Original Gann Swing Chart Rules

Rule 7: The Golden Rule


The basic principle of the main trend: Ignore all non-trend bars and compare the new bar with the previous trend bar.



→ Applying the golden rule in upward slope




→ Applying the golden rule in downward slope




Main trend


→ It is the trend that is formed from new high and low prices according to Gann's original rules.


 Personal words of W.D Gann from the book Wall Street Stock Selector. [Page 15]

❝ This was only one month's reaction the same as March 1925. The market held in a dull narrow range for about 2 months while accumulation was taking place and in June the main trend turned up again. ❞



The beginning of the main trend and the formation of the Valley.




The beginning of the main trend and the formation of the Peak.