GANN MASTER FOREX

Trading Course
Section 1
Basic Tools
• In the previous course we learned how to draw the
Gann Swing Chart. We say that W.D. Gann was a
swing trader. With the aid of such charts, W.D. Gann he
managed to point out what the trend in which the price
is evolving, the support and resistance levels, the entry
and exit points is the best placement of the stop loss.
• The swing chart as we can already notice is extremely
visual, and It helps us eliminate basic errors that lots of
traders make. There are a few simple rules that need to
be applied in order to make successful. Out of these
formulated rules the most important is probably:
• ” Always trade with the trend and don’t trade if you
don’t know which way the market is going”.
• There are two ways to construct the trend indicator
chart. The first way is to create the chart manually.
The second is to have a charting program create
the chart. It is highly suggested to create the chart
manually at first to get a feel for the information the
chart is revealing. Only after mastering the creation
and interpretation of the trend indicator chart should
one computerize this technique.
• Once computerized, the trader will have the
ability to analyze quickly more markets and time
periods.
• This will help the trader learn more about the
characteristics of each market especially the
size and duration of the swings.
• In order to manually construct a trend indicator
chart the following must be available:
• a bar chart
• price and time data
• a red pen, a green pen, a black pen,
• a ruler.
• The black pen is used to update the chart,
• The green pen is used to track the upward
movement of the trend line,
• The red pen is used to track the downward
movement of the trend line.
• Since a poorly drawn line may be misinterpreted,
the ruler is used to keep the lines straight.
• Use the price and time data to ensure the proper
marking of highs and lows, as relying on visual
estimation invites faulty identification, which can
also have an adverse effect on the research.
• After creating a trend indicator chart and
studying the tops and bottoms, the following
should be strongly noted in order to understand
the interrelationship of the charts.
• This concept is addressed again when
percentage retracements and Gann angles are
discussed.
• Interrelationships of Time Periods and
Swings

• A swing top on a monthly chart is always a

top on the weekly, daily, or hourly charts.
• A swing top on a weekly chart is always a top
on the daily and hourly charts, but not
always on the monthly chart.
• A swing top on the daily chart is always a
top on the hourly chart, but not always on the
weekly or monthly charts.
• A swing top on the hourly chart is not always a top on the
daily, weekly, or monthly charts.
• A swing bottom on a monthly chart is always a bottom on
the weekly, daily, or hourly charts.
• A swing bottom on a weekly chart is always a bottom on the
daily and hourly charts, but not always on the monthly
chart.
• A swing bottom on the daily chart is always a bottom on the
hourly chart, but not always on the weekly or monthly
charts.
• A swing bottom on the hourly chart is not always
a bottom on the daily, weekly, or monthly charts.
• Uptrends and downtrends on the monthly chart
are composed of a series of swings from the
weekly, daily, and hourly charts. Study how
many weekly, daily, or hourly swings on average
it takes to form a monthly uptrend or downtrend.
• Uptrends and downtrends on the weekly chart are
composed of a series of swings from the daily and
hourly charts. Study how many daily or hourly swings
on average it takes to form a weekly uptrend or
downtrend
• Uptrends and downtrends on the daily chart are
composed of a series of swings from the hourly chart.
Study how many hourly swings on average it takes to
form a daily uptrend or downtrend.
• Uptrends and downtrends on the daily chart are
composed of a series of swings from the hourly chart.
Study how many hourly swings on average it takes to
form a daily uptrend or downtrend
• Uptrends and downtrends on the hourly chart are
composed of a series of swings from the other intraday
time periods, such as the 30-minute, 15-minute, or 5-
minute chart. Study how many time period swings on
average it takes to form an hourly uptrend or
downtrend.
• Interrelationships of Types of Swings
• A minor swing uptrend is made up of a series of minor swings.
• A minor swing downtrend is made up of a series of minor swings.
• An intermediate swing uptrend is made up of minor and intermediate
swings.
• An intermediate swing downtrend is made up of minor and
intermediate swings.
• A main swing uptrend is made up of minor, intermediate, and main
swings.
• A main swing downtrend is made up of minor,
intermediate, and main swings.
• An intermediate swing top is always a minor top,
but a minor top is not always an intermediate
top.
• An intermediate swing bottom is always a minor
bottom, but a minor bottom is not always an
intermediate bottom.
• A main swing top is always a minor top and an
intermediate top, but a minor top and an
intermediate top are not always a main top.
• A main swing bottom is always a minor bottom
and an intermediate bottom, but a minor bottom
and an intermediate bottom are not always a
main bottom.
• How can we determine when a swing is on the point
of changing this direction?
• W.D. Gann said that a descendent swing is changing
the direction to offer us a higher low. We can say that a
descending intermediate swing (2 bars) can change
direction and enter an ascending movement only when
there are two consecutive bars that close higher highs.
• Inside bar: all inside bars, including equal high or
equal low inside bars, are neutral and they are not
counted. We are only interested in price making x-bar
higher highs for upswing and price making x-bar lower
lows for downswing.
• Outside bar: From downswing to upswing. Outside bar
close must be above prior bar high to be valid as first
upswing.
• Qualifications of 2 bar swings aplicable to all time
frames.
• Upswings- two consecutive higher highs.
• Downswings- two consecutive lower lows.
• Rule of thumb with Price Swings. The next highest time
frame should be pointing in the direction you intent to
trade.