Understanding Gann Astro Trading.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.