Gann's law of time:
Gann thinks that time is the most important factor in trading. Gann's time interval is not only days or weeks, but also months or years. The starting point of Gann Line is likely to start at 65438+ 10. Gann trading year can be initially divided into two parts, namely 6 months or 26 weeks. It can also be divided into one eighth and one sixteenth. In Gann years, there are some important time intervals. For example, there are seven days in a week, and 7*7==49, so Gann regards 49 as a meaningful number. Some important top or bottom intervals are 49-52 days. The transition interval of the intermediate trend is 42-45 days (45 days is one eighth of a year).
Gann callback rule:
50%, 75%, 100% price callback positions are the strongest support and resistance for further price movement. When the callback reaches 50% of the end or starting point, Gann calls it a "balance point". Is a common callback. Gann believes that when there are more than two 50% pullbacks at the same price, it means congestion.
Gann line: (that is, ascending Gann and descending Gann)
Gann line is defined by time unit and price unit, and each Gann line is determined by the relationship between time and price. Draw the intersection of Gann lines from each protruding vertex or bottom point to form the relationship between Gann lines. They can not only predict when the price will reverse, but also predict to what price. The basic proportion of Gann Line is 1: 1- 1 unit time pair 1 unit price. 1* 1 Gann line indicates that the price moves per unit time 1 unit, and 2* 1 indicates that the price moves every two units time 1 unit. When the market trend changes from falling to rising, the price usually goes up along the rising Ganzi line. When the upward trend is moderate, the price will follow the 2* 1 line. If the rebound is strong, the upward trend will go up to 1*2, 1*3 or 1*4. In most cases, the price will rise along the 1* 1 line (45-degree line), and the downward Ganzi line will be applied when the trend is downward.
Gann callback price, percentage, geometric angle and Gann line
Time 1 unit price percentage geometric angle Gann line
1/8 12.5 7 1/2 8* 1
2/8 25 15 4* 1
3/3 33 18 1/4 3* 1
3/8 37.5 26 1/2 2* 1
4/8 50 45 1* 1
5/8 62.5 63 1/4 1*2
2/3 67 7 1 1/2 1*3
6/8 75 75 1*4
7/8 87.5 82 1/2 1*8
8/8 100 - -
The important role of the number "7":
The Bible says that God created the world in six days and designated the seventh day as a rest day. Sunday on the seventh day is regarded as the end of the previous stage and the beginning of a new cycle. Gann also took a fancy to the number "7", thinking that 7 days, 7 weeks, 7 months and 7 years may all be cycles. Multiples of 7, such as 14, 2 1, 49 ... are also important Gann periods. These figures can also be used as random indicators and selection parameters of moving average.
For technical reasons, Gann's square diagram and wheel in wheel are not introduced for the time being. If you are interested, please contact me.
Gann's 28 trading rules:
1 Divide your investment capital into 10, and the risk of each transaction should not exceed one tenth of the capital.
Use stop loss carefully to reduce the possible losses caused by each mistake.
Don't buy and sell too much.
4 avoid turning victory into failure. After trading in the market, the stop loss should be gradually raised or lowered to avoid losses caused by market changes.
5 Irreversible market transactions.
6 hesitant, not suitable for entering the market.
It is not appropriate to enter a market where transactions are scarce and inactive.
There are only two or three kinds of contracts that can be bought and sold, and too many are difficult to manage.
9 Avoid price-limit trading, or you may lose big because of small.
After 10 enters the market, it is not allowed to close the position at will, and the book profit can be guaranteed by using the stop-loss board.
1 1 When the business is smooth and the accumulated profits are considerable, you can consider transferring some funds for a rainy day.
12 don't be greedy and cheap to enter the market.
13 can't add dead code.
14 after entering the market, don't close the position at will because of lack of patience.
15 win less lose more, quit.
After 16 comes into play, the suspension cannot be cancelled at will.
17 Don't buy and sell too often.
18 follow the trend. Under the right circumstances, the trend may be more profitable.
19 Don't buy cheaply, and don't short because of the high price. Increase the number of position contracts in the form of pyramid at an appropriate time.
2 1 select the varieties that have risen sharply as the targets of pyramid buying; Short selling is the opposite.
If there is a mistake in buying or selling, you should close your position in time.
Don't change from a cow to a bear. Every time you buy and sell, you have to go through detailed planning, and the reasons for buying and selling are sufficient and do not violate the established rules.
Don't raise the price at will if you are comfortable with buying and selling.
Never predict the top and bottom of the market situation, it should be decided by the market itself.
Don't trust other people's opinions.
When the transaction loses money, reduce the chips.
Avoid the mistakes of entering and leaving the market correctly.