The Textbook of Gann Analysis!

The Path of Least Resistance


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SAMPLE TEXT & CHARTS

By
Daniel T. Ferrera

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"GEOMETRICAL ANGLES are the most important of all
rules for determining both PRICE and TIME culminations.”

-- W. D. Gann

 

SAMPLE TEXT & CHARTS

 

INTRODUCTION

he following section will present a bit of sample text from Ferrera’s couse The Path of Least Resistance, as well as show a handful of charts that illustrate the general style of techniques that are presented in this course.  We cannot really explain what is being done on these charts, as that is what is covered in the course itself, but we hope this helps give a better sense of the quality and depth of the materail!

 

SAMPLE PAGES 101-104 THE PATH OF LEAST RESISTANCE:

 

Notice that this is the 2nd 10% or greater correction in the bull market that began from the 2009 low. I gave my Outlook for 2011 subscribers this particular sell signal prior to this square-out and correction, based on geometric angles projected up from the last higher low of the up-trend, and the lost motion entry pattern from my course, Keys to Successful Speculation.

 

Note that on October 4th, 2011, the market found support exactly on the 1 x 2 angle projected down from the 2007 top. From this point forward, the market never regained the 1 x 1 angle from the March 2009 low.

 

The 45° angle projected from October 4th, 2011 provided the main support level for the remainder of this bull market, thus illustrating why Gann said, “you must always draw 45° angles from every important high or low.”

 

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The next down arrow in the series on the above chart shows where the 45° angle moving up from the March 6, 2009 low reaches the price level, or horizontal angle, of the October 2007 top. This “square of the range” brought in another notable market correction of approximately -8%.

 

The S&P500 Index then found support on the 45° angle moving up from the October 4th, 2011 low, that is to say, the same low price and date where the 1 x 2 angle from the 2007 top acted as a strong support level noted in the prior paragraph.

 

squareout2

The 2nd red circle occurs on December 30th, 2014 to January 2, 2015 and will represent the 2nd “square of the range” from the October 2007 top.

 

Notice that the highest price levels reached in 2014 are all meeting strong resistance on the 1 x 1 angle from the April 2nd, 2012 top, which was an attempt to regain the original 45° angle from March 2009, but failed to reach it.

 

squareofHighLow

Another 1 x 4 angle was projected up from the October 2007 top to show the intersection of geometric angles occurring at the upper end of the green 1 x 1 parallel price channel. This brought in the third 10% correction since March 2009 and the market collapsed down to the 1 x 1 angle moving up from the October 4th, 2011 low, which is the most important support level that this bull market must hold. If this angle breaks, then according to Gann’s rules a collapse to the 1 x 2 angle or more would be anticipated.

 

The final chart above shows 3 additional arrows. The 1st down arrow is the March 2009 low price converted to time. In other words, the 666 low price, divided by the price 1 to 1 price scale (.992), which equals 671 trading days. This was the 1st square-out of the low expressed as time.

 

The first up arrow is the October 2007 high price converted to time, which equals 1589 trading days. This is the first square-out of the 2007 high expressed as time.

 

The 3rd arrow, which also points down, is the 2nd square-out of the March 2009 low expressed as a time period. These turning points were determined mathematically by dividing the price with the correct scale, but are identical to projecting the 1 x 1 angles up from zero at the date of origin, per Gann’s instructions, to determine when they reach the former price level or horizontal angle.

 

These examples show all of Gann’s essential concepts: geometric angles, squaring the range, squaring the extreme high and squaring the extreme low, all of which he presented in a small, yet very expensive course titled The Basis of My Forecasting Method.

 

The KEY secret Gann retained was not telling the student how to correctly balance the primary 1 x 1 angle so that 1 unit of price equals 1 unit of time. This secret was only revealed to private students who consented to signing a confidentiality agreement in order to have this essential key revealed. Without this fundamental insight and first important step, all of Gann’s geometrical work is practically useless, which explains why these Gann’s tools are generally misapplied by most Gann analysts, and are not appreciated as they should be.

 

 

A SAMPLING OF CHARTS

 

BLACK ARROWS INDICAT BUY & SELL SIGNALS

beanFan

 

 

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BLUE ARROWS INDICAT BUY & SELL SIGNALS

AppleInc

 

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SoybeansGrid

 

 

 

 

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MonthlyS&P

 

 

 

graph2

 

S&Pexcel

 

 

ge-MA

 

support-resistance

 

indu

 

sqrtSPX

 

amznsqr

 

amznsqr4

 

swings2

 

squareout3

 

example

 

soytime2

 

graphpaper

 

soyswings

 

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growthDecay

 

grids

 

beantime

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FERRERA’S PATH OF LEAST RESISTANCE


Links To Other Ferrera Books & Courses


DANIEL FERRERA MAIN INFORMATION PAGE
FOR ARTICLES, BOOK DESCRIPTIONS & MORE INFORMATION…
FERRERA’S OUTLOOK FOR 2017

FERRERA’S PATH OF LEAST RESISTANCE
FERRERA’S WHEELS WITHIN WHEELS
FERRERA’S KEYS TO SUCCESSFUL SPECULATION
FERRERA’S GANN PYRAMID: SQUARE OF 9 ESSENTIALS

FERRERA’S MYSTERIES OF GANN ANALYSIS UNVEILED

FERRERA’S W. D. GANN’S MASS PRESSURE FORECASTING CHARTS

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DISCLAIMER:
The Institute of Cosmological Economics & Sacred Science Institute are economic research and educational companies.  The information contained herein is for general education purposes and is not intended as specific advice or recommendations to any person or entity.  Any reference to a transaction, trade, position, holding, security, market, or level is purely meant to educate readers about possible risks and opportunities in the marketplace and are not meant to imply that any person or entity should take any action whatsoever without first evaluating such action(s) in light of their own situation either on their own or through a professional advisor. The methods presented are not solicitations of any order to buy or sell. If a person or entity does not believe they are qualified to make such decisions, they should seek professional advice.  The prices listed are for reference only and are in no way intended to represent an actual trade, entry price or exit price conducted by the Institute of Cosmological Economics, portfolios managed by any entity affiliated with the Institute of Cosmological Economics, or any  principal or employee of the Institute of Cosmological Economics, or any of its affiliates. This information is not a substitute for professional advice of any nature, including tax, legal, and financial.  While we believe the information contained herein to be accurate, all numbers should be verified by the reader through independent sources.  It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses.
There is no assurance that the strategies and methods presented in this book will be successful for you. Past results are not necessarily indicative of future performance. Trading securities, options, futures, or any other security involves risk and can result in the immediate and substantial loss of the capital invested. The author, publisher, distributors and all affiliates assume no responsibility for your trading or investment results, and will not be liable for any loss, damage or liability directly or indirectly caused by the usage of this material. There is considerable risk of loss in Futures, Stock and Options trading. You should only use risk capital in all such endeavors. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. Every reader/recipient is responsible for his or her own investment decisions.  The information contained in this report or in any update does not necessarily mean that the Institute of Cosmological Economics, or any portfolio managed by any affiliates of the Institute of Cosmological Economics, or that any employees of the Institute of Cosmological Economics, or its affiliates holds the positions or has conducted the actual trade. At various times the Institute of Cosmological Economics, portfolios managed by affiliates of the Institute of Cosmological Economics, or any other principal or employee of the Institute of Cosmological Economics may own, buy or sell the securities discussed for the purposes of investment or trading.

 

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