GANN (W. D. Gann the legendary Financial Prophet in the Early Twenties) is one of the most famous trading methods used by old school traders. This trading method is based on very complex cycles and theories. Google GANN numbers, or the GANN trading method for a deep dive. Now lets look at some basic patterns.
Some basics: In numerology you want to find the number vibration by adding up the digits to bring it down to a single digit. For example if you have the number 2417 you add up the single digits [2+4+1+7 = 14=1+4 =5 So the number 2417 dances to the vibration of 5.
Now the circle is 360 degrees if you break it up into 30 degrees increments you have 30 60 90 120 150 180 210 240 270 300 330 and 360… now if you break each number down to a single digit then you have a pattern or symmetry working..3 6 9 3 6 9 3 6 9 3 6 9. Now you might say so what. Look at the pattern in percentages of price movement(Read W.D Gann..45 Years in Wall Street)
3.125 = 2 43.75 = 1 84.375= 9 6.25 = 4 46.875 = 3 87.5 = 2 9.375 = 6 50 = 5 90.625= 4 12.5 = 8 53.125 = 7 93.75 = 6 15.625= 1 56.25 = 9 96.875= 8 18.75 = 3 59.375 = 2 100 = 1 21.875= 5 62.5 = 4 25 = 7 65.625 = 6 28.125= 9 68.75 = 8 31.25 = 2 71.875 = 1 34.375= 4 75 = 3 37.5 = 6 78.125 = 5 40.625= 8 81.25 = 7
We are keep thing simple, so we suggest you to use some of the GANN theory based indicators. Take a look at this beauty below:
You can see GANN H4 indicator attached at chart above, you can download indicator at the bottom of this post, before you do that check some examples.
The million dollar question is: how to trade using GANN indicator?
The most important thing is to be relax while you considering to open new position at market. I trade this way for years, it’s most effective entry strategy. What that that mean? You don’t wat to be easy on pulling trigger. Let’s see our example below to understand what I’m talking about.
Check current market at image above (example 1), the most people would going to sell after first red candle, the rest of traders going to sell after the second red candle. What you should to do is wait some time and check this great example for great sell entry after few candles.
What is going to be with price in future, check below:
1. wait price in trendline area to entry sell position
2. or open sell position right now protect yourself with stop lose limit in trend line areas or a bit above it.
What is going on with false signals?
So what if you lose? It’s part of trading right? Nothing, all you need is protect yourself smart. Check losing example below:
Oh no, I’m lost money, it’s the end of the world. Of course it’s not, check example 2, you receive buy signal, you are setup stop lose level (black line). And what was happen? Your losing trade is so tight, you lose only few pips, check sell signal after this losing one, you can make 3x more pips then you lose. That is beauty of trading.
Now download indicator and practice: download GANN MT4 Indicator