As you may know, Gann was a trader who developed various esoteric trading methods in the 1920s. One of his tools was a square of numbers, called the Gann Pyramid. It’s a spiral of numbers, starting with 1 in the middle. (you can easily find a picture on Google). According to Gann, key trading points are the numbers located on the vertical and horizontal axis. Of secondary importance are the numbers on the 45-degree lines.
Doesn’t seem to make any logical sense, but let’s take a look at the July Corn chart…..
Last September was the end of a long bear-market in corn. One of the main Gann numbers is 371. Corn bottomed on 9/18 at 370 and started a 1-month uptrend.
Just a few days after this bottom, corn hit another Gann number…391. This happened on 9/28, when corn touched 391.25 and suddenly crashed for one day.You guessed it…. the bottom of this one-day crash was on Gann’s 45-degree line… 381. The actual low for this day was 380.25. The next day, corn continued it’s uptrend.
The next few weeks don’t seem to match any of those numbers, but the next important low as made late November, at 382, falling just 1 ct short of Gann’s number 381
From this low, the next high point was at 401.25, three weeks later… with 401 being one of Gann’s secondary numbers.
From there, corn slowly started to develop a downtrend. The next main Gann number would be 371. This number was touched precisely on 3/11
The upmove from there fell 1 ct short of the 391 Gann number, on 3/25. It topped at 390
From there, the next main Gann number is 352. On 4/26, corn made a bottom at 351.50.
The following brief bear market rally ended a week later at 371.75…. with 371 again being a Gann number
The super uptrend we are witnessing now, started a few days ago from a major low of 343. On the Gann Pyramid, 343 is one of the secondary numbers… precisely.
I have no idea why all this works….maybe, if lots of people follow the same system, it becomes self-fulfilling.
PS: this study was done in hindsight… I didn’t trade it.
YES, very interesting!
Do you anticipate 360 degrees to 421? Possibly 720 degrees to 507?
CN approached 270 degrees today stopping at 399 with 401 the objective. Do you anticipate a drop back to 391, that being 225 degrees? Drop back to 381(fill the gap) at 180 degrees?
386, this week low, is 222.5 degrees! Perhaps a test thereat, hold, and move back up!
YOUR additional thoughts, please!
Hi tjc,
you are asking the wrong person.... I am not a Gann fan, or user of this tools. I only pulled out my ancient and dusty Gann papers today and started checking things out, and I was surprised how accurate some of the turning point were.
I may want to use these numbers in combination with other tools or reasoning. Should I come to the conclusion of making a trade, and one of the Gann numbers is near by, I may then take that number as an entry point.
Jly Corn had a remarkable run last week, but it is now in the midst of the prolonged trading range of 6 months ago. We should expect some choppiness around here. Yet, it could easily surpass this trading range.
ZCz goes on up past 421. Not because of pp, mud or Gann. Its a hungry world wants to be secure. Ask the 'what if?' re 2020.
Becker. Forget about 2020. Politics doesn't feed a hungry world. Demand and supply does.
Gunter. I haven't studied Gann in quite a few years. In a certain way, his theories make sense. In other ways, not. At least to me. However, I am quite content with the methods I know work on a daily basis. Each of us, approach the market somewhat differently. That doesn't mean that any particular person is wrong. Just a different view and means of dealing. But Gann might be worth the study again.