When traders talk about WD Gann, they usually mean the Gann Angles or the Square of Nine. Those get all the attention.
But Gann’s real edge was deeper. He built his trading around a set of rules drawn from natural laws, the same laws that govern the world around us. These rules mattered more to his work than any angle or square ever did.
Natural laws are principles that hold true everywhere, all the time. Day follows night. Tides rise and fall. Seasons turn in the same order, year after year. These patterns don’t bend to opinion or mood. Gann believed markets follow the same kind of order, and he used these rules to read price and time when most traders saw only noise.
Here are the main rules Gann worked with.
The Law of Cause and Effect
Every action has an equal and opposite reaction.
Market shifts can occur due to significant events, either fundamentally or technically. Interestingly, the market can sometimes Predict these events before they happen. That means the market changes first, and then the related news emerges.
Gann pointed out that markets often factor in these events beforehand, resulting in news following the market instead of causing market movements.
The Law of Periodicity
Everything in nature has a rhythm or a cycle, like day and night or seasons.
Gann believed that markets also work in cycles that traders can use to Identify potential tops, bottoms, and changes in trend direction.
He went beyond typical cyclical analysis and used this Principle to Predict more extensive market movements.
The Law of Polarity
The law of polarity is a principle that states that everything in the universe has an opposite. Everything has a duality and a built-in opposite that cannot exist without the other.
Everything is dual
Everything has poles
Everything has its pair of opposites
Opposites are similar in nature but different in degree
The law of polarity applies to all elements of life, including personal relationships. The continuous day and night cycle is a perfect example of the Law of Polarity, where two opposite phases occur in 24 hours.
The Law of Harmonic Proportions
Nature often reveals harmony in proportions. That is noticeable in patterns like the spirals of shells or the way branches grow on trees.
Gann used Geometric and harmonic ratios derived from natural occurrences to predict significant points in Price and time. He looked at Changes in the market that have occurred in the past to calculate future projections in Price and time.
The Law of Balance
The Law of Balance states that systems naturally strive for stability and equilibrium. Whether through natural forces or the actions of those within the system, balance is sought after. When a system is imbalanced, forces arise to push it back towards equilibrium.
As an example of the Law of Balance, imagine a see saw in a playground. If one side is too heavy, it goes down, and the other goes up.
The Law of Rhythm
Everything follows a natural order or a cycle, moving back and forth, up and down, in a predictable pattern.
Just as the tide comes in and then goes out, or the seasons change from spring to summer to fall to winter, everything has its rhythm.
WD Gann believed that markets have intrinsic rhythms. Identifying these rhythms, whether daily, monthly, or even yearly, helped him to anticipate tide-like movements in the markets, providing insights into potential Peaks and troughs.
Discover the Trading Techniques of WD Gann that are Rooted in Natural Laws
If you have been relying solely on traditional trading methods, then you’re overlooking the treasure of Knowledge that the Natural laws of the universe offer.
These courses are not traditional trading methods. Instead, they’re based on unchanging principles of nature on ‘Natural laws’. They offer unique market insights, going beyond what average traders use.
Gann’s trading approach was built upon these constant and unchanging laws, making them the foundation of his success. By exploring these principles, you can follow in his footsteps and harness the true essence of the market.
So, if you want to separate yourself from the crowd and gain a deeper insight into the markets, then take the first step towards Acquiring deeper Knowledge of the Markets based on Natural laws. – Divesh
