Elite Member
Varna+BULGARIA
Trading Experience: Intermediate
Platform: ts, nt
Favorite Futures: soybean futures, Violão
Posts: 7 since Aug 2012
Thanks: 70 given,
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Hi Fat Tails,
thanks for your comment. You are asking reasonable questions. I'll try to answer to a certain extend but with no promise that this is all  although Gann sounds simple, this is only on the surface. There is much more than the eye meets... There is no such thing as Gann fan  this is someone's wrong interpretation of Gann, but is quite popular as a trading instrument in some trading softwares for those who do not know Gann. Gann used planetary longitude and converted it into price and vice versa  he converted price into time, but using different scales interrelating price and time. He used the solar year as a circle of 360 deg, very close to our 365 days. He measured everything according to the circle of 360 deg. He used not only the solar year cycle but also the Jupiter, Mars, Saturn, etc  but in every case he related one deg planetary movement to a corresponding price change. Things get really complicated the more correlations one finds. Actually he used prices as if they were planets. He talked about "squaring the range, squaring lows and squaring highs. I think he aspected price and time using the major astrological aspects  that is why he talked so much about squares and triangles and the corresponding numbers 45, 90, 180, 120, 270 etc, which are actually DEGREES OF THE CIRCLE. In the case of soybeans letter you quote", 21 Gemini means 81, because Gemini begins at 60 deg after the spring equinox, which is 0 or 360 deg. 360+81=441, square of 21, by the way.
441  135 deg (major planetary aspect, others are 90, 180 and 270) gives you THE PRICE 306, which he explained as ONE OF THE IMPORTANT RESISTANCE LEVELS, bacause the beans traded there at the time he wrote his letter. He stated that Prices are governed by TIME, meaning PLANETARY LONGITUDE, and Gann angles are actually planetary longitude balancing Price and Time. So if I had to use the word rubbish I would apply it to "Gann fans".
I'm not sure I can give good explanation of the example with your charts following almost identical cycles but trading at different price levels. This would take time for experimenting... not now, please. Yet, Gann would say a price of 7 113  for example  is 19 times the circle of 360 + 273 deg over, or 3 deg Capricorn, or the time (solar) around Christmas:. Gann used his astroknowledge in MULTIVARIANT manners that are not always clear to his readers including myself. For example in his coffee letter he uses several ways of correlating P&T he uses 12 points of price change to one deg of Jupiter move, since Jupiter cycle is 12 years, in the case he uses Saturn degrees  converted into earth days  he relates 1 deg of Saturn time to 30 points price change, because the Saturn cycle is 30 years and also he uses 1 point to 1 solar deg, which is one day for us  so here he gives 3 different variants of balancing P& T (Jupiter, Saturn and Earth time). To add insult to injury Gann would have probably found a dozen more other correlations and aspecs with planets and important tops and bottoms. In the case of the example with the Price of 7 113 ( I can not see clearly the prices on your charts) I would look for squaring of time periods harmonizing with the number 273.
PS The attachments represent original Gann charts he draw himself.
More  the divisions of 8ths of P&T are 45 deg divisions of different cycles, related according price and time to numbers 360, 720, 1080, 1440 ...12 960 etc. Same is true about the 1/3 and 2/3 divisions fr P&T representing 120 and 240 aspects, or the trine. Gann considered the all time high and all time low equivalent to major cycle expiration when/where P&T were equal, or balanced, or squared and then measured the repetition of this cycles (and their divisions as resistance levels) in both time and price units projected ahead in the future as conjunctions(360), oppositions (180 deg), squares (90, 270), semisquares (45, 135) etc etc.
Last edited by lameo; September 2nd, 2012 at 03:02 PM.
