Category: Trading Articles

GANN FORETOLD RUN OF STOCKS

W.D. Gann has scored another astounding hit in his 1922 stock forecast issued in December 1921. The forecast called for first top of the bull wave in April, second top in August, and the final top and culmination of the bull market October 8 to 15, and strange as it may seem, the average prices of twenty industrial stocks reached the highest point on October 14 and declined 10 points in thirty-days after that date.

Mr. Gann predicted a big decline for the month of November. He said in the 1922 forecast – “November 10-14 panicky break.” During this period stocks suffered a sever decline, many falling 10 points or more in four days and on November 14 lowest average prices were made with 1,500,00 shares traded in on the New York Stock Exchange.

Continue reading The Morning Telegraph

After fifty-two years of experience and research going back hundreds of years. I have proved to my entire satisfaction that history repeats and that when we know the past, we can determine the future of prices. I have put TIME CYCLES to the test in my personal trading, and I have issued Annual Forecasts on Stocks and Commodities for more than 50 years which have proved accurate.

TIME CYCLES repeat because human nature does not change. That is why wars occur at regualr CYCLES. Old men do not want wars, neither do they want to go into war after they have been through one. Young men fight the wars because they read history and want to be heroes. Leaders of nations appeal desire in men that urges them to risk their lives in war causes them to take a chance in business and in speculation. They take too many chances and get too optimistic after a long period of success in business and after prolonged advances in Stocks and Commodities.

Continue reading Why Time Cycles Predict Trends of Commodities, Stocks & Business

The Rules given below are based upon W. D. Gann’s experience :

1.Amount of capital to use: Divide your capital into 10 equal parts and never risk more than one-tenth of your capital on any one trade.

2.Use stop loss orders. Always protect a trade when you make it with a stop loss order.

3.Never overtrade. This would be violating your capital rules.

4.Never let a profit run into a loss. After you once have a profit (…), raise your stop loss order so that you will have no loss of capital.

5.Do not buck the trend. Never buy or sell if you are not sure of the trend according to your charts and rules.

Continue reading Gann’s 28 Trading Rules

W.D. Gann’s outstanding skill was his ability to produce accurate annual forecasts of the stock and commodity markets. Gann stated that his forecasts were based on his secret “time factor”.

However, careful analysis of his novel entitled “The Tunnel Thru The Air” reveals Gann’s belief in the overwhelming importance of astrology. Therefore astrology is the real basis of Gann’s annual forecasts. Indeed, astrological analysis is implicit at key points in his books and courses. Consequently it is concluded that if we wish to emulate Gann’s outstanding forecasting skills we must follow in his footsteps by firstly learning astrology and then apply this knowledge to the stock and commodity markets.

Continue reading The Time Factor OF W. D. Gann

Introduction
In recent years, the name of William Dilbert Gann has been gaining attention among market technicians. It is said that his market forecasting technique is one of the most complicated technical analytic methods ever in the world and that few people could fully understand it. Nevertheless, W. D. Gann had proven himself to be one of the greatest stock and commodity traders in the last century.

W.D. Gann was not a contemporary man. He was an American who traded US stock and futures markets in early Twentieth Century. He became famous among the investment communities by making several accurate calls. One of his most famous calls was his timing of the black Friday in September 1929 when the US long bull market ended all of a sudden. The end of the bull market was also the beginning of the Great Depression in the western world in 1930s. He made his forecast in November 1928, ten months before the collapse.

Continue reading Basis of W. D. Gann’s Techniques