back start next
[start] [ 1 ]                                                                                         
In the years since W.O. Ganns career ended, many people have
attempted to duplicate the prediction and trading capabilities which he became knovm for. Gann used many techniques, some of which are simple and eaey to understand while others are obscure. What becomes apparent from a quick overview of the mans history is that he did a prodigious amount of work. His papers, accumulated over a lifetime of study, filled an entire moving van when they were purchaeed by Billy Jonee. From thie one fact, it can be said that there was no single technique which produced the results that Gann used in his trading.
Today you can find many individuals who claim to have found one simple key that was the cornerstone of all of the predictive work which Mr. Gann acoomplished. But the "seorets of Gann" are many numerous faucete of the mans work, and no one. without the support of othere, works acourately and well all of the time. If your reason for reading this book is to find that one eeoret. poseibly the "magic square", or the Jupiter - Saturn aspeot, whion
§ives you a perfect trade every time, then you will be isappomted. the purpose of thie book is to give you a grasp of the oharting techniques and knowledge of time which Gann, and othere sinoe him, have used successfully in determining key dates and prioe levels in the future. Also, I want to give you enough knowledge to be succeesful in your own trading. The method presented herein, if used properly, is very accurate in predioting months, weeks, days, and even the five minute period into the future whioh will change the direction of the price movement in a stock or market.
In my fifteen years of study of the mans work, I have dlscoverecf simple techniques that, in and of themselves, are valuable predictive tools, and have combined theee toole in to a system of analysis that produces tradable results. This is a middle ground in Ganns work, not a single tool, and not so many tools that it becomes confusing. The premise which reeulted in this method was "find out what works, vmen to apply it, and then use it".
I hope you will use the simple methods in your work, those with a minimum amount of effort. You will have to devote time to this method, but those times and prices which are apparent from drawing the angles, using the cyclical counts and doing the basic mathematical caloulatione, will give you the information you need to trade. Do not attempt to use all of the methods for every trade, to find every of division every range, or every high, for
you will find that you have too much information and it will become confusing. I struggled through this originally. When I was using every technique, I found that I had too much information, too many squares, too many counts to make a decision. Over the years, I have sifted through the individual methods, isolating the ones which I know I can trade from.
Realize that the information which comes from these techniques is only useful when one has a knowledge of how and when they work. Certainly there are many things to know, and there are many things to consider, but the main thrust is to keep the work simple. Dont push yourself to prove a turning point in time, merely because you want it to be there. If your simple methods presented herein, do not show it, dont trade it. The trade may be there, but why force it when you can find a trade easier in another stock or market?
Edison said that genius was one percent inspiration and ninety nine percent perspiration, and you will have to work to make this method a success. It requires a good deal of time, to establish trading charts and keep them up to date, but, work reveals the reward. The methods explained in this book are put to use in the middle and latter chapters, in combination with the separate package of charts. Therefore, you can see how the tools come together to give you excellent trading opportunities.
I urge you to try this method on any stock or commodity. I am giving you the neceesary information to start your work, but you will not know that it worke, or realize how it works until you use the methods yourself.
Take the time to bring a chart up to date, then find the turning points in the past, and find the ones in the future, and you will see the method. There ie no better way to prove this to yourself than by using it. In my oase It took years of work on hundreds of oharts to find the applications of speoiflc rules. I would expeot that it will also take you some time, although this book should speed the process. Once you have proven it, you oan trade from it. In this text I have attempted to reduce all of Ganns methods down to those which are easy to use and work often. Keep it almplel That is the rule.
Why these methods work. I will not attempt to fully explain. Such an attempt would probably do nothing more than confuee. Let me brush that aside by saying that like many things in life, these are exoellent tools. You do not have to know how or where a hammer was forged in order to drive a nail. But, If you have an Intense desire to know why it works, you are in for years of study.
In my studies of Ganns writing, I have found that he wrote in the same manner as the ancient mystics. This method 9ives a major premise, and poesibly a minor premiee, the truth Is given, and from that, you have to draw the conclusion. You have to earn the knowledge that is given, as it is not spelled out directly. They wanted you to work for the knowledge. I studied the ancient masters for years, and W.D. Gann wrote as they did. Perhaps, that is why it easy for me to read his work. I knew that he was speaking in syllogisms. He did not give you the conclusion. What
he did in the case of the number ninety, or in virtually any of the other cases, was give you an idea similar to, "You can look for top 90 to 99 days after a move starts." That is not 100 percent true, if ycu take every move in a market or stock, and you look for top, or a change in trend 90 to 99 days after the start of the move, it going to happen only occasionally. But, there are circumstances where it vrorks almost perfectly.
One last point that is very important. The foundation to successful tracling is knowledge of price movement and volume- the ability to view a chart and know if there is a probability of a top or bottom- the understanding of "blowoffs" and the opportunities they represent. Therefore, a portion of this text will be devoted to an understanding of price movement.
[start] [ 1 ]