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.
Moreover, the Periodic Cycle works in both trending AND sideways chopping markets. For instance, let’s say the market has been drifting up and then just flatlines. The Arcana shows UP trend. Then the Periodic Cycle changes and alternates UP on the TICK. Even in times like these when price shows almost no pullback, the cycle shows the point at which the market will continue UP.
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 NEWLSETTER 2021 FORECASTEarly March 2021
Magic In The Markets CourseLate March 2021
Futures, Equities, and Options trading/investing has large potential rewards, but also large potential risk and is not suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in the equities, futures and options markets. Do not trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures, stocks or options on the same. No representation is being made that any account will or is likely to achieve profits or losses similar to those W. D. Gann claimed or anything shown on this website. The past performance of any trading method, strategy, or technical analysis technique, system or methodology is not necessarily indicative of future results. No one associated with this seminar or Tradingwdgann.com are Registered Investment Advisors, Commodity Trading Advisors, or certified, registered, affiliated or approved in in any way with either the National Futures Association, Securities and Exchange Commission, Commodities Futures Trading Commission, or any other organization.
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
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.