gann theory price and time,
- Thread starter watchdaride
- Start date
Personally I think Gann, Elliot and Hurst were all pretty smart guys. Who spent years studying the markets and subsequently made some very astute observations about market behavior.
Where they went "wrong" (for lack of a better word) in MY opinion is that they tried to convert these observations into some kind of all inclusive, overly complicated, predictive pseudo science.
Instead , again IMO, they should have just left well enough alone and looked at them for what they were. Very broad generalized observations of market behavior.
Where they went "wrong" (for lack of a better word) in MY opinion is that they tried to convert these observations into some kind of all inclusive, overly complicated, predictive pseudo science.
Instead , again IMO, they should have just left well enough alone and looked at them for what they were. Very broad generalized observations of market behavior.
Yes, quite a collection of books and articles and a price that is dear.
I've never purchased anything there and it's doubtful I ever will.
If one is diligent, it can all be had free and legally.
Some of these esoteric methods are a hobby of mine and I enjoy the research but again: One doesn't need to spend a dime or employ these methods to be profitable.
One need not spend thousands on courses, newsletters, books or software.
If I had it to do over again and I wanted the quickest way to profitability I would do this:
1. Good broker
2. Good data feed
3. Good stable charting software
4. A few books on the market/trading/investing. One I'll suggest would be "Trade Chart Patterns Like the Pros" SURI DUDELLA
5. Isolate yourself from "noise and distractions" (analysis/traders/news/talking heads)and watch the instrument(s) you wish to trade for many hours over many days/months/years. You should become very knowledgeable with the future or stocks you trade. Backwards/forwards/ support resistance over many time frames year(s)/month/week/daily/hourly/15 min/4min/1min/610tick/144 etc.
6. Use as few indicators as possible, watch volume and price.
7. Develop a method /strategy and be disciplined above all else.
8. Start with small size and be prepared to have your ass kicked.
9. Enforce your discipline and remain flexible with your trading strategies. Don't force trades, find the one's that look familiar to you and go from there.
10.Take good care of yourself physically and watch for signs of overconfidence/depression.
Addendum: Your cue to begin studying the esoteric is when you realize you need a good tax attorney.
Infolode, this is such an accurate statement.
I purchased a Fib Gann piece of software from David Rivera that he wrote and uses in his trading. It works great, but I was not able to understand the why of "45 degrees" until I had spent enough time watching the charts and observing price patterns develop, then it became clear as to what Gann saw and why "45 degrees" is so critical....It was a lightbulb moment.
BTW...has anyone else that uses Elliottwave noticed an increase of ZigZag waves?
Quote from oddiduro:
That is not the square of nine, that is the circle of 24.
Why are you playing with these newbies, surf???
surf
I'm not a Gann expert or novice by any stretch of the imagination.
The basic premise behind one of Gann's techniques was the belief that price and time are interchangable. Price and time were actually just two different ways of expressing the same thing.
The square of nine is mearly a calculator and a forced shell for targets. It is a top-down, birds-eye-view of the great pyramid which was probably it's origin.
Largely based on angles of 45 degrees of 1/8th of the 360 and the 8 major turning points of the year.
I could spend days typing or pasting this in but the main thing to remember here is the formula for price or time targets. Gann's squares were a square root calculator.
On the circular wheel you go all the way around the wheel one full cycle by taking a number, take it's square root, increment that number by 2 and then resquare.
Ex. 34 is one cycle below the number 61 because (sqrt(34)+2)^2=61 approximately. Going down the left hand side of this wheel in a straight line are all the odd numbers squared(9,25,49,81...)This makes the structure of the wheel easy to see since we know all the odd integers(1,3,5,7,9...) are all seperated by the number 2, so this enforces the belief that the Gann wheels are a square root calculator.
Square roots are prominent in most of science, and inverse square laws like gravity lie at the heart of the universe. If planets or other forces are at the heart of price structures then Gann theorized that price movements must have a square root component.
Long story short Gann would take the price of a major low for example, get the square root +2 then resquare to find the theoretical price of that instrument a year later.
This is just simply one of many of Ganns techniques and some work better than others.
The main point I made about square scale charts was I don't need Gann angles of fans or oscillators because with proper scaling the geometric patterns almost jump out at me and I can keep it really simple and stress free.
Sure I use some tricks from my toolbox but I really love simple.
correct, it's the squaring of price and time.
surf
surf