Lambert-Gann Educators - Charts and Charting

It has been more than two weeks since our seminar was held at the beautiful Coeur d'Alene Resort at Coeur d'Alene, Idaho. Participants were from United States, Canada, United Kingdom, Australia, and the beautiful island of Barbados.

It is always interesting to sit quietly and listen to all of the different accents that are heard during the intense conversations that take place after a particularly exciting forecasting or trading lesson is presented. It clearly points out that the methods created and left for us by W. D. Gann are without cultural or racial distinction.

People come here to learn something that is difficult at best to understand. We try to provide an atmosphere that promotes concentration on the subject. They have made a major commitment to be here, and they deserve the best education we can give.

One of Lambert-Gann Educators' main goals in the seminars is to teach the trading and forecasting methods shown on the vast legacy of charts left by W. D. Gann. It is truly a pleasure to see the light of understanding in the eyes of a seminar participant as the lessons reveal the reasons for creating and using a chart like Mr. Gann kept and traded with for all of his trading career.

When the seminar attendees are given the opportunity to look at Mr. Gann's actual charts after three full days of exciting forecasting and trading lessons, they immediately realize how powerful these lessons have been. They go home with an understanding that is not possible without seeing how mathematics and geometry continue to mold markets now just as they did is his time.

The basis of this methodology is a good chart. We have spent countless hours in research time to be able to teach proper charting methods. Our new trading products will contain all the knowledge required to 'Record History for Profit' correctly. The information recorded in that chart contains all the keys to market movements in the future.

Sincerely

Nikki Jones

One of W. D. Gann's most important technical tools was his charts, and no one kept up as many as Mr. Gann did. His 55 years of trading led him through many bull and bear markets, and he recorded them all in his daily, weekly, monthly, quarterly, yearly and other various charts.

Gann's charts and records went from 1900 to 1955. He took great care in making his charts; each chart was like a work of art.

The range of the day (week or month) was charted in purple. The calendar time periods in red and price scales in green. Angles were drawn in red and the angles up from zero were green. Ink was always used, never pencil.

Angles were labeled with the time and price of the point they came from. This made his research easier when he carried an angle onto another page.

The natural squares were noted as well as the squares of the ranges and all the other squares he made mention of.

W. D. Gann believed that charting was an art and if you understood everything the chart was telling, it would be helpful in forecasting the next day's, week's, or month's price movements.

Gann stated that "every top and every bottom the market makes today is the squaring out of some previous top and bottom. Gann also found that the commodities and stocks are geometric in function and design and will follow geometric laws. This is one reason his geometric angles are so important.

Using a scale that follows the principle of one unit of price to one unit of time is the basis of the Gann charting method as well as the squaring of price and time. Gann states his principle of squaring a range, which is the squaring of price and time, is one of his most important discoveries.

(Incidentally, most traders treat this technique very casually, but I have found it very helpful and certainly one of the few ways to forecast a future change of trend. I grant the fact it DOES NOT forecast whether it is an up move or down move, only a change of trend, but there are other ways to help indicate direction.)

June Gold made its low on June 21^st at 336, and a high of 528 in February. Using a 45-degree angle to measure price and time, draw the angle from the 336 low up to the 528 level. The 45-degree angle reaches the 528 level on March 23, 1983.

Therefore a change in trend would be expected on March 23 and this is the point gold made a low and turned up. This can also be done by subtracting the low of 336 from the high of 528 and getting 192. 192 trading days from the low of June 21^st equals March 23, 1983.

Weekly, monthly, and longer-term charts used in conjunction with the daily chart gives the trader a complete and concise picture of the market. It seems that all technicians get entrenched in the daily chart rather than a combination of daily, weekly, monthly, and quarterly charts. This is probably due to the fact that when we begin trading of charting a commodity, daily data is the easiest to come by.

Also the fact that chart services usually provide only daily chart services on a regular basis rather that a weekly or monthly service. Rather than depend on chart services, it is much better to make and keep your own charts. You can scale them to suit yourself and I have found that it helps you to absorb technical factors while doing it.

As Gann says, a picture is worth a thousand words; a chart must be priceless to a technician. To keep a daily chart via the Gann method requires that you update on a trading day basis. In other words, your chart will skip NO spaces for weekends and holidays. Monday's high, low, and close will be registered directly next to the previous Friday's trading range without any spaces for the weekend.

Weekly charts register the high, low, and close for a given week. The high will be the highest price traded during the week and the low, the lowest price between Monday and Friday. The close naturally is the final trade on Friday. Some traders use the opening price and this would be the first price traded on Monday.

Gann's monthly charts usually run from the first day of the month to the last day of the month but his charts also show another method was followed. Since some commodities go on the board on the 21^st of the month and go off on the 21^st, Gann kept some monthly charts following this time span. For instance May wheat begins trading its contract on March 21^st and continues for 14 months to May 21^st.

To keep his chart continuous, Gann charted only the last 12 months so that he could follow one contract year with the next. If a contract low or contract high was made in the first 2 months of the contract, he noted this on the chart.

Usually a trader doesn't know what he is missing by not keeping up a weekly or monthly chart in conjunction with his daily. Remember, all fundamentals of weather, supply and demand as well as technical factors are instilled in PRICE. By keeping track of these price changes and gaining a knowledge of where prices have been is the first step in finding out where they are going. Each commodity or stock that we trade had its individual traits or as Gann says, vibration factors.

Gold, Silver, Wheat, GNMA's, S&P's, and IBM all have a personality just like you and I. The daily cycle of each differs but one thing is certain, all have a cycle.

The charts reproduced in this article were produced by Market Analyst II software.

Every effort has been made to ensure that the content and conclusions presented in The New W. D. Gann Technical Review are complete and accurate.

No part of The New W. D. Gann Technical Review contains trading advice - stated or implied, nor is an invitation to trade. The directors and associates of Lambert-Gann Educators, Inc. are NOT licensed trading or investment advisors. Lambert-Gann Educators, Inc. is an organization designed to assist traders and investors to become more knowledgeable and independent.

The giving of advice is therefore contrary to the very objectives of Lambert-Gann Educators, Inc.

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