Hima Reddy - The Trading Methodologies of W.D. Gann: A Guide to Building Your Technical Analysis Toolbox

A Guide to Building Your Technical Analysis Toolbox

Hima Reddy

FT Press Vice President, Publisher: Tim Moore
Associate Publisher and Director of Marketing: Amy Neidlinger
Executive Editor: Jim Boyd
Editorial Assistant: Pamela Boland
Operations Specialist: Jodi Kemper
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Managing Editor: Kristy Hart
Senior Project Editor: Lori Lyons
Copy Editor: Krista Hansing Editorial Services
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Indexer: Larry Sweazy
Compositor: Nonie Ratcliff
Manufacturing Buyer: Dan Uhrig

2013 by Hima Reddy
Pearson Education, Inc.
Publishing as FT Press
Upper Saddle River, New Jersey 07458

This book is sold with the understanding that neither the author nor the publisher is engaged in rendering legal, accounting, or other professional services or advice by publishing this book. Each individual situation is unique. Thus, if legal or financial advice or other expert assistance is required in a specific situation, the services of a competent professional should be sought to ensure that the situation has been evaluated carefully and appropriately. The author and the publisher disclaim any liability, loss, or risk resulting directly or indirectly, from the use or application of any of the contents of this book.

FT Press offers excellent discounts on this book when ordered in quantity for bulk purchases or special sales. For more information, please contact U.S. Corporate and Government Sales, 1-800-382-3419, .

Company and product names mentioned herein are the trademarks or registered trademarks of their respective owners.

Charts created using TradeStation. TradeStation Technologies, Inc. 2001-2012. All rights reserved. No investment or trading advice, recommendation, or opinions is being given or intended.

All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher.

Printed in the United States of America

First Printing September 2012

ISBN-10: 0-13-273438-9
ISBN-13: 978-0-13-273438-7

Pearson Education LTD.
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Library of Congress Cataloging-in-Publication Data

Reddy, Hima, 1979
The trading methodologies of W.D. Gann : a guide to building your technical analysis toolbox /
Hima
Reddy.
p. cm.
ISBN 978-0-13-273438-7 (hbk. : alk. paper)
1. Technical analysis (Investment analysis) 2. Speculation. 3. Gann, William D., b. 1878. I. Title.
HG4529.R43 2013
332.632042--dc23
2012028203

For my father, Pandu R. Tadoori

Clare WhiteYou introduced me to the opportunity to write this book. I am so thankful for your continued confidence in my skills and knowledge and your thoughtful advice through the changing phases of my career. You are a mentor in the truest sense.

Ken GerberYou shared your extensive Gann expertise, which added immeasurably to the quality of this book. I greatly appreciate the time and effort you took to answer my questions, critique my ideas, and make suggestions that only a remarkable teacher could.

Nikki JonesYou so graciously wrote the foreword for this book and allowed access to your companys vast Gann resources for my research. I am so grateful for the words of support and encouragement that you provided along the way and for the connection that we have maintained since our first Gann seminar together.

Marnie OwenYou provided impressively detailed and thoughtful reviews of my book material as it developed from a rough draft to a complete manuscript. I am extremely thankful for you in my life, as a dear friend and as a knowledgeable colleague with whom I can share my fascination with technical analysis and the markets.

Jim BoydAs my publisher, you took a chance on me. I am so grateful for all the guidance and insight you provided through the writing and production processes.

Kristy Hart, Lori Lyons, Krista Hansing, and the rest of the Pearson production teamYou transformed my book from a manuscript draft to a press-ready work! Thank you for your helpful suggestions and painstaking efforts, which improved the layout of the book while maintaining its context and intent.

All of my extended family, friends, and colleaguesYou express enthusiasm in my work and exude a perpetual interest in reading what I create, whether its been a blog post, or this book! I am very thankful for you, and I am inspired by each and every one of you.

Mom, Dad, Rekha, Swathi, and AbhiYour patience, love, and support are invaluable. Thank you for motivating me to try and be the best at what I do. It makes me want to be a better daughter and sister as well.

SrinuYou ground me when my head gets into the clouds, but know when to let me fly free. I am so grateful for your encouragement and support in all of my endeavors. Beginning work on this book in 2011 was the second best thing I did that year. The first was marrying you.

Hima Reddy, CMT, was first introduced to technical analysis, and to the works of W.D. Gann, during her high school years by her father, who has had a passion for trading and the markets since the early 1980s. However, it wasnt until after she completed an undergraduate Finance degree at Indiana Universitys Kelley School of Business, and returned to her home state of New York in 2001, that she immersed herself in the markets. She simultaneously volunteered as a sponsorship coordinator for several Market Technicians Association conferences, traded equity and commodity futures under the tutelage and guidance of her father, and completed the Chartered Market Technician certification. In 2006, she joined Informa Global Markets, an independent financial research firm providing live, 24-hour market analysis. As Senior Technical Analyst, she was responsible for producing timely and accurate short-term technical analysis and trading strategies for fixed income and FX markets. With analysis ranging through multiple timeframes, her team also prepared written updates covering longer-term trends. Himas guru has always been Gannthe first market analysis book she ever studied in-depth was How to Make Profits in Commoditiesand to this day that is her go-to guide to the markets. Since 2011 she has returned to trading independently and continues to write about the financial markets. Her primary methods of technical analysis include pattern recognition and time duration relationships within markets based on Ganns methodology, momentum assessment through the use of the Relative Strength Index (RSI), Fibonacci relationships, and moving average systems including the use of channels for trade management. Hima now resides with her husband in Baltimore, Maryland.

Over the years, many questions have been asked about W.D. Gann and his trading system. Does it work? How much time do I have to spend before I trade? Can I make money? Where do I begin? I believe the best question of all is, Which one of Ganns books can I read that will teach me how to trade? The answer is, they all will. However, never has a more worthy book exploring Ganns been written for beginners or intermediate traders as this one.

To be a successful trader, you need to know the rules that have stood the test of time, a bit about the man who created them, and about the author who wrote this book.

Hima Reddy has provided us with the missing link to W.D. Ganns trading methods. In this book, she has laid out the basic plans step by step, along with examples, which can be easily followed by anyone with an interest in learning the potential profit areas in trading.