Fibonacci, Gann... all the MATH!

Good day dear traders,

As I'm one of the many beginners at Fx, I would appreciate if you could help me.

My story started about one year ago. I've been looking for any usefull information in the net, reading a lot but, unfortunately, I'm still missing something. At last I've found out about Gann, Golden Ratio, Archimedes' Spiral and Fibonacci relations that inspired me(actually, it was the great film PI. I defenetely recommend it to see). It gave me a new way to look at currency trading.

So what I am willing to get from you is anything from links to ebooks and articles about my previously mentioned mathematicians and mathematical principles. Also, how can we apply them to the market

Thanks a lot in advance!

As I can see there aren't any experts at this forum who could be generous and help me out.

However, I going to update this thread with new interesting links and may be ebooks about mathematical methods which could be used in Forex.

http://www.fxstreet.com/education/te...006-07-07.html just take a look if you are interested.

Besides, I hope there is a trader who could do me a favour and share his/her experiance on how to use the Gann fan, how to apply it properly and so on.

Thanks

I've done a simple search using the Forum's search box and at least 8 pages with links came up.Try it, there must be something for you in that lot.
BTW Welcome

Appreciate that

There is a man in the journal forum who trade like this.

Could you please tell me who is this man?

I am not sure who you are asking about. But here is a site with a lot of Gann, Fibonacci, Astro traders, some who also post here on FFF http://beginnertrader.com/forum2/

Also if you really want to know Gann in depth, try The Price Time Review. It is free. More Gann stuff than you can ever want. Plus you will find out how to build a real Gann fan. The author says the ones on chart packages are probably bogus.

Good luck.

Lou

That is fucking RUDE! You come in here, clearly too lazy to do any research yourself, and then when no one chooses to cater to your desire to be spoon fed, you come back with this general insult!

I suppose your screen name is pronounced Mind-All-Gas.

You've been FRYED!!

Fred

Ok, I have thought about whether I should help after the comment by the author of this thread, and have choosen to help.

I have read a great deal about W.D.Gann.

Here are some reference materials.

The Difinitive Guide To Forcasting Using W D Gans's Square of Nine,
by Patrick Mikula

This is the best bookl there is on this subject, without exception.

Market Math Gann Angles by Gene Nowell
This is an e book and is very well written. It is full of all kinds of general info about gann's math. It is available at his web site. You will have to google, I don't feel like posting a link.

How to Make Profits In Commodities
by W. D Gann

This was the second to the last book he wrote. It was in 42 and is very difficult reading, but if you can get through it you will know every thing about Gann

Gann Simpified by Cliff Droke

This book will give you a good over view of the main indicators and ideas of Gann, such as Swing high and low and fans and 1x1 to 1x4 angles and degrees and such.


That should get you up to speed.

Couple of things.
1) read the Forum Rules re posting URLs.

2) What did you discover on your own in the 8 days between your posts? Anything? {other than URLs of course.}

If you really think that no-one here is generous enough to help, then you are indeed new to FF and perhaps should understand that, Not Only, the so called experts but also anyone who has frequented this Forum for more than 6 months has seen requests like this all too often.

"You can lead a horse to water but you can't make him drink."

Use the Search feature as your water and drink in all you can Then, if you would like to discuss your findings, the flood gates will open.

hth &
Welcome to the Factory.

ever try yahoo answer? investopedia? wikipedia?

oh hey there is google in here....

The best thing that I can do now is to apologise those who thought that my post looked impolite, immature and like written by a lazy fellow. I might be picking up wrong words or something as my native language isn't English. I honestly just wanted a right direction, a right way to go on, just it. I didn't mean it to become a fight arena and abusiveness storm.

I'm sincerely sorry

Sure! It´s this journal http://www.forexfactory.com/showthread.php?t=35389

Appreciate that

Start with your bank account and weekly or monthly positive cash flow after taxes and expenses. From your bank account you can allocate a percentage of it to your trading account. The size of your trading account and your positive cash flow above your living expense will determine how you approach the market(s) you want to trade.

Money makes money, not smarts, genius or abnormally high intellect. The amount of your trading account is going to dictate how much money you can put at risk. Asumming if you have a small trading account, you will want to trade as a short term swing trader. With a larger account you will be able to expand your time horizions and widen the distances to your fail points. So you have to work within the constraints imposed upon you by the size of your account.

Kill losing trades and give your winning trades some room to grow. If you are working with a small account make sure you kill all your losing trades before the end of each day. Give your winning trades time to grow. These trades have to pay for the loosing trades, they have to pay for your education, they have to pay for your living expenses, they have to pay your taxes and they have to grow your trading account at an exponential rate. If you cut these trades short or let them give back to much of what they have already made, they will never allow you to grow your account.

So now we are down to what to trade and how to size up the trend in these markets. We are looking for "Bang for the Buck." How much does the market have to move in order for me to double my margin money. You want low margin markets that have the potential to heat up and expand their attractiveness to other traders. Its thoes other traders and their money that are going to create your profits. We need reasonably low margins, increasing volitility and increasing liquidity to make money.

If you put on a trade and it goes against you or goes nowhere get out. The only trade you ever want to be in is a trade that is moving you in the direction you want to go. A famous trader said if you want to catch a big fish you need to give it a lot of line. But if you are working with a small trading account, you do not have the luxuriy of letting these markets move against you. He could do it because he had millions of dollars. But small traders have to keep their risk very close to the entry. If the trade goes your way out of the gate give it some time to develop. If it dosen't get out and move on.

If half of your trades lose money and half win with a 3:1 profit ratio You will be able to grow your account. If 2/3 of your trades get stopped out, but you give your winning trades time to develop you can still make money. Letting your profits develop and killing your losing trades is easy to say but difficult to do.

Well, Mindaugas, I'm more than happy to help you out. Here's a blurb from Wikipedia:
Leonardo Bonacci, Leonardo of Pisa, or Leonardo Bigollo Pisano ('Leonardo the Traveller from Pisa'[7]), was an Italian mathematician from the Republic of Pisa, considered to be "the most talented Western mathematician of the Middle Ages".[8]
The name he is commonly called, Fibonacci, was made up in 1838 by the Franco-Italian historian Guillaume Libri[9][10] and is short for filius Bonacci ('son of Bonacci').[11][b] However, even earlier in 1506 a notary of the Holy Roman Empire, Perizolo mentions Leonardo as "Lionardo Fibonacci".[12]

His famous sequence of numbers was invented as a model to explain population growth in rabbits - yes, rabbits! He was unaware of the concept of exponential growth, as that would have to wait for Leonhard Euler who lived some 600 years later.....

W.D. Gann - Despite the hype one hears from "trading coaches", Gann never made millions of dollars trading. In an interview some years after his death in 1955, his son revealed his father's estate at the time of his death was valued at $150,000. Good money in the '50s, but not even remotely close to millions. His son also mentioned that his father earned his money by inventing and selling trading systems, not by actually trading the markets.

R.N. Elliott - Again I quote Wikipedia:

Elliott was born in Marysville, Kansas, and later moved to San Antonio, Texas. He entered the accounting field in the mid-1890s and worked primarily in executive positions for railroad companies in Central America and Mexico. In 1903, Elliott married Mary Elizabeth Fitzpatrick (1869–1941), who accompanied him during his extended time working as an expatriate in Mexico. Civil unrest there brought the couple back to the United States and eventually to a residence in New York City, where Elliott started a successful consulting business. In 1924, the United States Department of State appointed Elliott to the post of Chief Accountant for Nicaragua, which was under American control at the time. Not long afterward, Elliott wrote two books based on his professional experiences: Tea Room and Cafeteria Management[2] and The Future of Latin America.[3]
At age 58, he filed for bankruptcy because of the severe losses he suffered in the short term.

I should also mention Elliott died penniless in a New Jersey insane asylum.

So there you have it - the figures all the "trading gurus" harp about are somewhat less than the rich traders the gurus claim they were. Out of the bunch, Fibonacci was the only one who actually did anything noteworthy, and he never traded at all, since stock and futures markets didn't even exist during his lifetime.

This is not a very rare occurrence in this area.

Ah, good ol Fibonacci n Gann.

Two of the biggest red herring trading methodologies out there, keeping the majority blinded by bullshit, so the minority who actually learn to read and interpret what the fuck is actually going on in the markets get to keep on banking like bandits instead of wasting time and energy breathing meaning into esoteric bullshit when there is no meaning there....grandiose hindsight examples of Gann Squares and/or Fib Harmonic patterns working 'flawlessly' not withstanding.

*Disclaimer...sure, sometimes market will pivot right off a 61.8% retrace, but 61.8% is (almost) NEVER the reason WHY a market pivots right of a 61.8% level.

P.S. The 'Tarder' who taught me how to 'tarde' was obsessed with esoteric bullshit like Gann and Fibonacci (although all he ever traded (successfully) was Penny stocks and Alt coins after 85% price cuts......do as I say, not as I do?)