Practical Gann applications on the Forex Charts

First: models

According to Gann, models always reflect the study of patterns of price movement , For example the trend is bullish when price penetrates the summits and will be bearish when it broke bottoms , so trader can get this information from the movements of the market and the size of its movements and time of the move, this reflects the price (move, size, time, duration) which are associated with the pattern, in addition to that trader can  draw these patterns

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Linking the square of nine with the price

We know that the prices in the currency trade is divided into two sections the first one is the numbers consisting of integer and four digits after the decimal point or four digits after only the decimal point and the second section is the numbers of two-digit integers and two digits after the decimal point or three integers and two digits after the decimal point and to link these kinds of numbers with nine square must be a whole number and not more than four numbers so it must be modified. 

It is adjusted in this manner , it must first delete the decimal point to become valid number example of this number 1.2345 delete the decimal point to become 12345 Second you must delete the number to become valid number consisting of four digits and this deletion is not random but is based on time in the sense that if we are trading the five-minute chart, the most important numbers for us is the fifth number, fourth and sometimes third , Either if we trade on the day frame, the most important numbers for us are the third and second, even if we trade to on the week frame  the important numbers for us are the first number and the second number , so one of the five figures is deleted basing on the time period in which we trade them as follows:

If we trade on the five-minute time frame the first number is deleted such as 12345 and after deletion becomes 2345.

If we trade on the four hours Frame to a week Frame fifth number is deleted such as 12345 after deletion becomes 1234.

After that we adjust numbers price as the former, where is determined by cycles of price and here the difference is because Gann was determining price cycles by selecting the starting price per share and this in Forex Trading is very difficult but it is possible to bring the beginning of the cycle or the end of cycle through determining the price of a historic summit or determine the price of the bottom of the historical and after getting on the top or bottom price and any corner of the circle is determined by the price.

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Linking the square of Nine with Time

The idea is based that the currencies have cycles start from a point and ending at a point like the circuit and then another cycle starts, and for linking time cycles of currencies and the circle we must determine the unit of measurement of the time that we will work with it, time in Forex trading starts from the minute and ends in a year, so we will take a day as a preliminary measure unit.

By simple equation of division of 360 degrees on 24 hours (a number of hours per day) is equal to 15 degrees from Full Circle and the division of 15 degrees on 60 minutes which is the number of minutes per hour the result is 0.25 that means every minute is equal to a quarter of a degree of Full Circle.

But this measure is incompatible with the chart month or week, so we will take another unit of measurement which is a year and divide the 360 degrees on 12 months the number of months per year output is 30 degrees from Full Circle and divide the 360 degrees on 52, a number of weeks of the year almost be output 6.9230 or 7 degrees in the sense that almost every week moving 6.9230 degree from full Circle.

Hence, we conclude that there are daily cycles and annual cycles and all of them have use,  in daily cycles we can measure in the frame of the four-hour, hour and half-hour and quarter-hour to the minute the annual cycle could be measuring it in a frame higher than four hours and can be divided into two sessions as follows: 

Daily cycle and the annual session

Minute = 0.25 "Week = 6.9230"

5 minutes = 1.25 "month = 30"

15 minutes = 3.75 "Year = 360"

30 minutes = 7.5”

60 minutes = 15”

240 minutes (four hours) = 60”

1440 minutes (today) = 360”

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Gann Wheel

W. D. Gann stipulated that numbers and angles are related with tops and bottoms of the financial market.

In this article we will talk about Gann Wheel and what it is to help us to know something about one of secrets of Forex… it is not secret in its literary meaning but any trader in the field of Forex trading should know something about Gann and his tool in predicting, analyzing, and trading through Forex.

Wheel within Wheel as W. D. Gann called it sometimes, so we consider Gann Wheel as an analysis technique of the market.

The definition of Gann wheel is a circular numerical chart, this wheel start from the center with 1 to complete one cycle by filling up 24 parts of the circle with 24 incremental numbers in a fashion of anticlockwise.

The number goes up to 360, by widening the process up to 15 circles. So you say what is the benefit of this in Forex market? I will answer that the market support and resistance level as well as market reversal days are predicted by using this chart. So when you use it you can predict the market reversal days in addition and more important thing is that you can know the market support and resistance levels.

Inside the circle, the square is formed, and we have inner circle and inner square, as well as outer square and outer circle in which the Fourth Dimension is working out price movements are proved.

So far, we have covered the inner square (low coordinate and historic high on the square itself), and the inner circle (the earth’s Orbit around the sun).

All the planets and the Zodiac are included in the outer circle, and it is starting on March 21^st at the lift side of the square. So all 12 Zodiac symbols around the wheel will be placed by moving from that point clockwise in 30 degree parts of the circle.

The Gann student will be able to examine planetary longitude relationships to coordinate of price on the square of 9 and complete the outer circle, and the square of 9 will be now an outer square.

So by these way planetary positions to prices relating to coordinate on the square of 9 and also to degrees of a circle can be converted. Hard aspects to both square of 9 and Zodiac longitude can be also examined.

As Gann told us that the dates when stocks are first traded in stock exchange and the dates when companies are incorporated causes them to make bottoms and at slightly different dates which are for seasonal changes.

Every stock and commodity in the market moves in its own sphere of activities through the law of vibration as Gann said. So the own rate of vibration of stocks and commodity characterizes the essential qualities of its evolution.

They are (commodity and stocks) like atoms, which are the center of energies, and they are controlled automatically. Stocks and commodity create their own field of power and action, through power they attract and repel, so we can notice well why certain commodities and stocks at times lead the market and at other times they turn dead. Vibration is universal and fundamental because nothing is exempt from its law and it is considered applicable to every class of phenomena on the globe.

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The Most Important Things and Figures for W.D. Gann

Here we will talk about the most important tools and figures William Delbert Gann used in analytical philosophy:

Gann was genius in mathematics and science who adores numbers and its sequences.

And some of the natural numbers and its multiples or divisions occupied important milestone in his analyze according for several reasons, including religious, historical, spiritual and psychological.

The most important figures are: 

1 - The number 7 and its multiples, such as 14 - 49

Due to repeat mentioned in the scriptures and also to study some of the ancient Egyptian texts that proved to it the importance of this figure for them...

2 - Number 9

Because it reflects the cycle of pregnancy among women and also is the last odd-numbered in the count, followed by the numbers of bi...

3 - Number 12 and quadrature output 144

Due to the presence of an astronomical twelve towers in addition to some religious stories that tells the story of the twelve tribes of Israel people…

And also per day has 1440 minutes a proportion of 40% of the 360 degree circle...

4 - Circle

(Plato opened on Circle the name of the perfect shape)

Gann was interested in the circle because it is geometric shape and it expresses the time for him as containing 360 degrees represents the number of days of the year and dividing the circle 4 produces a quarter circle its angles , so Gann considered it the four seasons of the year and each separated by 90 days ..

He also divided 360 by 12 and produced by 30, which represents the number of days a month and 12 months in one year...

As well as he divided the degrees of the circle on the natural figures to measure the time and resulted in the following numbers:   360, 270, 180, 120, 90, 72, 45, 36, 27, 18, and 9

5 - Geometric shapes

Gann used in his analysis two geometric shapes

A- The spiral shape for the price              B - the circle of time

Price always moves up and down in the spiral shape, and the time cycle moves in circularly shape

Gann concluded that the price reflects the direction of movement when joined Price helix with circle time...

Gann’s concerns:

Anniversary

Most of traders took out certain reactions at the time of the anniversary of some important events that have occurred in the markets "(Such as the anniversary of Black Monday in the American Market)"

The factor of time

So that everything has a premature and its timing. Through his researches Gann concluded that the time is a major constraint on the movement of prices in any market and that there was a comma dates should be taken into consideration during the study of the movement of prices in the markets.

And from this we can deduce that the time element answers many important questions, namely:

- How long will rise or fall of prices?

- When will change direction?

- In any period will reach the price to what level?

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