Gann's most famous concept "price equals time" denotes that time governs when price extremes occur. A specific amount of time must pass before price reverses direction.
William D Gann, a very successful stock and commodity trader, brought a set of technical analysis to the limelight during the first half of the 20th century, which is utmost importance in today's marketplace. He started trading in 1902 and developed his theory by observing the same market as was earlier done by Schabacker, Wyckoff and Elliot. His contribution includes a variety of market aspects including market psychology, practical trading tips and more hidden ideas that referred to as astrology and esoteric geometry.
His major contribution is the Natural Law of Vibration, which decides the time-cycle of the market. Gann explains, Through the law of vibration, every stock and commodity in the market place moves in its own distinctive sphere of activities, as to the intensity, volume and direction. All the essential qualities of its evolution are characterized in its own rate of vibration. Stock and commodities, like atoms, are centers of energy, therefore, they are controlled mathematically. |
