William D. Gann - one of the most famous investors of the 20th century.
William Gann's impressive achievements in the stock and futures markets are unparalleled to this day. The theory he created that perfectly combines time and price is still talked about by people in the investment community. Highly recommended.
Gann was born on June 6, 1878 in Lufkin Texas, USA. His parents were Irish immigrants. In his investment career, the success rate was as high as 80% to 90%. He made huge wealth with small money. In his fifty-three years of investment career, he obtained 350 million U.S. dollars from the market. net profit.
In 1902, at the age of 24, Gann entered the market for the first time to trade cotton futures.
In 1906, Gann went to Oklahoma to work as a broker, not only doing business for himself but also managing clients.
In 1908, when Gann was 30 years old, he moved to New York and established his own brokerage business. On August 8 of the same year, he developed his most important market trend prediction method, called "Controlling the Time Factor". After many accurate predictions, Gann became famous.
The most eye-catching one was an on-site visit by Richard Wyckoff, editor of the American "The Ticketr and Investment Digest" magazine in October 1909. Under the supervision of magazine staff, Gann conducted 286 transactions in the 25 market trading days in October, resulting in 264 profits and 22 losses, with a profit rate of 92.3%.
According to Gann’s friend Keeley’s recollection: “In the summer of 1909, Gann predicted that the September wheat option would hit $1.20. However, as of 12:00 Chicago time on September 30, the option was still Wandering below $1.08, Gann's prediction seems to have failed. Gann said: "If the market closes today without seeing $1.20, it will mean that my entire analysis method is wrong. No matter what the price is now, wheat must see $1.20." , one hour before the market closed, wheat rushed to $1.20, shocking the entire market. The contract closed exactly at $1.20. "
At the peak of Gann's career, he *** hired twenty. Five people worked for him to produce various analysis charts and conduct various market trend research. They also established two trend research companies: Gann Scientific Services Company and Gann Research Company, and published various investment newsletters. In the full-year trend forecast he publishes every year, he clearly draws the forecast trend chart at what time and at what price, with high accuracy.
Gann believes that there are also natural rules in the universe in the stock and futures markets. The price trend of the market is not chaotic, but can be predicted through mathematical methods. Gann's mathematical equation is not complicated. The essence is that price movement must obey the support line and resistance line, that is, the Gann line. ⑴The truth in stock price data
⑵Wall Street stock selection method
⑶Stock trend market measurement method
⑷Forty-five years on Wall Street
⑸The United States faces reality-1950 outlook
⑹How to make profits in the futures market
⑺How to make profits from call and put options
⑻Space Channel
⑼Magic Words
⑽Gann Core Stock Tutorial (Blackwater Translation)
⑾Gann Core Futures Tutorial (Blackwater Translation) 都 People who find Gann's theory obscure and unfathomable will have a more comprehensive understanding of Gann's theory, such as Gann's Time Cycle Theory, Gann's Angle Line, Gann's Intermediate Wheel, etc. after reading the book "Forty-Five Years on Wall Street" . There are many domestic softwares that apply these Gann theories. Under the guidance of other investment concepts and combined with Gann theory, they can help investors make better profits.
The essence of William Gann's lifetime investment is divided into two parts, one is theory and the other is operation. Winner Gann software combines these operations with Gann's theory to achieve ideal operations. At present, there are mostly theoretical studies in China. Most investors have learned about Gann's theory through William Gann's books. Gann's theory is a unique analysis method and market measurement theory established through the study of mathematics, geometry, religion, and astronomy. , including Gann's time rule, Gann's price rule, and Gann's line. Few people have combined these to form a real system theory. Therefore, domestic research on Gann is still at a relatively preliminary stage.
1. Gann's 50% callback method Gann's 50% callback rule is based on Gann's 50% callback or 63% callback concept.
Whether the price rises or falls, among the Gann price levels, 50%, 63%, and 100% are the most important. They correspond to the geometric angles of 45 degrees, 63 degrees, and 90 degrees respectively. These price levels are usually used for Decided to establish a 50% retracement band. Investors calculate the 50% retracement level by dividing the difference between the highest price and the lowest price by 2, and then adding the lowest price to or subtracting the result from the highest price. Of course, the price trend is difficult to predict, and we should leave room for prediction. The actual price may be higher or lower than 50% of the predictions.
According to the concept of price horizontal lines, 75% and 100% as callback positions constitute strong support or resistance to the price movement trend. For example: the price of a certain stock dropped from the highest point of 40 yuan to the lowest point of 20 yuan and began to reverse. The price band space is 40 yuan minus 20 yuan, which is 20 yuan. 50% of this trend is 10 yuan, that is, it will pull back when it rises to 30 yuan. And 50% of the price band between 30 yuan and 20 yuan is 5 yuan, that is, it will continue to rise when it falls back to 25 yuan. The upward trend continues until 75% of 40 yuan and 20 yuan, that is, 35 yuan and then a 50% correction, and finally rises to 40 yuan to complete a 100% correction of the previous bear market. So, how to judge the top and bottom of the peak? Gann believes that it is enough to make only a few outstanding trades in a year. To do this, it is necessary to observe the price chart on a yearly basis to determine the top and bottom of the year, and then the monthly and weekly charts. and daily chart. After observing a large number of charts, we can see the existence of the following Gann's Law: 1. The price obviously reverses at the 50% retracement level; 2. If the price crosses the 50% retracement level, the next retracement will appear at the 63% price level; 3. If the price If the price crosses the 63% retracement level, the next correction will appear at the 75% price; 4 If the price crosses the 75% retracement level, the next correction will appear at the 100% price; 5 Support and resistance levels may also appear at 50%, The 63%, 75% and 100% retracement levels are repeated. 6 Sometimes the rise or fall in price may exceed the 100% retracement level.
2. Callback Law
Callback refers to the temporary reversal of price in the main trend. Callback theory is an important part of Gann's price theory. According to the concept of price horizontal lines, 50% and 75% as callback positions constitute strong support or resistance to the price movement trend. Each 8-divided and 3-divided price horizontal line represents a different level of support or resistance line for future price movement. Among them, 50%, 63% or 100% are the most powerful. According to Gann's theory, no matter whether the price rises or falls, the most important price is at the 50% position. Price corrections often occur at this position. If no correction occurs at this price, then a correction will occur at the 63% price. Among the Gann price levels, 30%, 63%, and 100% are the most important. They correspond to the geometric angles of 45 degrees, 63 degrees, and 90 degrees respectively. These prices are usually used to determine the establishment of a 50% retracement zone. After price reversal, it often reaches the Gann price band and reverses again. Even if the day's price temporarily exceeds the Gann retracement position, the closing price often falls within the retracement zone.