Free lesson - Gann Percentages
Probably the most ignored rule of W.D. Gann, but in our opinion among his most important.
But don't take our word for it. This is what Gann said in his book "45 years on Wall Street", page 30.
"One of the greatest discoveries I ever made was how to figure the percentage of high and low prices on the averages and individual stocks. The percentages of extreme high and low levels indicate future resistance levels.
There is a relation between every low price to some future high price, and a percenatge of the low price indicates what levels to expect the next high price".
We believe that we have taken Gann's work on the subject to a whole new level. Giving a unique insight in to how the markets really work.
Here you will find some example videos of Gann's first rule on percentages. It sounds too simple but remember he wrote the book in 1950. The same rule is working in today's markets.
Please bear in mind that a little knowledge is a very dangerous thing. There is far more to it than this. Knowing when a level will work, and when it won't is the important thing. Enjoy.....
So that was an example of using the rule when Gann was trading. Lets look at an example on an index that didn't even exist when Gann was alive.
Hopefully you will agree pretty amazing. Now that video was created in 2003. Before the major low was formed. This video proves that Gann was right. The video was produced in 2009. The 2009 low was the major low.