Pancake plummets, Gann's Law warns
Is it time to buy the gold dip or continue to escape?
Gann trading was established by William Gann, a trading system that uses three core elements: time, price, and space to predict market turning points, combining geometric angles, percentage retracements, cyclical patterns, and trading volume to achieve high-probability trend-following trades.
Core of the Eight Major Trading Laws:
➥ Capital Division
Capital is divided into 3 equal parts, using only 1/3 to establish a position each time, leaving 2/3 to guard against risk.
➥ Stop Loss 2-3%
Single losses should not exceed 2-3% of total capital, strictly enforced.
➥ No Overtrading
No more than 5-7 high-certainty opportunities in a year.
➥ Trend-following Pyramid
Increase positions on profits (1:2:3 ratio), never add to losing positions.
➥ Trendline Decisiveness
Go long when the price stands above the 1×1 upward angle line, go short when it breaks below.
➥ 50% Retracement Signals
The 50% retracement level of key highs and lows serves as a buy/sell signal.
➥ Time Confirmation Signals
Price signals must have annual/square/seasonal cycle resonance.
➥ Volume Confirmation
Breakouts confirmed by volume, reduced volume at the top for distribution.
