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William Gann method

Created on: 8/10/2010 11:43:56 PM Last Update: 6/10/2017 11:13:08 PM Posted by: RTT

The originator of this method is from the writings of William D Gann (1878-1955)

From the age of 13, Gann traveled the trains selling cigars and newspapers. In so doing, he overheard many
conversations on investinghe listened. Gann wondered if it were indeed possible to predict the future. Many
conversations he had overheard seemed to revolve around predicting the prices that their cotton would bring.
Was it possible?

Gann moved to New York in 1903 at the age of 25 and began working at a major Wall Street Brokerage house.
During the First World War, he and his family moved from Manhattan to Brooklyn. Gann reportedly predicted
the November 9, 1918 abdication of the Kaiser and the end of the war. W.D. Gann began by studying the basic
principles of price patterns and philosophy on how to accumulate wealth, and keep it. After becoming
successful, he wanted to know why and how markets, and numbers repeated under certain time cycles. This led
to further studies of ancient geometry and astrology.This research led to Gann accumulating over 50 million
dollars up until his death on the 18th June 1955 **.

** While there is some debate on Gann final fortune (please read Gann life story via the menu), it is widely accepted that Gann was most
successful early on in his career, it is known that he accumulated profits over $100,000 in the 1950s using methods that we also like to use:
Angles, percentages, support and resistance.

Gann methods are all about geometry within a price time series, all his methods are designed to find the
influential geometry within a price chart. Gann technical tools include angles, lines, circles, cycles, percentages,
square of nine, astrology to name a few. We find favor with Gann's angles, arcs, levels and percentages. You

can learn more via our videos.

Gann Angles
From the Gann book called "The WD Gann Master Stock Market Course" (see our education page) we reference chapter 4 "The basis of My
Forecasting Method - Geometric Angles" where Gann explains the construction of his trading charts. Gann charts are a 1x1 with time and
price. That means that the chart is square. So if a stock high was $28, then the price range (x-axis) would be 0 to 28 and the time range
(y-axis) would be 28 days (weeks or months). You can use multiples of 10 to make the chart easier to use for example, change price to $280
and then time axis can have 280 days etc. The point is the chart must be square.

Gann angles appear in many common software packages however they are reapportioned to fit with the computer chart provided (compared to
the true paper square chart) and I am afraid they often are unable to present a true Gann chart. All computer charts are presented by an
x-axis and y-axis made up of pixels, for example a chart may be 600 pixels wide (x-axis) and 600 pixels high (y-axis). A computerized Gann
chart would require that pixels per price (y-axis) are equal to pixels per time (x-axis). charts allow you to determine a
correct Gann chart construction.

It should be noted that Gann Angle theory is based loosely on astrology, here is the evidence: