Fresh off the heels of 4 intensive days in out “W. D. Gann: The Revelation” seminar, I though I’d post an application of one of the techniques from Gann’s “Trend Machine.” This machine was the most esoteric of Gann’s constructs. Like so many of his methods, it had both a subjective application and an objective exact application.
So many Gann followers are obsessed with up and down “cycles.” While these cycles occupy much of Gann’s work, he had other important techniques that he employed more frequently and in tandem with these cycles. Too often those trying to learn Gann get sidetracked by endlessly trying to find these “up/down” patterns. In reality these up and down motions can be predicted in advance as the specific application of the trend machine. They are most accurate in the intraday pattern below derived from the Law of Vibration.
Click on the chart below to expand. These “cycles,” or up and down motions, can be drawn in advance of the day. The up and down can be verified by the first turn at a certain time well before you would begin trading. They are cleaner on intraday charts but can be drawn on all major cycles. These are especially accurate in real-time combined with predictions and other time strikes. Now, this does not mean you trade every up/down. Gann would gauge the trend and only take trades in the direction of the trend he was watching.
This technique is taught in our “W. D. GANN: MAGIC IN THE MARKETS” Course.
it is important to realize that you cannot exactly catch every exact pinpoint bottom and top, though it does come close. At times the price diverges briefly. Gann would describe these points as lost motion, time ahead of price, or price ahead of time.
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.