Esignal Manual Ch14

Chapter 14 Gann Box Analysis
C H A P T E R
14
Gann Box Analysis
Rise/Run Ratio
One of the drawbacks in most programs is the lack of adequate timing studies.
We have attempted to meet this need with studies such as the Time Clusters and
the Gann Box Analysis. The word Gann scares a lot of traders because of its
complexity and no clear instruction on how to use it. We have researched this
field quite extensively and have found precise ways to use the Gann Box. The
software allows you to draw Gann Boxes in various configurations. So users
who follow the traditional Gann methods can still use it as presented in most of
the published materials. However, we have used the results of our research and
added the Pre-Fixed Gann Box.
The major criteria we found in our research was that the Ratio of the Rise/Run
should be 1 or multiples of 1, such as 10, 20 etc. Gann Boxes are drawn from
Major Pivot Lows or Highs. The amount of price from the pivot is the Rise and
the number of bars from the pivot is the Run. The box shown below uses 450
bars (Run) and 450 price from the pivot low (Rise). The ratio of Rise/Run = 450/
450 =1.
Ratio = Rise/Run = 450/450 = 1
Ratio = Rise/Run = 360/360 = 1
Price
Figure 14-1: Gann Boxes (Run = # Bars)

The preferred ratios (in order of importance) are as follows : 1, 2, 5, 10, 20, 40
and (2.5 as a last resort).
14~ 223
eSignal, Part 2 Applying Technical Analysis
Our research on all markets and on all time frames show that if you used the
ratios (in order of importance) 1, 2, 5, 10, 20, 40 and 2.5 (as a last resort) and
draw Gann Boxes from Major Pivot Lows or Highs, the angles generated provide
Support and Resistance levels as the market progresses into the future. In addition
to the ratio, this technique also requires you to use a Fixed Time interval of 45, 90,
180, 360, etc.
Figures 14-2a-e show some of the other ratios that can be used. Since the Box is
drawn in advance, it provides a pathway or a road map for the market. The
combination of the Fixed Time Intervals and the Pre-Fixed ratios provide amazing
end results.
Figure 14-2c: Ratio = Rise/Run = 900/180 = 5
Figure 14-2a: Ratio = Rise/Run =1800/360 = 5
Figure 14-2d: Ratio = Rise/Run = 900/360 = 2.5

(Last Resort)
Figure 14-2e: Ratio = Rise/Run = 1800/180 = 10
Figure 14-2b: Ratio = Rise/Run = 3600/360 = 10

In Figures 14-2a-e we use pre-fixed time (bars) length of 90, 180, 225,360, 450
etc., along with pre-fixed prices to provide the Box Ratio of 1,2,5,10,20,40 and
2.5. By using the Pre-Fixed Ratios, the underlying math stays the same regardless
of the Box Size. In the following examples we use various boxes as the market
progresses.
14~ 224
Here, we start out with

a 90 by 1800 Box with
a ratio of 20.
This Gann Box

provides support for
the prices marked by
the arrow.
Figure 14-3a: Gann Box
Now we switch to a 90
by 3600 Box with a
ratio of 40.
This new Gann Box

continues to provide
the same support but
with a different angle.
Figure 14-3b: Gann Box
14~ 225
New Box
180 by 1800 Ratio = 10
Again the same prices are

supported by yet another
angle. Also notice the new
price resistance marked by the
new arrow.
Figure 14-3c: Gann Box
New Box
180 by 3600 Ratio = 20
Ñ Ó
Figure 14-3d: Gann Box
14~ 226
As the price range expands, the user simply draws a larger Box that confirms to
the Pre-Fixed Ratios. The underlying math automatically adjusts itself by shifting
angles around but still provides the same support and resistance as the market
progresses.
New Box 225 by 2250
Figure 14-3e: Gann Box
Arrows indicate the same price reversals projected by different angles from
boxes with various ratios.
Figure 14-4: Wheat Spread, Long 95 Mar / Short 95 July
14~ 227
Figure 14-5: March 95 Bean Oil
Arrows indicate the same price reversals projected by different angles from
boxes with various ratios.
Ó
Ñ Ó
Ó
Figure 14-6: New Box 360 by 3600 Ratio = 10
Gann Boxes drawn with these ratios work on all commodities, stocks and spreads
using Weekly, Daily and 60-Minute charts. The Gann Box also works well with
Elliott Wave Analysis.
14~ 228
Figure 14-7: Apple Computer
Figure 14-8: 60-Minute Chart, March 95 Yen
14~ 229
Using Pre-Fixed Gann Box with Elliot Waves

The Pre-Fixed Gann Box can be used along with Elliott Wave analysis. There is
not much to explain on how to use this combination. Below are two charts with
Elliott Wave analysis and the Pre-Fixed Gann Box.
Figure 14-9: Feb 95, Live Cattle
Figure 14-10: Mar 95 Sugar
14~ 230

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Chapter 14 Gann Box Analysis

Ratio = Rise/Run = 360/360 = 1

Figure 14-1: Gann Boxes (Run = # Bars)

Figure 14-2c: Ratio = Rise/Run = 900/180 = 5

Figure 14-2a: Ratio = Rise/Run =1800/360 = 5

Figure 14-2d: Ratio = Rise/Run = 900/360 = 2.5

Figure 14-2e: Ratio = Rise/Run = 1800/180 = 10

Figure 14-2b: Ratio = Rise/Run = 3600/360 = 10

Here, we start out with

This Gann Box

This new Gann Box

Again the same prices are

Figure 14-3d: Gann Box

New Box 225 by 2250

Figure 14-3e: Gann Box

Figure 14-4: Wheat Spread, Long 95 Mar / Short 95 July

Figure 14-5: March 95 Bean Oil

Figure 14-6: New Box 360 by 3600 Ratio = 10

Figure 14-7: Apple Computer

Figure 14-8: 60-Minute Chart, March 95 Yen

Using Pre-Fixed Gann Box with Elliot Waves

Figure 14-9: Feb 95, Live Cattle

Figure 14-10: Mar 95 Sugar

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