Gann’s technique and Gann’s cycles: reflections on financial Markets trading

gann's cycles

Gann’s technique and Gann’s cycles: reflections on financia markets trading

Gann’s technique and Gann’s cycles: brief reflections for the operativity on financial markets.

Gann's technique and Gann's cycles
Gann’s cycles 144 units

 

Gann’s technique allows us to anticipate changes in financial market trend.

Gann’s theory is based on Geometric-Mathematical rules that allow us to understand Time and Price dimension of a listed stock. The vector decompositions of these dimensions and the identification of the relating resultant make us understand when a psychological mass of people will make a significant change in a commodity or stock prices.

Gann’s technique Gann’s Cycles

Before taking a position on the market, we must study first the Annual trend, then the Quarterly, the Monthly, the Weekly and lastly the Daily one. All these analyzes are exposed in the blog and deepened in consulting reports.

In this way we will have awareness of what trend we are referring to when we open positions in the market.

In particular, if we open positions on a Daily Set Up we will have to understand if we are concordant or discordant with the Weekly and Monthly Set Up.

If we have two time signals one next to another, one could deny the other.

For this reason I recommend to wait for the end of both signals. In this way we will avoid over trading and Out-sides.

The trader who uses Gann’s technique does not care to take position on the maximums or minimums of prices. He has great mastery of his emotions. He will take position respecting time signals.

After the time signal, the trend will change manifesting its effects on prices.

Gann wrotes “we must wait for the market itself tell us where it really is an important maximum or minimum. We couldn’t and shouldn’t suppose the point where the market will reverse the trend … “.

Gann’s technique: reflections on operativity

The study of a trading plan is very important to face the markets with psychological quiet.

When the positions are positive, the exit from the market must be justified by price and time signals studied in advance and not by the emotion of the first earnings.

If a placement is gone against the trend and we have not put the Stop Loss, we have created the loss conditions for our financial and psychological capital. Stop Loss orders have to be entered together with the opening of the position, in order that the potential loss is limited, unlike the gains that gradually accumulate.

At open positions, the constant visual observation of the market through the screen creates a psychological circuit Observer-Observed: the ego and the collective intentionality of the psychological mass of traders, including banks, investment funds, etc., creates a hypnotic phenomenon that is absolutely negative for the stock exchange trader.

For this reason it is necessary to be flat on the markets in some periods and completely detach in others.

W.D.Gann
W.D.Gann
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