Gann and Oil

Crude oil futures

THE RIGHT TOOL FOR THE RIGHT JOB

W. D. Gann worked a lot with the “numbered squares,” the most famous of which is what analysts today refer to as the “square of nine.” However, Gann has a deeper use for these tools than he publicly displayed, and the way most use numbered squares today was not the way Gann applied them. Basically, the numbered squares were built upon Gann’s foundation of astro-numerology that controlled what numbers he used. We translated Gann’s method of using the squares for resistance and support and built a special tool that generates the resistance points as degrees on a chart. You will recognize the cardinal points below. But realize that this tool is tuned to the market instrument using Gann’s control system.

Today this pattern played out as it does every day. Pictures is a 15 minute chart of crude oil futures. The blue lines are projections of support and resistance drawn before the trading session using the correct Gann tool. Basically we buy the bounces on the 45 degree marks and sell on the next penetration. Oil sctually seems headed to the 100 + 200 day moving average conjunction, so we’ll look at another bounce there.

Most Gann tools commercially advertised do not work consistently because they are incorrect or used in the wrong manner. Once you unlock the key to Gann, all of his tools are indispensable.


DISCLAIMER: The examples above are given as demonstrations of technical analysis and are therefore hypothetical and not actual trades. They do not represent actual account results nor include the entirety of all predictions we make.

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