Sharad Jhunjhunwala, a trader for the last 27 years, has been using the Gann, a trading tool created by WD Gann, which draws angles and other geometric constructions to analyse trading patterns. ‘Gann angles’ – as they are called – are mathematically calculated based on the price, time and the price range of the market.
In this session, Jhunjhunwala tries to demystify Gann for participants at the Traders Carnival.
Understanding the “habit” of the stock is the key to Gann trading. WD Gann mastered the art of cycles by which he could predict forthcoming events, Jhunjhunwala said addressing the audience at the Traders Carnival. Every stock has a habit and a signature move. If you can establish that signature move, then you can tell what is going to happen, he added.