Gann was a technical trader who introduced some unique methods that are still used by traders today.
Perhaps one of the most interesting concepts is Gann’s view of the relationship between price and time.
Gann amassed a $50 million trading fortune with his methods and are used by savvy traders seeking higher trading profits all over the world.
Let’s look at the relationship between price and time.
Like other technical analysts, Gann believed that market action was cyclical.
“What happened in the past will happen again”
Trading the odds on your side in the future meant looking at past patterns.
The reason this is logical as human nature is constant and this shows up in the markets as patterns as humans ultimately determine the price of anything.
Price and Time
So why is the interaction between price and time so important?
Gann believed that crucial price movements occurred when price and time converged.
These convergences could give early warning of a major trend and traders could trade to profit at these points.
If price and time did not converge, then time would be considered more important than price.
Time was considered by Gann as the ultimate indicator of time.
If you think about it, time rules all of nature, not just the financial markets.
“Just remember one thing, whatever has happened in the past in the stock market and Wall Street will happen again”
Advances in bull markets will come in the future and panics will come in the future, just as they have in the past. This is the making of a natural law.”
Gann was one of the greatest traders in history and his position is highlighted by the life-size portrait of him that greets him as he enters the New York Stock Exchange.
Not only did he introduce the concept of price and time, but he was also responsible for a large volume of work and his writings on the Fibonacci number sequence, swing trading, Gann angles, and many other technical theories are essential reading.
Although sometimes overlooked, he was one of the first to study human psychology and its importance in terms of market movement, before it became universally accepted.
“We can’t escape it (excitement). In the future, it will cause another panic in stocks. When it comes, traders and investors alike will sell stocks, as usual, after it’s too late or in the latter stages of a downtrend”. market”
Gann prevented the crash of 1929, but how many booms and busts have we had since then and how many investors got burned?
The fact is that investors ultimately determine the price of anything and are always subject to emotion.
Learn to stand apart from the pack and you can operate in a disciplined manner and emerge a winner.
The concept of price and time is one way to do it.
If you study Gann you know that you are studying a trader who is one of the most important of all time and who has left all his work so that others can study and learn from him.
Expert traders around the world still use Gann’s methods and you should explore further and see how the methods could help you.
