Category: Money tips Release Date: 2006-01-31
Gann's time to rule
In Gann theory, time is the most important factor in trading. Gann's time to reveal the pricing rules for the law of the callback occurred.
Gann that: a certain amount of price corrections occur in a particular period of time, the use of Gann time rules, the actual price of the callback is the ability to predict.
The time is defined as the Gann Gann trading year, it can be divided into two parts, that is 6 months or 26 weeks, you can also split into three, one is divided into four or even more, if the year is divided into one-eighth of Gann trading and the sixteenth.
Gann trading in the mid-year there are some important time interval. For example, because there are 7 days a week, while the 7X7 is 49, so he will be 49 as a very meaningful day, a number of important top or bottom of the interval 49-52 days. Intermediate trend into the time interval 42-45 days, while the 45 days is precisely one-eighth of the year.
Gann also pointed out that some important time interval, can predict the price reversal has occurred:
A general market correction occurred in the first 10 days to 14 days, if more than this time interval, then the callback will appear in the first 28 days to 30 days;
Two major top or bottom of the 7 months will happen after a small-class callback;
Three major top or bottom of the anniversary.
In addition, the Gann law also takes into account the time the season, religion, astronomy and other factors.
Gann Cycle Theory
Gann's cycle theory is the whole Gann thought and its multi-year investment experience. Gann with his theory of the law carried out by a certain circle, square, and hexagonal push to carry out. These graphics include the Gann theory, the time rule, the price rules, the geometric angle, the callback with concepts such as graphical reveal the laws governing the operation of the market price.
Gann considered more important cycles are:
Short-term cycle: 1 hour, 2 hours, 4 hours ,...... 18 hours, 24 hours, 3 weeks, 7 weeks, 13 weeks, 15 weeks, 3 months, 7 months;
The mid-cycle: 1 year, 2 years, 3 years, 5 years, 7 years, 10 years, 13 years, 15 years;
The long-term cycles: 20 years, 30 years 45 years 49 years 60 years 82 or 84 years, 90 years, 100 years.
Gann 30-year cycle is an important basis for the analysis because the 30-year total of 360 months, which happens to be the 360-degree circle cycle, according to Gann theory of the price of them with 1 / 8, 2 / 8, 3 / 8 ... ... 7 / 8 and so on, just get Gann long-term, medium-and short-term cycles.
10-year cycle is also an important basis for the analysis of Gann, Gann believed that ten cycles can reproduce the market cycle. For example, a new historical lows will appear in an all-time high, after a decade, the contrary, a new record high, will appear in a record low after. Meanwhile, Gann pointed out that any long-term uptrend or a downtrend can not not do adjustments still more than three years, during which there must be three to six months to adjust. Therefore, the cycle rally a decade before the process is actually six years, every three years, the emergence of a top, top of the last four years, appeared last.
The length of the different cycle that exists between a certain number of links, such as the relationship between multiple relationships or square. Gann will use these relationships circle, square, hexagonal, etc. are displayed, in order to correctly predict stock market movements provide a powerful tool.
Fluent in the cycle theory, can effectively take out of the market timing, as the stock market winners.
