ChAPter 19 Basics of Gann Analysis
G
ann techniques for forecasting potential reaction levels in the markets have fasci-
nated practitioners for decades, especially with his use of market geometry, sym-
metry, and corresponding number systems. Many of Gann’s approaches are fairly
esoteric, and practitioners have spent decades trying to decipher Gann’s rather cryptic
documentation of his techniques in his few books, personal charts, and training notes.
Due to the complexity of Gann analysis, the best that can be presented here is but
a brief description of some of his more popular techniques for forecasting potential
areas of support and resistance, as well as potential tops and bottoms in the mar-
ket, with some modern variations. We shall cover Gann angles and fans, Gann grids,
Square of Nine price and time projections, as well as Gann percentage retracements.19.1 Techniques of W. D. Gann
William Delbert Gann believed that the markets are ruled by the interaction of
price and time elements and that there should be a balance between them. This
requirement of balance is best represented by the application of his 45 degree orL e a r n i nG o Bj eCt i v e sAfter studying this chapter, you should be able to:■ Understand the meaning of price‐time balance in the markets
■ Describe how one‐eighth, one‐third, and 50‐percent retracement charts forecast poten-
tial support and resistance in the markets
■ Identify and differentiate between the square of nine price and time projections
■ Understand how to calculate the scale or trend rate for any commodity or market
■ Construct various charts using Gann Fans and Grids using the appropriate scale or
trend rate
■ Set up Gann charts with various oscillators to identify overbought, oversold, and
divergence with respect to price