Gann Theory Overview Vladimir Komarov（江恩理论概述弗拉基米尔·科马罗夫）.pdf

Gann Theory Overview The methods of analysis employed by Gann can best be described as the study of pattern, price and time and how their relationships affect the market. Gann treated these as the most important aspects which influenced the future movements of any market. The main focus of Gann theory is to understand that at various times, different aspects will influence the market. For example, a pattern may have a large influence on the market while at another time it will be price and time that will provide a dominating force on the market. Understanding these relationships is the key to trading with more success using Gann theory. Gann theory tries to identify the best combinations of price, pattern and time to initiate successful trades. It is true that trades may be signaled by each element individually. A trader who places too much emphasis on only a single aspect may experience less success than a trader who patiently waits for the best combination of all three aspects, being price, pattern and time THE BASICS OF GANN THEORY Mathematics Gann was an outstanding mathematician, he had a love of numbers and number theory. It is often said that Gann theory revolves around natural law and mathematics. Gann used various numbers throughout his trading analysis, these numbers had a dominant place amongst his trading methods. For example the square of numbers was a very important set of numbers for Gann, in particular the numbers 16, 25, 36, 49, 64, 121 and 144. He believed that the market moved in patterns which were sensitive to the price movement of these squares. As an application example he would have used these numbers to determine that a specific rally may find resistance 64 cents or 64 days from the bottom. Key Numbers Gann also liked certain key numbers. The numbers which Gann favored had significance in other areas. For example Gann liked the number 12 which also has biblical (12 disciples) and astrolog