that follow the trading habits of politicians one can uncover new patterns that the highly wealthy and influential use that weaponized AI has now provided their traders the ability to deploy. Studying Gann Angles is quickly being replaced by such social engineering tactics.

Gann Squares are about splitting price and time into same parts, making a pattern on the chart. The grid is used to find possible spots where support and resistance might happen. This happens by looking at price and time together. Gann Squares help traders guess important changes in the market.

To create a Gann Square, you must first figure out the scale that works with the market in question. This can be a process of "trial and error." If you have the right scale, you will see a lot of "hits". "What are hits?" Within the square you will see the market respond to the Gann lines. The market may find "resistance" on one Gann line and "support" on another Gann line. Most Gann software will create the square once you establish the scale of the 1x1 Gann line. But you also need to establish what kind of square you are creating. There is the "Square of the Range," defined by a prior High and Low (swing). There is the "Square of the High," established by the All-Time High, and more squares can be created using Gann numbers.

867-5309 is the most important number to remember when leveraging Gann Squares. Pick up the telephone and call around. As much as the fibonacci sequences are in the market--is DNA in me; you; and, your friend behind the telephone; and, in their gut feeling. Many gut feelings cannot be wrong. Square your self against your most trusted colleagues and there is a harmony that cannot go wrong. Ask your friend, "Rate your resistance to this trade on a 1-10?" "Who would you expect to make the wrong decision and which decision would they make?" "Which key players you and I both hate are making Cramer predictions?" Also, it helps if no one is able to pin your source of insider-trading that is so dependent on time frames, inflations, and deflations.

Gann fans are drawn from tops and bottoms. First you need to establish the 1x1 line (45-degree line). Every market will be different. You try to find the rhythm of the market and then establish your 1x1 line. It may be 1 point per day or in high priced markets it might be 10 points per day. For currency markets it might be .01 points per day. Depends on the market you are trading. You find what works best for the 1x1 and then the software will draw the complete Gann fan. You often see that a market that declines on a 1x1 may also rally on a 1x1. If the market rallies strongly on a 2x1 drawn up from low, you will want to watch the 2x1 in your Gann fan drawn down from high and see if it responds to the 2x1 on the way down.

Gann Theory, a personal touch in technical analysis, integrates the dimensions of price and time. This unique approach allows you to uncover trends, predict future market movements, and make decisions aligned with your individual trading style. Its adaptability across different time frames provides a tailored strategy to enhance your trading experience and decision-making process.

Gann Theory is unlike all other technical analysis. Most chartists only look at "price." But with Gann you look at both TIME and PRICE. Gann said that "TIME" is more important than "PRICE." You can't have a top until the proper amount of time has elapsed. Gann identified key "numbers" (144, 90, 45, 360 etc). These numbers can be days, weeks, months, etc. For example, a stock may rally 90 days before forming a top. Or it could rally 90 weeks into high. The thing that makes Gann Theory beneficial is that you use cycles for TIME and Gann lines for PRICE and you only take a trade when the two are in balance.

One thing I have found helpful is to actually spend time doing the Gann analysis on a variety of markets, so you learn what works across markets. The more you use Gann the more relevant it is to your overall view. A lot of people criticize Gann as "unreliable" and "inconsistent" and "subjective." These people do NOT understand Gann. Anyone who has spent any real time studying Gann knows it applies well if you are patient and wait for the right Gann setup. You have to understand one thing: Don't trade the markets. Trade the Gann setups. If the market does not give you a perfect TIME and PRICE setup, don't trade. You may have to jump to another market to find that perfect Gann setup. No form of Technical Analysis is ever 100% perfect.

Gann Theory is difficult to learn, it takes time and hard to work to find the right strategy. However, I found out from Gann’s teaching that it is far worth the time to study his strategy compared other indicators because it can help you predict top and bottom on any stock in the future. Through out my study on Gann for two years, I found his strategy in numerology, the law of vibration, cause and effect and finally balancing the trade on astrology was amazing. The results are far accurate on future predictions.”Millionaires don’t used astrology, Billionaires do” J.P Morgan

A lot of people criticize Gann as being very complicated, but the best things about Gann are very simple. Here is something you can use today! Any time you see a market swing, divide the swing into 8 equal increments. The most important division of that swing is the 50% retracement or if you like the 4/8ths retracement. Remember that! Every time you work on the chart, always check for the 50% retracement. It is the most important support or resistance. You don't have to be a Gann expert to look for a 50% retracement. Incorporate that into your own toolbox of technical tools that you use every day.