Author Topic: Gann Tools for Better Crypto Currency Trading Outcomes. By Daniel Bruno, CMT  (Read 886 times)

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Gann Tools for Better Crypto Currency Trading Outcomes.
By Daniel Bruno, Chartered Market Technician. Post-Graduate Diploma, Financial Strategy, Oxford University 8)
W.D. Gann was a legendary market technician a century ago when loud, clunky wooden boxes hammered out the latest stock quotes on ribbons of tape that collected in piles on the posh floors of Wall Street investment firms. Arcane concepts such as the Golden Ratio and the Square of 91... number spirals and 360 degree angles2...cryptic astrological references... an uncanny ability to predict stock prices coupled with rumors of fantastic fortunes...all of these things make up the Gann mystique. Like Elliot Wave, the challenge of Gann angles is that it’s not clear how to apply the rules and the guidelines themselves do not work consistently. Traders have to consider the odds and realize quickly when they are wrong. Like looking forward to a stroll on the sunny side of the street both day and night, rain and shine, a lack of timing will bring disappointment. This paper will demonstrate that in 2018, Gann angles applied correctly to cryptocurrency charts achieved trading outperformance.  
Bitcoin (bitcoin in the generic sense as representing all cryptocurrencies) is on the blockchain, a disruptive and revolutionary technology. It’s a new asset class3, a store of value and a decentralized, proof-of-work, unregulated4 payment system that facilitates and lowers the cost of transfer of that value without a “hub and spoke” hierarchy of checks and permissions that requires an authority, e.g. Internet banking, Paypal or American Express. It mimics gold in that it is very energy intensive to acquire, i.e. mine5 and mimics a fiat currency in that it is a viable medium of exchange, e.g. a wire transfer. It is pseudo-anonymous6, independent of banks and institutions, free of debt and fractional reserve banking and with that, carries a certain Libertarian appeal. It has M1, transaction volume, liquidity, volatility and velocity that can be measured or assumed.78 The fair BTC price is thought to be: