GANN TRADING LESSON: TIME IS MORE IMPORTANT THAN PRICE GANN TRADING LESSON: TIME IS MORE IMPORTANT THAN PRICE – W.D. GANN’S METHODOLOGY - The principles of W.D. Gann's trading methodology continue to intrigue and challenge traders worldwide.
At the core of Gann's approach lies the harmonious relationship between price and time, encapsulated in his concept of "squaring."
This principle emphasizes balancing movements in price with corresponding movements in time, thus uncovering the rhythmic and periodic nature of the markets.
Understanding Time Balance in Trading
Gann emphasized the significance of time balance, which involves aligning the duration of a market movement with its magnitude.
This balance is critical because markets, according to Gann, inherently strive to return to a state of harmony, even after experiencing disharmonious phases.
Recognizing these patterns enables traders to anticipate turning points and identify optimal trading opportunities.
The Concept of the Initial Impulse
Gann’s methodology suggests that every market movement begins with an “initial impulse,” which sets the stage for subsequent trends.
This impulse, whether periodic or rhythmic, forms the foundation for future market behavior. Periodic movements repeat after fixed intervals, while rhythmic movements grow proportionally to the initial impulse.
Understanding and marking these impulses on price charts is a vital step in applying Gann’s techniques.
The Series 144 and Squaring Principles
Gann frequently referenced the significance of numerical series, particularly THE 144 SERIES . He argued that price movements often align with values derived from this sequence.
For instance, the duration of an initial impulse may correspond to one value in the series, while subsequent reactions adhere to multiples or subdivisions of this value.
Squaring, a cornerstone of Gann’s theory, involves matching price ranges with equivalent time periods. This can be applied in various forms:
Squaring the price range: Balancing the maximum and minimum price range over a specific time period.
Squaring the minimum price: Equating the duration of a move with its lowest price point.
Squaring the maximum price: Aligning the time elapsed with the highest price point.
Periodic and Rhythmic Movements
According to Gann, markets exhibit both periodic and rhythmic behaviors. Periodic movements repeat after a set number of time units, while rhythmic movements expand or contract in known proportions.
Identifying these characteristics is crucial for marking trends accurately and predicting future price action.
Key Considerations in Applying Gann’s Method
Inharmonious Market Behavior: Gann acknowledged that markets often deviate from ideal structures but emphasized that they ultimately revert to harmony. Recognizing these deviations and their eventual corrections is central to mastering his method.
Critical Points of Strength: Gann’s theory highlights the importance of key levels, such as 50% retracements, as points where price and time converge.
Templates and Extreme Values: Gann’s approach involves overlaying templates based on extreme highs and lows for specific time units (e.g., daily, weekly, monthly) to track market behavior accurately.
The Law of Vibration
Central to Gann’s teachings is the “Law of Vibration,” which posits that all market movements follow universal laws of motion and rhythm.
By studying the past and present, traders can predict future price action with remarkable precision. This principle underpins the repetitive nature of market trends and cycles, reinforcing Gann’s assertion that history repeats itself.
Gann’s Legacy
Gann’s work, often regarded as esoteric, challenges traders to elevate their understanding of market dynamics. His insights into the interplay of time and price continue to inspire new generations of traders to uncover the “Creator’s plan” in financial markets.
While applying his methods requires patience and meticulous study, the rewards are profound for those who master the art of balance and harmony in trading.
Conclusion
By embracing the principles of time balance, the initial impulse, numerical series, and the Law of Vibration, traders can uncover patterns and cycles that enhance their market predictions.
Although Gann’s techniques require dedication and a willingness to delve into intricate concepts, they offer profound insights for those who persevere. His legacy endures as a testament to the potential of blending analytical precision with universal principles, making his methods a timeless guide for mastering market rhythms.
Join the Discussion:
Do you agree with Gann that TIME is the most critical factor in trading? Share your thoughts and experiences below!
Gann Box
GANN TRADING LESSON - GANN BOX & TIME CYCLE 144GANN BOX & TIME CYCLE 144 are two pivotal tools introduced by W.D. Gann , a legendary figure in financial markets. These tools integrate time and price dynamics seamlessly, providing traders with revolutionary methods to analyze market movements.
Here, we’ll explore these tools and how traders can apply them to achieve greater precision and insight in their trading. Understanding the interplay between time and price is a cornerstone of effective trading.
What is Gann’s Box?
Gann’s Box is a synthetic coordinate system that enables traders to analyze price dynamics within structured time and price parameters. The box helps visualize patterns and understand the relationship between upward and downward movements over specific periods.
By using this tool, traders can:
Identify directional trends.
Recognize structural alternations of price movement.
Pinpoint significant turning points in the market.
Principles of the Gann Box
First Principle: Directional Price Movements
The Gann Box segments price movements into discrete directional sections. These sections reveal periods of trend continuation or reversal. By overlaying a box on the chart from a significant extremum, traders can observe how price respects its boundaries over time.
Second Principle: Structure of Movement
Markets alternate between upward and downward movements in a structured and often periodic manner. Gann’s Box allows traders to:
Detect these alternations.
Visualize corrections versus trend-directed movements.
Forecast future structural changes based on historical patterns.
Cycle 144: A Unique Trading Model
Gann’s Cycle 144 is an advanced application of the Gann Box. It involves a fixed time cycle of 144 units (e.g., hours, days, or any chosen timeframe) and is based on the following principles:
Begin at the Extremum: The cycle always starts at a key high or low.
End After 144 Units: The cycle concludes after 144 time units.
No Gaps Between Cycles: Models should seamlessly connect without gaps.
Overlapping Models: Multiple cycles can operate simultaneously, enhancing prediction accuracy within the same timeframe.
This model offers a comprehensive framework to predict market movements within defined intervals.
Practical Steps to Apply Gann’s Box
Identify Key Extremums
Locate significant highs or lows on your chart to serve as the starting points.
Construct the Gann Box
Use the chosen extremum to calculate the parameters of the box. Ensure alignment between price and time scales.
Analyze Trends and Corrections
Observe how price behaves within the box, identifying trend continuations, corrections, and potential reversals.
Incorporate Cycle 144
Overlay the Cycle 144 model to refine predictions, ensuring to account for overlapping cycles for greater precision.
Why Gann’s Box Matters for Traders
Gann’s Box is not just a tool but a framework for disciplined and informed trading. Here are its key benefits:
Accurate Forecasting: Pinpoint turning points with precision.
Structured Analysis: Analyze price action within a logical, visual framework.
Improved Decision-Making: Reduce emotional bias by relying on objective patterns.
Conclusion
Gann’s Box and Cycle 144 offer traders a methodical approach to deciphering market movements. By integrating TIME & PRICE , these tools simplify the complexities of trading while providing actionable insights.
As with any trading method, success lies in practice and observation. Study past market movements, experiment with Gann’s concepts, and refine your understanding. With dedication, these tools can transform your approach to trading and unlock new levels of mastery.
How I Execute Trades Using Gann’s Square of 9Here in this example, I have used the Square of 9 method to predict a potential market reversal and executions. W.D. Gann, a legendary trader and analyst, is renowned for his pioneering techniques in financial markets.
Among his tools, the Square of 9 stands out as a remarkable system to predict market turning points with precision. In this blog, we’ll explore the fundamentals of the Square of 9, how it works, and how we can use it to improve timing and decision-making in the markets.
What is the Square of 9?
The Square of 9 is a spiral-based numerical grid where numbers are arranged in a square, starting from 1 at the center and spiraling outward. Each number on the grid has angular relationships with other numbers, which Gann believed could forecast significant market movements.
For instance:
Numbers at the same angles (e.g., 39, 67, 105, 150) share a relationship that can signify potential turning points in the market.
By marking these numbers and aligning them with trading days, we can identify key dates for potential price reversals.
Core Assumptions in Price Dynamics
Gann’s methods rely on two key assumptions:
Repetition in Price and Time: Price tends to follow specific patterns or laws over defined intervals of time.
Structured Alternation: The up-and-down movements of price are not random; they alternate in a structured, periodic manner.
These assumptions form the foundation for analyzing price action through tools like the Square of 9.
How to Use the Square of 9
Step 1: Identify Key Market Extremes
Begin by locating significant highs or lows on a price chart. These extremums act as the starting point for your calculations.
Step 2: Calculate Calendar Days
Count the number of calendar days between:
Two highs,
Two lows, or
A high and a low.
Step 3: Locate the Number on the Square of 9
Find the calculated number (e.g., 39) on the Square of 9. Then, mark other numbers that lie on the same angle or corner, such as 67, 105, or 150.
Step 4: Predict Turning Points
Mark these numbers as potential future dates. On these dates, observe the market closely for signs of reversals or continuations.
Practical Example
Now let's Analyse GOLD. In this example we will take a daily candle that is making an all time high. From that high we will count the very next extreme high or low. How many trading days it takes to reach that price point and make a reversal? - 40 Trading days.
Now we will look for the number 40 in Gann square of 9 table. and the very next probable execution or reversal we will get after 70 days according to the table.
We see sharp price movement after 70th day and then at 180th day where we can place our order and execute with other confirmations.
Benefits of Using the Square of 9
Enhanced Timing: Pinpoint potential reversal dates, helping traders refine entry and exit strategies.
Objective Forecasting: Use a structured approach to reduce emotional decision-making.
Improved Accuracy: Combine the Square of 9 with other technical tools for more reliable predictions.
Conclusion
The Square of 9 is a powerful tool for traders who seek to integrate time and price analysis into their strategies. By understanding its mechanics and applying its principles, you can anticipate market turns with greater confidence.
As with any trading tool, practice and observation are essential. Study past market movements using the Square of 9 to develop your intuition and skill. With dedication, you’ll unlock the potential of this fascinating method and take your trading to the next level.
Limit Buy USDCADWe Are clearly still Long also we have some space until reaching the "Discount" Zone where I aim shorting howver until then The Trend Is Your Friend
I have micro tuned and managed the Setup to have the optimal RR while still maintaining logical and valid positioning.
Important is that my TP is not yet engraved in Stone meaning I have to react to how the market evolves until entry gets triggered but until then we will definatly be Break Even
Check my latest Trades to see results ;)
Happy Profits
Short via Limit in USDCHFWe are currently in a bearish trend meaning I am prone to selling. i have found a very strong Level that includes a market equilibrium zone. Also we see a Wyckhoff that suports my Idea and Setup idea.
SL can be adjusted for Traders who want to play it even safer however in my expirience its placed were it belongs
Take profit is traded into the Break of new Low but also there we have to see how the market reacts
Follow my Instagram for daily setups
GER40 - Our View for the Next 5 Years ( Weekly) Hello Folks
This is my personal roadmap for tracking GER40 over the next five years, revisiting it month by month to see how things evolve.
Right now, I’m expecting a short-term pullback, but only for a brief period. If the market hits 20K early, it might need to take a breather before aligning with the right cycle timing. However, my focus remains clear: I’m only looking for long opportunities in the bigger picture.
The larger structure is bullish, and any short-term corrections are just part of the process before the next major move upward. It’s all about timing and staying patient as the market reveals its hand.
Let’s see how this plays out in the months ahead
Looking for shorts in the manipulation on FrancLooking for shorts in the manipulation on Franc
I will be looking to position myself with my students and followers as highlighted on the chart if we get the confirmation.
Accumulation / Manipulation / Distribution
- No liquidity raid = No trade
- Never buy high and never sell low
“Adapt what is useful, reject what is useless, and add what is specifically your own.”
Dave FX Hunter ⚔
I want see price close below Open gap then sell offI want see price close below Open gap then sell off
I will be looking to position myself with my students and followers as highlighted on the chart if we get the confirmation.
Accumulation / Manipulation / Distribution
- No liquidity raid = No trade
- Never buy high and never sell low
“Adapt what is useful, reject what is useless, and add what is specifically your own.”
Dave FX Hunter ⚔
It can potentially drop to the equilibrium of last weekIt can potentially drop to the equilibrium of last week
I will be looking to position myself with my students and followers as highlighted on the chart if we get the confirmation.
Accumulation / Manipulation / Distribution
- No liquidity raid = No trade
- Never buy high and never sell low
“Adapt what is useful, reject what is useless, and add what is specifically your own.”
Dave FX Hunter ⚔
Potential upside from the bottom of the channelPotential upside from the bottom of the channel
I will be looking to position myself with my students and followers as highlighted on the chart if we get the confirmation.
Accumulation / Manipulation / Distribution
- No liquidity raid = No trade
- Never buy high and never sell low
“Adapt what is useful, reject what is useless, and add what is specifically your own.”
Dave FX Hunter ⚔
Pullback from the weekly level and weekly rangeThis pair expanded to the weekly OB and rejected just right above the weekly range, its time for the pullback to fill the gaps around a 50% of the range.
Im about to get to the positon with my followers as highlighted on the chart.
Accumulation / Manipulation / Distribution
- No liquidity raid = No trade
- Never buy high and never sell low
Always apply good risk management it's what defines your destiny in trading.
Dave FX Hunter ⚔
“Adapt what is useful, reject what is useless, and add what is specifically your own.”
NZD is much stronger than CHF here on the lowsNZD is much stronger than CHF here on the lows, the price could easily go up.
If we get the confirmation, we are already in the positon with my followers as highlighted on the chart.
Accumulation / Manipulation / Distribution
- No liquidity raid = No trade
- Never buy high and never sell low
Always apply good risk management it's what defines your destiny in trading.
Dave FX Hunter ⚔
“Adapt what is useful, reject what is useless, and add what is specifically your own.”
This will go much higher will be buying from lowsprice is in the weekly range next in the other range. COT for the GBP is bullish and for the JPY also Im a buyer, but would like to see the liquidity trap first. Otherwise, I stay off.
I will be looking to position myself with my students and followers as highlighted on the chart if we get the confirmation.
Accumulation / Manipulation / Distribution
- No liquidity raid = No trade
- Never buy high and never sell low
“Adapt what is useful, reject what is useless, and add what is specifically your own.”
Dave FX Hunter ⚔
Pound is ultra bullish , upside from here is only optionThe pound is ultra bullish, upside from here is only option
I will be looking to position myself with my students and followers as highlighted on the chart if we get the confirmation.
Accumulation / Manipulation / Distribution
- No liquidity raid = No trade
- Never buy high and never sell low
“Adapt what is useful, reject what is useless, and add what is specifically your own.”
Dave FX Hunter ⚔
Range manipulation in the HTF level. Short is possibleRange manipulation in the HTF level. Short is possible
I will be looking to position myself with my students and followers as highlighted on the chart if we get the confirmation.
Accumulation / Manipulation / Distribution
- No liquidity raid = No trade
- Never buy high and never sell low
“Adapt what is useful, reject what is useless, and add what is specifically your own.”
Dave FX Hunter ⚔
Aussie flipping to the bullish during manipulation weekPrice will go up for the rest of the month
I will be looking to position myself with my students and followers as highlighted on the chart if we get the confirmation.
Accumulation / Manipulation / Distribution
- No liquidity raid = No trade
- Never buy high and never sell low
“Adapt what is useful, reject what is useless, and add what is specifically your own.”
Dave FX Hunter ⚔
Gold Gann Chart.Understanding Gann Techniques: An Introduction to the Chart
This chart showcases a Gann analysis of the Gold Spot/USD (XAU/USD) on the 1-hour timeframe. If you're new to Gann techniques, here's a simple breakdown of what's going on:
What is Gann?
Gann techniques are based on the work of W.D. Gann, a financial trader who developed a range of unique analysis tools that combine price and time. His most famous tools are the Gann Fan and Gann Square, which involve plotting diagonal lines on a price chart based on geometric angles. These angles are meant to show potential areas of support and resistance.
In this chart, we are using Gann angles to predict key levels of price action where the market might reverse or pause.
Key Elements of the Chart:
Price Levels and Gann Angles: The chart shows several horizontal and diagonal lines representing various angles from Gann's methodology:
0° = 2531.785 USD at the top
45° = 2523.835458 USD
90° = 2515.898416 USD
135° = 2507.978874 USD
180° = 2500.061832 USD (a major level as it represents a 180° turn)
225° = 2492.16229 USD
270° = 2484.275248 USD
360° = 2468.538664 USD
These angles represent the key levels where price is likely to react. For example, if the price approaches the 180° level, we might see a reversal or consolidation near 2500 USD.
Color-coded Gann Lines: The chart uses two different sets of diagonal lines, each represented by a different color:
Pink lines: These lines represent the major resistance and support angles.
Blue lines: These lines indicate additional support and resistance levels, often seen in shorter time frames or lesser degrees of movement.
These diagonal lines are used to track the movement of price as it respects and reacts to specific geometric angles, helping traders spot trends or reversals.
Time-Based Analysis: Gann’s method also takes time into account. The intersection points of the diagonal lines and horizontal price levels often mark critical time periods where price action could experience a turning point. In this case, you can see how the price interacts with the lines at various times.
Support and Resistance in Gann: Gann believed that markets move in predictable cycles and that support and resistance levels could be forecasted using geometric angles. In this chart:
Horizontal lines (e.g., 2500 USD) indicate key price levels derived from the Gann angles.
Diagonal lines show the angles at which price might move up or down, creating dynamic support and resistance.
Trend Identification: The chart helps visualize trends. If price consistently respects certain Gann angles (for example, bouncing off the blue diagonal lines), it indicates that price is trending according to that specific angle. In this case, the current price near 2495 USD is sandwiched between diagonal support and resistance, indicating a range-bound movement.
How to Use This Chart:
Look for Reactions at Key Levels: Watch how price behaves when it approaches one of the key Gann levels (horizontal or diagonal). These levels are where significant price reactions, such as reversals or accelerations in the trend, are likely to occur.
Use Gann Levels for Entries and Exits: If price is approaching a major Gann level, such as 180° = 2500 USD, you might consider entering or exiting a trade. For example, if price is moving down and approaches this level, it could be a good spot to look for a reversal and go long, or at least to tighten your stop-loss if you're short.
Monitor Time Intersections: Where the diagonal Gann lines intersect with the horizontal price levels, it creates key areas in both time and price. These are points where the market is more likely to experience volatility, so keep an eye on them for potential setups.
Conclusion:
This chart illustrates how Gann techniques can be used to track and predict price movements. By understanding the interaction between price and the angles of time, you can identify key areas where the market is likely to react. Keep in mind that while Gann is a powerful tool, it works best when used alongside other forms of technical analysis to increase the probability of success in your trades.
Wish you Good luck with your trades.