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| 1. Jesse Livermores Secret To Success
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| 2. Home page investor image explanation
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| 6. How to win in the stock market
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| 7. Commandments to follow
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| 8. 10 Rules for Investing
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| 9. How to survive a stock market crash
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| 10. William J ONeil, CANSLIM
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| 11. Barry Ritholtz keep it simple stupid
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| 12. Gerald Loeb how to win
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| 20. Indicators Introduction
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| 22. Richard Wyckoff method
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| 23. Richard Wyckoff Waves of Price and Volume
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| 24. Richard Wyckoff is a success story
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| 25. Richard Wyckoff logic not working, this maybe why?
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| 26. Richard Wyckoff studied Jesse Livermore
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| 27. Bob Evans, renowned Wyckoff teacher
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| 28. Tim Ord, Secret Science of Price and Volume
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| 30. William Gann life story
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| 31. William Gann Law of Vibration
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| 33. Wyckoff method improved1
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| 34. Wyckoff method improved2
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| 35. Original Wyckoff and Wyckoff 2.0
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| 36. Wyckoff 2.0 vs Others
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| 37. Wyckoff 2.0 and Volume Spread Analysis
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| 42. Cycles for short term speculation
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| 48. RTT Wyckoff Short Term model
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| 51. Proprietary Indicators (PI)
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| 52. Multi Time Frame (PI)
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| 55. PI: RTT TrendPower OBV
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| 56. PI: RTT On Balance Volume
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| 58. PI: RTT Rainbow Bands
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| 61. PI: RTT Steps of Cause and Effect
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| 62. PI: RTT Wyckoff Strength Weakness
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| 63. PI: RTT Wyckoff Price Waves
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| 64. PI: Proprietary Indicators Caution
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Indicator Library
William Gann Law of Vibration
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 W D Gann's superlative skill was his ability to forecast accurately the stock and commodity markets. His forecasting method was based upon what he called the Law of Vibration. Almost a hundred years (August 8th 1908) ago Gann made this most important discoveries, if not his most important discovery.
W D Gann Quote (Ticker Interview)
..“Vibration is fundamental; nothing is exempt from this law; it is universal, therefore applicable to every class of phenomena on the globe"…."After years of patient study I have proven to my entire satisfaction, as well as demonstrated to others, that vibration explains every possible phase and condition of the market”..
Here is a general description of W D Gann 'Law of Vibration'.
1) Stocks and commodities (and everything else on earth) vibrate. Moreover, vibration provides a comprehensive explanation of price movements in financial markets.
2) Stocks and commodities vibrate in accordance with both their own individual energy/ vibration (i.e. internal vibration) and also in accordance with energy/ vibration transmitted through space (i.e. external vibration).
3) The overall energy/ vibration of a stock or commodity is reflected in its price.
4) Financial markets essentially comprise a series of impulses that produce price movements with specific rates of vibration.
5) The price movement of a stock or commodity unfolds in a coherent way.This is because stocks and commodities are essentially centres of energies and these energies (or vibrations) are controlled mathematically.
6) When the overall vibration of a stock or commodity is in balance its price will maintain a constant rate of vibration (i.e. prices will form a trend). Consequently this overall rate of vibration (or trend line) can be precisely measured and future prices forecast by means of the so-called Gann angles or Gann fan lines (i.e. 1 x 1, 1 x 2, 1 x 4, 1 x 8 angles and their subdivisions).
7) These principles can be applied to forecast the trend of stocks or commodities over multiple time frames. For example, a minor impulse may produce a price movement with a specific rate of vibration that lasts only a few hours. Alternatively, a major impulse may produce a price movement with a specific rate of vibration that lasts for a number of years (e.g. the rise in the Dow Jones Industrial Average from 1921 to 1929).
8) It is thought that Gann believed the external energy/vibration acting on a stock or commodity is subject to astrological influences (although he does not explicitly state this in his Ticker interview).
9) It could be these astrological influences to which Gann was referring when he described market trends as acting in a way that is analogous to radio waves; i.e. they have a specific wavelength, they travel through space and they are received by and influence those stocks and commodities that vibrate with a resonant frequency.
10) From time to time a stock or commodity will lose its sensitivity (or receptivity) to certain influences (astrological or otherwise). As a consequence it will become inert (i.e. its rate of vibration will fall) and its price will typically enter a down trend.
W D Gann Quote (Ticker Interview)
...“It is impossible here to give an adequate idea of the Law of Vibration as I apply it to the markets.However, the lay man may be able to grasp some of the principles when I state that the Law of Vibration is the fundamental law upon which wireless telegraphy, wireless telephones and phonographs are based”..[and]...“Stocks create their own field of action and power; power to attract and repel, this principle explains why certain stocks at times lead the market and ‘turn dead’ at other times”..
Vibration in and out of sync, like radio waves:
RTT Comments: Gann, Wyckoff, Livermore and Hurst all had the above thinking in common. They all believed cycles are present in the market and price action was not always random. Gann would determined the vibration(s) of a stock (ie cycle) and then apply Gann Angles to the trend of the vibration to look for trading opportunities.
The question as to the influence behind cycles in price action is an open door on what actually is the true influence, it can either or any combination of:
- current price data
- previous price data
- correlation to some similar time series data
- astrology (as W D Gann followers believe)
- nature seasons
- presidential periods
- mathematical relationship (ie Fibonacci)
The bellow is our best guess of understanding of W D Gann trading mind.
Click for popup. Clear your browser cache if image is not showing.
More explanation here:
and here, discussing Gann Angles with calendar and or trading days.
NOTE: readtheticker.com does allow users to load objects and text on charts, however some annotations are by a free third party image tool named Paint.net
Investing Quote...
.."I latter told my students, 'think in waves' [of price and volume]"..
Richard D Wyckoff
.."If you tell the truth, you don't have to remember anything."...
Mark Twain
.."Just because you’re taught that something’s right and everyone believes it’s right, it don’t make it right."..
Mark Twain
.."The key to making money in stocks is not to get scared out of them"
Peter Lynch
..“It’s not what you own that will send you bust but what you owe.”..
Anon
Created on: 9/24/2013 2:02:36 AM Last Update: 9/30/2013 1:08:20 AM 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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