by CURTIS ARNOLD
The system I am going to demonstrate is based on some of W.D. Gann's works. For those of you who
are not familiar with Gann, he was a legendary stock and commodity trader who purportedly made over
50 million dollars in the markets using his unique mathematical trading techniques.
The trading method I have developed is based on two of Gann's most basic tools—his 1´1 or 45 degree
angle and his trend line indicator. Refer to examples 1 and 2.
Angles can be used to determine the strength of the market from a previous top or bottom. The 45 degree
angle or 1´1 as Gann called it, is the most important angle because it divides space and time into equal
parts. As long as the market stays above the 45 degree angle drawn from a previous bottom, it is in a
strong position and indicates higher prices. Likewise, as long as the market remains below the 45 degree
angle drawn from a previous top, it's in a weak position and indicates lower prices. Question: How do
you know when a top or bottom has been made from which you can draw your 45 degree angle? This is
where the trend line indicator comes into play. Refer to Trend line indicator, examples 1 and 2.