William D. Gann (1878-1955) is the most famous investor in the U.S. securities and futures industry. He has been in the speculative market for decades and developed his own unique method based on mathematics and geometric theory. There are certain trading methods. For example, Gann geometric angle, Gann line in price chart analysis, Gann callback ratio in price prediction, Gann calendar, etc. Gann believes that as long as he follows fixed rules of buying and selling, anyone can make profits in the futures market, and the chance of winning is higher than investing in the stock market. Gann believed that there were natural rules in the universe in the stock and futures markets. Price movements are not haphazard but predictable. Gann often quoted the famous sayings in the Bible: "What has been, will be; what has been done, do again. There is nothing new under the sun. Even if we would say, look, this is new, it has already existed. In the era before us."

Gann's time rule:

Gann regards time as the most important factor in trading. Gann's time interval is not only days or weeks, but also months or years. The beginning of the Gann Line will most likely begin in January. Gann's trading year can first be divided into two, that is, 6 months or 26 weeks. It can also be divided into eighths and sixteenths. There were also some important intervals during the Gann years. For example, there are 7 days in a week, and 7*7==49, so Gann regards 49 as a very meaningful number. Some important tops and bottoms occur between 49 and 52 days. The time interval between intermediate trend changes is 42-45 days (45 days is one-eighth of a year).

Gann's callback rule:

The 50%, 75%, and 100% price callback positions are the strongest support and resistance to further price movement. The end point reached by the pullback or 50% of the starting point is what Gann calls the "equilibrium point." is a common callback. Gann believes that when more than two 50% retracements occur at the same price, it indicates a congestion situation.

Gann line: (i.e. rising Gann and falling Gann)

The Gann line defines the price movement by time unit and price unit. Each Gann line has the relationship between time and price. Decide. Draw the intersection of Gann lines from each significant peak or significant bottom point to form the relationship between Gann lines. They can predict not only when prices will reverse, but also where they will reverse. The basic ratio of the Gann line is 1:1--1 unit of time to 1 unit of price. The 1*1 Gann line means that the price moves by 1 unit per unit of time, and the 2*1 means that the price moves by 1 unit every 2 units of time. When the market trend changes from downward to upward, the price will usually move upward along the rising Gann line. When the upward trend eases, the price will rise along the 2*1 line. If the rebound is strong, the upward trend will increase to 1*2,1* 3 or 1*4 lines. In most cases, the price will rise along the 1*1 line (45-degree line). When the trend is downward, the descending Gann line will be applied.

Gann retracement price, percentage, geometric angle and Gann line

Time is 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 71 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 day of rest. Sunday is seen as the end of the previous phase and the beginning of a new cycle. Gann is also very fond of the number "7" and believes that 7 days, 7 weeks, 7 months, and 7 years may be cycles. And multiples of 7 such as 14, 21, 49... are also important Gann cycles. These numbers can also be used as stochastic indicators and moving average selection parameters.

Gann's square chart and the wheel within a wheel are not introduced for the time being due to technical reasons. If you are interested, please contact me.

Gann's 28 trading rules:

1 Divide your investment capital into 10 parts, and the risk taken in each transaction should not exceed 10% of the capital. one part.

2 Use stop-loss orders carefully to reduce the losses that may occur every time you make a mistake.

3 Do not over-trade.

4 Avoid turning victory into defeat. After entering the market and trading profitably, the stop-loss order should be gradually raised or lowered to avoid losses caused by changes in market conditions.

5 Irreversible market trading.

6 If you are hesitant, it is not appropriate to enter the market.

7 It is not suitable to enter a market with sparse trading and inactive trading.

8 can only buy and sell two to three contracts, which are too many to take into account.

9 Avoid price limit trading, otherwise you may lose a lot for a small amount.

10 After entering the market, you cannot close the position at will. You can use stop-loss orders to protect paper profits.

11 When trading goes smoothly and you accumulate considerable profits, you may consider transferring some of your funds to prepare for emergencies.

12 Don’t just enter the market for small profits.

13 cannot add dead codes.

14 After entering the market, do not close positions randomly due to lack of patience.

15. Avoid trading with less wins and more losses.

After entering the market on 16th, stop-loss orders cannot be canceled at will.

17The number of transactions should not be too frequent.

18 Buy and sell with the trend. Under appropriate circumstances, you may make more profits by following the trend.

19 Don’t be greedy to buy when the price is low, and don’t sell short because the price is high. 20Increase the number of open contracts in a pyramid style at the appropriate time.

21 Choose varieties with a strong rising trend as the objects of pyramid buying; short selling will do the opposite.

22 If the transaction is wrong, the position should be closed in time.

23 Don’t switch from long to short casually. Each transaction must be carefully planned and the reasons for the transaction must be sufficient without violating the established rules.

24 When trading is easy, don’t add more money at will.

25 Never predict the top and bottom of the market, it should be determined by the market itself.

26 Don’t trust other people’s opinions easily.

27 When you suffer a loss in trading, reduce your chips.

28 Avoid entering the market correctly and exiting the market wrongly.