W. D. GANN'S PERIODIC CYCLE
An offshoot of W. D. Gann's “Magic Cycle” technique gives us a regular, predictable periodic intraday cycle on the $TICK. This cycle changes every day, both in period length and time of beginning. But we can reliably predict when it starts with a set formula and rules. (SCROLL DOWN FOR PICS.)
Though the Periodic Cycle also applies to market data, it is most potent on the TICK, because the TICKs measure institutional buying and selling on the New York Stock Exchange. The cycle is calculated before the day begins. Our formula indicates the precise point to start the cycle. After this cycle starts, each period and alternation remain constant.
We can match this cycle with the trend (both secular and Arcana predictive) and use the alternation as a buying or selling trigger in the same direction as the trend. There are times where the TICK diverges against its cyclical direction. When price and TICK diverge from the Periodic Cycle, we are handed unmatched opportunity for market entry. Risk to reward becomes superior, because you can predict the direction and duration big money institutional buying and selling.
Click on the graph to the right to expand. Combining the Periodic Cycle, Arcana Trend, and the VWAP to agree on trade direction and then using 1.5 reward/risk of the last pivot creates a potent trading strategy. This back-testing uses only 1 contract of the ES, accounts slippage, and was performed on a random time period from April 11th through July 22nd of 2022. Further results remain consistent.
This cycle does not point to exact bottoms and tops in price. In the toolbox of W. D. Gann, other methods like Arcana, Top & Bottom Finder, and LOV Price Projections accomplish that quite well. But the Periodic Cycle can confirm whether or not that bottom is worth buying or the market is topping out at that high. These techniques along with the Periodic Cycle are taught in our "W. D. GANN: MAGIC IN THE MARKETS" Course.
We've chosen a couple days below to illustrate how the Periodic Cycle’s effect on the TICK plays out in the SPY ETF as well. These two days, September 24th and 28th were picked because the cycle begins in different places on each day, and interacts with different trends.
Let’s look at the 28th below first, because the application of the cycle is simpler. The first thing we notice is that the cycle headed down coming into the market open. We know the length of the cycle in advance, and therefore we confirm that there will be institutional selling for the first 30 minutes or so. While this cycle leg is still declining, the TICK shoots up above 1000. During a declining TICK cycle leg, this divergence gives us a window for a selling opportunity most market participants miss.
We know the market is strong on this day when it bobs up above the open in a cycle of institutional selling. When the Periodic Cycle changes to up just before 9:30am CST, we see that the price diverges as does the TICK. In an up trend, we are seeing a buyable pullback. The cycle then dictates the up and down waves in the market for the rest of the day.
Now let's turn our attention to the 24th. Our formula tells us that the cycle starts a bit later after the open on this day. The 24th is choppier, and there hasn’t been a huge up move on the futures preceding the open.
So on this day the Periodic Cycle in the TICK more closely defines the up and down alternations in the price data. Divergences of both price and TICK to the cycle direction are smaller, but still mark great entry points. On days like these, the points at which the alternating legs change from up to down take over in marking entries.
EMPIRE NEWSLETTER 2022 FORECASTMarch 2022
Magic In The Markets TrainingFebruary 3rd, 2023
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The “Magic In The Markets” course exegetes and replicates, as accurately as possible, the original technical analysis, strategies, and market techniques of the late W. D. Gann; and not necessarily the exact trading methods of course presenter or any other individual or entity. You may not be able to duplicate the results of W. D. Gann for many reasons, including, but not limited to, skill of the individual and the changes in financial markets since Gann wrote about them. Recipients of this course receive hypothetical, back–tested data and not actual trading results. Technical analysis, indicators, strategies, and market techniques, including any descriptions or evaluations of their performance, included in this course and displayed on this website, are described and evaluated based on hypothetical back-testing, and not the actual trades or earnings of any individual or entity. Course includes far more applications to market instruments and time frames than the presenter can possibly implement. Course author & presenter has sources of income in addition to his work with financial markets. In any and all descriptions of this course, or any information displayed on this website, no individual or entity, including past clients or course presenter, “hold themselves out” as achieving any level of success trading or amassing any level of wealth or income derived from any course offered on this website or any or all of the information displayed on this website.
“Magic In The Markets” teaches the individual technical analysis, market methods, strategies, and indicators we believe W. D. Gann used in financial markets, occasionally demonstrated by showing different ways Gann combined them to work together. Neither These combinations, nor anything displayed on this website or offered in any course on this website constitute a “futures trading system” or a “stock trading system.” Nothing shown or described on this website should be taken as any individual or entity claiming, inferring, or insinuating, investment advice in any way. No one associated with course or this website accurately verifies or tracks results of past clients.CFTC RULE 4.41
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