V.10:9 (390-393): Gann Weekly Swing Chart by Jerry Favors

Gann Weekly Swing Chart by Jerry Favors

Newsletter publisher Jerry Favors presents another Gann method, this time the weekly swing chart, as a timing tool with which to track individual stocks.

One of the methods that W.D. Gann used to determine and trade the main trend of stocks and commodities was what are commonly referred to as swing charts. These swing charts cover varying degrees of time spans ranging from hourly charts to yearly charts. Each of the Gann swing charts turns up or down based on specific rules. The longer the time span covered by any swing chart, the stronger and more important are the signals given to me. For instance, a buy or sell signal from a weekly swing chart would be stronger and more important than a buy or sell signal from a daily swing chart but not as strong or as important as the signals from a monthly swing chart.

While many of Gann's other techniques and methods of trading have been explained in detail by others, one area that has not been examined or explained in depth is the use and interpretation of these swing charts. I utilize more than 20 different Gann swing charts on a daily basis, each turning up and down on differing sets of rules. I am often asked, "If you had to use only one swing chart in your day-to-day trading, which would you use?" This is always a difficult question to answer, because it has been my experience that each of the various swing charts tells you something different about the stock or index in question. The overall picture does not become clear until every signal from all the various charts has been gathered and summed. To skip even one of these swing charts is to risk missing or overlooking a potentially important piece of the puzzle. However, when I can choose only one chart, the Gann weekly swing chart is the one.