WD Gann had many ways of looking at the markets.Many of his Insights were derived from basic geometry and simple addition and subtraction. Gann argued that markets seemingly have a memory for anniversary dates.
In his base courses of instruction, he argued that markets have a memory for anniversary dates of their major turning points, (highs/lows, new listings on an exchange, etc.) and the natural divisions of that time period.
The geometry: The hard angles of time: A half-year – 180 degrees, a quarter year – 90 degrees, 1/8 year - 45 degrees, and a 1/16th year or about 22 degrees. Also the “Soft angles” of time, 60, 120, 240 degrees. Gann believed that these are time periods that the trader/investor should mark on the calendar to look for potential changes in trends for the stock/commodity that they are following.
Gann stated often that if one were to forecast the future one would have to look at the past. So in an effort (on your own) to make a forecast of potential trend changes you can download the past price history of the securities you are following through paid services or through services such as Yahoo! Finance (currently free).
It is recommended that you get the longest time period available for this type of analysis. (At a minimum, at least a decade’s worth to see if the method is relevant)
A spreadsheet can then be constructed with the date of the high or low price on each row and the important time periods labeled at the top of the columns.
By spending a little time constructing you can then simply eyeball the data and easily see where potential changes in trend may occur, especially when there is a high confluence of “Hits”. The confirmation or "hits" occur when highs/lows have certain periods where the divisions of time align within a 2-4 day time period.
Below is an example of an unnamed stock from a few years back.One should become fully versed in the method before applying it to your trading.
The first column is the date of the high or low. The top row is the projected periods of time.
Here we have 4 turn dates that project to the period of April 24 to April 27 for a potential change in trend.
DISCLAIMER
The content of this message and its attachments are intended only for the informational and educational use for the intended recipient and may contain confidential and privileged information. If you are not the intended recipient, any dissemination, distribution, or copying of this message or its attachments is prohibited. If you received this message in error, please notify the sender by replying to this email immediately and delete this message and its attachments from your computer. The information provided by TradeZero America, Inc. is solely for educational and informational purposes. None of the information should be understood, construed or inferred to be an offer or solicitation of an offer, or a recommendation, to buy, sell, or hold any security or financial product, or engage in any particular investment strategy. This message is also not an offer to provide advisory or other services by TradeZero America, Inc. All communications sent to or from TradeZero America, Inc. are subject to archive and review by TradeZero America, Inc. and by regulatory and law enforcement authorities. We explicitly disclaim all liability for any action taken based on any information contained in this writing.