Is this worth looking into and studying. Looks very complicated and time consuming. Just came off following elliott wave for a year and realised it doesnt work in real time but looks great at the end of the day when looking over charts . is this also the same with gann looks great when looking back but hard to do in real time ?
gann theory price and time,
- Thread starter watchdaride
- Start date
Simply changing the scale of the vertical axis (price) invalidates the premise. Stated differently, you can adjust the vertical scale on just about any price chart and achieve the desired 45-degree angle for the price action in question. So which scale is the "correct" one?
Gann is the Scientology of trading. Elliot Wave is within view. Fibonacci, anyone?
Quote from Thunderdog:
Simply changing the scale of the vertical axis (price) invalidates the premise. Stated differently, you can adjust the vertical scale on just about any price chart and achieve the desired 45-degree angle for the price action in question. So which scale is the "correct" one?
Gann is the Scientology of trading. Elliot Wave is within view. Fibonacci, anyone?
True, he theorized that 45 degrees was the correct rise and run for a bull market, reverse for a bear. I like to see where the market corrects to on the scale; it is no more predictive than anything else, but I find it useful for velocity of the tape.
Avoid these techniques until you are seasoned. On the surface this appears contradict but as you know, these methods are very subjective and time consuming. Vendors prey on traders who are somewhat profitable and devour the beginners.
I would recommend to anyone, however, to use square scale in your charting. Price and time move in sync. allowing patterns to become easily recognizable.
You can write a script to automatically execute this or do it manually by dragging the price axis up or down(usually down)
You can check the scale by drawing a circle on your chart and ensuring the bars touch three times within the radius.
Alternatively you can draw a box connecting highs and lows then drag your price scale until the box is square.
Check out WD Gann, George Bayer, or George Marechal if you must but you don't need them to be a profitable trader.
After one is making profits for several years I would say look into this more for an edge.
IMO Gann knew something, but you could waste a lot of time studying Gann. Gann is not around to tell you if you got the cryptic clue right in 'Tunnel Through The Air" or anything else so how will you know if you are following his methods correctly?
Keep it simple, e.g. Gann Dates are worth paying attention to and you don't have to know how he derived them.
His first book, Truth of the stock tape is one of the best books I have read, his last book, 45 years on Wall St would be one of the worst if I had managed to finish it. I accept that it may be over my head.
Keep it simple, e.g. Gann Dates are worth paying attention to and you don't have to know how he derived them.
His first book, Truth of the stock tape is one of the best books I have read, his last book, 45 years on Wall St would be one of the worst if I had managed to finish it. I accept that it may be over my head.
