「The Trading Methodologies of W.D. Gann」を読む

Hima Reddy
The Trading Methodologies of W.D. Gann: A Guide to Building Your Technical Analysis Toolbox (2012)

📺「Hima Reddy - Applying Gann’s Trading Methodologies to Your Markets」

“Life affords no greater pleasure than that of helping others who are trying to　help themselves.”
—W. D. Gann

Gannさんの主著
Truth of the Stock Tape (1923)
Tunnel Thru the Air (1927)
Wall Street Stock Selector (1930)
New Stock Trend Detector (1936)
How to Make Profits Trading in Puts and Calls (1937)
Face Facts America (1940)
How to Make Profits Trading in Commodities (1941)
45 Years in Wall Street (1949)
Magic Word (1950)

「Master Commodities Course」(1927)
Gann Angle（Gann Fan）のことは
ここでだけ伝授されてゐるらしい
当時＄5000
今の貨幣価値なら5万ドルとか

🔷Basic Market Movement🔷

According to Gann, a trend makes an advance or decline in three to four
“sections.”

［ケメコ注］
Gann Swingを自動で描画するインジケーターを
以前紹介してゐます
Gann Swing Chart ［1Bar］
［ケメコ注ここまで］

🔷The Construct of Time🔷

Everything in existence is based on exact proportion and perfect relation. There is no chance in nature because mathematical principles of the highest order are at the foundation of all things.

At 12:00 a.m. on any January 1, we celebrate the passage of one year of time, but really we are celebrating the fact that the Earth has completed one full orbit around the Sun.

If you’ve ever looked at a calendar or clock and utilized what you saw to make decisions in your life, then you have directly related your life’s actions to the movements of the planet you inhabit and the celestial bodies that surround it.

Price is derived from the supply and demand for the object. Supply and demand are based in human wants and needs, and these rise and decline in direct relation to human psychology and emotions.

All prices are reflections of the complete value that humans give to objects. Because all humans operate within the created context of time, price is directly linked to time.

🔷Gann’s View of Price Movement🔷
Gann Retracement
1          100
7/8       87.5
6/8      75
5/8      62.5
4/8      50
3/8      37.5
2/8      25
1/8      12.5
0          0

🔷Trading the Market🔷

As I’ve observed market movement and made trades over the years, I have come to discover that every trade breaks down into eight distinct phases:
① Trend assessment
② Signal observation
③ Risk assessment
④ Order placement
⑤ Trade initiation
⑥ Trade management
⑦ Trade exit
⑧ Review

① Trend assessment
Trend assessment is the process of determining whether buyers or sellers are in command of the market.

② Signal observation
The exact buying and selling points that I quote come from pages 39–41 of
Gann’s book How to Make Profits Trading in Commodities.

Gann Rule #7: Trade only in active markets.

By this, I believe that Gann was advising to trade in markets that have active 
participation. When you put on a trade, you want to be sure that your order  can be easily filled based on the market’s volume (or open interest).

Gann Rule #5: Trade with the trend. Buy or sell only if you are sure of the  trend, according to your chart and rules.

Gann Rule #12: Trade the swings in accordance with the existing trend. This is where you can make the most profit for the fewest trades.

Gann Rule #17: Trade only when you have definite signals.

Gann Rule #18: Be just as willing to sell short as you are to buy. Let your object be to keep with the trend and make money.

Gann Rule #19: Buy only when you have definite indication of a rising market. Sell only when you have definite indication of a falling market.

These five rules are all about tuning in to what the market is telling you.
Know the trend (market direction). Know the signals for buying and selling.
When they fall into place and you have a definite indication, that is the time to trade.

Gann Buying Point #4: BUY when the first rally from the extreme bottom exceeds in time the greatest rally in the preceding Bear Campaign.

Gann Selling Point #4: SELL after the first decline exceeds the
greatest reaction in the preceding Bull Campaign or the last
reaction before final top.

Gann Buying Point #5: BUY when the period of time exceeds the last rally before extreme lows were reached. If the last rally was 3 or 4 weeks, when the advance from the bottom is more than 3 or 4 weeks, consider the trend has turned up and commodities are a safer buy on a secondary reaction.

Gann Selling Point #6: Sell when the period of time of the first decline exceeds the last reaction before final top of the Bull Campaign. Example: If wheat or  any commodity has advanced for several months or for one year or more, and the greatest reaction has been 4 weeks, which is an average reaction in a Bull Market, then after top is reached and the first decline runs more than 4 weeks, it is an indication of a change in the minor trend or the main trend. The  commodity will be a safer short sale on any rally because you will be trading with the trend after it has been definitely defined.

Triple Bottoms/Tops

Gann Rule #25: Let the market prove it is making a top. Let the market prove it is making a bottom. By following definite rules, you can do this.

Gann Buying Point #8: BUY against double or triple bottoms, or buy on first, second, or third higher bottom and buy a second lot after wheat, soybeans, or cotton makes second or third higher bottom, then crosses previous top.

Gann Selling Point #8: SELL against double tops or triple tops, or SELL when the market makes lower tops or lower bottoms. It is safe to sell when wheat, soybeans, or cotton makes a second, third, or fourth lower top, also safe to  sell after double and triple bottoms are broken.

A triple bottom is a variation of a phase of accumulation. Greed fuels accumulation. A triple top is a variation of a phase of distribution. Fear is the driving force behind distribution. Man’s fear is stronger than man’s greed. Fear builds more quickly than greed. Therefore, the lower boundary of a topping pattern such as the triple top is likely to be traded through more quickly than the upper boundary of a triple bottom.

Double Bottoms/Tops

Gann Buying Point #8: BUY against double or triple bottoms.

Gann Selling Point #8: SELL against Double Tops or Triple Tops.

Exceeding Moves in Price

Gann Buying Point #3: SAFEST BUYING POINT.
Buy on a secondary reaction after wheat, cotton, or any commodity has crossed previous weekly tops and the advance exceeds the greatest rally on the way down from the top.

Gann Selling Point #3: SAFEST SELLING POINT.
Sell on a secondary rally after wheat, soybeans, cotton, or any commodity
has broken the previous bottoms of several weeks or has broken the bottom of the last reaction, turning trend down. This secondary rally nearly always comes after the first sharp decline in the first section of the Bear Campaign.

Buy Old Tops/Sell Old Bottoms

Gann Buying Point #1: BUY at OLD BOTTOMS or OLD TOP .... Buy when ... any commodity ... declines 1 cent to 3 cents under old tops or bottoms.

Gann Selling Point #1: SELL at OLD TOPS or OLD BOTTOMS.

Rapid Moves

Gann Buying Point #9: BUYING RULES FOR RAPID ADVANCES AT HIGH LEVELS.
In the last stages of a Bull Market in a commodity, reactions are small. Buy on 2-day reactions and follow up with STOP LOSS ORDER 1 cent to 2 cents under each day’s low level. Then when the low of a previous day is broken, you will be out. Markets sometimes run 10 to 30 days without breaking low of previous day.

Gann Selling Point #9: SELL in the last stages of Bear Market or when there is rapid decline and only 2 days’ rallies, and follow down with stop loss order 1 cent above the high of the previous day. When wheat or any commodity rallies 1 cent or more above the high of the previous day, you will be out on stop. Fastdeclining markets will often run 10 to 30 days without crossing the high of the previous day.

🔷Application of Gann’s Principles🔷

I present how I’ve made what Gann wrote my own. This practice is crucial to your continued study of Gann’s works. You must be willing to mold and shape the principles Gann presents into different but related concepts.

Gann’s Favorite Numbers

Gann emphasized the 50% level as the most important retracement within the eighths.

This figure illustrates the concept of looking at 50% of time. The simplest
approach is to look at the amount of time present within a move that can be
analyzed for retracements. I’ve presented a low-to-high move with a duration of 10 days. Subsequent market action, while potentially showing significance at 50% of price, might also exhibit significant action at 50% of the time of the 
previous move. Fifty percent of 10 equals 5, so the 5-day retracement is projected forward to suggest significant price action at day 10, day 15, and  so forth.

③ Risk Assessment

Gann Rule #1: Divide your capital into ten equal parts and always risk less  than one-tenth of your capital on any one trade.

Gann Rule #11: Accumulate a surplus. After you have made a series of  successful trades, put some money into a surplus account to be used as an  emergency fund.

The goal per Gann’s money-management advice is to make your initial capital work for you.
• When the account doubles to $20,000, remove $5,000 (half the profits) from the account to put into an emergency (or savings) fund.
• Leave the remaining $5,000 (other half of profits) in the trading account. You now have a total of $15,000 in the trading account.
• Continuing with the 2% risk maximum per trade, the new maximum risk amount per trade would be $300.

Gann Rule #3: Always trade lot sizes and amounts of risk that fit within the limits of your capital.

Given the guidelines based on a $10,000 account, the minimum capital remaining after three losses in a row would be $9,400, the difference of the initial account balance and the $600 ($200 × 3) lost on the trades.
• So if you have three losses in a row, risk only 2% of the remaining capital. Using the $9,400 minimum as a model, the new maximum risk per trade  would equal $188.

Now, if the account continues to lose, and at some point suffers three losses again, you would take additional steps to decrease your initial risk.

Based on the $9,400 new account size, the minimum capital remaining after  another three losses in a row would be $8,836, the difference of the initial  account balance and the $564 ($188× 3) lost on the trades.
• If three losses occur in a row again, risk only 2% of the remaining minimum $8,836 capital.
• Using the $8,836 minimum as a model, the new maximum risk per trade would equal $176.72.

Gann Rule #8: Distribute risk equally among traded markets. Risk only up to  10% of your capital in any one market.

④ Placement of Orders
Gann Rule #14: Enter and exit the market only on definite signals, with emotions in check.

Gann Rule #2: Use stop loss orders. Always protect a trade when you make it  (on commodities) with a stop loss order 1 to 3 cents (up to 5 cents) away—for cotton, 20 to 40 points (up to 60 points) away; for stocks, 3 to 5 points away.

Gann Rule #16: After you’ve placed a stop loss order, always keep it, and  move it only in the direction that minimizes risk/protects profits.

⑤ Trade Initiation
Gann Rule #9: Let the market show you at what price to enter a buy or a sell.

⑥ Management of Trade
Gann Rule #6: Enter the market and stay in a trade only as long as you are  sure of the market indications according to your rules.

Gann Rule #23: Change your position in the market only with a good reason. When you make a trade, let it be for some good reason or according to some  definite rule; then stay in the trade until you have a definite indication of a  change in trend.

Gann Rule #21: Select the commodities that show strong uptrend to pyramid on the buying side and the ones that show definite downtrend to sell short.

Gann Rule #13: Pyramid only on trades that are showing profit. This is how  you can make the most profits on sustained moves.

Gann Rule #20: Pyramid at the right time. On a long position, wait until the  security is very active and has crossed Resistance Levels before buying more. On a short position, wait until the security has broken out of the zone of distribution before selling more.

Gann Rule #4: Always protect your accumulated profit. On a long position,  raise your stop loss order once your profit equals your initial risk. On a short  position, lower your stop loss order once your profit equals your initial risk.

⑦ Trade Exit
Gann Rule #10: Close your trade only with a good reason. Follow up with a  stop loss order to protect your profits.

Gann Rule #28: Focus on getting in the market according to your rules and  out of the market according to your rules.

Gann Rule #22: If you have a position on and the market starts to move  against it, get out at the market, take your loss, and wait for another  opportunity. Or rely on your stop order to minimize your losses.

Ultimately, you have five ways to exit a trade that respect the rules.
1. An adjusted protective stop is triggered after the market has moved  favorably, exiting the trade at breakeven (no loss, no profit).
2. A trailing stop is triggered, locking in profit.
3. The market reaches a predetermined objective and an exit order is  triggered at that price, locking in profit.
4. The market goes against the trade and the original protective stop is triggered, taking a loss.
5. The market goes against the trade and you realize that you no longer have indications to stay in, so you exit at market, taking a loss.

⑧ Review

Gann Rule #24: Maintain your lot size and maximum risk amount after a long  period of success or a period of profitable trades. (Increase your lot size and  maximum risk amount only after you have doubled your capital and added  back half to your initial account size, increasing your total tradable capital  amount.)

Gann Rule #27: If your lot size contains multiple contracts, reduce the number of contracts traded after the first loss.

Gann Rule #15: Take large profits and small losses.

🔷Beyond Trading Basics🔷

Gann quoted King Solomon often, and one of the quotes he referred to was,
“There is no new thing under the sun” (Ecclesiastes 1:9). If that’s the case, then
looking to the left of the chart, at the history of a market, has the potential to
provide valuable insight into the future of that market. That is what  forecasting is all about.

You must understand that cycles apply to every aspect of our universe and to  our trading, not just to time. In the case of the markets, cycles can be applied  to price. This is why you see old bottoms become new tops (basis of Gann  Selling Point #1) and old tops become new bottoms (Gann Buying Point #1).

It might seem at times that prices move haphazardly between zero and  infinity, but they do “recur regularly” and “usually lead back to the starting  point,” depending on which point you are measuring from.

The magic word is vibration. Time vibrates. Price vibrates.

Measuring the vibrations of each market you follow is what forecasting is all about. I present some exercises to get you started in being aware of the  vibration or rhythm within the market you trade.

The first step is to look at the OHLC chart of the security on a monthly or weekly basis. Start as early in the history of the price data as possible. The  more data you can study into the past, the more you can determine about the  future.

Then use a separate daily chart to figure out the precise dates that match the high and low values.

Discussions of Mathematics

It’s all a game of supply and demand, which can be  qualified and quantified. Anything that can be quantified is subject to the rules of the universe, which Gann clearly believes to be embedded in mathematics. Therefore, do not glaze over these statements or quotes  when you approach them in Gann’s text. Instead, begin to keep track of them on your own, and refer to them regularly to remind you that everything is happening in trading and investing within the context of the language of the universe: mathematics.

Collect Your Own Examples

Just as Gann presents trading examples in great detail with the exact days,  dates, and actions in his descriptions, do the same when you are ready to apply Gann’s teachings to your charts. From the moment you come up with a trade idea, document it on its own. If the trade entry gets filled, note that as well. As the trade plays out, document the actions you take, as well as the  reasons you take them, which should be part of your review process anyhow. In our modern world, we have the advantage of being able to apply notes directly to our computerized charts. Your annotations don’t have to be long—just make them clear so that, upon reviewing the chart or text, you will know exactly what you did during that trade. In essence, I am asking you to track trades and examples as if you were going to write your own book delineating your trading methodologies. This will likely lead you to create a solid base of chart examples and text that add confidence to your future trading and that you can revisit and study to improve upon your skills.

🔷Gann’s 28 Trading Rules🔷

This is the original list from the book 「How to Make Profits Trading in Commodities」 with slight edits to account for additional wording used in the 「45 Years on Wall Street」 book.

#1. Amount of capital to use: Divide your capital into ten equal parts, and never risk more than one-tenth of your capital on any one trade.

#2. Use stop loss orders. Always protect a trade when you make it with a stop loss order 1 to 3 cents, never more than 5 cents away. Cotton 20 to 40, never more than 60 points away; 3 to 5 points away for stocks.

#3. Never overtrade. This would be violating your capital rules.

#4. Never let a profit run into a loss. After you once have a profit of 3 cents or more, raise your stop loss order so that you will have no loss of capital. For cotton, when the profits are 60 points or more, place a stop where there will be no loss.

#5. Do not buck the trend. Never buy or sell if you are not sure of the trend according to your charts and rules.

#6. When in doubt, get out, and don’t get in when in doubt.

#7. Trade only in active markets. Keep out of slow, dead ones.

#8. Equal distribution of risk. Trade in two or three different commodities, if possible. (Trade in four or five stocks, if possible.) Avoid tying up all your capital in any one commodity.

#9. Never limit your orders or fix a buying or selling price. Trade at the market.

#10. Don’t close your trades without a good reason. Follow up with a stop loss order to protect your profits.

#11. Accumulate a surplus. After you have made a series of successful trades, put some money into a surplus account to be used only in emergency or in times of panic.

#12. Never buy or sell just to get a scalping profit.

#13. Never average a loss. This is one of the worst mistakes a trader
can make.

#14. Never get out of the market just because you have lost patience or get into the market because you are anxious from waiting.

#15. Avoid taking small profits and big losses.

#16. Never cancel a stop loss order after you have placed it at the time you make a trade.

#17. Avoid getting in and out of the market too often.

#18. Be just as willing to sell short as you are to buy. Let your object be to keep with the trend and make money.

#19. Never buy just because the price of a commodity is low or sell short just because the price is high.

#20. Be careful about pyramiding at the wrong time. Wait until the commodity is very active and has crossed Resistance Levels before buying more and until it has broken out of the zone of distribution before selling more.

#21. Select the commodities that show strong uptrend to pyramid on the buying side and the ones that show definite downtrend to sell short.

#22. Never hedge. If you are long of one commodity and it starts to go down, do not sell another commodity short to hedge it. Get out at the market; take your loss and wait for another opportunity.

#23. Never change your position in the market without good reason. When you make a trade, let it be for some good reason or according to some definite rule; then do not get out without a definite indication of a change in trend.

#24. Avoid increasing your trading after a long period of success or a period of profitable trades.

#25. Don’t guess when the market is top. Let the market prove it is top. Don’t guess when the market is bottom. Let the market prove it is bottom. By following definite rules, you can do this.

#26. Do not follow another man’s advice unless you know that he knows more than you do.

#27. Reduce trading after the first loss; never increase.

#28. Avoid getting in wrong and out wrong, getting in right and out wrong; this is making double mistakes.

🔷Affirmative Versions of Gann’s 28 Rules🔷

Gann Rule (Affirmative) #1: Divide your capital into ten equal parts and always risk less than one-tenth of your capital on any one trade.

Gann Rule (Affirmative) #2: Use stop loss orders. Always protect a trade when you make it (on commodities) with a stop loss order 1 to 3 cents (up to 5 cents) away—for cotton, 20 to 40 points (up to 60 points) away; for stocks, 3 to 5 points away.

Gann Rule (Affirmative) #3: Always trade lot sizes and amounts of risk that fit within the limits of your capital.

Gann Rule (Affirmative) #4: Always protect your accumulated profit. On a long position, raise your stop loss order once your profit equals your initial risk. On a short position, lower your stop loss order once your profit equals your initial risk.

Gann Rule (Affirmative) #5: Trade with the trend. Buy or sell only if you are sure of the trend, according to your chart and rules.

Gann Rule (Affirmative) #6: Enter the market and stay in a trade only as long as you are sure of the market indications according to your rules.

Gann Rule (Affirmative) #7: Trade only in active markets.

Gann Rule (Affirmative) #8: Distribute risk equally among traded markets. Risk only up to 10% of your capital in any one market.

Gann Rule (Affirmative) #9: Let the market show you at what price to enter a buy or a sell.

Gann Rule (Affirmative) #10: Close your trade only with a good reason. Follow up with a stop loss order to protect your profits.

Gann Rule (Affirmative) #11: Accumulate a surplus. After you have made a series of successful trades, put some money into a surplus account as an emergency fund.

Gann Rule (Affirmative) #12: Trade the swings in accordance with the existing trend. This is where you can make the most profit for the fewest trades.

Gann Rule (Affirmative) #13: Pyramid only on trades that are showing profit. This is how you can make the most profits on sustained moves.

Gann Rule (Affirmative) #14: Enter and exit the market only on definite signals, with emotions in check.

Gann Rule (Affirmative) #15: Take large profits and small losses.

Gann Rule (Affirmative) #16: After you’ve placed a stop loss order, always keep it, and move it only in the direction that minimizes risk/protects profits.

Gann Rule (Affirmative) #17: Trade only when you have definite signals.

Gann Rule (Affirmative) #18: Be just as willing to sell short as you are to buy. Let your object be to keep with the trend and make money.

Gann Rule (Affirmative) #19: Buy only when you have definite indication of a rising market. Sell only when you have definite indication of a falling market.

Gann Rule (Affirmative) #20: Pyramid at the right time. On a long position, wait until the security is very active and has crossed Resistance Levels before buying more. On a short position, wait until the security has broken out of the zone of distribution before selling more.

Gann Rule (Affirmative) #21: Select the commodities that show strong uptrend to pyramid on the buying side and the ones that show definite downtrend to sell short.

Gann Rule (Affirmative) #22: If you have a position on and the market starts to move against it, get out at the market, take your loss, and wait for another opportunity. Or rely on your stop order to minimize your losses.

Gann Rule (Affirmative) #23: Change your position in the market only with a good reason. When you make a trade, let it be for some good reason or according to some definite rule; then stay in the trade until you have a definite indication of a change in trend.

Gann Rule (Affirmative) #24: Maintain your lot size and maximum risk amount after a long period of success or a period of profitable trades. (Increase your lot size and maximum risk amount only after you have doubled your capital and added back half to your initial account size, increasing your total tradable capital amount.)

Gann Rule (Affirmative) #25: Let the market prove it is making a top. Let the market prove it is making a bottom. By following definite rules, you can do this.

Gann Rule (Affirmative) #26: Only follow another man’s advice if you know that he knows more than you do.

Gann Rule (Affirmative) #27: If your lot size contains multiple contracts, reduce the number of contracts traded after the first loss.

Gann Rule (Affirmative) #28: Focus on getting in the market according to your rules and out of the market according to your rules.

🔷Gann’s Buying and Selling Points🔷

Gann Buying Point #1: BUY at OLD BOTTOMS or OLD TOPS. When a commodity declines to an OLD BOTTOM or to an OLD TOP, it is always a buying point with a STOP LOSS ORDER. In fact, you should never buy unless you can figure where to place a STOP LOSS ORDER 1 cent to 3 cents away and when commodities are selling at high prices, never more than 5 cents away ....

Gann Buying Point #2: SAFER BUYING POINT. Buy when wheat, cotton, or any commodity crosses a series of tops of previous weeks, showing that the minor or the main trend has turned up as indicated by the charts on individual commodities.

Gann Buying Point #3: SAFEST BUYING POINT. Buy on a secondary reaction after wheat, cotton, or any commodity has crossed previous weekly tops and the advance exceeds the greatest rally on the way down from the top.

Gann Buying Point #4: BUY when the first rally from the extreme bottom exceeds in time the greatest rally in the preceding Bear Campaign.

Gann Buying Point #5: BUY when the period of time exceeds the last rally before extreme lows were reached. If the last rally was 3 or 4 weeks, when the advance from the bottom is more than 3 or 4 weeks, consider the trend has turned up and commodities are a safer buy on a secondary reaction.

Gann Buying Point #6: BUY AFTER BREAKAWAY POINTS ARE CROSSED ON INDIVIDUAL COMMODITIES. The market will then be in the runaway move where you can make large profits in a short period of time.

Gann Buying Point #7: BUY when wheat, corn, cotton, or any commodity declines to 50% of highest selling prices, or to 1/2 or 50% range between extreme high or extreme low prices. This is one of the safe buying points, as we will prove later by examples of past market movements. When there is a 50% reaction of the last move up, it becomes a buying point so long as the main trend is up ....

Gann Buying Point #8: BUY against double or triple bottoms, or buy on first, second, or third higher bottom and buy a second lot after wheat, soybeans, or cotton makes second or third higher bottom, then crosses previous top.

Gann Buying Point #9: BUYING RULES FOR RAPID ADVANCES AT HIGH LEVELS. In the last stages of a Bull Market in a commodity, reactions are small. Buy on 2-day reactions and follow up with STOP LOSS ORDER 1 cent to 2 cents under each day’s low level. Then when the low of a previous day is broken, you will be out. Markets sometimes run 10 to 30 days without breaking low of previous day.

Gann Selling Point #1: SELL at OLD TOPS or OLD BOTTOMS. An important point to sell out longs and sell short is at OLD TOPS or when wheat or commodities rally to OLD BOTTOMS the first, second, or third time...

Gann Selling Point #2: SAFER SELLING POINT. Sell when wheat, soybeans, cotton, or any commodity breaks the low of a previous week or a series of bottoms of previous weeks as indicated by the trend and rules.

Gann Selling Point #3: SAFEST SELLING POINT. Sell on a secondary rally after wheat, soybeans, cotton, or any commodity has broken the previous bottoms of several weeks or has broken the bottom of the last reaction, turning trend down. This secondary rally nearly always comes after the first sharp decline in the first section of Bear Campaign.

Gann Selling Point #4: SELL after the first decline exceeds the greatest reaction in the preceding Bull Campaign or the last reaction before final top.

Gann Selling Point #5: Sell after BREAKAWAY POINT is crossed.

Gann Selling Point #6: Sell when the period of time of the first decline exceeds the last reaction before final top of the Bull Campaign. Example: If wheat or any commodity has advanced for several months of for one year of more, and the greatest reaction has been 4 weeks, which is an average reaction in a Bull Market, then after top is reached and the first decline runs more than 4 weeks, it is an indication of a change in the minor trend or the main trend. The commodity will be a safer short sale on any rally because you will be trading with the trend after it has been definitely defined.

Gann Selling Point #7: SELL at 50% or 1/2 point of last high to low of sharp decline or sell at 50% of highest selling point or 50% of greatest range. Sell when wheat, soybeans, cotton, or any commodity rallies 50% of a previous move down ....

Gann Selling Point #8: SELL against Double Tops or Triple Tops, or SELL when the market makes lower tops or lower bottoms. It is safe to sell when wheat, soybeans, or cotton makes a second, third, or fourth lower top; also safe to sell after double and triple bottoms are broken.

Gann Selling Point #9: SELL in the last stages of Bear Market or when there is rapid decline and only 2 days’ rallies, and follow down with stop loss order 1 cent above the high of the previous day. When wheat or any commodity rallies 1 cent or more above the high of the previous day, you will be out on stop. Fastdeclining markets will often run 10 to 30 days without crossing the high of the previous day.