Gann’s Rules of Success Part-IV

Rule: #22 Pyramiding
Pyramiding can be extremely profitable. You should buy 50% of your position on the cycle low or known bottom according to your time and price cycle work. Keep your stop below this low. Then at the wave two bottom you should add 25% of your position. Yes, you need to know Elliott Wave to trade. Place your stop for that position below that low.At wave, four buy another 25% and place your stop for that position below that low. On the last wave up which is the Fifth, you should start peeling off positions and removing stops starting with the first positions taken. When you think the market has topped take off all positions, cancel all stops, and wait for the next major trend to develop.
Rule: #23 Trade with the Main Trend
Gann always said go with the main trend. It is very important. You can buy reactions against the main trend and this can be very profitable. Reactions will usually be 1, 3 or 5 days, weeks, or months . That means that if the market reacts beyond 5 days then it will react 1, 3 or 5 weeks. If the market reacts beyond 5 weeks then it will react 1, 3 or 5 months.
Rule: #24 Harmonic Cycles
Harmonic cycles are time cycles and they are very important. The major cycles are everyten years back. You should have available long term charts going back as far as possible in daily format. Overlay these long-term harmonic charts on top of each other. If 90% of them are going up during a time period then there is a high probability that the current trend will go up.
Rule: #25 Square Time and Price
If the market bottoms at a set price then it will rally in hours, days, weeks, months or years to square that price. For example if Dec Wheat bottoms at 250 then it will rally 250 hours, days, weeks, months or years from that bottom.
Rule: #26 Timing Points
Timing lows and highs are based on time and may not necessarily be the high or low of the market. Sometimes momentum will carry the market further than the high or low.
Rule: #27 Time Overbalancing Price
Watch the rise and fall of the markets carefully. If the 2nd last reaction in an uptrend drops for example 5 cents in corn in 3 days and the last reaction drops 5 cents in 6 days, then time is changing to the downside and the market will soon decline.
Rule: #28 Watch the Timing Swings
Timing swings are important. Watch both time and price from lows to highs, highs to lows, bottoms to bottoms and tops to tops. Keep track of them; as in many cases, they are the same
Rule: #29 Psychology and Health
Psychology is very important. Trade only when you are mentally and psychologically strong. Your mind and body must be at its top condition when making critical decisions, which risk large sums of money


  1. jegakpr said:

    Thanks brother. Great and serviceful job..thanks

    January 7, 2016
  2. mishra said:


    January 2, 2016
  3. Bramesh said:

    Faster retracement in last decline is sign of reversal.


    January 2, 2016
  4. mishra said:

    rule 27- faster retracement in last decline or 2nd last decline is a sign of reversal of trend?

    January 1, 2016
  5. nifty2015 said:

    unable to save this file

    December 29, 2015

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