Lesson 1 - Introduction: Forecasting in the Grand Tradition of
W.D. Gann
1.1 - Why is Buying Low & Selling High So Elusive?
The objective is simple and seems so easy to achieve
- - buy low and sell high, or sell high and buy low. But the ability
to do this is quite elusive. What is high and what is low?
The methods used by W.D. Gann are unique in quantifying the answer
to these questions and are based upon the long-term price history in
a market. He derived his definitions for what is overbought and oversold
based upon the actual moves which have taken place in the past. At
first blush, this may not seem like an earthshaking revelation. But
when you consider the infrequency with which investors, traders and
analysts look back beyond 10 years, let alone 60 years, the distinctiveness
of Gann’s
forecasting methods is brought into the light.
To provide a foundation for why his analysis is so profound, we must
first understand the basis for why it works. Once we do this, you will
understand why the methods discussed in the lessons concerning time periods,
the Master Time Factor , price formations and value relationships are
so powerful.
go to section 1.2
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