The W.D. Gann Method of Trading: A Simplified, Clear Approach

210 Pages·1990·7.15 MB·English

by  Gerald Marisch

The W.D. Gann Method Of Trading A Slmplified, Clear Appraach
THE W.D. GANN METHOD
OF TRADING

A Simplified, Clear Approach

BY GERALD MARISCH

Windsor Books, Brightwaters, N.Y. 11718
Copyright 1990 by Gerald Mariseh
“All rights reserved
This book, or parts thereof,
may not be reproduced in ny form without the
permission of the publishers.

Publish! by Wiadyor Books
P.O, Box 280
Brighivaters, N.Y. LI7IS,

‘Manufactured in the United States of America

ISBN 0.920033-42.5

(CAVEAT; Itshoul be noted that all commode tates, pleas, chacs estms, tics in his
took are for ateasve purpose anand areca becnatracd ax specie ace eonnendarons,
Frunibe not thut no sethod of trading oF iwestng is folgeoot er witout sly, und past,
po formanesis no guaance of flue penfermane:. A ideas sad mate peste ar ents dome oF
Uheamborae do ecards refi be of de publisher ur bob.
DEDICATION
‘Tu my wile and bestest friend of all,
DEBORAH
Cover Desisen
"Tha Gann chart appearing onthe eoeri From:
*“Guantrader

Ghannaoft Publishing Co.
Tccoensorth, WA S836
Table of Contents

lacroduction,

Part.

Park TT

Part HT,

Pas lv

Pan V.

Part VI.

Par. VO.

Part VO

Guua. Hiv Hulos and His Anglos
‘Time.
Price
Relrseenients
Gant Angles - Prive versus Thine
Gann’s 50% Retraceacemt Rule

Definitions

Watablishing a Rotracoment Zone

Stop-Tass Orders

‘Liquidsticn in the Retracement Zone
Stop Oed6F wenn
Market Order von
Step AND Market Onder,

‘After Profits ... Now What?

‘Hine ‘Tuning the 60% Rule

A Word bat Stachaaties

Part IX sins

Pant X,

Putting It All Together

aT

at

a8

o
Paet.X1
‘Deas It Wack All The ‘Tine?

Part XID

Getting Started

APPENDICES

APPENBIE A sas
Foueres Markel Tulematinn

Appendix 8
Daily Market Hrices

Appendix ©
Catuulading Teessury Sund Prices

Appodis
lnloranation Sources
Boaks «suns
Charting Services
Commodity Exchanges
Campntar Hardware and Saltwares
Computerized Data,

Miscellaneous Information
Peviedtfeal

Appendix I. seen
Chat and Tahle Tndes

Appendix ¥
Request for Information

144

1a

200
INTRODUCTION

“You can make a fortune by following this one rule alone. Acarefil study and
review of past movements in any cammodity will prove to you, besond a doubt,
that this rite works, and that sou can make profits following It”

“Flow to Male Profity Truding in Commodities, 1942, p. 38

Any treder, from the novice to the professional, who is aware of the futures
markets knows that. tramendqua profit patential existain trading futures. Yet,
it sooms almost impossible tolearn all the trading rules and “caveats” of futures
trading, and then te put them into practice.

‘A computer and eoftware can give a trader many advantages. Automated
deta rotrieva), stochastics, RST calculations, and Elliott Wave counts ean all be
done in minntea, rather than hovra, with leas wink and gecater accuracy.

‘Abeyginning trader, though, ay not own acomputer. Temay bea costly and
time-consuming cffort, sorting through the maze of iavestment softwaze, plus
the pumerous technical-analysis mothods and “eystems” that are offered today.
Torms such as extcnded 5th waves and oscillators, and the names of Fibonseci
and Wilder, may be completely foreign ta the new trader, Syatema with exotic

nee, ull of which seemn to promise wealth, ooly sdd ly the oynfusion.

‘The now trader looks for gouwthing that in clear, simple aud easy to
understand: some trading method that can be used to increase a trader's
confidence - and a trader's accomnt,

‘This hook was written lo iva new trader snewers.und information. LLdues
aot contain a sure-fire method of muiking a fortune overnight. It DOS present
guidelines to help the beginning trader earn consistent profits, while answering
samme of his questions, The goidetines are based an eatebliahed roles that. are
surprisingly simple, yet dramatically effective for profiting from the markets,

‘The roles follow Lhe “KISS” axiom of Keep It Simple, Stupid, ‘They have
slocd the testaf time forany market, for any period, and forsany amountofeapital
the trader wishes ta risk,

‘The rales arc haved on Gans’a 50% Retracement Rule,
PARTI

Gann... His Rules and His Angles

Willinim D. Gann was a teader of the early 20th century, His abilities for
profiting from the wtuek und commodity snarkels remuin unchallenged. Gunn
‘methods of technical analysis for projecting both price aud time targets are
unique, Even today, his methods have yet to be fully duplicated.

‘Known as “The Master Trader,” W. D. Gana was bora in 1878, in Lufkin,
‘foxas. Gann netted over $50,000,000 from the morkcts during his trading
career, averaging a sucecss rate for trades of 80% to 90%. It has been said that.
Gann could very wall have buen right ALL ho time. Any lassesineurred by hia
were only there hy hisown design and not becouse of any foults with hismethods.

‘His successes are legendary, Cann literally converted small accounts inte
fortunes, inerwasing heir net balances hy sevaral hundved parent, There are
nomorovs examples of his trading euccesses, among whieh ave Giese!

1908 - u $150 uecounl incensed to $12,000 in 30 days,
1929 - a $978 account inerensad to $350,000 in 6) days,

1988 - 479 trades weremade with 422 being profitable, Thin inan securaey
‘of BBM snd AD00% profi’

1946 A 8-month nec profit of $13,000 from starting capital of $4500 - a
400% rate of return.

‘The following paragraph appeared in the December 1909 issue of!“Ticker”
Mayozine. Tt was writien by RD. Wyekoll, the former owner and editor of the
“Ticker.” und daueribes Gunn's profivienry for prgjecting price targets forwardin,
tine: