Gann Calculator Explained

Gann Calculator Explained assumption based on my observation. I will suggest all
Introduction: Gann calculator in the initial days of itsof you to treat this calculator as an alternative
introduction got very good response from the traderssoftware tool as you treat all other indicators and
and investors.  Many experienced the benefit of thistools.   
calculator and expressed their experience and Example 2: consider reliance industry high and low in
difficulties. I am going to describe all these aspects ina time period from 10 a.m. to 12 p.m. on 13th august
this user manual. It is an authentic tool and its2008. It was a trending day for reliance because it
construction-base-formulas you can get from mywas creating higher high and higher low. My Swing high
books Gann’s Method . As I have said to all myand swing low for this two hour period is 2353 and
readers and seminarians before that it is not a secrete2315 respectively. 
tool. It is the simple mathematical formula as given by Using these two values on the gann calculator I got
W.D.Gann and I have just simplified and used it forthe following values:
developing this application.  I feel it is the need of the Long entry price was: 2331 target
time I should explain how to use this calculator with2339-2347-2363-2412
some example.Short entry price was: 2337 target
 Swing Trading:  Swing Trading is the base and the2329-2320-2304-2256
mother of this calculator. In my words the definition of Since it was a trending market for RIL and it was
Swing Trading is “trade in the direction of the pricecreating the higher high and higher low and the current
movement”. Price movement of a stock asprice is much above my second target point and
explained by Gann and Elliot follows the harmonictrending upward. I will use this swing action to enter a
motion. One step forward I will say that it follows thebuy trade keeping my 1st stoploss as 2339 which is
random Brownian motion. Who determine this motion?my key resistance, which turn into the support and my
The traders or the investors determine. The behaviourtarget will be 2363. I will come out of the trade at 2363
of a trader or investor is again driven by the fear andor slightly below that because this is the 3rd level of
confidence. I will not use the word greed in this context.target and important resistance point.  
As a swing trader you need to find out the price points Again I have observed that after touching the high of
which generate fear or confidence. These are the2373.65 the price has started retracing back. Now I will
points I can name as swing turning points or resistancechange my swing low and high. The low as 2339 and
and support points. Though this is a complex job buthigh as 2373.65.  The stock price 2339 is the low
now a day it is getting simplified by the use of s/wwhich the stock has made just before making this high
tools. Gann’s calculator does the job of calculatingof 2373.65. You can say this is the high following the
these swing turning points which I have named as thelow. Notice it carefully I have not taken the hourly high
resistances, supports, buy entry, sell entry points.or low rather I have taken the latest low preceding the
Gann calculator: The swing 2 supports and resistancehigh.  
point which I belief as the decisive point for a buy or Why this deviation in principle?  If the current price
sell entry, is being named as buy entry and sell entry inaction is against the previous trending nature of the
the calculator respectively. In gann’s calculator Iprice then you need to make this deviation. In the
have used the square root formula and degree tosecond case scenario if the price continues its trending
factor formula for calculating the different supportsbehaviour then also this deviation in principle will come
and resistances. I have taken 180 degree factor as 1in to focus. 
and based on this in every 15 degree and its multiple I Using these two values 2373.65 and 2339 I got
have calculated the resistance and supports. Short entry price was: 2358
You must ask me why 15 degree and its multiples? Long entry price was: 2355
Considering one full day as 24 hours and one cycle as This is congestion because the difference is only Rs
360 degree I found each one hour in a day is 153 /- so now I will shift my focus to the 1st level of
degree. My second argument is elementarytarget for both the long and short. As per my
mathematics says that 1 degree as 4 minutes hencecalculation 1st long and short targets are 2363 and
one hour is 15 degree . 2349. These two prices will act as my new long entry
You must ask me why should I belief on the last hoursand short entry points. More precisely I will buy reliance
swing high and low for forecasting the future price? Inabove 2363 and sell below 2349.  My stoploss for
many statistical tools like MACD, Bollinger band orthe sell entry will be 2358-2374-2398 and stoploss for
finding the chart patterns you are using much olderbuy trade will be 2355-2339-2314
data points. Even in intraday chart also if you are using Observe the second part of the calculator which
these tools then without your knowledge you are usingflags the important support and resistance points. my
many past data points. Hence it is nothing wrong inentry points also coincide with the 1st level of
using only two dynamic swings high and low data pointresistance and support.
in this calculator. As you can observe from the chart at 12:35 p.m
How to use it? Take past one hours swing high andafter drifting to the level of 2362 the stock has a minor
low as input it will calculate the resistances, supportsbounce back to 2366 and the greater downward
and key resistance and key support levels. The buyaction started once it has broken the level of 2349. My
entry and sell entry prices calculated by the Ganntarget level of short entry was 2342-2326-2277. You
Calculator are nothing but the Swing 2 resistance andcan say it as a coincident or a mathematical wonder.
support points. In less volatile day you may encounter1. At 1:30 p.m. stock touched 2341 and bounced back
the congestion. Congestion is nothing but the buy entryto 2349 level.
and sells entry prices will be placed very near to each2. At 2:20 p.m. stock touched the day’s low of
other say with Rs2 to Rs 3 difference. Same also you2326 level.
can encounter in the resistances and supports. In thisThough Gann’s other method is to calculate the
case change your swing high and low points to atime action but it is beyond the scope of this calculator.
wider one or make the buy entry or sell entry aboveYou can read all those methods in my book Gann
or below the 1st target point or trade between theMethod 
band means between any two resistances, supports,Read the following section for white paper proof:
and stop loss points. Make a practice to change the#1: At 10:20 p.m. taking the nifty future high as 4302
swing high and low points time and again in every oneand low as 4279 on the Gann calculator . We have
hour. If your position runs in profit then use the trailingidentified the swing turning points as follows. Buy
stoploss technique to maximise profit.above 4301 for target 4312-4323-4345, stop loss
This calculator is working and I have hundreds and4279-4246 and sell below 4280 stop loss 4335 and
thousand of proof for that. If you feel that why I amtarget 4269-4258-4237. At 10:20 Nifty future was
sharing this wonderful tool with you then I have thetrading at 4283
simple answer that knowledge is God gifted and I Using the current price and past time squaring action
want to share with you. It is upto you to accept it orthe targets and stop loss was expected to trigger
not. Critics will never stop me sharing the knowledgebefore 2 p.m. . In fact once the swing turning point of
with any one. I will advise if any one is getting painedsell entry was triggered the 1st target 4269 was
my by act of sharing then better stop thinking aboutachieved within 15 minutes and then it followed the 2nd
this calculator.target and made intraday low of 4256.65 till 2.30
 My way to identify the swing high and low:#2: at 11.05 taking  RIL future high as 4156.4 and low
You can follow any one way for identifying the swingas 4120 on the Gann calculator . We have identified
high and low.the swing turning points as follows. Buy above 2135
1. High and low price in a particular time frame. Thestop loss 2120-2097 and target 2143-2151-2166 and sell
minimum time you must take for the observation isbelow 2141 stop loss 2156-2180 target
one hour.2133-2126-2110-2065. Though the stock was quoting at
2. Take the previous days last hour high and low for2125 at that time but I will not make a short entry
next days 1st hour trade provided global sentimentsbecause my 2nd target for the short entry is almost
must be neutral during the non trading hours of ourachieved. Around 11:30 we got the swing buy price
market.trigger on the chart 2135. As per the current price and
3. If the current price action of the script is trendingpast time squaring action the 1st target for the buy
then take the low or high follows the trend high or low.entry must come within one hour and 30 minutes from
4. If you encounter congestion then take the high andthe buy entry trigger time. At 12:08 I achieved my 1st
low in greater time interval.target 2143 and retraced back from 2147 level and
Now see some examples which I feel will thrill you. I willtouched the short entry trigger price below 2140 at
also explain how you will enter a trade.12:20. And achieved the 1st target around 1 p.m. . . .
 Example 1:  consider the Nifty spot one hour data Any one can master the gann’s price squaring
from 10 to 11 a.m on 12th august 2008.Its high wasaction just with simple practice and little bit of analytical
4634 and low was 4598.knowledge and by using the FREE calculator available
Using this data in the intraday calculator I found that myin my web site 2009 i have felt the need to modify
key supports are 4600-4566-4498 and resistancesthis calculator and used the single price point for
are 4631-4666-4735. You can use this data in thedecession process. This chnage has produced very
calculator and test its accuracy.good result for intraday trade decission. please read
At 11:05 a.m. it has fallen and found support at 4565,the manual associted with it in the Intraday Gann
11:30 it touched high 4599 and fallen. Hence it iscalculator page to know more about the use.
confirmed in the next half an hour nifty was veryConclusion: this Gann’s calculator is a mathematical
much within the band of my calculated support 1 andapplication. It is being developed using the price to price
support 2.squaring action of Gann’s method. It is my advice
 From trading point of view if I miss the chance toto all the traders/ investors to treat this application as
enter the short trade at 4611 then better in this junctionan informative and educational tool.
I will wait or change my data points. Second Regards
observation is the bounce from the low 4565 failed toSoumya Ranjan Panda
cross the 1st support 4600. So now the support turnsDisclaimer: The information or data contained in this
into resistance as per basic technical analysis conceptdocument is neither guarantees not offers any
for next half an hour. In this junction also I can go shortrecommendation to buy or sell any security. The
with my initial stoploss as 4611 and second stoploss asmathematical simulation process used in the Gann
4631 and target as 4565. See in the next half an hourcalculator or explained in this article does not offer any
nifty created new low of 4557 at 11:52 a.m.recommendation to buy or sell any security. The
 In this example I have used the past one hour highauthor or the publisher or the developer of this
and low points for my observation and calculated allapplication does not responsible for any kind of trading
the resistance and support values for the next hour. Itloss incur by the trader or the investor by the use of
is not guaranteed that I will achieve my target or stopthis application.
loss in the next one hour. It is just a mathematical