Chapter 1 What is Gann Theory?
The Gann theory came into existence in the 1900s. The person behind the theory, WD Gann, was of the belief that stock prices changed according to angles. According to his observation, the price changes in the stock market are based on prevalent geometric shapes, and this can be used to forecast how the price will move in the future for any stock. Ancient mathematics, astrology, astronomy, and natural geometric shapes form the basis of WD Gann’s theory.
Also known as the Gann angles theory, this set of trading strategies is known to make asset predictions that are at least 90% accurate! However, the accuracy depends on whether the strategies are applied correctly or not. The theory entails that a time cycle exists in nature and also affects the market.
In reality, the theory is complex and must be studied carefully to understand the principles before using it in real trading. Understanding the theory and using it carefully can help to maximise trading returns.
