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"Truth of the Stock Tape" by W. D. Gann : Summary

"Truth of the Stock Tape" is one of the most famous books written by William Delbert Gann, published in 1923. The book outlines many of Gann's trading strategies and techniques, and it has become a classic in the field of technical analysis. 

Here is a bullet point summary of the main points covered in the book: 

  • The markets are cyclical and move in repeating patterns that can be predicted and traded profitably.
  • Gann believes that the key to successful trading is understanding market cycles and using technical analysis to identify support and resistance levels in the market.
  • Gann's trading philosophy is based on the idea that price and time are closely related in the markets, and that price movements can be plotted on a chart using a series of angles.
  • These angles, called "Gann angles," are derived from the concept of the circle, with each angle representing a different price and time relationship.
  • Gann believed that the most important support and resistance levels in the market are based on the Gann angles.
  • The book covers various chart patterns that Gann used to identify market movements and make profitable trades, including the head and shoulders pattern, the double top and bottom pattern, and the triangle pattern.
  • Gann also discusses the importance of volume in trading and how it can be used to confirm price movements in the market.
  • The book also covers the use of astrology in market forecasting, which Gann believed was a valuable tool for predicting market movements.
  • Gann emphasizes the importance of discipline and patience in trading, and he advises traders to avoid greed and to stick to their trading plan.
  • Gann also discusses the importance of risk management and position sizing, and he recommends that traders use stop-loss orders to limit their losses.
  • The book concludes with a discussion of the importance of studying the markets and continuous learning in trading, as well as the importance of a positive mental attitude.

Overall, "Truth of the Stock Tape" provides a comprehensive overview of Gann's trading philosophy and techniques, and it remains a valuable resource for traders interested in technical analysis and market forecasting. The book's emphasis on the cyclical nature of the markets and the use of technical analysis to identify market movements has had a lasting impact on the field of technical analysis, and many of Gann's ideas and techniques continue to be used by traders and analysts around the world.

In conclusion, "Truth of the Stock Tape" is a classic work of financial literature written by William Delbert Gann. The book provides a comprehensive overview of Gann's trading philosophy and techniques, emphasizing the importance of market cycles, technical analysis, and risk management. The book introduced the concept of Gann angles, which are still used by traders and analysts to identify important support and resistance levels in the market. In addition, Gann's ideas about chart patterns, volume analysis, and astrology in market forecasting have also influenced many traders and analysts. The book also underscores the importance of discipline, patience, and continuous learning in trading. Overall, "Truth of the Stock Tape" is a valuable resource for anyone interested in technical analysis and market forecasting, and it continues to be relevant and influential in the field of financial markets.

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