An Applied Glimpse Of Gann by Mak Sangha
Let’s have some fun with astrology and the financial markets.
Mathematically inclined traders are aware of the importance of the Fibonacci ratio of 1.618, its inverse, 0.618; its square, 0.382; and so on. However, it may come as a surprise that we don’t see these important numbers in any of the materials by W.D. Gann, the renowned trader and analyst who lived from 1878 to 1955. How did a mathematician like Gann miss such important numbers? He didn’t. What Gann did was divide a circle he called a spiral chart (Figure 1) into many parts including eighths. For example, 3/8 of 1 is 0.375 and 5/8 of 1 is 0.625. The difference between 0.375 and 0.382 is 0.007, and so is it the case with 0.625 and 0.618. It doesn’t mean we should ignore the Fibonacci ratio in Gann analysis in favor of eighths, or vice versa. In fact, using Fibonacci numbers in Gann analysis can yield highly accurate results...