Gann Master FOREX

Trading Course
No:1

www.gannmasterforex.blogspot.com

Westartthiscoursebypresentingthe
mathematicalmethodsdevelopedbyW.D.
Gann.ForstarterswewillsaythatW.D.
Gannwasanexceptionalmathematician.
Gannconsideredthattheonlyexact
science,anduniversallanguageis
mathematics.Throughouttime,Gann
developedaseriesofmathematicalmethods
inordertohelpusdeterminethe:
fixedsupport
resistancelevels
dynamicsupport
retracement
extensionlevels
Forthesemethodstobeappliedeasilyto
ourcharts,Ganndevelopedaseriesof
instrumentsthataremeanttofacilitatethe
determiningoftheevolutionspaceofthe
priceintime.AfterhisstudytriptoEgypt(to
theschoolofMysteries,theplacewhere
GreekmathematicianPythagoraswasalso
taught),W.D.Ganndevelopedaseriesof
marketanalysismethodsthatarebasedon
numerologyandsacredgeometry.

Aswecansee,Gannstartedfroman
exactscienceofmathematicsand
developedhismethodsbyapplyingesoteric
approaches:sacredgeometryand
numerology.Weshouldnotbesurprisedto
hearthisthing.Gannwasa33rddegree
masonandhadaperfectunderstandingof
esotericsciences.
Anotherapproachofcapitalmarkets
developedbyW.D.Gannisthatofcycles.
Butweneedtoknowthatthecycletheory
derivesfromtheapplyingofthecapital
marketstotheplanetarycyclesin
astronomy.
Wesillalsoseethistimearoundthat
Gannstartedfrompurescience:astronomy,
butalsodeepenedhisstudiesinthe
esotericspacewhenhedevelopedaseries
ofastrologicaltechniquesfordetermining
theenergeticchangepointsofthepricein
time.ThemethoddevelopedbyGannis
actuallyahybridbetweenastronomyand
astrologyandforthisreason,manyname
thisGanntechnique:"astrolonomy"

Wewillnotextendthisintroductionfortoo
longinorderforourfuturecoursesto
approacheachofthesewithmoredetails.
Thetransformingofpricesindegrees.
ThefactthatW.D.Gannmarkedhiscourse
materialswithapersonalsealisprobably
lessknown.Thissealisformedoutofa
circle,asquareandatriangle.

Theeasiestandclearestwaybywhich
W.D.Ganntellsusthatinthedevelopment
ofhisanalysistechniquesarebythese
geometricforms:
thecircle
thesquare
thetriangle
Aslittlemathematicsasweknow,weknow
that:
circle=360*
square=90*x4=360*
triangle=120*x3=360*
Gannconsideredthatamovement
cycleisequalto360*orthemultiplesof
360*.
Thecircleisaperfectshapethat
includeswithinitselfthebeginningandthe
ending.
Themostwellknowncycleistheannual
cycleanditrepresentsa360*movementof
theeartharoundtheSun.
Thecalendaristicdatestartsonthefirst
ofJanuary.

Theastrologicalyearstartsonthedate
of2021march,thedateofthespring
equinox.
Ifwewishtomarkinourpricechartan
astrologicalyearlycyclewewillmarkitthus:

Inthechartabove,dailyEUR/USD,we
noticethatwemarktheyearlyastrological
cyclesthus:
20132014
20142015
Wenoticethatthiscycledebutsaswe
havesaid,atthespringequinox.Sometimes
thistakesplaceonthe20thofmarch,as
wasthecaseintheyear2013and2014and
sometimesonthedateof21marchaswill
happenin2015.

Intheimageabovewehaveaddedan
astrologicalcalendarupto2020andwe
noticethedatesthatmarkthespring
equinox.
Aswehavesaid,anastrologicalyear
marksa360*movementoftheEarth
aroundtheSun.
Asweknow,W.D.Ganndevelopeda
seriesofmathematicalmethodsanda
seriesofastronomicandastrologic
methods.

Forapplyingtheastrologicalmethods,
Gannneededononehand,thezodiac
instrumentandontheotherhandthe
mathematicalplacementmethodofthe
priceinthiszodiacinstrument.
Anastrologicalcircleis360*.
Intheimagebelowwecanseeazodiac
circle.

Inordertoplacethepriceinthezodiac
chart,W.D.Gannhadtodevelopacalculus
methodthroughwhichtotransformtheprice
indegrees.
Weknowthateveryday,theSunmakesa
movementofapproximately1*.
Inordertotransformthepriceindegreeswe
needtomakeaconversion.Intheslide
belowwehaveachartwiththeconversion
factorsofdegrees.

Weseeinthechartabovethata
completemovementcycle,of360*is
subdividedin8segments.
Nowletustakealookandseewhywe
havetheselevelsandhowtheyare
determinedinourzodiaccircle.
WeweresayingearlierthatW.D.Gann
hadasealthatrepresentedacircle(a360*
cycle)withinasquare.

Aswecanseeintheimageabove,the
tipofthesquareisfixedon20march,the
dateofthespringequinox.
Thesquareasweknowisageometric
formwhichisageometricshapewhichhas
4anglesof90*.
Ifwemarkthepointswherethissquare
touchesorzodiaccircleperfectlywewill
noticethesethingshappenat:90/180/270
and360or0*

AddalittLet'stakeaconcreteexample
fromthemarketandseehowwemustreact
inordertotransformthepriceindegrees
andwecancalculatethesupportand
resistancelevelsat90/180/270and360*.
Thefirstthingwemustdoisopenablank
dailychartandsearchfortherepresentative
maximumorminimumlevels.Whatdowe
understandfromRepresentative
maximumorminimumlevels?

Firstofallweunderstandthattheyare
thosespecificareasinwhichthepricemakes
atrendreversal.
Inotherwords,wearenotinterestedin
thecorrectionareasofatrendbutthe
retracementareas.

IfwefollowthedailyEUR/USDchartwe
willnoticethatarelevantGannpivot,where
thepricemadeatopretracementislocated
at1.39928.

Afterwehavemarkedthepivotlevelwe
mustdeterminethe360degreeslevel.
Todothisinthefollowingstepwewilluse
thefollowingformula:
Wewillfindoutthesquarerootofthe
maximallevel.Ourmaximallevelwasat
1.39928.
Socalculatingwouldbeeasier,wemove
the.at1399.28
Thesquarerootof1399.28is37.40.
37.402(360factor)=35,40
35,40x35,40=1253,40
Thiswillbeour360levelwhichwewillput
inourchartlikeintheimagebelow.

Inthe2ndstepwewillcalculatethe180
level.
Themethodissimilartotheoneweused
onthe360level.Butthistimethefactor
whichwewillusefromourtableis1,not2.
Thesquarerootof1399.28is37.40.
37.401(180factor)=36,40
36,40x36,40=1324,96
Thiswillbeour180levelwhichwewill
putinourchartlikeintheimagebelow.

Inthe3stepwewillcalculatethe90level.
Themethodissimilartotheoneweusedon
the360level.Butthistimethefactorwhich
wewillusefromourtableis0,50,not2.
Thesquarerootof1399.28is37.40.
37.400,50(90factor)=36,90
36,90x36,90=1361,61

Thiswillbeour90levelwhichwewillputin
ourchartlikeintheimagebelow.

Inthe4stepwewillcalculatethe270
level.
Themethodissimilartotheoneweused
onthe360level.Butthistimethefactor
whichwewillusefromourtableis1,50,not
2.
Thesquarerootof1399.28is37.40.
37.401,50(270factor)=35,90
35,90x35,90=1288,81
Thiswillbeour90levelwhichwewillputin
ourchartlikeintheimagebelow.

Inthe5stepwewillcalculatethe45
level.
Themethodissimilartotheoneweusedon
the360level.Butthistimethefactorwhich
wewillusefromourtableis0,25,not2.
Thesquarerootof1399.28is37.40.
37.400,25(45factor)=37,15
37,15x37,15=1380,12
Thiswillbeour45levelwhichwewill
putinourchartlikeintheimagebelow.

Inthe6stepwewillcalculatethe135
level.
Themethodissimilartotheoneweused
onthe360level.Butthistimethefactor
whichwewillusefromourtableis0,75,not
2.
Thesquarerootof1399.28is37.40.
37.400,75(135factor)=36,65
36,65x36,65=1343,22
Thiswillbeour135levelwhichwewillputin
ourchartlikeintheimagebelow.

Inthe7stepwewillcalculatethe225
level.
Themethodissimilartotheoneweused
onthe360level.Butthistimethefactor
whichwewillusefromourtableis1,25,not
2.
Thesquarerootof1399.28is37.40.
37.401,25(225factor)=36,15
36,15x36,15=1306,82
Thiswillbeour225levelwhichwewillput
inourchartlikeintheimagebelow.

Inthe8stepwewillcalculatethe315
level.
Themethodissimilartotheoneweused
onthe360level.Butthistimethefactor
whichwewillusefromourtableis1,75,not
2.
Thesquarerootof1399.28is37.40.
37.401,75(315factor)=35,65
35,65x35,65=1270,92
Thiswillbeour315levelwhichwewillput
inourchartlikeintheimagebelow.

Wehaveafewexplanationstogive
whichwehavenotofferedthroughoutthis
course:
1.Aswecansee,thepricemovement
spaceof360*wassplitin8parts.
Thereasonforthisisthatthese
segmentsarecalledpriceoctaves.Ifyou
wishtosplittheseaspectsitisdonebythe
sameprincipleastheydoitinmusic:
Do,Re,Mi,Fa,Sol,La,Ti,Do.Agammahas
eightmusicalnotes.
Wehavealsoseenthatinthecaseofthe
Gannpivot(topinourcase)wehave
calculatedthesquareroot.Outofthesquare
rootwehaveseenthedegreefactor
(becausewefindourselvesinadescending
movementandwewishedtofindoutthe
supportlevel).Theresultofthefallwas
multipliedwithitselfandwefindoutthe
supportlevelwelookedfor.
Inthecaseinwhichwefindanascending
trendandwewishtocalculatethe
resistancelevels,themethodisthe
following:

Wemarkthemajorbottomlevel,whichis
theGannpivotlevel.Outofthispricewe
calculatethesquareroot.Weaddtothe
squarerootthedegreefactor.Wemultiply
theresultwithitselfandthuswefindoutthe
resistancelevelwehavebeenlookingfor.
Aswehaveseenwhenwecalculatethe
squarerootofapricelevel,inourexample
1,39928thefirstlevelwedoismovethe
comma(ourplatformnowhas4and5
decimals).
Evidentlyafterwestopcalculatingand
findoutthesupportandresistanceresultit
willbesomethinglike:1270,92.Wemustnot
forgettomovethecommaafterthefirst
number.
Thesupportlevelwillbe1,27092.
Inthefuturecoursematerialswewill
continuestudyingthemathematicalmethods