W D Gann Technical Analysis Wizard

William D. Gann (1878 to 1955) was an outstanding technical analyst. He was

born on a cotton ranch on June 6, 1878, in Lufkin, Texas. Gann claimed to
have made a worlds record in leverage and accuracy more than once, that he
had developed trading strategies for speculators, and that he could predict
market moves to the exact price level. Consider using this space to introduce
your page. Just click to add your own content. He displayed a strong aptitude
in mathematics during his early years, completed a high-school education, and
started trading in 1902 at the age of 24. By his own admission, Ganns early
trading was based on hope, fear and greed, all of which he later realized
were not compatible with a successful trading strategy. After losing significant
sum of money, Gann began to observe that markets followed mathematical
laws and certain time cycles. He was particularly interested in the connection
between price and time, a relationship he referred to as the square of price
and time. He began studying this interaction diligently, even traveling to
England, India, and Egypt to research mathematical theory and historical
prices.In developing his theories, Gann was undoubtedly one of the most
industrious technical analysts. He made thousands of charts displaying daily,
weekly, monthly, and yearly prices for a wide variety of stocks and
commodities. He was a avid researcher, occasionally charting a price back
hundreds of years. At a time when most market analysis was strictly
fundamental, Ganns revolutionary theories relied on natural laws of
mathematics, time cycles, and his unshakable conviction that past market

activity predicted future activity .

W D Gann's Law Of Vibration

Gann in his Stock Market Courses have explicitly proved that all stocks and
commodities vibrate. He named it as " W D Gann's Law Of Vibration " in that
he says that if we can calculate the rate of vibration then its is possible to
predict the future price moment of the asset. The principle of Gann Angle
Theory is based on this concept only.

Gann Price Vs Time Square & Gann Angle

The squaring of price and time was one of the most important and valuable
discoveries that Gann ever made. In his trading course he stated if you stick
strictly to the rule, and always watch when price is squared by time, or when
time and price come together, you will be able to forecast the important
changes in trend with greater accuracy.

The squaring of price with time means an equal number of points up or down,
balancing an equal number of time periods- either days, weeks, or months.
Gann suggested traders square the range, low prices, and high prices.Gann
has plotted the relationship between price and time. He explicitly stated that
at the point of intersection between the price and time trend line there is a
valid reason for a expectation of change in trend. Gann has given 11 different
trend lines which will guide the trader in taking timely wise decision. These

trend lines are drawn based on the geometrical angle proportion in X and Y
axis.

The most important trend line 1X1 (read it one by one ) Gann angle. This is
a straight line drawn in the price-time chart which makes and angle 45 with
the X-Axis. i.e. This is the trend line drawn assuming 1 unit of price change

with respect to 1 unit of time change in a semi log scale. Similarly 2X1 ( two
by one) trend line means line is drawn assuming the 2 unit of price rise or fall
happens in 1 unit of time. This trend line makes geometrical angle of 63.75
with X Axis when drawn from a lower price point and projected toward higher
price points. Similarly this trend line will make 26.25 with respect respect to
X-Axis when it is drawn from a higher price point and projected towards the
lower price point.

Gann Wheel
Gann was always emphasizing in his training courses that a trader should keep
to the rules and watch for when the price is squared by time or when price and
time come together and the trader will be able to forecast the major trend
changes with unbelievable accuracy, especially when using the Gann wheel or
the square of nine as illustrated below.

The Gann wheel is recognized by most people as the Square of Nine or a

Square Root calculator. As you can see from the illustration it is a few rings of
a Gann wheel with the number 1 at the center. You will have to visualize a
circle to understand that the number 19 is 90 degrees from the number 15 or
that the number 8 is 180 degrees from the number 46.
What Gann says is that we know that the square root of 15 is 3.87 and that
we add 2 to the square root of 15 we get the number 5.87. If we square 5.87
we get 34. So if we add 2 to the square root of a number and then squaring
that number, it is the same thing as one 360 degree rotation on the Gann
wheel. So if 2 represents a 360 degree rotation then 1 must represent a 180
degree rotation and 0.5 is a 90 degree rotation. Its the 90 degree that Gann
claimed was very important in the markets. He was saying that adding and
subtracting 0.5 or exact multiples of .5 to the square root of a stock price and
then squaring the result is significant. As we know 90 degrees is also very

prominent in astrology and maybe Gann was influenced by heavenly events

too.
What is unique aspect about the Square of Nine is that it completely
unconcerned whether the variables are a range of prices, one particular price,
or a number of stock trading days, for example. For the Square of Nine they
are identical and totally exchangeable. For a trader who has been brought up
on charts, moving averages and oscillators the concept of squares, circles and
square roots can be a little daunting and maybe a little mystifying.

We have developed Gann Angle Calculator for calculating support and

resistance price of an asset . This will help the trader in taking intraday trading

calls. This is a very popular tool used by traders across India

Gann Price Vs Time Squaring - Finding

Support & Resistance
Gann says that there can be nine mathematical proofs of any point of
resistance

Angles from top and bottoms.

Angles running horizontally i.e. the previous tops and bottoms.
Time cycles. (vertical angles) e.g. if there are three or four days of
sideways moment after a high day and this is followed by a down day with
high volume where low is lower that the lows by sideways moment and when
this coincides with expiry of time cycle)
Crossing of important angle originating at Zero.
Crossing of coming together of angles from double or triple tops or bottoms.
Crossing of double or triple tops or bottoms.
Past resistance/support
Volume of sales
Squaring of time and price.
Support
= (High-Degree Factor) Resistance
= (Low+Degree
Factor)

Practical Example Of Deriving Support & Resistance

- SBI on 11th Nov' 2010On 11th
November 2010 SBI between 9.15 A.M. to 9.30 A.M. made high 3238.35 at
9.16 P.M. Low 3214.10 at 9:27 P.MWe have derived the above scrips support
and resistance using SQUARER 2012 SOFTWARE - PRICE VS TIME SQUARING

TECHNIQUE
As per the above data we are advised to buy the scrip at 3223.55 or sell at
3228.873. In that case we need to do recalculation. Here instead of calculating
from high and low point we will start calculating from mid point. The modified
calculation table is as follows.

As per this we are advised to buy at 3235.52 for a final target of 3280.71 and
sell at 3216.59 for a final target of 3172.0214. Trade Outcome : At 9:34 A.M
we got a chance to sell at 3217 and kept a stop loss at 3235.52 as per our
above table. On achieving first target of 3214.22 we have moved our stop loss

to 3216.59, then upon crossing the second stop loss we altered the stop loss
to 3214.4. After touching the low of 3211 at 9:39 A.M scrip rebounded and hit
our stop loss of 3214.4 . We got 3 points in this experiment. Again we will wait
for our next entry point. On crossing 3235.52 at 10:07 A.M we can go for a
buy with a target of 3280.71 and stop loss of 3216.59. The scrip got to 3254
at 11:27 A.M which is a 45 angle. People who are waiting for a strong
conformation can enter at this level also by keeping a stop loss of 3235.52

Predicting next high & low date.

Squaring The High
Divide the high by the scale to get the new date of high.
Date = High / Scale
Scale Equation

Up Trend
( Main Bottom 2 Main Bottom 1 ) / Difference In Time
Between Them
Down Trend
Them

( Main Top 1 Main Top 2 ) / Difference In Time Between

Practical Example Squaring The High - NIFTY May 10th 2006 Lets
take the example of NIFTY .NIFTY made its High on May10th 2006 at
3754.25. Now we are going to see using Squaring of High method on when the
NITFY will hit its next high. For that we need
1 Two bottoms, NIFTY made a low of 2632.8 on June14th 2006 and
next low was at 2945 on July21st 2006 a range of 40 days.
2 Scale = (Main Bottom 2 Main Bottom 1)/ Difference In Time

Between Them

= 312.2 / 40 = 7.805.
1 Squaring High = High / Scale = 3754.25 / 7.805 = 481.005
2 Converting days to Year is 481 / 365 = 1.3 years
3 i.e . May 10th 2006 + 1.3 Years = July 2007
4 Actual outcome , Market peaked on July 23rd 2007 ( Its a 15

degree Gann Date also )

Squaring The LowDividing the low by the scale to get the new date of
low.
Date = Low / Scale

Practical Example Squaring The Low - NIFTY March 9th 2009

NIFTY made its Low on March 9th 2009 @ 2573.15 . Now we are going to see
using Squaring of Low method on when the NITFY will hit its next Low . For
that we need
1 Two highs , NIFTY made a high of 6301.55 on Nov'9th 2010 and
next high was at 6157.6 on Jan'3rd 2011 a range of 55 days.
2 Scale = (Main Top 1 Main Top 2 )/ Difference In Time Between

Them

= 143.95 / 55 = 2.61.
1 Squaring Low = Low / Scale = 2573.15 / 2.61 = 985.88
2 Converting days to Year is 985.88 / 365 = 2.7 years
3 i.e . March 9th 2009 + 2.7 Years = October 2011
4 Actual outcome , Market bottomed at 4751.3 and bounced back to

5326 on October 5th ( Oct 8th is 15 degree Gann Date very close to
oct 8th )

GANN DATES

W D Gann through his extensive research have found that on ceratin dates of
month market trend changes. Gann says that these days the Sun comes at 15
Degree and 90 Degree with earth. These are very significant positions , market
sentements changes on these dates.

Listed below are the important Gann Dates. Sometimes Gann dates are exact
and at times it is a day or two ahead or behind. Remember that we are looking
for price and time to meet and become balanced. There are times when price
is ahead of time and time is ahead of price. Once we convert these degree into
days you get the dates the market makes major highs, lows, tops and
bottoms.

Gann Dates Playing In Indian Market - NIFTY 2000 to 2011 The

below table gives the details on how Gann dates are playing in Indian market.
You may see that most of the major lows and highs in the market have
happened in and around these days.

UpswingIn a downward trending market after a continuous downward

trending days , there is a indication of market trend change with two

days of upward trend i.e. the pivot is broken . The upward swing is
confirmed but market trend is still downward.

DownswingIn a upward trending market after a continuous upward

trending days , there is a indication of market trend change with two
days of downward trend i.e. the pivot is broken . The downward swing is
confirmed but market trend is still upward.

UptrendTrend change is when the previous peak is taken out. As

shown in the picture below.

DowntrendPrevious lows are broken shows a clear trend change.

Uptrend Higher High Pivot and Higher Low Pivot.

Downtrend = Lower Low Pivots + Lower Highs Pivots

Sideways = Pivots within the range of previous highs

and lows

W D Gann combined Astrology and Astronomy and he termed it as

Astrononamy. He travel to India, Egypt and England to learn various
Astrological and Astronomical principles. He studied thousands of charts of
each stocks, commodities and market moments in correlation with Astrological
and Astronomical principles and made great discoveries. He not only predicted
the market outcomes but also other geo political events like end and beginning
of world war, financial melt downs etc.

Gann discovered through his years of research that when the traders personal
planetary positions are bad its better that he keep away from market. He has
explained with his own personal examples where he made 200 odd trade
without any losses but suddenly he started incurring losses. When he learned

Astrology he found that during those period when he started incurring losses
Saturn was coming into his birth house that this is a very bad period for the
individual.

What Gann told was " Stocks and commodities vibrate in accordance with both
their own individual energy / vibration (i.e. internal vibration) and also in
accordance with energy/ vibration transmitted through space (i.e. external
vibration). From my extensive investigations, studies and applied tests, I find
that not only do the various stocks vibrate, but that the driving forces
controlling the stocks are also in a state of vibration.The overall energy/
vibration of a stock or commodity is reflected in its price". These vibratory
forces can only be known by the movements they generate on the stocks and
their values in the market (Ticker interview) . It is thought that Gann believed
the external energy/vibration acting on a stock or commodity is subject to
astrological influences (although he does not explicitly state this in his Ticker
interview).

What Gann told was " From time to time a stock or commodity will lose its
sensitivity (or receptivity) to certain influences (astrological or otherwise). As a
consequence it will become inert (i.e. its rate of vibration will fall) and its price
will typically enter a downtrend.Stocks create their own field of action and
power; power to attract and repel, which principle explains why certain stocks
at times lead the market and turn dead at other times(Ticker
interview).Thus, if the assumption that astrology plays an important role in
Ganns method of forecasting markets is correct, the key technique in applying
the Law of Vibration is to accurately identify the major astrological influence
driving a particular stock or commodity. It is then necessary to identify the
resultant rate of vibration and to forecast how future astrological influences
will impact this rate of vibration.By my method I can determine the vibration
of each stock and by also taking certain time values into consideration I can in

the majority of cases tell exactly what the stock will do under given conditions
(Ticker interview).

Gann Astrononamy - Zodiac & Houses

In astronomy, the zodiac (Greek: , zdiakos) is a circle of twelve 30
divisions of celestial longitude that are centered upon the ecliptic: the
apparent path of the Sun across the celestial sphere over the course of the
year. The paths of the Moon and visible planets also remain close to the
ecliptic, within the belt of the zodiac, which extends 8-9 north or south of the
ecliptic, as measured in celestial latitude. Historically, these twelve divisions
are called signs. Essentially, the zodiac is a celestial coordinate system, or
more specifically an ecliptic coordinate system, which takes the ecliptic as the
origin of latitude, and the position of the sun at vernal equinox as the origin
of longitude.

Zodiac Signs & Planet Ownership

The Sun's apparent path through the zodiac coincides with our 12-month
year, almost exactly. Our calendar months do not coincide precisely with the
actual celestial month. We are out of sync by a little bit of time (hence, Leap
Year). This means that the Sun moves into a new zodiac
sign approximately every month, anywhere between 19th and the 23rd of our
month. That group of days is called a cusp, meaning the span of days in
which the Sun may change sign (there is also another meaning for "cusp" in
astrology). However, being born during those days does NOT automatically
mean that you have two Sun signs (a common misconception). Birth charts
are calculated using astronomical ephemerides that chart the exact time of a
Sun sign change for every year. If you were born between the 19th and 23rd
of any month, you must check an ephemeris to see exactly where the Sun
was at the time of your birth.
Empedocles, a fifth century BCE Greek philosopher, identified Fire, Earth, Air,
and Water as elements. He explained the nature of the universe as an
interaction of two opposing principles called love and strife manipulating the
four elements. He stated that these four elements were all equal, of the same
age, that each rules its own province, and each possesses its own individual
character. Different mixtures of these elements produced the different natures
of things. Empedocles said that those who have near equal proportions of the

four elements are more intelligent and have the most exact perceptions.
Each sign is associated to one of the classical elements (water, fire, earth and
air.) Fire and Air signs are considered positive or extrovert, masculine signs;
while Water and Earth signs are considered negative, introvert, feminine
signs.

Fire signs

Earth signs

Air signs

Water signs

Gann Astrononamy - Planetary Aspect & Market Outcome

Gann has found out that the market behaviour is in greatly influenced by
planetary moments. When certain planets come together or in certain other
angular positions the market outcome is influenced. The planetary aspect that
he has considered are.
Conjunction - Planets coming together in one House ( 0 Degree )

Opposition - Planets coming opposite in two House ( 180 Degree )

Opposition - Planets coming Square in two House ( 90 Degree )

Opposition - Planets coming Sextile in two House ( 60 Degree )

Opposition - Planets coming Trine in two House ( 120 Degree )

Gann Astrononamy - Individual Birth Chart & Trading

W D Gann started trading at the age of 24 , he made 200 trades without any
loss. 201st trade onwards he started loosing money and its told that he lost
his full principle. When Gann started strudying Astrology he understood that
when Saturn had moved into his Birth House he started loosing money. As per
Astro science during this period he should have been very careful and traded
with double caution. Where as Gann was ignorant and was trading as per his
old successful technique of trading with "gut feeling" and speculaive .
Gann says that Individual Birth Chart plays a very important role in natives
gains and losses. What he says " like market every individual has ups and

down in life , by observing his past time he/she can clearly chart out the good
and bad period and by analysing his/her birth chart during corresponding
period they can come to a conclusion on why a X period was good or Y period
was bad etc.

For the support of traders we have launched personalised service

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Is your chart ideal for investing or trading etc etc !

Based On
Gann Astrononamy
For Chart Preparation email your details with NEFT** details to
wdgannastro@stocktradingfundamentals.com

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Sample Birth Chart Analysis

Born on 30th Jan 1973 @ 9.10 AM so his birth sign will be Aquarius.
So his birth house(1st House) will be Aquarius and Pisces - 2 nd House and
Capricorn 12th House.
1st House there is no planet, but there is a 90 aspect of Saturn (Lord Of First
House) and Mars and Moon so native will take hasty financial decision not
good for capital market.
1st House Lord is sitting in fourth house opposed by Moon & Mars , Native will
have very fluctuating mood and very erratic mind not ideal for stock market
trading.
Sun + Jupiter + Sun in 12th house is good for Investment since the long term
exit looks brighter.
1st House sextile aspect of Venus + North Node. Good gains from media and
glamour related scrips, Gold, Silver ornaments.
SUN + Jupiter + Mercury have 30 aspect with Birth House good with FMCG,
Banking, Capital Goods, Sports Related.
90 aspect of MARS, MOON, SATURN avoid metal, IT, Telecom , Oil and Gas,
Nickel if necessary do it after full research.
Transit Chart Analysis

For day trading analysis of the Transit chart is very important .

On Jan 10th 2011

Jupiter + Moon sitting in 2nd House in conjunction is opposing Saturn the
owner of 1st House Not good .
Jupiter 90 with Sun, Mercury , North Node, South Node. Clearly Indicates
wealth erosion.
First house 30 aspect of Mars Hastiness.
11th House Sun + Mercury + Rahu @ 90 with Jupiter + Moon and Saturn =
Money lost carelessly.
12th House Mars sitting in Enemies house Misery , Losses.
Saturn 1st house lord sitting in 8th House can speculate but Sun and Jupiter is
weak position would not recommend..

How to Pick a Multibagger..........

Many friends has constantly suggested me to write again about "How to Pick Multbaggers" ....but I was
vary of writing it as I thought let people try to explore and find my back post.....It is very easy......Go to
Google and write the heading and write my bog name and you are there.....this goes for any post....
This post was posted by me on ISG wayback in 2006-2007 or maybe early......
and hence naturally the examples are of that time....
How to Pick Multibagger:

1)First and the biggest preference will go to Low Equity.Because low eq. is an advantage when
company plans expansion and Eq dilution takes place.Even a right of 1:1 or even 2:1 will not expand the
eq in a big way and hence earning can match the eq.Another reason for low equity preference is even
though the earning is not coming because of slow down of economy or a bad year for the company ,
then when the tide turns and with slightest turnaround company can show good EPS which is one of
the most important criteria for investing as it is related to P/E.
2)Next is Promoters Holding.I have many times just invested in stocks on just looking at one
parametres.Promoter s Holding, apart from ofcourse Low eq.Above 55% is almost a must , with
exception in IT Sector where it is seen that you almost get very less company where the promoters
holding is above 55%.I will give an Example for this.I bought Narendra Properties at just Rs 18/- at just
looking at promoters holding which was as high as 72% and moreover one of the promoters was also
hodling some 8% in Public holding.Of course the sector also palyed a role for me to take a decision
fast.Narendra Properties is in Construction Sector.Narendra Properties touched Rs 77/-.Another is
Lancor Holding.Promoters holding is as high as 72% and almost over 20% is held by FII's.I bought at Rs
166/- and now it is Rs 481/-.Both these stocks I bougth after May Carnage and one can calculate what
return I got and am still bullish on both of them.Both have very low Public holding and that is a trigger
according to me.
3)Sector also plays a very important role while choosing stocks.
4)Now the most improtant criteria is earning visibility.This is very important.eg. Navin Flourine.Though
it comes in Chemical sector actually I see it as a Carbon Credit Story.A very very big CC story.Never try
to look at inetrnational prices of CC.They fluctulates. No need to worry on that front.What I compare is if
Guj Flouro a 2 paid up stock can quote at Rs.630/- then Navin a 10 paid up stock will quote much much
more.The reason is both have almost equal CC to sell.But thing for Guj Flou is that they have already
started to sell CC while Navin is still on nascent stage and hence it is available cheap.
5)I almost do not go for already splitted stocks.It is obvious that splitted company say, 2 paid up has to
earn more to show higher EPS as it is splitted in 2 paid up.Same is the case of 1 paid up.Unless you are
sure of the earning of that company that it will be able to match the splitted shares one can buy. Like
Aftek Info where the earnig is coming in a big way. Actually I try to find stocks which have the capacity
to give exponential earning(eg Navin) and can go for Splitting rather then buy which have already
splitted and hence gives fabulous return.Means that I will not buy stocks that have already become a
mutibaggers by already becoming XB or XS or XR.No use to buy those stocks that have become
XB,XR,XS.Of course if even after it looks good after XB and XR then one can buy it.eg JMC Project.It is
still a buy even after JMC has given 2 right issues.
6)Now comes the promoters Gr.I dont think one should look at it in a big manner.I do not put much
weigh on Management.Who was knowing Narayan Murthy when Infosys came out with IPO in 1990's?
Those who went for lookig at management lost the opportunity to invest in bluest of blue chip.
7)Yes,P/E is important.eg, Garnet Const.It is still available at just around 8p/e.A stock which is in hot
sector where the P/E is high Garnet is available under 10 p/e is a bargain.
8) Now comes the BV(Book Value).I have invested in stocks just looking at BV and come out
winner.eg.Titagarh Ind which I bought at Rs 3/- and sold at Rs 30/-.I bought it just because I saw that
price of Titagarh Ind was very very less then BV.I remeber when I bought Titagarh Ind the BV was over
30or 40 and price was just Rs 3/-.I just went and buy it.Though I am not a big player I bought just 1000
shares.So BV also plays an important role while buying a stocks.One more example I would like to
give.Maestros Mediline.It' s BV is as high as 75 and it is available at Rs 18/-?I am holdong Maestros

since long.
9)I use to buy everything I like buying.I do this because no one knows which is going to turn out as
multibbagers. I have written elsewhere that buy even 100 shares.Even a small exposer is enough to give
you big returns if it turns out to be a big big multibagger.
10)Hold the position.Hold it as much as you can.I bought MilkFood Ltd at Rs 40// and I remember I also
recomended here at the same time and some of the members have bought also.Whether they have sold
or not I donno , but I am still holding MilkFood which I purchased at Rs40/-Everybody knows that
MilkFood is making newer highs and is at Rs/- 380.
11) Try to find all info where you have put money.This is very very important.These will help you in
taking decision whether to hold or sell.
12)Try to find stocks on your own because this gives more conviction because conviction plays bigger
part in buying stocks as well as holding it.If one have no conviction about the company you sell it
cheaply.
13)Almost never buy stocks above Rs 100/- If you are buying stocks at Rs 500 how it can become a
multibagger?
14) Stock unknown is the best thing.If no one knows that is a BIG BIG Positive.If everybody knows then
one need to understand that the game is over.The real Charm in a stock remains only when no one is
tracking and we are tracking it silently .If the world knows then the game is over.No FII's, MF's is seen in
the Share Holding Pattern(SHP) then , to me is a great buy.We should be the 1st to buy an undiscovered
stock before someone buys.Remaining first is the KEY for success.So buy when noone is buying.Let
them getin afterwards and let it then go up and we will book profit as soon as it gets double.
But remember when we getin early, when no one is knowing ,then the holding period lengthens as it
takes time for other to have a look at it......but then as we have getin early we have got it CHEAP as
well......which makes an ideal candidate to become a multibagger.....
PN: This last point(14) is written now.....