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Gann Analysis

  • #3,581
  • Jan 19, 2013 8:09am Jan 19, 2013 8:09am
Quoting godim
I've always ask. And now I ask again. Is there a rule that tells us where did to construct a fan of Gann. Is not it more logical this to be places where the trend is changing.

I'm wondering the same thing. Last night, I was toying with the fib ratios fan on the E/U daily and noticed where price hit before it started falling. I'm becoming very bearish on this pair. Another thing that I noticed on the monthly, since I'm a fib candle counter, look at how many green monthly closed candles in a row there are now. Five. If this month's candle closes green, then the next fib number isn't until eight. I also keep having Feb. 3rd as a key date for something happening with this pair. Still playing around with this fan thing, though. Both fib and Gann fans.
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Time turns trend. - W.D. Gann
  • #3,582
  • Jan 20, 2013 2:19am Jan 20, 2013 2:19am
Quoting OrionsWay
Each swing could be considered a trend change at some level could it not?
Yes. Therefore, some kind of the graphics we need to have fans of each extreme.
"
Two-Bar Swing Chart (2-Bar Swing Chart): The Two-Bar Swing Chart, or Intermediate Trend Chart, follows the two-bar movements of the market. From a low price each time the market makes a higher-high than the previous bar for two consecutive time periods, a Two-Bar trend line moves up from the low two bars back to the new high. This action makes the low price from two bars back a Two-Bar Swing Bottom. From a high price each time the market makes a lower-low than the previous bar for two consecutive time periods, a Two-Bar trend line moves down from the high two bars back to the new low. This action makes the high price from two bars back a Two-Bar Swing Top.
The combination of Two-Bar swing tops and bottoms forms the Two-Bar trend indicator chart. The crossing of a Two-Bar swing top changes the Two-Bar trend to up. The penetration of a Two-Bar trend bottom changes the Two-Bar trend to down.
"
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My experience has shown me that it is better to have no more than four fans.

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"You have to BE before you can DO, and DO before you can HAVE." Zig Ziglar
  • #3,583
  • Edited 3:26am Jan 20, 2013 3:09am | Edited 3:26am
Quoting ForExtraPips
I'm wondering the same thing. Last night, I was toying with the fib ratios fan on the E/U daily and noticed where price hit before it started falling. I'm becoming very bearish on this pair. Another thing that I noticed on the monthly, since I'm a fib candle counter, look at how many green monthly closed candles in a row there are now. Five. If this month's candle closes green, then the next fib number isn't until eight. I also keep having Feb. 3rd as a key date for something happening with this pair. Still playing around with this fan thing, though....
Yes. And I had these fans even from the top 1.6035. And on it can find these interdependencies. But the question is, how big is the impact of these "too old" fans. I think it is better to work with the last 4-6 or 8 fans. For a period approximately one year. In places where there is a real change in trend.
We need to predict the price movement in all angles rule. If we let all the fans, this may be an impossible task. Leaving just a fan, as in your chart. this can be misleading, hence heavy loss of money.

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The chart has only two of many options. Future price movement will confirm or reject one or both. Then I will suggest new ways that the market will confirm or deny. The question is how many and which of the fans leave, that we can "read" the market correctly.
"You have to BE before you can DO, and DO before you can HAVE." Zig Ziglar
  • #3,584
  • Jan 20, 2013 3:28am Jan 20, 2013 3:28am
Because, you are probably asking yourself "how to track these options?". I proceed as follows. Draw these "big" fans of the current chart. Then the possibilities are much more visible, right?

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"You have to BE before you can DO, and DO before you can HAVE." Zig Ziglar
  • #3,585
  • Jan 20, 2013 5:10am Jan 20, 2013 5:10am
In my search for "the perfect angle" over the charts there are a few guidelines I have followed: a 1x1 anlge can and should be drawn from every top and every bottom, but there always is a major and a minor. Drawing angles is easy, finding the majors is difficult. Mr. Gann underlines the importance of the first lower top (after the first sharp decline to lower bottom) after an uptrend (reverse for downtrend), when price goes out from a trading range the last bottom or top inside the range becomes important. "where the trend changes" is perhaps the most basic and most important question in technical analysis, and though it has many answers. One of them is Mr Gann's quote "when the 45 degree angle is broken you know the trend has changed". Based on that we can suppose that the angles from the first top/bottom after the 1x1 angle is crossed will be important. That bottom/top in many cases looks like "test" of the 1x1 angle. I believe that all 45 degree angles on the chart are a part of bigger framework, and there is just a slight change in that framework back and forth since tops and bottoms come at some time sooner or later than the exact moment, or little higher or lower than the angle. That belief is based on the working of the fixed squares of 90, 144, 360... - the countertrend 45 degree angle privides support/resistance, but doesn't come from top or bottom, it is just a part of a fixed square. Elliot wave counting may contribute also - it could help spotting important tops and bottoms different from the highest high and lowest low.
The following chart provides wave counting and three defined trading ranges.
As always, price has the final words - an angle (or fan) is proved important when price respects is. If price does not respect our angles it will not respect our orders too.
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  • #3,586
  • Edited 6:37am Jan 20, 2013 5:22am | Edited 6:37am
COT reports sounds optimistic for the euro - 20 percent increase in comercials' short positions and 18 percent increase in leveraged funds' long positions up to last tuesday, although open interest is not much of a big number. British pound shows more of closing old speculative business, which sometimes happens around a top and sometimes in a middle-movement range
Daily chart with volume and open interest shows a big part of the action happening at 12.01 and 15.01, after that support volume on 17.01
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  • #3,587
  • Jan 20, 2013 5:56am Jan 20, 2013 5:56am
Quoting jilm
what was supposed to be the secret in "tunnel thru the air"?
There is no secret, everything is clearly explained
  • #3,588
  • Jan 20, 2013 8:02am Jan 20, 2013 8:02am
Quoting jilm
what was supposed to be the secret in "tunnel thru the air"?
Have you read it three times?
Time turns trend. - W.D. Gann
  • #3,589
  • Jan 20, 2013 8:25am Jan 20, 2013 8:25am
Quoting godim
I've always ask. And now I ask again. Is there a rule that tells us where did to construct a fan of Gann. Is not it more logical this to be places where the trend is changing.
Good point. Just like Gann said on page 128 in his Master Stock Market Course book,


After a stock makes top, either temporary or otherwise, and breaks under the 45° angle and

starts moving down, then the first thing you do is to draw angles below the 45° angle, starting

from the bottom or low point.
So, on this E/U chart below, what I need to do now, is start drawing angles from the low at 1.3279. I just drew this one up last night, not done with it, yet.
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Time turns trend. - W.D. Gann
  • #3,590
  • Jan 20, 2013 8:59am Jan 20, 2013 8:59am
I do not know why you give vague explanations. There is a two-bar swing chart. There are rules to reverse swing and trend. Graphics are from the book of Robert Krausz.

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http://forexforum.bg/viewtopic.php?p=49073#p49073
"You have to BE before you can DO, and DO before you can HAVE." Zig Ziglar
  • #3,591
  • Jan 20, 2013 9:16am Jan 20, 2013 9:16am
Quoting godim
I do not know why you give vague explanations. There is a two-bar swing chart. There are rules to reverse swing and trend. Graphics are from the book of Robert Krausz.

Attachment

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http://forexforum.bg/viewtopic.php?p=49073#p49073
So, who's right? Gann or Krausz?
Time turns trend. - W.D. Gann
  • #3,592
  • Jan 20, 2013 9:39am Jan 20, 2013 9:39am
Quoting ForExtraPips
So, who's right? Gann or Krausz?

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"You have to BE before you can DO, and DO before you can HAVE." Zig Ziglar
  • #3,593
  • Jan 20, 2013 9:51am Jan 20, 2013 9:51am
Graphics are from the book of Robert Krauzs.

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"You have to BE before you can DO, and DO before you can HAVE." Zig Ziglar
  • #3,594
  • Jan 20, 2013 9:56am Jan 20, 2013 9:56am
Quoting ForExtraPips
So, who's right? Gann or Krausz?
The reason that I asked that is because after clicking on chart number one, which was talking about the Upswing, a major red flag appeared on it. The bottom part of it, which was the author's opinion, where he stated that he no longer uses that qualifier in determining an upswing, due to today's fast computerized markets. Any time an author changes anything that the original person did while trading, it just raises a huge red flag in my book. But whenever I'm reading a subject, from the original author himself, it just adds more weight. Take the Bible, for example, and give it to five different people. I bet you'll get five different interpretations. Same goes with other authors trying to interpret what Gann meant, or changing its meaning, and putting their own twist to it.

http://stocksfirst.com/books/trading...-%20stocks.pdf
Time turns trend. - W.D. Gann
  • #3,595
  • Jan 20, 2013 10:07am Jan 20, 2013 10:07am
There may be a break of 1x1 angle and no new direction swing. An example of the last days of cable.

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"You have to BE before you can DO, and DO before you can HAVE." Zig Ziglar
  • #3,596
  • Jan 20, 2013 10:22am Jan 20, 2013 10:22am
Quoting ForExtraPips
The reason that I asked that is because after clicking on chart number one, which was talking about the Upswing, a major red flag appeared on it. The bottom part of it, which was the author's opinion, where he stated that he no longer uses that qualifier in determining an upswing, due to today's fast computerized markets. Any time an author changes anything that the original person did while trading, it just raises a huge red flag in my book. But whenever I'm reading a subject, from the original author himself, it just adds more weight. Take the...

That example above is subject to new term of Krauzs. He uses the term "slope". Still no new swing down. There is only "neutral slope". This does not contradict the Gann. Supplementing it.
"You have to BE before you can DO, and DO before you can HAVE." Zig Ziglar
  • #3,597
  • Jan 20, 2013 5:43pm Jan 20, 2013 5:43pm
Quoting godim
That example above is subject to new term of Krauzs. He uses the term "slope". Still no new swing down. There is only "neutral slope". This does not contradict the Gann. Supplementing it.

Gotcha. Thanks for the clarification.
Time turns trend. - W.D. Gann
  • #3,598
  • Jan 21, 2013 12:51am Jan 21, 2013 12:51am
I want to finish my theme. There must be a system of rules that we follow. Then we can arrange, to systematize, the chaos of the market. You know what they say traders who accidentally stumbled upon this thread. Normal. "How do you see the price among so many lines?" Or "It's a work of fine art, worthy of the Louvre." Normal. They have no eyes to see a system that arranges the chaos. The question is whether we have such a system? And whether we follow this system, whatever happens in the market. If the answer to these questions is YES. Then we see beyond our nose. Then the good analyst will make some of the most plausible scenarios for development. Then the good trader will make the Trading plan that will bring profit. Generally that's all.
"You have to BE before you can DO, and DO before you can HAVE." Zig Ziglar
  • #3,599
  • Jan 21, 2013 1:14am Jan 21, 2013 1:14am
eur/usd H4

That, my friends. This tells us the "system" of H4 chart of the euro. The latter, therefore, the most powerful fan is bullish on 3256. We need to "comply" with it. Bulls have the advantage of this fan.

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"You have to BE before you can DO, and DO before you can HAVE." Zig Ziglar
  • #3,600
  • Jan 21, 2013 1:26am Jan 21, 2013 1:26am
Quoting godim
First chart for cable.

Attachment

Here downward trend continues. His speed is 3x1, I guess you can see.
gbp/usd H4

In cable. The trend continues. Speed ​​is increased to 4x1.

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Many times I have said. We do not know when the trend will end. But we have a criterion for that. The price should go over 3x1 or 2x1.
"You have to BE before you can DO, and DO before you can HAVE." Zig Ziglar
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