W. D. GANN'S MECHANICAL METHOD (OVERNIGHT CHART)
In W. D. Gann's 'Stock Market Course' he introduces us to his "Mechanical Method," also called the "Overnight Chart." Gann further elaborates on the method applied to ags in his 'Commodities Course.'
Later in life, Gann becomes a bit frustrated that his students were straining to learn the more intricate astro-based techniques in 'The Truth of The Stock Tape,' and 'The Tunnel Thru The Air.' He then emphasized this simpler but ingenious 'Mechanical' Method as a stand-alone trading method.
Originally designed for the US Indexes, the Mechanical Method identifies a 2 to 4-day trend for its entries and exits. The real beauty of Gann's Mechanical Method is that it is a self-contained trading framework. It works independently of astro and numerology, because it captures a repeating short-term pattern inherent to equity markets. This ancient market pattern determines the trader's risk, reward, and money management.
The Mechanical Method wows you once it is unlocked. Inside of Gann’s wonderful discovery is found timeless principles measuring supply, demand, and near-term market direction. On a chart is simply looks like a bunch of random entries and exits. But the back-testing tells another story. We had to repeat it over and over by hand, because it looked too good to be true. These Mechanical Methods are taught in their entirety in our "W. D. GANN: MASTER THE MARKETS" Training.
See the back-testing results below for the last 51 consecutive months of W. D. Gann's mechanical method on the SP 500. We actually have the logs and trade diaries going back to 2017 detailing the rule that triggered each trade so students can follow along. It is worthy to note that each of the 2 versions of Gann's Mechanical Method tested below only have 1 drawdown month in the last 5 years.
Because W. D. Gann taught both professional traders who had access to the floor data in additional to retail investors, Gann organized different methods to trade the Mechanical Method. Gann delineated a second variant which he earmarked the "Safest" method.
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