ABC’s of Gann & Fibonacci: Advanced & Basic Charts

ABC’s of Gann & Fibonacci is a must have book for the Stock, Commodity and Forex Trader of the 21st Century. Gene delivers an in depth study of two well know figures in the world of Technical Analysis on the Advanced and Basic levels. Gann and Fibonacci techniques are presented in a comprehensible format along with a cutting-edge approach on how to use the Square of 9 to divulge the mysteries of Price and Time.

Introduction:

Who was W.D. Gann? W.D. Gann has arguably contributed more to Technical Analysis, and in particular the understanding of the relationship between Time and Price, than any other person that traded the world markets. It was Gann’s mathematical genius and his ability to see the patterns in the market (that at the time nearly everyone else ignored) that made him so successful and has a legacy that continues to this day.

William D. Gann was born June 6, 1878 in Lufkin, Texas. His father was a cotton farmer in Texas. Growing up on a cotton farm, young William began calculating times of the year when cotton was at its best price and suggested to his father not to sell at harvest. As his theories proved successful, he moved on to other commodities and began experimenting with historical data.

He started trading in 1902 when he was 24. He was believed to be a religious man by nature who believed in religious as well as scientific value of the Bible and spoke of it as the greatest book ever written. This can be repeatedly observed in the books that he wrote over the years. He was also a 33rd degree Freemason of the Scottish Rite Order, to which some have attributed his knowledge of ancient mathematics. He was also known to have traveled many places like India and Egypt and studied the ancient Greek geometry along with the Indian and Egyptian cultures. It is believed that during this time on his journeys, he discovered the “Square of 9”. He called this the “SPIRAL CHART”. I will cover this in a later chapter.

Gann used ancient math and geometry (geometric angles) on his charts and described the use of angles in his book The Basis of My Forecasting Method (1935). There has been a general disagreement whether he made profits by speculation himself. However, his famous Ticker Interview[11] shows that his claim to profits was as real as his documented forecasts.

As you will see later in this book, his forecasting methods are still valid. His most effective tool was the Square of Nine (Spiral Chart). People have asked me how Gann Angles are going to help in their trading? And how this Gann Math is going to blend in with the type of trading they do? My answer is the simple techniques I teach in this book are no more difficult to learn than Moving Averages or Stochastics or the RSI. I know there are people who trade on these alone and hope that these basic tools will to bring them to riches. Moving Averages alone are not a formula for success. Truth of the matter is, most Moving Average systems are 50% accurate at best. It is better to flip a coin and call it.