Learn the right way to apply WD GANN'S time cycles in the market!

Summary

In this video, John from Game Trading delves into the time cycles of W.D. Gann, explaining how to decode and apply them for profitable trading. He emphasizes the importance of calculating cycles in degrees, rather than days, to achieve higher accuracy in predicting market turns. John covers key topics like identifying anchor points, using ratios, and understanding inversion zones. He also highlights the relevance of Gann's numerology, showing how the book’s title itself contains valuable insights. Additionally, John offers a tailored mentorship program for those looking to deepen their understanding and apply these techniques effectively.

Takeaways

• 😀 The moon's speed and orbital distance are crucial factors in understanding market cycles. When the distance decreases, velocity increases, and vice versa.
• 😀 W.D. Gann's teachings involve decoding time cycles hidden in numerical values and patterns, with an emphasis on using degrees, not days, for greater accuracy in market predictions.
• 😀 The title of Gann's book 'Tunnel to the Air' contains hidden numerical significance, especially with the number 22 derived from 'two' in numerology, which is a master number.
• 😀 By subtracting two key dates from the book 'Tunnel to the Air,' one can derive the important number 1940, which is a major cycle in Gann’s method.
• 😀 The number 2121 is significant in Gann's work, as it can only be divided cleanly by 21, representing the Mercury M cycle, which is key to predicting market movements.
• 😀 After decoding time cycles, traders should calculate the cycle's ratios, identify anchor points in the market, and understand inversion zones to validate the cycle's effectiveness.
• 😀 Relying on only the cycle length (in days) is not sufficient. A proper trading system should incorporate cycle ratios and degrees to maintain consistency in market predictions.
• 😀 Gann's cycle method can work by moving one cycle forward or backward to backtest market behavior, but accuracy is improved when the cycle length is expressed in degrees instead of days.
• 😀 Anchor points in the market are crucial for tracking cycles. Traders need to observe rare triangular shapes in charts to identify these points and apply cycle ratios accordingly.
• 😀 The concept of degrees in cycle work is essential because the moon’s elliptical orbit causes its velocity to change, which in turn influences market cycles more accurately than using days alone.
• 😀 For traders seeking guidance, a mentorship program is offered, providing tailored assistance to understand and apply these time cycle principles effectively.

Q & A

What is the significance of the Moon's velocity and distance in the video?

The video discusses how the Moon's velocity and distance from Earth influence market cycles. When the Moon's distance decreases, its velocity increases, which is important for understanding the relationship between time cycles and market movements.

What is the purpose of calculating market cycles in degrees rather than days?

Calculating market cycles in degrees, instead of days, provides more accurate results because it accounts for the changing velocity of celestial bodies, such as the Moon. This approach ensures better alignment with market turns and enhances trading accuracy.

How does the 'Anchor Point' work in cycle analysis?

The 'Anchor Point' is identified by finding a rare triangular shape in the chart. This point serves as the foundation for applying ratios to forecast future market movements. When the cycle is correctly anchored, market turns can be predicted with greater reliability.

What is the main advantage of working with time cycles in trading?

The main advantage of using time cycles in trading is that they provide a structured way to predict future price movements. By decoding cycles and applying them accurately, traders can identify potential turning points in the market, which can lead to significant profit.

What role does numerology play in decoding time cycles according to the video?

Numerology is central to decoding time cycles in the video. The script refers to the use of numbers, such as 21 (Mercury's cycle), to uncover hidden patterns in market movements. These patterns are encoded in numerical forms in Mr. WD Gann's work, helping to forecast cycles.

What is the importance of the year 1940 in Gann's cycle analysis?

The year 1940 is significant because it is a major cycle point derived from the subtraction of two key dates (9th May 1927 and 13th August 1932) in the book 'Tunnel to the Air.' This year marks the conclusion of one cycle and the beginning of another, making it crucial for understanding market turns.

What is the concept of 'inversion zones' in cycle work?

Inversion zones are specific points in a market cycle where the trend reverses. Identifying these zones is critical for accurate cycle forecasting, as it helps predict when the market will change direction, allowing traders to adjust their strategies accordingly.

Why does the video stress the importance of using degrees for market cycle calculations?

The video stresses the importance of using degrees because they provide a more accurate measurement of time cycles, especially in relation to celestial bodies like the Moon. Unlike days, degrees account for changes in speed and distance, making them essential for precise market predictions.

How does Gann's cycle analysis help with backtesting and verifying trading strategies?

Gann's cycle analysis aids backtesting by allowing traders to apply cycle lengths (in degrees) to historical data. By moving one cycle forward or backward and using the ratios, traders can verify the effectiveness of their strategies and adjust accordingly for future trades.

What is the overall message that John, the speaker, is trying to convey in the video?

John is conveying the importance of understanding and applying time cycles in market trading. He emphasizes the need for accurate cycle decoding, the use of degrees for calculation, and the identification of key points like Anchor Points and inversion zones to make informed trading decisions.