Theoretical explanation
According to Gann's theory, there are universal natural laws in stock and futures markets, and the price trend of the market is not chaotic, but can be predicted by mathematical methods. Its essence is to establish a strict trading order in a seemingly disorderly market, which can be used to find out when the price will be adjusted back and to what price.
Jiang enfan
mathematical expression
The mathematical expression of Gann line has two basic elements, price and time. Gann combines price and time perfectly through Gann Circle, Gann Spiral Square, Gann Hexagon and Gann "Wheel in Wheel". In Gann's theory, seven is a very important number. Gann often uses "seven" or multiples of "seven" when dividing the market cycle. He believes that "seven" combines the concepts of nature, astronomy and religion.
Theoretical concept
Gann line is an important concept of Gann theory and investment method. Gann establishes time on the X-axis and price on the Y-axis, and Gann line symbol is represented by "TXP". The basic ratio of Gann line is 1: 1, that is, a unit time corresponds to a price unit, and the Gann line at this time is 45 degrees. Through the analysis of the market, Gann is divided into three or eight shares, such as 1/3, 1/8 and so on. These Gann lines constitute the support position and resistance position of the market callback or rise. Through Gann theory, we can accurately predict the trend and fluctuation of market prices and become the winners of the stock market.
Edit this paragraph of Gann callback rules.
Callback rule
Callback refers to the temporary reversal of prices in major movement trends. Callback theory is an important part of Gann's price theory. According to the concept of price horizon, 50%, 63% and 100% as callback positions are the strong support or resistance of price movement trend.
Gann 50% callback method
Gann's 50% callback rule is based on Gann's concept of 50% callback or 63% callback. Gann thinks: No matter whether the price goes up or down, the most important price is at the position of 50%, and there is often a price correction in this position. If there is no callback at this price, there will be a callback at 63%. Among Gann's prices, 50%, 63% and 100% are the most important, corresponding to the geometric angles of 45 degrees, 63 degrees and 90 degrees respectively. These prices are usually used to determine the establishment of the 50% callback zone. Investors calculate the 50% correction by dividing the difference between the highest price and the lowest price by 2, and then adding the lowest price or subtracting the lowest price from the highest price. Of course, it is difficult to predict the price trend, so there should be room for forecasting the trend. The actual price may be higher or lower than the predicted 50%.