Top 15 Gann Techniques Every Trader Should Know (2025)

📘 Top 15 Gann Techniques Every Trader Should Know

W.D. Gann, one of the most legendary traders in history, developed time-tested techniques based on market geometry, time cycles, and price action. Here are 15 of his most practical trading principles, rephrased for modern market use.

📍 Price and Time Rules

1. Friday High Signal: If a stock makes its weekly high on a Friday, higher prices are likely next week.
2. Friday Low Signal: If the weekly low is made on a Friday, expect weakness the following week.
3. Tuesday Bottoms: In strong uptrends, weekly lows often occur on Tuesdays.
4. 3-Day Breakout Buy: If price crosses the previous 3-day high by ₹3 or more, buy on the 4th day with a stop loss ₹3 below the 3-day high.
5. 3-Day Breakdown Sell: If price drops ₹3 below the last 3-day low, sell on the 4th day with a stop ₹3 above the 3-day low.

📊 Retracement & Reversal Techniques

6. 50% Retracement Rule: A 50% pullback from a prior swing is a strong buy zone — use a tight stop loss (₹5 or 1% of value).
7. Deeper Correction = Trend Change: If a current correction is larger than the last one in both price and time, it's an early sign of reversal.
8. Breakout Close Rule: A stock closing ₹5 above a prior high should not close ₹5 below that level again — or the breakout is invalid.

📅 Timing Cycles

9. 4-Week Correction Rule (Uptrend): In uptrends, corrections usually last no more than 4 weeks.
10. 4-Week Rally Rule (Downtrend): In downtrends, any counter-trend rally typically ends within 4 weeks.
11. 5:3 Ratio: After 5 strong days up, expect a 3-day correction. This ratio works across timeframes.
12. 9:5 Ratio: After a 9-day rally, a 5-day correction is often due. Another powerful time ratio.

🔊 Volume and Moving Averages

13. Volume Spike in Range: A sudden volume spike during sideways consolidation may signal a breakout or trend reversal.
14. 30 DMA Breakdown: In a strong trend, if price closes below the 30-day moving average for 3 days, expect extended correction.

📏 Price Landmarks

15. 100% Rise Rule: A stock doubling in price (or reaching 100% gain) often faces strong resistance at that level.

✅ Summary

These Gann-based trading techniques are not just historical curiosities — they are practical, price-action based tools that can bring discipline and structure to your trading. Combine them with modern indicators for better results.

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Disclaimer: The views expressed here are educational in nature. Please consult your financial advisor before making trading decisions.

Written by Brig Tech Labs