Pattern, Price and Time: Using Gann Theory in Technical Analysis / Edition 2

by James A. Hyerczyk

Overview

An updated look at applying W. D. Gann's controversial trading concepts to all major markets

W. D. Gann continues to be one of the most controversial figures in technical analysis. Despite his detractors, his theories remain fundamentally solid, and have been successfully adapted by several generations of traders. In this authoritative text, expert technician James Hyerczyk presents a straightforward overview of Gann Theory, its basic principles, and its proper applications in creating profitable trading systems. Hyerczyk examines, in complete detail, such essentials as swing charts and trend indicators, percentage retracements, Gann angles, and cycle dates. With fresh information about how to use price scales when charting forex, equity, and ETF markets, as well as discussions on how to calculate Gann angles for each market, this Second Edition of Pattern, Price and Time is a must-read for anyone looking to thoroughly understand–and successfully implement–one of the most important and powerful trading methods in existence.

Product Details

ISBN-13:	9780470432020
Publisher:	Wiley
Publication date:	04/20/2009
Series:	Wiley Trading , #408
Edition description:	2nd ed.
Pages:	288
Product dimensions:	7.20(w) x 10.00(h) x 1.20(d)

About the Author

James A. Hyerczyk is a registered Commodity Trading Advisor with the National Futures Association and owner of J.A.H. Research and Trading. His firm publishes Forex Pattern, Price & Time Report and the Futures Pattern, Price & Time Report newsletters and offers daily, weekly, and monthly advisory service on the futures, Forex, ETF, and equities markets as well as providing educational, research, and consulting services. Hyerczyk, who has been actively involved in the futures markets since 1982, has been published in print in SFO and Futures magazines as well as on various financial Web sites including FuturesHound.com and ForexHound.com.

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Table of Contents

Preface ix

Acknowledgments xiii

Chapter 1 Why Pattern, Price, and Time? 1

Chapter 2 Who Was W. D. Gann? 5

Chapter 3 Gann Theory in a Nutshell 17

The Basis of Gann Theory: The Law of Vibration 23

Pattern 28

Price 28

Time 30

Squaring the Price Range with Time 32

Advanced Price and Time Techniques 33

Gann Theory and Its Application to Trading 42

Chapter 4 Chart Basics 45

Gann-Format Charts 45

Proper Chart Construction 50

Charting Programs 56

Types of Charts 57

Summary 66

Chapter 5 Pattern: Trend Indicator Charts 69

Minor Trend Indicator 70

Intermediate Trend Indicator 74

Main Trend Indicator 80

Trend Indicator Construction 84

Stop Orders 87

Using the Information Generated 88

Characteristics of the Trend Indicator Chart 89

Summary 90

Chapter 6 Pattern: Swing Chart Trading 91

Reviewing the Trend Indicator Chart Rules 91

Basic Trading Instructions 95

Two Ways to Determine a Change in Trend 99

Other Swing Chart Trading Strategies 102

Swing Trading Rules 104

Swing Chart Negatives 119

Summary 122

Chapter 7 Pattern: Other Chart Formations 125

The Double Bottom 125

The Double Top 127

Prolonged Rally or Break Rule 128

Balancing Swings 129

Signal Tops and Signal Bottoms 133

Other Important Formations 140

Other Popular Patterns 141

Summary 141

Chapter 8 Price: Horizontal Support and Resistance 143

The Swing Charts 143

Percentage Retracement Price Levels 146

Other Retracement Levels 149

Multiples of Bottoms and Divisions of Tops 149

Pivot Price Calculations 150

Moving Averages 153

Summary 154

Chapter 9 Price: Gann Angles 155

Importance of Gann Angles 156

How to Construct Gann Angle Charts 167

Summary 195

Chapter 10 Combining Pattern and Price 197

Chapter 11 Time 203

Natural Cycles 203

Anniversary Dates 210

Seasonality 216

Swing Charts 221

Square Charts 225

Summary 231

Chapter 12 Combining Pattern, Price, and Time 233

The Intermediate Trend Indicator 233

The Signal Bottom 238

The Signal Bottom: The First Leg Up 243

Gann Angles 245

Percentage Retracement Zones 248

Percentage Retracement Zones and Gann Angle Combinations 251

Time Indicators 251

The Forecast 253

Conclusion 255

About the Author 257

Index 259