Sunday, April 6, 2014

Gann analysis and paralysis

Gann most commonly used monthly ,weekly , and daily chart.


weekly charts are excellent tools for trading analysis
weekly chart shows 5 years price action.
Normal change of trend in weekly chart is minimum 3 weeks.
on weekly chart , most important part of the cycle is 60 weeks./points
30 weeks also imporant but secondary.
on weekly and monthly chart angle acts as strong support and resistance.


Gann used change of price with time , if no change is evident cycle is not valid.

example: Price rises for 270 days up(High) and than correcting  90 days down(low).then the price will rise again.


typical long term cycle 7 yrs or 5 yrs and short term cycle 90 days cycle.



Gann angle:

Usual angle 1x1 , 45 degree, most reliable,accurate angle.

Monthly or weekly chart 2x1,3x1 angle
3x1,4x1,8x1 angles are in the daily or intra day chart occurs during rapid movement.





Daily cahrts are most glamourous and most dangerous .




Most difficult chart are intraday chart.



two types of cycle in gann
1. Time cycle or natural cycle
2. Price cycle of stock or index or commodities

natural cycle of 1 yr or 52 weeks , 26, 13 weeks are cardinal points, as total 1 yr is 360 degree, so cardinal degree are 180, 90,45,

here 1 yr is 52 weeks , it makes square of 52.
1 cycle = 52 weeks
2 cycle =104 weeks
10 cycle = 10 years= 520 weeks

Major cycle
30 yrs cycle= 360 months
15 yrs=     180 months
7and half year= 90 months
5 yrs = 60 months

these are natural cycle.

High, low, range of price is squared with time.



square of of 52:
Is used for weekly charts.
master calculator for weekly chart.





  • if u have patience and discipline use monthly and weekly chart  use daily chart for entry.

your success of trade will be high..


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