Category: Trading Articles

The principles of Gann’s Law Of Vibration, as discerned from his interview of December 1909 to the “Ticker And Investment Digest” are as follows.

1. Stocks and commodities (and everything else on earth) vibrate.  Moreover, vibration provides a comprehensive explanation of price movement in financial markets.

Vibration is fundamental; nothing is exempt from this law; it is universal, therefore applicable to every class of phenomena on the globe…. After years of patient study I have proven to my entire satisfaction, as well as dem-onstrated to others, that vibration explains every possible phase and condition of the market” (Ticker interview).

Continue reading The Principles Of Gann’s Law Of Vibration

When I first began trading more than five decades ago, I was told by one of my mentors that trading was a journey, not a destination. Those words have been emblazoned on my brain since that time. The library I’ve accumulated over the past years has just about everything published, as well as many things not published, and I’m still learning.  But, my first experience with technical analysis was when I was in graduate school and one of my professors had some large charts of US Steel, Corn, Soybeans and General Motors posted on his office wall. Each day, he’d mark these little bars on his charts with notations. The class was always curious as to why he did this. It would be years before I would understand the significance of his daily ritual.

Continue reading A Stock Market Model That “Shoots for the Stars”

Price actions of various stock issues and commodity contracts have many elements in common in spite of the fact that the individual charts often look dramatically different. This is known as the Principle of Commonality. It is this principle that makes the methods taught in this course applicable to all negotiable equities on all of the markets of the world. There are seven elements to the Principle of Commonality. These seven elements will be discussed individually in the following material. The most fundamental element of commonality is the fact that all price movements of all stocks and commodities consist of a combination of the same number and kinds of single price waves. This is known as the Principle of Cyclicality and is an element of Commonality. It is this principle that makes possible a degree of prediction of the time of occurrence of price reversals and the extent of the subsequent price move.

Continue reading Cyclic Concepts Commonality and Cycicality

Earlier I mentioned that trend was defined by a pattern of higher bottoms and higher tops for an up trend, and a pattern of lower lows, and lower highs for the downtrend. This is true even on the most minute tape reading scale since horizontal support and resistance levels tells us where the buyers and sellers are. Angles are a form of straight line moving averages which estimate momentum and normally an angle suggests where buyers or sellers should be, based on a charts price movement momentum. Note, however, that angles per se do not show actual support and resistance like the patterns on a bar chart, and therefore must be used only as an estimate to be verified with trading bars occurring at the same level.

Continue reading Angles

First, I would like to say that it was Gann (not Mr. Ferrera) who said to measure time by the Sun based on harmonics of the circle. He said to add these time periods as days, weeks and months from extreme high and low levels to determine future turning dates. Mr. Ferrera did not invent this technique, he simply illustrated the approach as one of the methods in the book to make it more accessible to Gann students. Continue reading Timing Approach

“By the Law of Periodical Repetition, everything which has happened once must happen again and again and again-and not capriciously, but at regular periods, and each thing in its own period, not another’s, and each obeying its own law…the same Nature which delights in periodical repetition in the skies is the Nature which orders the affairs of the earth. Let us not underrate the value of that hint.”—Mark Twain

There are multiple techniques used in technical analysis to anticipate and/or forecast possible future movements of the markets. Some techniques such as the Elliott Wave are based on a type of pattern recognition. Other forms of technical analysis pattern recognition include the classic chart formations such as the “head & shoulders”, “double tops & bottoms”, “triangles”, “cup & handle”, “Bull & Bear Flags”, “Japanese Candle Sticks” to name a few.

Continue reading Secrets of Forecasting

There are two basic approaches to market analysis: fundamental and technical. The trader using fundamental analysis is interested in the underlying supplydemand dynamics of the market. He looks at factors such as the size of this year’s crop (if it’s an agricultural or food commodity), the industrial supply (if it’s an energy or industrial metal), weather conditions in various parts of the world, the impact of government programs, etc.

Continue reading Dynamic Gann Levels

The cycle of one year has 365 days. The circle of one year has 360 degrees. The Earth revolves around the Sun in an elliptical path moving closer to and away from the Sun during its orbit. This is the reason the days and degrees relationships speed up and slow down. To explain, there are 4 cardinal points in the circle, 90, 180, 270 and 360 degrees.

Continue reading An Introduction to the Methods of W.D Gann: Part 2

William Delbert Gann (or as he preferred W.D. Gann) was a pioneer in the area of time and price analysis of market activity. Born in Lufkin Texas in 1878, Gann’s basic premise was the future is just a repetition of the past and that time governed all market movements. Gann traded with and taught time and price analysis methods that could predict market highs and lows. Gann reputedly had the knowledge to forecast the price and time of the yearly high and low for commodities and stocks.

Continue reading An Introduction to the Methods of W.D Gann: Part 1

A geometric relationship between two planets is called an “aspect”, and when we refer to Harmonics, we are talking about aspects. The concept of planetary lines will allow you to see not only conjunctions, but any aspect between two or more planetary elements converted to price. We do this by looking at harmonic divisions of a planet’s position, and plotting those harmonic divisions in price.

Continue reading Aspects and Harmonics