At twelve o’clock, Chicago time, on September 30th (the last day) the option was selling bellow $1.08 and it looked as though his prediction would not be fulfilled. This meant that it must touch that figure before the end of the month of September. Gann was during last summer (1909) when he predicted that September Wheat would sell at $1.20. “One of the most astonishing calculations made by Mr. Wyckoff, the former owner and editor of the “Ticket”, and describes Gann’s proficiency for projecting price targets forward in time: The following paragraph appeared in the December 1909 issue of “Ticket” Magazine. This is an accuracy of 88% and 4000% profit.ġ946 – A 3-month net profit of $13.000 from starting capital of $4500 – a 400% profit. There are numerous examples of his trading successes, among which are these:ġ908 – a $130 account increased to $12.000 in 30 days.ġ923 – a $973 account increased to $30.000 in 60 days.ġ933 – 479 trades were made with 422 being profitable. Gann literally converted small accounts into fortunes, increasing their net balances by several hundred percent. Any losses incurred by him were only there by his own design and not because of any faults with his methods. It has been said that Gann could very well have been right ALL the time. Gann netted over 50 million $ from the markets during his trading career, averaging a success rate for trades of more than 90%. Even today, his methods have yet to be fully duplicated. Gann’s methods of technical analysis for projecting both price and time targets are unique. His abilities for profiting from the stock and commodity markets remain unchallenged. Gann was a trader of the early 20th century.
These are simply variations in the slope of the line. Determine which pattern to use: The two most common patterns are the 1x1 (left figure above), the 1x2 (right figure above) and the 2x1.Gann himself, however, used what he called "vibrations" or "price swings." He determined these by analyzing charts using mathematical theories like Fibonacci. Determine the high or low from which to draw the Gann lines: This is the second empirical process, and the most common way to accomplish it is to use other forms of technical analysis-such as Fibonacci levels or pivot points.This is because, in most cases, the intermediate-term charts produce the optimal amount of patterns.
Most people use intermediate-term (such as one- to three-month) charts for this as opposed to long-term (multi-year) or short-term (one- to seven-day) charts.
Then, simply put the angles to the test and determine their accuracy. One common way to determine a time unit is to study the stock's chart and take note of distances in which price movements occur.