WD Gann: Rules for Trading

[Battman64]

(name edited out by moderator- against code of conduct),
This needs to be cleared up with you and (personal name deleted) .
I have never sent an abusive email in my life.

 

[RichKid]

Okay gents, enough of that. Back to the topic and maybe you two can sort out your misunderstandings over a nice cup of tea somewhere else.
Thanks!

 

[Mofra]

Mofra,

I don't think using astrology is much like other trading systems

Sorry MIT you lost me - I never mentioned astrology and in the Gann material I've read (45 Years on Wall St, David E Bowden stuff etc) astrology doesn't appear either. Like most highly mechanical systems, I have found most of his more general theories to be based around finding trends and support/resistance levels (I don't try to pick exact highs or lows - too difficult).

Regardless of the journey, almost every system I have seen or heard about have these two core elements in mind for the destination.


ps. Hope this gets the thread a little more back on track - with all due respect Battman and tech/a I believe most lurking or contributing care more about what you say here than what has happened on past sites.

 

[Mofra]

Looks like Richkid just beat me to it

 

[Battman64]

You are so right RichKid / Mofra.

I noticed Tech/a has left the website.
The accusation is very very wrong.

I will start a thread in the Derivative forum section.
Thank you RichKid.

 

[RichKid]

Tech & Battman,
Okay, thanks to both of you for stopping that, it's not worth the stress for any of us (including both of you). Let's avoid raising extraneous issues in future please, especially those related to your last exchange.

 

[Battman64]

Hopefully tech/a will use his ignore button on me.
Although I doubt it very much.
We will see.

 

[mit]

Mofra,

I realised that you didn't. After your comments I had a look at google at some Gann sites, just in case I was misinformed. A lot of the sites mention Astrology. An example is one that I think is Australian www.schoolofgann.com that looked fairly professional and it had astrology books on it's reading list. It also alludes to the "mysteries" that require a lot of hardwork (and money) to achieve.

I looked up Bowden. He makes 100% per month it says in his bio!

I also looked up the book you mentioned I found it on Amazon:

http://www.amazon.com/exec/obidos/t...pd_sxp_f/103-5826664-3277443?v=glance&s=books

One of the reviews talks about taking Gann on two levels as a bunch of indicators for swing trading or deeper "arcana".

MIT

 

[RichKid]

Hopefully tech/a will use his ignore button on me.
Although I doubt it very much.
We will see.

Battman,
Tech is aware of that feature, you can use it too. Now no more on that issue please. If you don't have anything more to post on Gann's rules let me know via pm and I'll consider closing this thread. For admin queries you can pm me or Joe.

You need not post a reply to this msg, I'd like to end it right now. Please continue with the Gann stuff if you are so inclined.

Thanks in advance!

 

[Battman64]

Gann had a serious preference for trading Commodities.
He stated many times:
"You Can Make More Profits Trading in Commodities Than Stocks"....
He gave many reasons why.....

 

[Battman64]

1. Commodities follow a seasonal trend and are much easier to forecast.
They move with supply and demand.

 

[kaveman]

and that is the secret of gann techniques for identifying future turning points
The chart MUST be cyclic

 

[Battman64]

The Share Price Index also has a seasonal trend.

 

[kaveman]

Where can I find this Share Price Index?

 

[Battman64]

Sydney Futures Exchange
www.sfe.com.au

 

[Battman64]

Also see "Trading the SPI"
I have linked to Futuresource.com
20 mins delayed data on the SPI.

 

[RichKid]

and that is the secret of gann techniques for identifying future turning points
The chart MUST be cyclic

That seems a very good point, I know of people who follow our bluechip resources stocks and buy at the bottom of the sp cycle to make money on the upswing. You also get smaller cycles within the multi-year ones too. As with all things in TA a cycle is another pattern we can use imo. Commodities are safest in that sense as unlike a stock it's almost impossible that copper or OJ will be worth $0 (ie you can look for a bottom and multi year support)- the problem is you account being wiped out due to the leverage if you don't watch the downside but that applies to anything I guess.

 

[kaveman]

I made this poiint as I had investigated using gann at one time and reading some books it appeared he traded mostly commodities wihch are basically cyclical as the crops are based entirely on the seasons. A good/bad crop dependant on the suitability of weather in the seasons.

 

[RichKid]

I made this poiint as I had investigated using gann at one time and reading some books it appeared he traded mostly commodities wihch are basically cyclical as the crops are based entirely on the seasons. A good/bad crop dependant on the suitability of weather in the seasons.

Reading some of the commodity books I've found that some of these guys who trade commodities often know stacks about agriculture, weather and the effect a bad sardine(?) catch in Sth America will have on the price of soy beans. They do use charting but not in isolation as fundamentals can be quite powerful backup tools. Just my opinion.

The OJ market always reminds me of the Eddie Murphy movie- Trading Places!

 

[Battman64]

"Stocks go into receivers' hands and go out of business.
Commodities go on forever.
Crops are planted and harvested each year."

WD Gann