W.D.

Gann Line Trading >>

Gann Time Cycles

Our mission is to provide information to clarify confusing analytical issues in W.D

Gann trading techniques for traders.

Many traders and students of Gann are confuse by the many outcomes from applying
theGann Line ,Time Squares starting point, which Square to use,division of range,
square of nine and Gann Wheel, etc..

I will try to simplify the technique and hopefully the sky will be clearer for you.

Gann Time Cycles - what is the essential methods, application procedures and real
trading adjustments you should know when looking for trade setups. Don't overlook
any small point in here, because all of them are from my years of trade experience.

>>Square of 52

>>Square of 90

>>Square of 144

In order to understand charts in this site, make sure you understand which lines
are representing which division, one square of 52 is the white line, 1/2 square is
dotted line, 1/3 and 2/3 are yellow lines.

Why 3 to 4 days is important?

We have 7 days in a week, 1/2 is 3.5 days. Therefore always look for a change in
major trend or counter trend in 3 to 4 days.

There are lots of things we can learn from this chart. First of all is the pattern
"triple top" which has a high probability of a change in trend. I watch and trade
this pattern all the time. In here, I would position in the 3rd day counter trend
which also give a small lower double top pattern. Take note of the trend up with
mainly 4 day counter trend and when it hit 6 and 11 day counter trend and a double
top, we can assume the trend is slowing down or approaching an end. Be careful
here, many times a double top turns out to be a trap. (I never traded a double
top). The trend down is moving in a faster momentum with less days in counter
trend. The 7 - 14 days is also another count to watch for trend change. In here you
can find 6 days, 11 days and 8 days.

Why 7 days and 3 weeks are important?

The 7 calendar days is also important to watch for a counter trend and multiple of
7 - 14, 21, where 21 days or 3 weeks tends to have higher probability for a change
in trend.

>> Square of 52

One year has 52 weeks, I only use square of 52 on weekly charts, although
occasionally it will work on a daily chart but many time turn out to be unreliable
From W.D. Gann, " This Master Calculator shows weekly time periods of 7 days each
or a total of 52 weeks in one year....The square of 52, which is composed of 7 day
periods, is one of the most important for measuring price and time. The number 7 is
referred to in the Bible more times than any other number, except the number 3.
Both of these numbers are very important to use in connection with price and time
changes"

>> Square of 90

This is the major square that I use most, especially in US stock and SP500 index
daily charts. In here we always talk about calendar days (not trading days), the
divisions are 11.25, 22.5, 30, 45, 60, 71.25.... The important division are 30, 45
60 and 90.

How I use GannTrader software to spot Gann time cycles setup?

I try to find out whether a chart is vibrate under the square of 90 by starting
from all the recent highs and lows and visually spot matching turning points
(vibrations) in the 8 divisions, especially in the 30th day, 45 day and 60day. 90
days is also 3 months, sometimes this could be the period of an counter trend out
od a major trend. I know some traders actually watching or subscript to services
for 90 days high to low or low to high to spot setups. But never trade just by that
because I have also seen many time that 90 days gives a minor rally or dip then
keep going with the major trend.

Because the next 2 days is Saturday and Sunday, so I tried to start the square from
these two days and find some vibration on 30, 45, and 67.5 (2/3) days. We can
reasonably assume a 90 days high if the price is approaching the 90 days from low.

And it has a 2 square of 90 = 180 days from a significant low, so I am looking for
a position in those few days around the 90 square vibration
I have apply the square of 144 to the All Ordinary index (XAO), starting from a few
places. You also have to try 1 or 2 days around the high or low to look for
vibrations, below is the one that I find some vibrations both in time and in price.
When 18, 36, 54 and 72 show vibrations, I can reasonably looking for some sort of
change in trend in the 144 days. The 144 vibration is a bit tricky, it could be a 3
days late low or a one day early high. In the second square, 216 days gave a good
vibration low and support by the 4th square of price. we also see some resistance
in the 1/8 and 1/2 level of price.