Gann Astro Trading - Why Time is More Important than Price.Understanding Gann Astro Trading: Why Time is More Important than Price
1.Time and Price are Interconnected:
- According to Gann, markets move in cycles, and these cycles are governed by natural and cosmic rhythms. The relationship between time and price is crucial, but time, as Gann states, is often the more significant factor.
- While price shows the movement, it is the time element that reveals the true potential of a market cycle. Gann's theory posits that price will ultimately follow time-based cycles, meaning that a specific time point will have a more profound influence on future price movements than price levels alone.
2.Time: The Key Driver of Market Movements:
- In his writings, Gann emphasizes the importance of specific time intervals, particularly geometric and astrological cycles, to predict price movements. Markets do not move in a vacuum; they respond to the inherent rhythms of time.
- As described in The Tunnel Thru the Air and How to Make Profits in Commodities, Gann believed that understanding time cycles could help traders forecast market turning points more accurately than focusing solely on price patterns.
3.The Significance of Degrees and Cycles:
- Gann used the concept of a "degree" to measure time in a circular manner. A degree represents a specific amount of time, where 360 degrees make a complete cycle. He applied this idea to market movements, showing how price and time could be mapped in a circular form.
- Gann believed everything in the universe operates in cycles—astrological, physical, and even economic. Through his Gann Wheel, Gann demonstrated how specific degrees, such as 90°, 180°, and 360°, corresponded to important market levels and time intervals.
4.Astrological Influence on Time and Price:
- Gann integrated astrology into his market analysis, acknowledging that planetary movements had a direct influence on market cycles. For example, a planet returning to the same degree it occupied at the start of a cycle could be a strong indicator of a market shift.
- By converting planetary positions into degrees and mapping them onto market time frames, Gann successfully predicted major market events.
5.Why Time is Critical:
- Gann's extensive research showed that market trends often form at specific time intervals—regardless of the price level—such as at 90, 180, 270, or 360 degrees from a key turning point.
-The timing of a market move can indicate a price reversal or continuation, and Gann believed that correctly identifying these time cycles allowed for more precise predictions.
-The market’s response to time cycles reveals the true potential of price movements, as price action will follow these natural time-based rhythms.
6.The Gann Square and Time Cycles:
-The Gann Square is another tool Gann used to analyse price and time. It is a geometric pattern based on the number 9, and each square corresponds to specific time and price relationships. By calculating the number of days or weeks that correspond with these squares, traders could better predict key market turning points.
- Gann’s approach suggests that once a market has completed a cycle of 360 degrees (time), the next cycle could follow a similar pattern, reinforcing the idea that time leads price.
7. Converting Everything to Degrees:
- Gann’s unique ability to convert price and time into degrees allowed him to identify specific turning points. Whether it was a stock chart, a commodity price, or even an astrological event, everything could be analysed using this degree-based methodology.
- In his Master Commodities Course and Gann Master Charts, he elaborated on how these degrees could be used for precise timing and decision-making in trading. Each market action and reaction could be mapped along a 360-degree circle, giving traders a unique insight into future movements.
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"Here is a trade example using the Gann Astro Trading Principle."
"Using Gann Astro techniques, I accurately calculated the exact reversal time for Gold 2 hours in advance. Although my limit orders didn’t get filled, the market reversed precisely at the predicted time, showcasing the precision of intraday trading with Gann Astro trading and mathematical Models"
OANDA:XAUUSD
TIME OF REVERSAL CALCULATED 2 HOURS PRIOR - In the market, TIME is more important than PRICE. Most of you are misled by retail strategies that solely focus on the X-axis (price), which is fundamentally flawed. Markets move based on the function of TIME, not price, and certainly not by your lagging indicators or ineffective strategies focused only on price. The real truth lies in the Y-axis: TIME.
TIME IS MORE IMPORTANT THAN PRICE - GANN
WHEN THE TIME IS UP THE MARKET WILL REVERSE- GANN
(Note: Emphasizes the precision of your calculation and method while acknowledging the limit order not being filled.)
"YOU DON'T PANIC WHEN YOU KNOW THE GAME"
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Conclusion: Time, as Gann stated, is often the more important element in forecasting price movements because it reflects the cosmic and cyclical influences that govern all aspects of life, including the markets. By converting everything to degrees, Gann was able to map time and price in a way that provided clearer insights into market direction. Through his works, we see that the true key to success in trading lies not just in price levels but in understanding the cycles of time that drive the markets.
Gannstrategy
GANN TRADING LESSON: TIME IS MORE IMPORTANT THAN PRICEGANN TRADING LESSON: TIME IS MORE IMPORTANT THAN PRICE – THE CORE OF W.D. GANN’S METHODOLOGY
William Delbert Gann, one of the most enigmatic figures in trading history, built his legendary status on a profound understanding of market movements. Among his many revolutionary insights, none resonate more than his assertion: “TIME is more important than PRICE.” Gann's studies reveal that markets are governed by cyclical laws where TIME dictates market behavior, and PRICE merely reflects the outcomes.
This article delves deeply into Gann’s philosophy, integrating examples, methodologies, and references from his works, to illuminate why mastering TIME can give traders a significant edge.
Understanding the Superiority of TIME in Trading
1. The Foundation of Gann’s Philosophy:
- In his book “The Tunnel Thru the Air”, Gann states, “The future is but a repetition of the past; cycles can be studied and predicted with mathematical precision.”
- This emphasizes that TIME controls market events. Price, on the other hand, is secondary—a mere result of the unfolding TIME cycles.
2. Why TIME is More Important Than PRICE:
- PRICE is Reactive: Price changes happen as a result of events, but those events themselves are determined by TIME cycles. Without the correct timing, price predictions are speculative at best.
- TIME is Predictive: Understanding TIME cycles allows traders to foresee when significant price movements are likely to occur, providing a roadmap for market behavior.
3. The Illusion of PRICE:
- Traders often fall into the trap of chasing prices—buying highs or selling lows—without realizing that markets move within predetermined TIME windows. Gann showed that price breakouts or breakdowns are unsustainable if they occur outside critical TIME cycles.
Key Concepts from Gann’s Methodology on TIME
1. The Law of Vibration: Gann believed that every market has its unique vibration, influenced by TIME cycles. In “The Law of Vibration”, Gann explains that market movements align with natural and cosmic vibrations, which repeat over TIME.
2. Cyclicality of Markets: Markets move in cycles determined by TIME. Gann’s studies revealed major cycles such as:
- The 20-Year Cycle: Markets often exhibit significant highs or lows every 20 years.
- The 60-Year Cycle: This aligns with major economic booms and depressions.
- Planetary Cycles: Gann tied TIME cycles to planetary movements, including the 11.86-year Jupiter cycle and Saturn’s 29.5-year orbit.
3.The Square of Nine and TIME Projections: Gann’s Square of Nine is one of his most famous tools. While often used to predict price levels, it is equally powerful for determining TIME turning points.
Example: The Square of Nine can map out important dates when markets are likely to reverse, based on the angle of price and TIME.
4. Geometry in TIME: In “The Geometry of Stock Market Profits”, Gann emphasized the relationship between price and TIME through angles. A 1x1 angle (45 degrees) represents the ideal balance between price and TIME. Any deviation from this angle signals acceleration or deceleration in the trend.
5. Astrological Influence on TIME: Gann’s work integrates astrology to predict TIME cycles. He studied planetary aspects, transits, and lunar phases to determine when markets would experience significant changes.
Example: Gann highlighted the importance of eclipses, retrogrades, and planetary conjunctions in marking market highs and lows.
Practical Applications of TIME in Trading
1. Time-Price Symmetry: Gann believed that price movements often mirror TIME durations.
Example: If a market drops 100 points over 10 days, it is likely to recover 100 points over a similar TIME interval.
2. Repetition of Historical Cycles:
Gann showed that the 1929 crash followed a similar TIME pattern to earlier financial crises. By studying historical TIME intervals, traders can predict future market events.
Timing Highs and Lows:
3. Use Fibonacci TIME zones to identify when markets are likely to peak or bottom. Combine this with Gann’s techniques, such as using the Square of Nine, for precise predictions.
Seasonality and TIME Cycles:
4. Markets are influenced by seasonal and cyclical TIME patterns. Gann demonstrated that major market reversals often coincide with solstices, equinoxes, and other seasonal turning points.
Examples of TIME’s Importance in Gann’s Predictions
1. The 1929 Stock Market Crash: Gann predicted the crash using TIME cycles, noting that it occurred 60 years after the Panic of 1869 and 30 years after the 1899 bear market.
2. The 1987 Crash: Gann’s methods, when applied to long-term TIME cycles, also align with the 1987 crash. It occurred exactly 58 years after the 1929 collapse, reflecting the repetitive nature of TIME cycles.
The Interplay Between TIME and PRICE
While PRICE is easier to track and analyze, Gann believed that the greatest trading success comes from aligning PRICE movements with TIME predictions. He illustrated this in his “Master Forecasting Course”, where he taught students to:
- Map out major TIME cycles.
- Identify the angles and relationships between TIME and PRICE.
- Use TIME as a framework to validate PRICE movements.
Steps to Master Gann’s TIME Methodology
Study Historical Cycles:
- Identify significant market events and analyze the TIME intervals between them.
Use Tools Like the Square of Nine:
- Plot critical TIME intervals to predict market reversals.
Combine TIME Analysis with Price Patterns:
- Validate price movements with TIME projections to confirm trends or reversals.
Incorporate Natural and Planetary Cycles:
- Use planetary ephemerides and lunar calendars to enhance TIME forecasts.
Conclusion: Why TIME is the Ultimate Edge
Gann’s timeless wisdom teaches us that focusing solely on PRICE is like chasing shadows. TIME is the true master, dictating when markets turn, rally, or crash. By mastering TIME, traders can move from being reactive to predictive, seizing opportunities before they manifest.
As Gann said, “When TIME is up, price will reverse.” This simple yet profound truth encapsulates the essence of his methodology. Focus on TIME, and the illusion of PRICE will reveal its secrets.
Join the Discussion:
Do you agree with Gann that TIME is the most critical factor in trading? Share your thoughts and experiences below!