Foreword xv
Preface xvii
Chapter 1 The Work of W.D. Gann 1
Market Predictions 1
Publications 3
Focus of This Book 5
Trading Rules 6
Chapter 2 Elements of the Market 9
Basic Market Movement 9
Price Is King 10
Patterns Repeat 11
The Construct of Time 20
Chapter 3 Interpreting the Market 27
Gann’s View of Price Movement 27
Projections Based on Existing Price Movement 32
Chapter 4 Trading the Market 39
Exceeding Moves in Time 41
Triple Bottoms/Tops 49
Double Bottoms/Tops 57
Exceeding Moves in Price 63
Buy Old Tops/Sell Old Bottoms 69
Rapid Moves 74
Trading Ranges 80
Chapter 5 Application of Gann’s Principles 85
Gann’s Favorite Numbers 85
Gann’s Principles Applied Outside of Price 95
The Importance of the Closing Price 108
Chapter 6 Trade and Capital Management 119
Risk Assessment 120
Placement of Orders 123
Trade Initiation 126
Management of Trade 127
Trade Exit 135
Review 136
Chapter 7 Bringing It All Together 139
Exploring Gann’s Examples 139
Rigid Rules, Flexible Observation 150
Chapter 8 Beyond Trading Basics 155
Looking to the Left of the Chart 155
Recommended Reading 160
Obtaining Charts 161
Gann’s Writing Style and References 162
A Study “Partner”—an Invaluable Tool 167
The End...of the Beginning 170
Appendix A Gann’s 28 Trading Rules 173
Appendix B Affirmative Versions of Gann’s 28 Rules 177
Appendix C Gann’s Buying and Selling Points 181
Appendix D Gann’s Soybean Chart 185
Appendix E Google, Inc. (GOOG) Highs and Lows by Calendar Month
187
Index 189
W.D. Gann's works helped to pioneer the discipline of technical analysis, and they still offer immense potential value to investors and traders. However, Gann's original publications are esoteric and can be challenging to read and use. In Trading Methodologies of W.D. Gann, long-time day trader and expert technical analyst Hima Reddy brings these works to life for modern traders and investors. Reddy has distilled Gann's tenets into crystal-clear, bite-size explanations, and illuminated them with exceptionally intuitive charts and illustrations. Drawing on extensive personal experience, Reddy explains how Gann's insights into price, pattern and time can be applied in all types of markets and market conditions. Using this book, any experienced trader can discover the value of Gann's approach, and start utilizing it in his or her own trades. Then, with Reddy's discussion as a foundation, traders can delve more deeply into all of Gann's works, identifying even greater opportunities for profit.
Hima Reddy, CMT, was first introduced to technical analysis,
and to the works of W.D. Gann, during her high school years by her
father, who has had a passion for trading and the markets since the
early 1980s. However, it wasn’t until after she completed an
undergraduate Finance degree at Indiana University’s Kelley School
of Business, and returned to her home state of New York in 2001,
that she immersed herself in the markets. She simultaneously
volunteered as a sponsorship coordinator for several Market
Technicians Association conferences, traded equity and commodity
futures under the tutelage and guidance of her father, and
completed the Chartered Market Technician certification. In 2006,
she joined Informa Global Markets, an independent financial
research firm providing live, 24-hour market analysis. As Senior
Technical Analyst, she was responsible for producing timely and
accurate short-term technical analysis and trading strategies for
fixed income and FX markets. With analysis ranging through multiple
timeframes, her team also prepared written updates covering
longer-term trends. Hima’s “guru” has always been Gann—the first
market analysis book she ever studied in-depth was How to Make
Profits in Commodities—and to this day that is her go-to guide to
the markets. Since 2011 she has returned to trading independently
and continues to write about the financial markets. Her primary
methods of technical analysis include pattern recognition and time
duration relationships within markets based on Gann’s methodology,
momentum assessment through the use of the Relative Strength Index
(RSI), Fibonacci relationships, and moving average systems
including the use of channels for trade management. Hima now
resides with her husband in Baltimore, Maryland.
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