So what is the deal with Gann and Gann analysis? Gann practitioners talk about a wide variety of esoteric subjects such as Gann angles, the Square of 9, Hexagons, Circle of 360 and so on. Gann market forecasting methods are allegedly based on geometry, astronomy and astrology, and ancient mathematics. Opinions are sharply divided on the value and relevance of his work,
In the more than a decade that I spent as an institutional trader, I can tell you that I never heard a professional trader or money manager ever once mention Gann at any time or anywhere. However, since I started Bulls Head and I have been talking to individual investors and students of the markets I get plenty of questions about Gann so I decided to take a look into Gann and Gann Analysis. As it turns out, I was surprised by some of the findings and conclusions that resulted from my in-depth study of Gann.
My conclusions are that as practiced modern Gann theory is basically a joke that is alive and well due to unscrupulous promoters who are cashing in on it. The legend of Gann has far surpassed the reality of the actual man. When I looked at his original charts in his original books there are no 'Angles' or 'Fans' on them. I would even say that if Gann himself saw some modern charts with so-called Angles and fans on them he wouldn't even realize what they were.
However, the books that were actually written by Gann, and not some modern day whack job proponent, are actually full a great deal of trading wisdom and verbal explanations of how some classical patterns like double and triple tops or bottoms are formed. This essay details the results of my research.