Dynamic Gann Levels

"The first forecasting approach that gives me the reliability I seek"

-- Ray Barros, professional trader and money manager from Australia

The Dynamic Gann Level (DGL) approach is based on some of the concepts

of William D. Gann, but extends them by adding a few geometric formulas

to provide what are often very precise turning point projections.

Although impressed with Gann's concepts of blending price and time in

evaluating market action, I was frustrated with the amount of time it

took to properly scale charts, measure angles, and so forth.

This led to my search for a simpler approach which would work across the

board in various markets without any modification.

Using this trading tool has enabled me to see the truth of Gann's

oft-quoted statement: "when time and price coincide, change is imminent".

While I certainly wouldn't claim this is the only way to "square" price

and time, it is the only way I have found to accomplish it reliably without

having to resort to special charting techniques or using a multiplicity of

tools to calculate Gann angles, Gann lines, etc.

Unlike the traditional Gann angle, Fib fan, and other such indicators

packaged into many charing packages, DGLs rely on the dynamic unfolding

of market action and adjust the resulting projections accordingly. This

technique consistently performs well in both stock and commodity markets,

foreign and domestic.

About a decade ago, I was involved with a computer language called "Forth".

Because many of us felt that it was an exceptional language with many unusual

features, but little commercial endorsement, we joined together in what was called

the "Forth Interest Group" (FIG). We had a great time sharing applications, code,

new ways of using the language, and just generally learning from one another while

promoting "Forth" itself.

It was this experience which helped me decide to share my DGL work by means of

a "group" rather than some of the other options which were available. And as the DGL

group has chugged along over the past 4 years or so, I believe we've all benefitted

together and learned together; I know I have, and I hope that will be your experience, too.

Hundreds of my projections using DGLs have been posted in advance to the

Usenet newsgroups (misc.invest.futures and misc.invest.technical) so that

there could be a public demonstration of their reliability. One of the

early members of our group, a university professor from Australia who also

is featured at popular trading seminars in that country, had this to say:

"This is a winner. There are a lot of scams on the Net but just occasionally

something turns up that is pure gold. The Dynamic Gann Level approach is

pure gold in terms of the accuracy with which it allows a plotting of the

course of any market."

Another professional trader, who conducted a series of seminars

which included his use of DGLs, makes this comment:

"I use DGLs as an adjunct to my trading approach - to forecast price

turning points when my approach warns me of a structural turning point.

Used in this way, I have improved my trading results immeasurably."

And a Canadian trader recently expressed: "I've been involved with futures

since Oct '74 and haven't found a more enjoyable and challenging discussion

group; your concepts are like a breath of fresh air."

No doubt an exaggeration, but the sentiment is appreciated <g>

An Australian trader wrote:

"Your work on DGLs is very amazing and my wife and I are amazed at how

often the SPI (Aussie index futures) for example will land on a DGL

level for both its top and bottom for the day. It has to be better than

75% of the time. There are some works around regarding geometry but DGLs

are the king of the castle in accuracy and practical application.

Finally, this from a seasoned trader:

"Like most of us who have been in the trading arena for more than thirty years, I

have been exposed to a vast array of developers of methods and systems.

You have always stood out at the top of that mountain, as much because of

your unflagging integrity as for the sturdiness of the thinking that

underlies the DGL approach. I do not cast idle bouquets... Just want to add

my name to the list of those who deeply appreciate your continuing,

outstanding contribution."

Now, just what are "Dynamic Gann Levels", anyway?

DGLs are a market analysis tool for anticipating market turning points;

any user would have exactly the same projections when using the same data

as input. In fact, I send out updates (usually 3 per week) giving the exact

data I am using for various markets so that users can just plug in the data

and see the same projections I'm looking at.

Although originally designed as a spreadsheet-based application, DGL group

members have converted the DGL formulas for use in programs including:

--- a Visual Basic application program which runs the calculations without

requiring spreadsheet usage. I refer to it as a Windows pop-up "calculator"

for DGLs.

--- indicators for various popular charting programs such as Supercharts,

TradeStation and Metastock.

Here are other distinctives of the DGL approach:

(1) aligns both price and time; dealing with both when the market is likely

to make a swing and at what price. To me, this is the most important

feature; this "squaring" of price and time was certainly one of Gann's

great contributions.

What I've tried to do is combine Gann's ideas with simple coordinate

geometry formulae in to produce the "squaring", providing very specific

price/time potential turning points.

The result is that market entry can often be made with very close stops.

And unlike many Gann techniques, there are no special overlays, scaling

of charts, etc. required.

(2) the formulae are the same for all markets: stocks, grains, currencies,

precious metals, etc. The techniques work the same way and equally well in

the both the equities and commodities markets. They may be used with any

time-frame (weekly, daily, intra-day). We currently have users involved in

daytrading the Bonds and S&P, as well as position traders; our user group

has people using the DGLs with stocks, futures and mutual funds in both

domestic and foreign markets.

The 40-page DGL Manual is written in plain English, and seeks to communicate

how to use DGLs in a clear way, without all the hype and hoopla often used

as "filler". While I don't think it will ever win a Pulitzer prize for

journalism, I also don't think you'll be left wondering what you've just

read!

(3) although not based on chart-pattern recognition (such as candlesticks

and traditional chart formations), you will discover a fresh way of looking

at charts and their formations from a DGL perspective.

(4) unlike some methods which attempt to forecast a turning point date

but then leave you guessing as to whether it will be a high or a low, and

wondering how to use the information to actually place a trade,

DGLs willl enable you to know whether to expect a high or low, what entry

price to use, and even help in knowing where to place both initial and

trailing stops.

(5) helps keep losses small in two ways: first, you'll often find that

you're entering a trade at a point close to, and sometimes exactly at,

a significant turn; secondly, you'll have some objective indication of

when to stay out of the market when you don't belong in it!

One problem many have is entering a market prematurely only to be stopped

out . . . even though the market then turns as you had hoped. Still

another common problem is trading too often while looking for that elusive

"big move". With DGLs, you only enter the market when the numbers

indicate that both the price and time are right.

Of course, you will not catch every market turning point, but you won't

be trying to buy near a top or sell near a bottom, either!

(6) the technique is not optimized for any markets; due to its mathematical

nature and the fact that it is based on prior price action within each

market, it is has the capacity to be self-adjusting to the unique conditions

of each market. This has become very apparent to our group as we see charts

of various foreign markets which have little resemblance to anything in the

USA, and yet demonstrate that the Dynamic Gann Levels indicate important

turning points just as well as in American markets.

(7) If you use tools like oscillators, you'll see how they add confirmation

to what the DGLs are telling you; the tutorials discuss how to use

oscillators in conjunction with the Dynamic Gann levels. The DGLs help to

filter out false signals that often plague oscillator users.

Now please read this carefully:

I do not have nor do I pretend to offer a crystal ball!

DGLs are not some "secret" I discovered; a high school geometry textbook is

what I used to work out the math! This is not one of those "Hidden Secrets

of the Market Now Revealed" stories.

Remember: No one can guarantee where the markets will actually be tomorrow.

Yet I do claim that this approach prepares you for action when and if

prices reach certain key price/time convergence points on a given date.

It acts as an "early warning system" to provide you with good, solid,

low-risk trading opportunities. Gann stated that "the future is but a

repetition of the past" and that "everything in existence is based on

exact proportion". I don't believe in trying to outguess the market; but

I do believe that past market action does indeed give specific clues as

to future price and time activity. The DGL techniques attempts to discover

those clues and profit from them.

The Manual includes charts illustrating the strategy in both stocks and

commodities. All the formulas are included and explained in ordinary

English; there is nothing kept hidden from the purchaser.

In addition to the manual and accompanying diskette containing the

indicators mentioned above, I send out regular email updates which serve

as "live tutorials" so those working with DGLs can see how I apply the

techniques to current markets. These email updates come out at least 3

times a week, and frequently more often.

Most recently, I have established a discussion list for DGL users, which allows

us to interact with each other, pass along charts with DGL setups, discuss

trading strategies, etc.

One of the key concepts in the analysis I do is that of using different types

of indicators and waiting for confirmation from all of them. So in my analysis

I use:

a) Price and Time indicator (DGLs) based on market geometry

b) Oscillator to help identify trading cycles

c) Trade Bands to confirm a move forecast by a cycle swing at a DGL point

All three of these are discussed and included as indicators on the DGL diskette.

One acquires the DGL Manual and diskette by joining our user group.

The cost of user-group membership is a one-time $95.00 fee.

There are no other charges; I have no other "products" to sell.

The 40-page Manual and indicator files may all be sent by email for

same-day delivery which is especially helpful for those ordering

from outside the USA.

Becoming a member of our user group also brings you the market updates

mentioned earlier. You can receive these for as long as you wish; there are

no subscriptions or renewal fees, since I don't offer them as an advisory service

but merely as a vehicle for pointing out DGL analysis and setups in real time.

HERE'S HOW TO ORDER:

If you'd like to order the DGL materials, the cost is $95.00 USD;

this price is the same for both domestic and foreign purchases.

The following payment options are available:

(a) Credit Card using PayPal or CCNow

(b) Bank-to-bank wire transfer (contact me for details)

(d) Western Union wire transfer -- able to use credit card for this

FOR INTERNATIONAL CREDIT CARD PURCHASES, EMAIL ME FOR DETAILS AND SPECIFY THE CURRENCY YOU WOULD LIKE TO USE FOR PAYMENT

NOTE: checks payable to Don Fisher in all cases

My mailing address is:

Don Fisher

222 Washington St.

Westwood, MA 02090

email: ganntrader@aol.com

Materials may be downloaded from the user group private site, emailed, or

sent out via Priority Mail.

HERE'S A RECAP OF WHAT YOU GET:

(1) the manual explaining the methodology and providing all formulas

(2) a diskette with 1.3 meg of application software allowing you

to use the DGL methodology in any of the following ways:

a. in a spreadsheet program

b. as a stand-alone Windows application

c. as an indicator for Omega products (including 2000i ProSuite)

d. as an indicator for Metastock

(3) a tutorial which not only clarifies some of the DGL concepts presented

in the Manual, but also shares some of the most useful additional indicators

I personally use in all my DGL analysis.

(4) membership in the DGL user group. This provides you with the

email market updates based on the techniques. NOTE: These updates

are for educational purposes only, to provide instruction in the

use of Dynamic Gann Levels, and are not trading recommendations.

I think that pretty much covers it. Whatever your decision, I wish

you the very best for successful trading.

Don Fisher

ganntrader@aol.com

++++++++++++++++++++

WARNING: More shameless testimonials begin here. Some people like to

read what others have said, and some people absolutely hate

such things because they view them as phony. If you fall into the latter

category, it's probably time to stop reading!

However, I will just mention that all of the comments were unsolicited.

***********************************************

The following is the review which was published in the February-March 1996

issue of CTCN. The author is Ray Barros, a money manager, professional trader

and trading advisor from Australia:

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"I am always looking for ways to strengthen my trading plan - a firm believer

in the precept 'if it ain't broke, don't fix it'. Twenty percent of my

net profits goes to R&D. Most of the stuff that I come across is a waste

of time and money. However, in my travels on the net, I came across two

items that I found of value.

The first:

'DYNAMIC GANN LEVELS', a manual with accompanying diskette.

I first came across DGL through Don's posting of the levels in the

'misc.invest.futures' newsgroup on the Internet. I noticed that very

frequently the market turned on the levels published. Finally I asked

him for details on December 15th [1995] when on the 13th he said that

a substantial fall in the S&P was imminent.

I was pleasantly surprised at the cost and even more impressed when I

subjected DGLs to my testing. DGLs are a mathematical formula that

determines support and resistance levels from which a market can turn.

In determining these levels, it incorporates time as well as price.

The test and trade results have been impressive.

I investigated DGL as I was looking for a reliable indicator of price

levels that would augment my price patterns which tell me when there's

a high probability of a change in trend in the timeframe I am trading.

I found the 'normal' methods not up to the standard of reliability that

I seek. DGL is the first forecast approach that gives me that reliability.

I found Don very generous with his time as far as questions are concerned.

He also places you on his e-mail list for regular updates.

In terms of value for money, I'd give it a 9.6 out of a scale of 1-10."

**************

More Comments from users:

"As a Registered Options Principal, I have studied many option trading

systems to make sure that my clients are getting the best possible advice.

I typically trade credit spreads on the OEX. However, during the last

two years, volatility has changed so much that these trades have become

far riskier and have forced me to change my investment strategy to

encompass more equity trading. I find that the key is to understand the

dynamics of the stock you are trading and then choose a correct option

strategy in order to be successful. The DGL approach has given me and my

clients a huge edge by being able to recognize the dynamics and

appropriately determine both target points and stop points for each

trade."

*************

"Thanks again for your wonderful material and tutorials: without that

I probably would have given up on stock selection and timing and

have stayed with some mutual fund programs. By the way, the buy/sell

band numbers from: they are RIGHT ON!!! and the extension for the next

day intraday triggers is wonderful."

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"I must say that I am greatly impressed using the DGL method of analysing

movement - since I received your package I have been trading the SPI

with my futures broker and have made 6 trades, 4 winners for +250 points

and 2 losing trades for -38 points."

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"I really want to thank you for sharing an awesome indicator.

I have finally installed the DGL indicators into Omega Super Charts and

I'm very excited with what I see. This indicator rounds out my trading plan

perfectly! I also own the Dynamic Trader software, which is incredible in its

own right, but I find the DGL indicator much more comfortable to use in

conjunction with an environment I'm already used to, namely Super Charts".

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"I am just starting to use the DGL's in Market Analyst (an Australian charting

package which has a DGL feature for members of our group) and I am almost

shocked to see how accurate they are!"

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"I honestly believe that your approach is probably the best I have seen

for generating consistent long-term profits."

========

"Thank you and keep up your excellent work! - DGL's have been the best

chart analysis format that I consistently use on a daily basis.I've been

trading since 1989 and I've tried most of it."

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"Many thanks for your faithful tutorial assistance. I don't think I

have ever bought a product at any price with after sales support like

yours. DGL is my basic analysis technique. I always put DGL's on first,

and then look further afield."

===========

"I work for a major securities firm, brokering Eurodollar futures.

As always, great job at your end.

I really believe I was extraordinarily lucky to find you on the "net".

My overall trading perspective has really expanded thanks to you!

Keep up the good work."

==========

"Dynamic Gann Levels (DGL's) are my favorite indicator. They do not

attempt to predict the future. They simply utilize the mathematical

relationships of Price & Time to identify Support/Resistance. They

maybe used for any time frame. Personally, I use them for daytrading

the S&P. Without a doubt, of all the money I have spent to learn trading

methods, DGL's have been the best value."

==========

"After having lost 6,000 dollars in commodities via [a popular home

trading course name deleted], I am now beginning to follow the market

using your approach which seems to work much better. I promised myself

[to] learn to depend on myself instead of some guru who claims instant

success . . . your technique seems like the only sane one I've seen so far."

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"I just want to thank you for your wonderful product. When I consider the

amount of wasted time and money that I have invested over the years with

other techniques, services, and software (too many to mention), etc., I

really wish I had known about DGLs sooner. Your product and continuing

service by far has provided me the BEST value with stunning results. It

was certainly my good fortune to find you on the Net."

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"Dynamic Gann Levels incorporate the concepts of Elliot Wave,

Retracements and Extensions of Price & Time into one precise method."

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"I have been using DGL for about 2-3 months now and I am very impressed

with how it works. Recently started to use it in real trading. During

the 2-3 months that I was observing it, I noticed that whatever stock

or commodity I was following always made a reversal at or very, very

close to one or more DGL lines, without exception. In short, DGL is

rapidly becoming my primary trading tool.

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"thanks for the input on Lucent Technology last week; I sold on the

top day!"

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"I have been impressed with the accuracy of DGL in both price and time.

I don't rely on DGL exclusively,

however I find that after reaching a view on a market using Gann boxes,

squaring time and price, Elliot wave, and so on, DGL is an absolutely

beautiful practical little tool to put it all in perspective."

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"Let me begin by congratulating you on your DGL method. This is, without

doubt, the best money I have spent on market education. Well done!"

----------------------

"I wanted to take this opportunity to thank you for all of your work

and assistance. You've developed a very impressive system and it is

obvious that you continue to devote large quantities of time to it.

Thanks again; I'm learning more and more each day and enjoying every

minute of it!"

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". . .what I like best is the DGL User Group. While like myself, you're

a part time trader; unlike myself, you have found the time to analyze

many markets to find the best opportunities. After your analysis, you

freely share your findings with the rest of us via the DGL group.

Anyone looking for a bargain, need not look any further. The DGL

software + the DGL User Group all for one price!

A great Deal."

-----------------------

"I really like the support you give on your method. I enjoy your comments

and obvious intent to have people make the most of the DGL method.

You give incredibly good value and the ideas you put forward knock spots

off most of the technical analysis data being sold for vast amounts of money.

On the stock data I sent you, which was for Westpac Bank (Australia), the

resistance projections worked admirably. I got out of my position at a

profit and a couple of days later the stock dropped quite dramatically."

-----------------------

"your DGL method and your posts have put a struggling Gann trader on the

right path again. When I signed on with the DGL group you said that you

had nothing else to sell, but if you did have I know that I myself as well

as others would be customers."

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"DGL has created an ideological revolution in me! The BP finally stopped

at a DGL projection and topped out. The recent IFFE Bunds top was picked

by a major DGL going back a year!

My Italian Bond chart shows a free fall and a sudden break down in that

market halted by a DGL line.

Closed near the line and opened at the DGL line and skyrocketed up! "

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"I appreciate the original work that you have done. It is the first

actual indicator that really can show (to me at least) hard evidence

of order and harmony in the markets. There is other stuff around and

some of it makes sense but it is tough to actually measure its accuracy

and even harder to use in real trading."

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"Your product has provided me with a very useful perspective and gives

me an additional frame of reference for my analysis. I believe that the

real value of the Dynamic Gann Level method is that it aligns time and

price."

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"Wow! After a month of trying your system against another, you won

big time. Thanks for a job well done".

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"First, I used your technique to enter a copper trade which ended up

netting me around $700 on one contract - so thanks!"

--------------------------

"I've gotta tell you it's actually been fun and exciting learning about

your approach to Gann. The methodology's strength lies in its precision

vis-a-vis attempting to draw lines on possibly out-of-scale charts."

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"I recently made a profit of nearly $3,300 per contract on a move in Lumber.

I caught the very low and exited at pretty close to the very top of the

swing, thanks to the DGL tools".

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"Just received your manual the other day. I spent most of the weekend

going over some Australian futures market data from the past five years,

and the results are simply stunning! I've used just about every Gann

method that there is over the years lines, retracements, astro stuff,

etc, and the results have been somewhat inconsistent. However, this

method really seems to open the door to a more objective approach to

Ganns' work. I'm really pleased at what I have seen."

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"As is the case with most people, I'm extremely busy with my 'day job'.

I've only read through your literature once and haven't had time to

experiment (as I will do in the near future). However, I made 20% in

2 weeks on two recent stock trades, and I attribute these gains to insight

you've provided."

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"No question this is the best buy I've ever made for helping mesee what

is going on with a stock or futures contract. Thanks again."

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"I can report that the DGL approach really-really works! Have had 3

straight wins in live cattle and working on 4th now!"

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"I must tell you Don, your course and email support are the BEST value

I've found, and I really feel your product is great. Thank you for

all your honest effort, and great support."

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" I have a full time business but still find time to trade. It is

rewarding for me to deal with someone who is in this for the satisfaction

of doing a proper job of market evaluation. Your work is generally right

on the money, and I am having more fun trading less."

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" I have just completed my first trade and made a nice little profit,

thank you very much for the DGL course, the figures are coming true daily."

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"I am starting up a financial business and my web site is under

construction. I would like to put a link to your web site because I think

yourwork is outstanding."

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"I've been a member of your group for 8 months or so. Due to other

responsibilities, my time for trading has been limited. However, I

made two recent stock trades...one resulted in a 24% gain in 4 months,

the other a 75% gain in a week! I'm confident that this is only the

beginning, and that using the DGL technique as an assist will result

in continuing gains."

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"I have been using the Dynamic Gann Levels as added ammo for my other

work in a day-trading strategy, and it has worked out well. Since I

began using DGL I have found that my confidence level has increased

considerably. This has been my best month ever with only 3 losing

trades! I must say that no system is perfect by itself, but when you

use the best parts of several you can develop a strategy that will

increase your odds of being profitable. Thanks again."

----------------------------

"Just wanted to let you know that I received your package. Also, I think

you have done an excellent job of putting some of Gann's theories into a

truly workable system. I knew that the theories worked, but I was

having a hard time making a system out of them. Now, with your DGL

concepts I will know "where" in the market I am, and can use the other

techniques I employ to add confirmation.

Thanks again for the great work in this area of study. Your tools

will greatly enhance the effectiveness of my entry/exit and stop

placement in my day-to-day trading."

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"I'd like to give you some positive feedback on your Gann methodology.

It's been working very well for me since I got it. Using the techniques

and some sound money management, I've been profitable for the first time

in a long time. Thanks again."

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"I thought I would share with you how I am using the DGLs. First of all,

I have to admit to my continual amazement how frequently prices stop right

at the projections or very close to it -- quite incredible."

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(From one of our daytraders): "By the way, the last trade using timing

techniques we have discussed plus DGLs resulted in a $2100 return"

"Overall I find DGLs to be one of the most useful tools in my market

analysis and trading and am very grateful to you for your educative

role in this regard."

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"A superlative combination of Gann and Fibonacci is Don Fisher's DGL's.

I'm amazed at the price point accuracy his system projects at various levels

of support and resistance."