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1. Jesse Livermores Secret To Success

2. Home page investor image explanation

3. The great crash 1929

4. Dear NewBie Investor

5. How Wall Street works

6. How to win in the stock market

7. Commandments to follow

8. 10 Rules for Investing

9. How to survive a stock market crash

10. William J ONeil, CANSLIM

11. Barry Ritholtz keep it simple stupid

12. Gerald Loeb how to win

13. Paul Tudor Jones II

14. Felix Zulauf

15. Sir John Templton

16. Jordan Belfort

17. Warren Buffett

18. Reading the tape

19. Indicators Introduction

20. Richard Ney method

21. Richard Wyckoff method

22. Richard Wyckoff Waves of Price and Volume

23. Richard Wyckoff is a success story

24. Richard Wyckoff logic not working, this maybe why?

25. Richard Wyckoff studied Jesse Livermore

26. Bob Evans, renowned Wyckoff teacher

27. Tim Ord, Secret Science of Price and Volume

28. William Gann method

29. William Gann life story

30. William Gann Law of Vibration

31. Jim Hurst method

32. Wyckoff method improved1

33. Wyckoff method improved2

34. Original Wyckoff and Wyckoff 2.0

35. Wyckoff 2.0 vs Others

36. Wyckoff 2.0 and Volume Spread Analysis

37. Powerful Patterns

38. Elliot Waves

39. Price Action

40. Market Statistics

41. Cycles for short term speculation

42. Stop Loss methods

43. Alpha Stock Scanner

44. Swing Scanner

45. Flash Charts

46. RTT Market Timer

47. RTT Wyckoff Short Term model

48. Chart Drawing Tools

49. Standard Indicators

50. Proprietary Indicators (PI)

51. Multi Time Frame (PI)

52. PI: RTT TrendStatus

53. PI: RTT Squeeze

54. PI: RTT TrendPower OBV

55. PI: RTT On Balance Volume

56. PI: RTT VolumeWave

57. PI: RTT Rainbow Bands

58. PI: RTT Volume

59. PI: RTT MarketPulse

60. PI: RTT Steps of Cause and Effect

61. PI: RTT Wyckoff Strength Weakness

62. PI: RTT Wyckoff Price Waves

63. PI: Proprietary Indicators Caution

64. What we do - 1st

65. What we do - 2nd



         



Indicator Library
William Gann method
The originator of this method is from the writings of William D Gann (1878-1955)
William Gann
From the age of 13, Gann traveled the trains selling cigars and newspapers. In so doing, he overheard many conversations on investing—he listened. Gann wondered if it were indeed possible to predict the future. Many conversations he had overheard seemed to revolve around predicting the prices that their cotton would bring. Was it possible?

Gann moved to New York in 1903 at the age of 25 and began working at a major Wall Street Brokerage house. During the First World War, he and his family moved from Manhattan to Brooklyn. Gann reportedly predicted the November 9, 1918 abdication of the Kaiser and the end of the war. W.D. Gann began by studying the basic principles of price patterns and philosophy on how to accumulate wealth, and keep it. After becoming successful, he wanted to know why and how markets, and numbers repeated under certain time cycles. This led to further studies of ancient geometry and astrology.This research led to Gann accumulating over 50 million dollars up until his death on the 18th June 1955 **.

** While there is some debate on Gann final fortune (please read Gann life story via the menu), it is widely accepted that Gann was most successful early on in his career, it is known that he accumulated profits over $100,000 in the 1950s using methods that we also like to use: Angles, percentages, support and resistance.

Gann methods are all about geometry within a price time series, all his methods are designed to find the influential geometry within a price chart. Gann technical tools include angles, lines, circles, cycles, percentages, square of nine, astrology to name a few. We find favor with Gann's angles, arcs, levels and percentages. You can learn more via our  videos.

Gann Angles
From the Gann book called "The WD Gann Master Stock Market Course" (see our education page) we reference chapter 4 "The basis of My Forecasting Method - Geometric Angles" where Gann explains the construction of his trading charts. Gann charts are a 1x1 with time and price. That means that the chart is square. So if a stock high was $28, then the price range (x-axis) would be 0 to 28 and the time range (y-axis) would be 28 days (weeks or months). You can use multiples of 10 to make the chart easier to use for example, change price to $280 and then time axis can have 280 days etc. The point is the chart must be square.

Gann Paper


Gann angles appear in many common software packages however they are reapportioned to fit with the computer chart provided (compared to the true paper square chart) and I am afraid they often are unable to present a true Gann chart. All computer charts are presented by an x-axis and y-axis made up of pixels, for example a chart may be 600 pixels wide (x-axis) and 600 pixels high (y-axis). A computerized Gann chart would require that pixels per price (y-axis) are equal to pixels per time (x-axis). Readtheticker.com charts allow you to determine a correct Gann chart construction.

It should be noted that Gann Angle theory is based loosely on astrology, here is the evidence:

Astrology Gann angles


How did Gann Trade with Angles: In short, he would buy and sell stocks subject to the the price action (or tests of support and resistance) around the angles (I refer you to Wyckoffian logic to understand price tests).

Here are some Gann examples using Gann angles and circles. I have highlight price 'tests' and 'breaks' that would have attracted trading attention from Mr W D Gann. Also notice that price reversal patterns are more hazardous than trends.

Example1

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Gann Angles USA Ten year bond


Example2

SPY Example



Gann Ratios to Degrees (Full Angles:Time x Price):8x1: 7.50, 4x1: 15.00, 2x1: 26.25, 1x1: 45.00, 1x2: 63.75, 1x4: 75.00, 1x8: 82.50
Gann Ratios to Degrees (Half Angles:Time x Price): 12x1: 3.75, 6x1: 5.75, 3x1: 18.75, 1x3: 71.25, 1x6: 84.37, 1x12: 86.25

The !TNX Gann chart above has these measurements (see small red box highlighted)
TimeToPrice: 1x1
PriceAdj: x100
PeriodsToPrice: 875 x 3.75 (the range from y axis high and low)
WidthToHeight: 875 x 375

To setup up a Gann chart you select the 'manual' scale method within an analysis chart.

The pixel width of 875 divided by the number of periods (days) is: 875/875 = 1
The pixel height 375 divide by the price (3.75 *PriceAdj) is: 375 / (3.75 *100) = 1
Therefore the resulting chart is a true square of time and price, exactly how William Gann himself would have used.

Angle and Arcs Setup: The arcs in the chart that follow are calculated off the high and low allocated to the indicator. Find the high and low from the impulse wave or break out wave, this is your first choice, the raw high and low of this impulse wave. If the raw high and low of the impulse wave renders a poor fit to the arcs to price action then adjust the days difference between the high and low of the impulse wave to a number of days that equal a Fibonacci number. This adjustment can either be down from high or up from low initially selected. This our preferred method of setup, each to their own.

Example

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Gann Angle Apple Computers


We are great fans of trading method known as Gunner24 (acquisition of their ebooks are worthwhile, we use the 'Gunner Detailed Action Sheet.pdf'). Their methods and interpretation of trends, Gann Angles and Arcs is very intelligent, worth your time to investigate. (We have no association with this service nor do we accept any risk if you decide to use it, please review our terms of use for this site)

Gann Percentages
Gann said 'every significant top and bottom have influence by way of geometry over future tops and bottoms'. They are all related! Find confluence of the percentage levels of a series of highs and lows to find strong support and resistance levels.

Percentage Sequences:
  Sequence1: 1.56, 3.125, 6.25, 12.50, 25.00, 50.00, 75.00 (continue with sequence3)
  Sequence2: 2.08, 4.16, 8.33, 16.66, 33.33, 66.66, 100.00, 133.33, 166.66, 200.00
  Sequence3: 100.00, 125.00, 150.00, 175.00, 200.00, 225.00, 250.00, 275.00, 300.00, etc

Example

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Gann Percentages


Gann Levels

Gann would draw for major levels G1,G2,G3 and G4 on every chart. Gann new these levels would provide a strong influence over price action in the future. Knowing these levels ensured, if the price gets there, he would be ready.

Example

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AAPL Gann Levels



 

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Investing Quote...

.."Your goals are to select only stocks that move soonest, fastest and farthest in bull or bear markets. Limited losses and let profits run."..

Richard D Wyckoff


.."It is better to keep your mouth closed and let people think you are a fool than to open it and remove all doubt."..


Mark Twain

...“People somehow think you must buy at the bottom and sell at the top to be successful in the market. That’s nonsense! The idea is to buy when the probability is greatest that the market is going to advance”...

Martin Zweig (The inspiration behind a number of Martin Zweig’s methods came, from Jesse Livermore).


.."It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong"..

George Soros



Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.

Nobel Laureate for Economics Paul Samuelson




Created on: 8/10/2010 11:43:56 PM   Last Update: 3/15/2021 4:52:42 PM Posted by: RTT
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We at readtheticker.com hold the view that a mix of stock chart technical analysis, Richard Wyckoff, William Gann and Jim Hurst methods plus market fundamentals allows the investor to formulate a very sound market opinion. These attributes are mutually inclusive and must be weighted equally before investing or trading in any Stock, ETF, Currency, Bond, Commodity, CFD or Mutual Fund



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