We're living in a world associated with change. Change happens! Competition originates from around the world, which implies that many American companies are in difficulty.
Many decisions are now being made which are contrary in order to both great business feeling and creating customer devotion.
Most organizations' marketing is generally a physical exercise in determining how to proceed to make current or potential prospects to spend more money with their organization.
I'm recommending that rather than thinking about how to proceed, figure out things to stop performing. In additional words, cease doing the actual "stupid things. "
Not performing the silly stuff means discovering what helps prevent customers from spending money with your organization and ensuring that such action or response never occur again.
Here's a good example of what WE call "stupid things. " A few airlines now wish to charge customers who wish to speak to some live broker.
That's silly stuff in two parameters. First, they've selected to punish customers who wish to continue receiving what they have always wanted - one-on-one interest. Worse, they've carried out it through saying they'll charge more with this previously standard degree of service. How numerous customers they may lose due to this decision? I know one!
There tend to be more subtle, but believe it or not damaging, stupid things businesses have to stop performing.
Take, for instance, the brand new Wheaties containers. General Generators recently launched Wheaties containers with photos of the u.s Olympic gold medalists. 1 was lacking: Paul Hamm. The reason why?
This had been General Mills' reaction to a gentleman’s query:
"Selecting the Wheaties Champion never been always easy, especially whenever we have witnessed a lot of outstanding shows by a lot of championsh sports athletes. But this simply is not possible in order to honor each and every champion on the Wheaties container. "
So that they leave from the honors the first us man to win the actual Olympics all-around gymnastics tournament,which is considered among the sport's finest comebacks? His return from the disastrous fall to some near-perfect high-bar regimen won near-universal compliment and for many people defined the term "champion”
But there was a controversy. Since many of you realize, a Southern Korean gymnast claimed that the scoring mistake cost him the precious metal and appealed towards the Court associated with Arbitration with regard to sport. The courtroom recently dominated that Hamm will keep the precious metal medal.
Despite the fact that the honor was problematic, it wasn't because of anything associated with doing of Hamm. Nevertheless, General Mills chose to do the "safe" thing! But by choosing to be safe and leaving Hamm, Wheaties is actually alienating an incredible number of customers that see him less controversial, but like a hero, and dropping customers along the way. Now this is "stupid things.”Losing millions of customers when you have the potential of gaining millions!this is stupid stuff!
Therefore start preventing! Stop stating "No" and start saying "Yes. " Cease charging with regard to services that the majority of us think tend to be free.
Discover what exasperates, tries, hassles or even confuses your visitors and stop it.Simple things make a lot of difference.
Chitika
Monday, May 23, 2011
Saturday, May 30, 2009
Monday, January 5, 2009
HK dollar eases, interbank rates remain soft
HONG KONG, Jan 6 (Reuters) - The following is a snapshot of
the Hong Kong foreign exchange and money markets on Tuesday.
Morning Previous Close
At 0350 GMT At 0904 GMT
HK$ SPOT 7.7539/40 7.7526/29
FORWARDS
Three-month -45/-40 -43/-39
Six-month -65/-55 -59/-50
One-year -75/-60 -65/-55
INTERBANK RATES (PERCENTAGE)
Overnight 0.01/0.10 0.01/0.10
One-month 0.06/0.20 0.10/0.20
Three-month 0.80/0.90 0.80/0.90
Six-month 1.25/1.35 1.30/1.40
One-year 1.70/1.80 1.75/1.85
* For more live quotes for forwards and interbank rates,
click on.
* The Hong Kong dollar slipped further against the U.S.
dollar on Tuesday amid commercial demand for the U.S. currency,
while local interbank rates were steady to a touch lower due to
ample liquidity in the banking system.
* The local currency dropped to as low as 7.7549
against the U.S. dollar in offshore trade on Monday, its weakest
level since Nov. 26, Reuters data showed.
On Tuesday, the Hong Kong dollar hit a session low of
7.7542, down about 0.02 percent from late Monday trade in Asia.
One dealer said there has been some commercial buying of
the U.S. dollars in recent sessions for possible investment at
the start of the year.
Another dealer at a European bank attributed the fall in
part to the U.S. dollar's strength on global markets.
*The local currency is pegged at 7.8 to the U.S. dollar but
can trade between 7.75 and 7.85 to the U.S. dollar.
* In the interbank market, the three-month Hibor
was fixed at 0.89286 percent, slightly softer than 0.89571
percent on Monday, the lowest level since late January 2005.
The six-month to one-year rates were
down 5 basis points from Monday.
The aggregate balance -- a key measure of interbank
liquidity -- stood at a record HK$175.475 billion on Tuesday. The
balance was boosted after a series of interventions by the Hong
Kong Monetary Authority in the foreign exchange market in the
past few months aimed at keeping the Hong Kong dollar within its
pegged trading band.
* Hong Kong dollar forwards were trapped in a narrow range in
quiet trades, dealers said.
MARKET/ECONOMIC NEWS
>Stock market reports and updates:
>Yuan reports and updates:
>U.S. dollar reports and updates:
>Emerging Asia forex reports and updates:
(Reporting by Christina Lo, Editing by Jacqueline Wong)
((christina.lo.reuters.com@reuters. net; +852 2843 6960; Reuters
Messaging:christina.lo.reuters.com@ reuters.net))
For more information on Top News, visit http://topnews.reuters.com Hong Kong news Hong Kong stock report China news Hong Kong hot stocks All foreign exchange Hong Kong diary Press digests Keywords: MARKETS HONGKONG FORWARDS
the Hong Kong foreign exchange and money markets on Tuesday.
Morning Previous Close
At 0350 GMT At 0904 GMT
HK$ SPOT 7.7539/40 7.7526/29
FORWARDS
Three-month -45/-40 -43/-39
Six-month -65/-55 -59/-50
One-year -75/-60 -65/-55
INTERBANK RATES (PERCENTAGE)
Overnight 0.01/0.10 0.01/0.10
One-month 0.06/0.20 0.10/0.20
Three-month 0.80/0.90 0.80/0.90
Six-month 1.25/1.35 1.30/1.40
One-year 1.70/1.80 1.75/1.85
* For more live quotes for forwards and interbank rates,
click on.
* The Hong Kong dollar slipped further against the U.S.
dollar on Tuesday amid commercial demand for the U.S. currency,
while local interbank rates were steady to a touch lower due to
ample liquidity in the banking system.
* The local currency dropped to as low as 7.7549
against the U.S. dollar in offshore trade on Monday, its weakest
level since Nov. 26, Reuters data showed.
On Tuesday, the Hong Kong dollar hit a session low of
7.7542, down about 0.02 percent from late Monday trade in Asia.
One dealer said there has been some commercial buying of
the U.S. dollars in recent sessions for possible investment at
the start of the year.
Another dealer at a European bank attributed the fall in
part to the U.S. dollar's strength on global markets.
*The local currency is pegged at 7.8 to the U.S. dollar but
can trade between 7.75 and 7.85 to the U.S. dollar.
* In the interbank market, the three-month Hibor
was fixed at 0.89286 percent, slightly softer than 0.89571
percent on Monday, the lowest level since late January 2005.
The six-month to one-year rates were
down 5 basis points from Monday.
The aggregate balance -- a key measure of interbank
liquidity -- stood at a record HK$175.475 billion on Tuesday. The
balance was boosted after a series of interventions by the Hong
Kong Monetary Authority in the foreign exchange market in the
past few months aimed at keeping the Hong Kong dollar within its
pegged trading band.
* Hong Kong dollar forwards were trapped in a narrow range in
quiet trades, dealers said.
MARKET/ECONOMIC NEWS
>Stock market reports and updates:
>Yuan reports and updates:
>U.S. dollar reports and updates:
>Emerging Asia forex reports and updates:
(Reporting by Christina Lo, Editing by Jacqueline Wong)
((christina.lo.reuters.com@reuters. net; +852 2843 6960; Reuters
Messaging:christina.lo.reuters.com@ reuters.net))
For more information on Top News, visit http://topnews.reuters.com Hong Kong news Hong Kong stock report China news Hong Kong hot stocks All foreign exchange Hong Kong diary Press digests Keywords: MARKETS HONGKONG FORWARDS
SCENARIOS-Japan's unpopular PM wrestles with election timing
TOKYO, Jan 6 (Reuters) - Unpopular, saddled with a deepening recession and plagued by an emboldened opposition, Japanese Prime Minister Taro Aso could be leading the long-ruling Liberal Democrats to defeat in elections due this year.
Below are some scenarios for how the political story could play out over coming months.
ASO'S BEST BET?
Aso has all but ruled out an early snap election, saying that passing a supplementary budget for the current fiscal year to March 31 and the budget for 2009/10 must come first.
Analysts say he hopes to push the budgets and bills needed to implement the spending through parliament despite anticipated delaying tactics by opposition parties, which control the upper house, and then call an election in late April or May.
Budgets automatically become law 30 days after approval by the lower house even without a vote by the upper chamber, but related bills, if rejected there, would need to be approved by a two-thirds majority of the lower house to take effect.
Aso's Liberal Democratic Party (LDP) and its junior coalition partner, the New Komeito, currently hold two-thirds of the lower house's 480 seats, so if Aso can control internal squabbling in the LDP and keep the New Komeito on board, the budget bills can be enacted, clearing the way for him to call the election.
INDECISION AND DELAY
Even if Aso manages to get the budget bills passed, he might decide not to call an election if his support rates, now below 20 percent, have not recovered to at least 30 percent.
In that case, he -- or his successor, if the LDP opts to replace him before an election -- might wait until closer to the expiry of lower house lawmakers' four-year terms on Sept. 10.
Typically, an election must be held within 30 days of the next-to-last day of the term, so in this case the election date would fall between Aug. 11-Sept.9. If, however, the premier opts to dissolve the lower house on the last day of the lawmakers' terms, the poll could be held as late as Oct. 20.
ELECTION DEAL
Aso's grip over the LDP, which has only had one very brief spell out of power in its 53-year history, is declining in tandem with his sagging popularity.
One high-profile LDP lawmaker, former financial services minister Yoshimi Watanabe, has threatened to leave the party if his demands, including the withdrawal of an unpopular plan for 2 trillion yen ($21.5 billion) in payouts to individuals, are not met. Funding for the payouts is in the extra budget for 2009/10 that Aso wants to get through the lower house by mid-January.
If 17 or more ruling party lawmakers vote with the opposition against bills needed to implement the budget, the ruling bloc would fall short of the two-thirds majority needed to enact them, the LDP would effectively split, and Aso might have to resign.
At present, analysts doubt that so many LDP lawmakers are ready to bolt, but the situation could change by the time a second lower house vote on budget-related bills must be held, probably in February, or when similar action is needed for the 2009/10 budget, most likely in late March or early April.
To avoid that worst-case scenario, Aso might do a deal under which opposition parties agree to help pass the budget-related bills, possibly with revisions, in return for a promise by the prime minister to call an election immediately thereafter.
ELECTION OUTCOME, POLICY IMPACT
Whenever the election is held, analysts and politicians say the LDP-led coalition is sure to lose its two-thirds majority in the lower house. Even if the ruling bloc keeps its simple majority, opposition control of the upper house means the policy deadlock would worsen. The LDP would likely try to woo members from the main opposition Democratic Party, kicking off a possible realignment of political allegiances in the two major parties.
The Democrats, a mix of former LDP members, ex-socialists and younger conservatives, have a shot at becoming the biggest party in the lower house. But if they fall short of a majority on their own, they would need to try to build a coalition with some combination of smaller opposition parties and LDP rebels, making it potentially harder to reach agreement on policies.
Even if the Democrats win a simple majority, the party has never been tested in power since it was formed in 1998, and critics question its ability to implement policies, especially given divisions among members on economic and security matters.
Others, however, say fundamental similarities in policies favoured by the LDP and the DPJ mean the new government would not have as much trouble governing as critics charge.
($1=93.15 Yen)
Below are some scenarios for how the political story could play out over coming months.
ASO'S BEST BET?
Aso has all but ruled out an early snap election, saying that passing a supplementary budget for the current fiscal year to March 31 and the budget for 2009/10 must come first.
Analysts say he hopes to push the budgets and bills needed to implement the spending through parliament despite anticipated delaying tactics by opposition parties, which control the upper house, and then call an election in late April or May.
Budgets automatically become law 30 days after approval by the lower house even without a vote by the upper chamber, but related bills, if rejected there, would need to be approved by a two-thirds majority of the lower house to take effect.
Aso's Liberal Democratic Party (LDP) and its junior coalition partner, the New Komeito, currently hold two-thirds of the lower house's 480 seats, so if Aso can control internal squabbling in the LDP and keep the New Komeito on board, the budget bills can be enacted, clearing the way for him to call the election.
INDECISION AND DELAY
Even if Aso manages to get the budget bills passed, he might decide not to call an election if his support rates, now below 20 percent, have not recovered to at least 30 percent.
In that case, he -- or his successor, if the LDP opts to replace him before an election -- might wait until closer to the expiry of lower house lawmakers' four-year terms on Sept. 10.
Typically, an election must be held within 30 days of the next-to-last day of the term, so in this case the election date would fall between Aug. 11-Sept.9. If, however, the premier opts to dissolve the lower house on the last day of the lawmakers' terms, the poll could be held as late as Oct. 20.
ELECTION DEAL
Aso's grip over the LDP, which has only had one very brief spell out of power in its 53-year history, is declining in tandem with his sagging popularity.
One high-profile LDP lawmaker, former financial services minister Yoshimi Watanabe, has threatened to leave the party if his demands, including the withdrawal of an unpopular plan for 2 trillion yen ($21.5 billion) in payouts to individuals, are not met. Funding for the payouts is in the extra budget for 2009/10 that Aso wants to get through the lower house by mid-January.
If 17 or more ruling party lawmakers vote with the opposition against bills needed to implement the budget, the ruling bloc would fall short of the two-thirds majority needed to enact them, the LDP would effectively split, and Aso might have to resign.
At present, analysts doubt that so many LDP lawmakers are ready to bolt, but the situation could change by the time a second lower house vote on budget-related bills must be held, probably in February, or when similar action is needed for the 2009/10 budget, most likely in late March or early April.
To avoid that worst-case scenario, Aso might do a deal under which opposition parties agree to help pass the budget-related bills, possibly with revisions, in return for a promise by the prime minister to call an election immediately thereafter.
ELECTION OUTCOME, POLICY IMPACT
Whenever the election is held, analysts and politicians say the LDP-led coalition is sure to lose its two-thirds majority in the lower house. Even if the ruling bloc keeps its simple majority, opposition control of the upper house means the policy deadlock would worsen. The LDP would likely try to woo members from the main opposition Democratic Party, kicking off a possible realignment of political allegiances in the two major parties.
The Democrats, a mix of former LDP members, ex-socialists and younger conservatives, have a shot at becoming the biggest party in the lower house. But if they fall short of a majority on their own, they would need to try to build a coalition with some combination of smaller opposition parties and LDP rebels, making it potentially harder to reach agreement on policies.
Even if the Democrats win a simple majority, the party has never been tested in power since it was formed in 1998, and critics question its ability to implement policies, especially given divisions among members on economic and security matters.
Others, however, say fundamental similarities in policies favoured by the LDP and the DPJ mean the new government would not have as much trouble governing as critics charge.
($1=93.15 Yen)
Sunday, August 12, 2007
A Simple Tool to Help in Identifying Trend Reversal
A Simple Tool to Help in Identifying Trend Reversal
There is a great deal of nonsense written about trends and using trend lines. Quite often - and maybe even the majority of the time trend lines aren't even drawn on a trending move and traders then cry when they lose money because of a trade they had based on the break of their line.
To be honest the concept of a trend is really one of the most simple tools in a trader's toolbox but the definition of a trend is normally forgotten and could actually help your trading considerably. Let us just cover the definition of a trend:
* Up trend A sequence of higher highs and higher lows
* Down trend A sequence of lower highs and lower lows
It really couldn't be much simpler than that.
Sometimes - and in spite of the number of lines that traders draw - this doesn't happen very often, a supporting line can be drawn across the lows in an up trend or above the highs in a down trend.
In most cases you can consider trading a break of the trend line. At this point you do have to be a little careful since if the previous low in an up trend (previous high in a down trend) is not exceeded there is still chance that price can go and retest the trend line and occasionally this can be at a new extreme.
You can see in this example how even though the trend line was broken the prior low in the sequence of higher lows was not penetrated. Following this price rallied to retest the trend line twice, the second time at a new high before it finally broke lower. You would normally expect momentum indicators to be showing a divergence at this point.
How can this be used in a practical way?
Well recently in Pro Commentary I had identified a peak in EURUSD that stalled at 1.2902 and I forecast a retracement to below 1.2800 with a favored target at 1.2745. In fact it only moved down to 1.2761. At these times when it is uncertain whether the correction is complete or whether price will move lower to target it is possible to consider the concept of a trend. Here is the 2-hour chart:
Following the break of the sequence of lower highs I confirmed to readers that they should expect to see the up trend resume with support between 1.2790-1.2805 holding and would eventually reach the 1.2976 high and probably later to 1.3180.
While identifying targets of where to find support or resistance requires knowledge of how price develops and the relationships in those moves followed by what sort of correction to expect, the concept of when the correction is complete is actually quite a simple process.
You can use this very simple tool with great effect.
Good luck with your trading.
Ian Copsey
There is a great deal of nonsense written about trends and using trend lines. Quite often - and maybe even the majority of the time trend lines aren't even drawn on a trending move and traders then cry when they lose money because of a trade they had based on the break of their line.
To be honest the concept of a trend is really one of the most simple tools in a trader's toolbox but the definition of a trend is normally forgotten and could actually help your trading considerably. Let us just cover the definition of a trend:
* Up trend A sequence of higher highs and higher lows
* Down trend A sequence of lower highs and lower lows
It really couldn't be much simpler than that.
Sometimes - and in spite of the number of lines that traders draw - this doesn't happen very often, a supporting line can be drawn across the lows in an up trend or above the highs in a down trend.
In most cases you can consider trading a break of the trend line. At this point you do have to be a little careful since if the previous low in an up trend (previous high in a down trend) is not exceeded there is still chance that price can go and retest the trend line and occasionally this can be at a new extreme.
You can see in this example how even though the trend line was broken the prior low in the sequence of higher lows was not penetrated. Following this price rallied to retest the trend line twice, the second time at a new high before it finally broke lower. You would normally expect momentum indicators to be showing a divergence at this point.
How can this be used in a practical way?
Well recently in Pro Commentary I had identified a peak in EURUSD that stalled at 1.2902 and I forecast a retracement to below 1.2800 with a favored target at 1.2745. In fact it only moved down to 1.2761. At these times when it is uncertain whether the correction is complete or whether price will move lower to target it is possible to consider the concept of a trend. Here is the 2-hour chart:
Following the break of the sequence of lower highs I confirmed to readers that they should expect to see the up trend resume with support between 1.2790-1.2805 holding and would eventually reach the 1.2976 high and probably later to 1.3180.
While identifying targets of where to find support or resistance requires knowledge of how price develops and the relationships in those moves followed by what sort of correction to expect, the concept of when the correction is complete is actually quite a simple process.
You can use this very simple tool with great effect.
Good luck with your trading.
Ian Copsey
A Short Primer on Welles Wilder's "True Range" and "Average True Range"
A Short Primer on Welles Wilder's "True Range" and "Average True Range"
Respected trader and educator J. Welles Wilder developed "Average True Range" (ATR) as a tool for a more precise and realistic calculation of market's price activity and volatility.
The ATR is useful when calculating the directional movement of a market. Wilder defined the "True Range" of a market to be the greatest of the following periods:
* ¾ The distance from the session's high to its low.
* ¾ The distance from the previous session's close to the next session's high.
* ¾ The distance from the previous session's close to the next session's low.
A good example of a situation where True Range would be significantly larger than the normal daily trading range would be when price gaps occur on bar charts.
"True Range" measures market volatility and is an integral part of indicators such as ADX (Average Directional Movement) technical indicator, or several others, to identify the directional movement of a market. The ATR is the basic unit of measurement for Wilder's Volatility System.
Average True Range is a moving average of the True Range values over a period of time. The periods are the number of bars in a bar chart. If the chart displays daily data, then the period denotes days; in weekly charts, the period will stand for weeks, and so on. Wilder used a period of 7 for a default setting. Other common periods used are 14 and 20.
The Average True Range indicator identifies periods of high and low volatility in a market. High volatility describes a market with ongoing price fluctuation; low volatility is used to define a market with smaller price range activity.
When a market becomes increasingly volatile the ATR tends to peak, rising in value. During periods of little volatility the ATR bottoms out, decreasing in value. A market will usually keep the direction of the initial price move, though this is certainly not a rule. Analysts, therefore, tend to use Average True Range to measure market volatility and other technical indicators to help identify market direction.
Wilder has found that high ATR values often occur at market bottoms following a panic sell-off. Low Average True Range values are often found during extended sideways periods, such as those found at tops and after consolidation periods.
Measuring market volatility can help in identifying buy and sell signals and, additionally, risk potential. Markets with high price fluctuation offer more short-term risk/reward potential, because prices rise and fall in a shorter timeframe.
Wilder has a book, "New Concepts in Technical Trading Systems," where more information on True Range and the ATR indicator can be found.
Jim Wyckoff
Respected trader and educator J. Welles Wilder developed "Average True Range" (ATR) as a tool for a more precise and realistic calculation of market's price activity and volatility.
The ATR is useful when calculating the directional movement of a market. Wilder defined the "True Range" of a market to be the greatest of the following periods:
* ¾ The distance from the session's high to its low.
* ¾ The distance from the previous session's close to the next session's high.
* ¾ The distance from the previous session's close to the next session's low.
A good example of a situation where True Range would be significantly larger than the normal daily trading range would be when price gaps occur on bar charts.
"True Range" measures market volatility and is an integral part of indicators such as ADX (Average Directional Movement) technical indicator, or several others, to identify the directional movement of a market. The ATR is the basic unit of measurement for Wilder's Volatility System.
Average True Range is a moving average of the True Range values over a period of time. The periods are the number of bars in a bar chart. If the chart displays daily data, then the period denotes days; in weekly charts, the period will stand for weeks, and so on. Wilder used a period of 7 for a default setting. Other common periods used are 14 and 20.
The Average True Range indicator identifies periods of high and low volatility in a market. High volatility describes a market with ongoing price fluctuation; low volatility is used to define a market with smaller price range activity.
When a market becomes increasingly volatile the ATR tends to peak, rising in value. During periods of little volatility the ATR bottoms out, decreasing in value. A market will usually keep the direction of the initial price move, though this is certainly not a rule. Analysts, therefore, tend to use Average True Range to measure market volatility and other technical indicators to help identify market direction.
Wilder has found that high ATR values often occur at market bottoms following a panic sell-off. Low Average True Range values are often found during extended sideways periods, such as those found at tops and after consolidation periods.
Measuring market volatility can help in identifying buy and sell signals and, additionally, risk potential. Markets with high price fluctuation offer more short-term risk/reward potential, because prices rise and fall in a shorter timeframe.
Wilder has a book, "New Concepts in Technical Trading Systems," where more information on True Range and the ATR indicator can be found.
Jim Wyckoff
"Vibrating Prices" and the Trading Philosophies of W.D. Gann
"Vibrating Prices" and the Trading Philosophies of W.D. Gann
William Delbert (W.D.) Gann is regarded as one of the pioneers of technical analysis and market behavior. He wrote several books on stock and commodity trading and developed the well-known "Gann angles" and "Gann Fans."
Gann was born on a farm near Lufkin, Texas, in 1878. His rise to trading fame is a remarkable story. He was the oldest of many children on the farm, and did not even finish grade school. Back then, it was not uncommon for the oldest boy to quit school at a relatively young age and stay at home to help out on the farm.
However, W.D. did not want to be a farmer. He wanted to be a businessman. For a short period of time he worked for a brokerage in Texas while attending business school at night. He then set out for New York City in 1903.
In 1919, at the age of 41, Gann quit his job with a stock brokerage and set out on his own. He began publishing a daily market newsletter called the "Supply and Demand Letter." The newsletter covered both stocks and commodities and provided traders with his annual market forecasts.
In 1924, Gann's first book, "Truth of the Stock Tape," was published. A pioneering work on chart reading, it is still regarded as one of the best books ever written on the subject.
Gann's market forecasts during the Roaring Twenties were reportedly 85% accurate. The stock market in the 1920s was skyrocketing, but Gann didn't think the bull run would last. In his forecast for 1929, Gann predicted the stock market would hit new highs until early April, then experience a sharp break, and then resume with new highs until early September. Then it would top and afterward would come the biggest stock market crash in history.
After around 20 years in New York City, Gann moved to Miami, Florida for reasons of both health and personal preference. His "How to make Profits in Commodities" book came out shortly thereafter.
Following are the general tenets of Gann's trading philosophies and methods. I won't go into great detail on his specific methods in this feature. If you want to learn more about Gann's specific trading methods, I suggest you read his books, or books written about Gann, some of which are available at www.amazon.com.
Gann designed several unique techniques for studying price charts. His main theory uses three parameters to project changes in price trend and market direction. They are: Pattern, Price and Time. These parameters can exert their influence individually, with one or the other being more determinate under different conditions. But they are best applied in a balanced manner. The basic idea is that specific geometric price patterns and angles have special properties that can be used to predict future prices.
He believed the markets are geometric in design and in function, and they follow geometric laws when they're charted. All of Gann's techniques require that equal time and price intervals be used on the charts. Thus, a rise of one price unit over one period of time (1 x 1) will always equal a 45-degree angle. Gann believed that the ideal balance between time and price exists when prices rise or fall at a 45-degree angle relative to the time axis. This is called a 1 x 1 angle.
Gann angles are drawn between a significant bottom and top (or vice versa) at various angles. Deemed the most important by Gann, the 1 x 1 trend line signifies a bull market if prices are above the trend line, or a bear market if below the trend line. Gann felt a 1 x 1 trend line provides major support during an uptrend, and when the trend line is broken it signifies a major reversal in the trend. Gann identified nine significant angles, with the 1 x 1 being the most important.
Gann said each of his predetermined angles provide support and resistance depending on the trend. For example, during an uptrend the 1 x 1 angle tends to provide major support. A major reversal is signaled when prices fall below the 1 x 1 angled trend line. Prices should then be expected to fall to the next trend line (the 2 x 1 angle). As one angle is penetrated, expect prices to move and consolidate at the next Gann angle.
Prices have a way of repeating themselves--or "vibrating," as Gann put it. One can think of vibration in terms of periodic oscillation, the theory of waves, or cycles, as in cycle theory.
Gann said in his own words, "Through the law of vibration, every stock and commodity in the market place moves in its own distinctive sphere of activities, as to intensity, volume and direction. All the essential qualities of its evolution are characterized in its own rate of vibration. Stocks and commodities, like atoms, are really centers of energy, and therefore, they are controlled mathematically. They create their own field of action and power--power to attract and repel, which explains why certain stocks and commodities at times lead the market and turn dead at other times. Thus, to speculate scientifically it is absolutely necessary to follow Natural Law. Vibration is fundamental; nothing is except from its law. It is universal, therefore, applicable to every class of phenomena on the globe. Thus, I affirm, every class of phenomena whether in nature or in the markets, must be subject to the universal laws of causation, harmony and vibration."
There is no question that Gann's trading track record in the 1920s was truly remarkable. And, his trading methodology certainly has merit. However, I think the most important tenets of Gann's success were stated in a paper published by Gann's grandson, edited excerpts of which are below: "Delbert Gann of Lufkin, Texas, started with nothing. He and his family had no money, no education, and no prospects. But less than 40-years after overhearing businessmen talk on railroad cars in Texas, W.D. Gann was known around the world.
"Hard work pays. W.D. Gann rose early, worked late, and approached his business with great energy. Virtually all his education was self-administered. This teacher, writer, and prescient forecaster had a third-grade formal education. But he never stopped reading.
"Unconventional thinking may have its merits. W.D. was intellectually curious to an extraordinary degree. He was unafraid of unorthodox ideas, whether in finance or in other areas of life. He wasn't always right--none of us are--but he dared to pursue a better idea.
"And finally, the only lesson for traders I will venture to offer is W.D. Gann never stopped studying the market. Even after his forecasts happened, even after he achieved international acclaim. Although he believed in cycles, he also knew that markets are always changing and that decisions must be made based on today's conditions, not yesterday's."
W.D. Gann's personal characteristics, as related by his grandson, are strikingly similar to two other famous traders of Gann's same era: Jesse Livermore and Richard Wyckoff.
Jim Wyckoff
William Delbert (W.D.) Gann is regarded as one of the pioneers of technical analysis and market behavior. He wrote several books on stock and commodity trading and developed the well-known "Gann angles" and "Gann Fans."
Gann was born on a farm near Lufkin, Texas, in 1878. His rise to trading fame is a remarkable story. He was the oldest of many children on the farm, and did not even finish grade school. Back then, it was not uncommon for the oldest boy to quit school at a relatively young age and stay at home to help out on the farm.
However, W.D. did not want to be a farmer. He wanted to be a businessman. For a short period of time he worked for a brokerage in Texas while attending business school at night. He then set out for New York City in 1903.
In 1919, at the age of 41, Gann quit his job with a stock brokerage and set out on his own. He began publishing a daily market newsletter called the "Supply and Demand Letter." The newsletter covered both stocks and commodities and provided traders with his annual market forecasts.
In 1924, Gann's first book, "Truth of the Stock Tape," was published. A pioneering work on chart reading, it is still regarded as one of the best books ever written on the subject.
Gann's market forecasts during the Roaring Twenties were reportedly 85% accurate. The stock market in the 1920s was skyrocketing, but Gann didn't think the bull run would last. In his forecast for 1929, Gann predicted the stock market would hit new highs until early April, then experience a sharp break, and then resume with new highs until early September. Then it would top and afterward would come the biggest stock market crash in history.
After around 20 years in New York City, Gann moved to Miami, Florida for reasons of both health and personal preference. His "How to make Profits in Commodities" book came out shortly thereafter.
Following are the general tenets of Gann's trading philosophies and methods. I won't go into great detail on his specific methods in this feature. If you want to learn more about Gann's specific trading methods, I suggest you read his books, or books written about Gann, some of which are available at www.amazon.com.
Gann designed several unique techniques for studying price charts. His main theory uses three parameters to project changes in price trend and market direction. They are: Pattern, Price and Time. These parameters can exert their influence individually, with one or the other being more determinate under different conditions. But they are best applied in a balanced manner. The basic idea is that specific geometric price patterns and angles have special properties that can be used to predict future prices.
He believed the markets are geometric in design and in function, and they follow geometric laws when they're charted. All of Gann's techniques require that equal time and price intervals be used on the charts. Thus, a rise of one price unit over one period of time (1 x 1) will always equal a 45-degree angle. Gann believed that the ideal balance between time and price exists when prices rise or fall at a 45-degree angle relative to the time axis. This is called a 1 x 1 angle.
Gann angles are drawn between a significant bottom and top (or vice versa) at various angles. Deemed the most important by Gann, the 1 x 1 trend line signifies a bull market if prices are above the trend line, or a bear market if below the trend line. Gann felt a 1 x 1 trend line provides major support during an uptrend, and when the trend line is broken it signifies a major reversal in the trend. Gann identified nine significant angles, with the 1 x 1 being the most important.
Gann said each of his predetermined angles provide support and resistance depending on the trend. For example, during an uptrend the 1 x 1 angle tends to provide major support. A major reversal is signaled when prices fall below the 1 x 1 angled trend line. Prices should then be expected to fall to the next trend line (the 2 x 1 angle). As one angle is penetrated, expect prices to move and consolidate at the next Gann angle.
Prices have a way of repeating themselves--or "vibrating," as Gann put it. One can think of vibration in terms of periodic oscillation, the theory of waves, or cycles, as in cycle theory.
Gann said in his own words, "Through the law of vibration, every stock and commodity in the market place moves in its own distinctive sphere of activities, as to intensity, volume and direction. All the essential qualities of its evolution are characterized in its own rate of vibration. Stocks and commodities, like atoms, are really centers of energy, and therefore, they are controlled mathematically. They create their own field of action and power--power to attract and repel, which explains why certain stocks and commodities at times lead the market and turn dead at other times. Thus, to speculate scientifically it is absolutely necessary to follow Natural Law. Vibration is fundamental; nothing is except from its law. It is universal, therefore, applicable to every class of phenomena on the globe. Thus, I affirm, every class of phenomena whether in nature or in the markets, must be subject to the universal laws of causation, harmony and vibration."
There is no question that Gann's trading track record in the 1920s was truly remarkable. And, his trading methodology certainly has merit. However, I think the most important tenets of Gann's success were stated in a paper published by Gann's grandson, edited excerpts of which are below: "Delbert Gann of Lufkin, Texas, started with nothing. He and his family had no money, no education, and no prospects. But less than 40-years after overhearing businessmen talk on railroad cars in Texas, W.D. Gann was known around the world.
"Hard work pays. W.D. Gann rose early, worked late, and approached his business with great energy. Virtually all his education was self-administered. This teacher, writer, and prescient forecaster had a third-grade formal education. But he never stopped reading.
"Unconventional thinking may have its merits. W.D. was intellectually curious to an extraordinary degree. He was unafraid of unorthodox ideas, whether in finance or in other areas of life. He wasn't always right--none of us are--but he dared to pursue a better idea.
"And finally, the only lesson for traders I will venture to offer is W.D. Gann never stopped studying the market. Even after his forecasts happened, even after he achieved international acclaim. Although he believed in cycles, he also knew that markets are always changing and that decisions must be made based on today's conditions, not yesterday's."
W.D. Gann's personal characteristics, as related by his grandson, are strikingly similar to two other famous traders of Gann's same era: Jesse Livermore and Richard Wyckoff.
Jim Wyckoff
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