methods like support and resistance, patterns, trends, price/volume activity
Hi everyone,
many years ago I did a course about Gann run by a Melbourne based trader and forcaster. I found that the course wasn't particularly good. I've read Truth of the Stock Tape And Wall Street Stock Selector written by W.D. Gann and I found it to be vauge and lacking substance, particularly in respect to actual Gann methodolgy.
As we all know, Ganns record of forcasting success and claimed wealth accrued from stock and commodity trading has had ongoing doubts cast over it, even Ganns own son has claimed he was fraudulent.
Gann has a reputation as an auther to be vauge and to speak in riddles, and some claim that he never revealed his true methods. There are many individuals and groups running courses in Gann trading, much of which would be based on their own interpretations of what Gann taught.
What I'd like to know is how practicle and usable is the Gann methodology for trading. Is it that some people who use Gann see it through rose coloured glasses and make it out to be better than it really is? Is it consistant enough to be at the core of a trading methodology or is it something which should be used as a secondry indicator to traditional technical analysis? How does it stack up against traditional tech trading methods like support and resistance, breakouts, patterns, trends, price/volume activity and technical indicators?
I know that Larry Williams has some serious issues with Gann techniques and dispises people selling Gann courses. Of course there are vested interests from both sides on that issue, but interesting none the less.
Will it really help my trading? Is it really worth learning and if so,what's the best way to go about learning it?
Thanks
Splint
Just quoting Gann as his name was is a bit ambiguous. What does it mean?
I'm not aware of any traders of "Market Wizard" calibre who predominantly use Gann techniques, are there any?
For me I have found other forms of analysis simpler to apply and more suitable to my need for instant visual analysis.
Just my view.
Sunday 28 December 2008
FWIW, Gann was an incredibly astute astrologer, and when
you understand astrology, you can begin to understand
Gann.
In reviewing some of Gann's original charts, they were
marked with planetary signs.
Tunnel Through The Air is replete with astological references
in the writing. Gann's circles are all astrologically based, as
are the squares he uses. His number144, which looms large,
is 12 squared, the twelve astrological signs.
90 degrees and 180 degrees were "negative" angles, while
60 degrees and 120 degrees were "positive", in general.
Nothing about it is mechanical.
The price of gold is influenced by its planetary ruler, the Sun,
as another example. Like I said, it is very much of an art,
firstly, knowing astrology, and then more importantly, how
the planetary orbits relate to prices of various stocks or
commodities.
As above, so below.
I have yet to see one Gann 'practitioner' actually post a potential winning trade either long or short, lots of other stuff about what has happened in 2006 or what will happen to WPL in December 2010 etc etc.
Can some of you guys prove me wrong... please, something that stands a greater than 50% chance of making a buck in the next week or so.
To make money trading you have to find your own edge. You have to find what works for you. I know a lady who asks her pet parrott what shares to buy and she makes money.
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