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 Minor Trend Analysis
 Our first task is to identify minor trend for which we
will consider a simple Candlestick chart.
 Please remember in RRR TECHNIQUE we neglect
the colour of bars/candles, which means opening
and closing prices are not considered.
 We are interested Only in HIGH & LOW price of
the particular Candle.

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 GANN Bar Chart
 An ideal GANN bar chart should have no colours as
shown below
High

Low
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 Minor Trend Analysis
 Following conditions must be fulfilled to analyse
minor trend
 Two consecutive trending bars are required in any time
frame
 Stock/Commodity must be active
 Stock/Commodity must be liquid

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 Minor Trend Analysis
Bullish Minor Trend

High of previous Bar (Bar 1) is broken by Bar 2 but

low of Bar 1 is not broken
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 Minor Trend Analysis
Bearish Minor Trend

Low of previous Bar (Bar 1) is broken by Bar 2 but

high of Bar 1 is not broken
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Minor Trend Analysis
Inside Bar = Trend Continuation

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 Minor Trend Analysis
Inside Bar Examples

Neglect all inside bars as if no trading has taken place. Do not

consider any change in trend if high or low of inside bar is
broken. Always consider the trend prior to first inside bar
for continuation of trend.
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Minor Trend Analysis
Outside Bar = Uncertain Trend

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Minor Trend Analysis
Outside Bar Examples
• Outside bars are rare but
very important. On an
outside bar day chances
of stop loss getting hit
are very high. It may
indicate some change in
trend but confirmation
regarding change in
trend is obtained only on
the day when either High
or Low of an outside bar
is broken.
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 Plan your Trade
 Identify the trend in Weekly, daily and Hourly bar
chart. Give first preference and more importance to
weekly trend.
 Locate RRR level for Buying or Short Selling and trade
maximum quantity as per wealth management
discipline.
 Put stop loss in the system and not in mind.
 Always book partial profit @ 1:3 and carry the rest to
maximize profit till there is change in minor trend.

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 Rules for RRR Buying
 If bar2 has broken the high of bar1 (at least by 1 point for low
price stocks and by 2-5 points for large price stocks) but low of
bar1 is not broken. This confirms that minor trend is up.
 Now note down the low of bar2 as this is the best RRR point
for creating a long trade.
 Wait for an opportunity and try to buy as close as possible to
the RRR level.
 Put Stop Loss(minimum 1 point or more for high price stocks
below the previous low) in the system.
 If bar3 does not provide a long trade near RRR level then look
for buyingopportunities in bar4 or bar5 or bar6 and so on till
the trend is up.
 Remember that if you buy in bar4 then low of previous bar3 is
RRR level and so on.

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Examples: Long Trade
 B1 & B2 confirms
uptrend. Low of B2 is
RRR Level. Buy in B3
near RRR level.

 B1 & B2 confirms
uptrend. Low of B2 is
RRR level. Buy in
B3(inside bar) near RRR
level.

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Examples: Long Trade
 B1 & B2 confirms
uptrend. B3 does not give
a buying opportunity but
trend remains up. Low of
B3 is RRR level. Buy in B4
near RRR level.
 B1 & B2 confirms
uptrend. B3 & B4 does
not give a buying
opportunity but trend
remain up. Low of B4 is
RRR level. Buy in B5 near
RRR level.
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Examples: Long Trade
 B1 & B2 confirms uptrend.
B3, B4, B5 & B6 are inside
bars. But trend remains up.
Low of B2 is RRR level. Buy in
B6 (inside bar) near RRR level.

 B1 & B2 confirms uptrend. B3

is an Outside Bar. Trend
becomes uncertain but B3 &
B4 again confirms uptrend. So
low of B4 is RRR level. Buy in
B5 near RRR level.

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 Examples: Long Trade
Buying Opportunity in B2
If B2 breaks high of B1 during the week, that confirms an
uptrend. And in the same week if market comes near the
low of B1 then it is buying opportunity near the low of B1.
Stop loss below the low of B1.

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 Rules for RRR Short Selling
 If bar2 has broken the low of bar1 (at least by 1 point for low
price stocks and by 2-5 points for large price stocks) but high of
bar1 is not broken. This confirms that minor trend is down.
 Now note down the high of bar2 as this is the best RRR point
for creating a short trade.
 Wait for an opportunity and try to short as close as possible to
the RRR level.
 Put Stop Loss(minimum 1 point or more for high price stocks
above the previous high) in the system.
 If bar3 does not provide a short trade near RRR level then look
for shorting opportunities in bar4 or bar5 or bar6 and so on till
the trend is down.
 Remember that if you short in bar4 then high of previous bar3
is RRR level and so on.

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 Examples: Short Trade
 B1 & B2 confirms
downtrend. High of B2 is
RRR level. Short in B3 near
RRR level.

 B1 & B2 confirms
downtrend. High of B2 is
RRR level. Short in B3
(inside bar) near RRR level.

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 Examples: Short Trade
 B1 & B2 confirms downtrend.
B3 does not give a shorting
opportunity but trend remains
down. High of B3 is RRR level.
Short in B4 near RRR level.

 B1 & B2 confirms downtrend.

B3&B4 does not give a shorting
opportunity but trend remains
down. High of B4 is RRR level.
Short in B5 near RRR level.

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 Examples: Short Trade
 B1 & B2 confirms downtrend.
B3,B4,B5 & B6 are Inside
bars. But trend remains
down. High of B2 is RRR
level. Short in B6 (inside bar)
near RRR level.

 B1 & B2 confirms downtrend.

B3 is an outside bar. Trend
becomes uncertain but
B4&B5 again confirms
downtrend. So high of B4 is
RRR level. Short in B5 near
level.
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 Examples: Short Trade
Shorting Opportunity in B2
 If B2 breaks low of B1 during the week that confirms
downtrend. And in the same week if market comes near
the high of B1 then it is a shorting opportunity near the
high of B1. Stop loss above the high of B1.

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 RRR Technique : Improvised
Friday Closing Technique
 Friday is usually the last trading day of a week. If minor
trend is up then we can get a superb RRR level, provided
markets closes near the low of the week. Similarly in a
down trend we can get a superb RRR level, provided
markets close near the high of the week.

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 RRR Technique: Improvised
Sleeping Tiger Technique:
 Small is powerful. This technique is applicable only in high price and
extreme volatile markets. The smaller the size of a bar, it provides an
excellent opportunity to enter a trade without waiting for a RRR level
with minimum stop loss.
Note: Inside bars are not sleeping tigers

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 RRR Technique: Improvised
Pyramid Technique: (Averaging in Profit)
 This technique is useful for maximizing profit in a strong
trending market. You are free to increase your positions in
a trending markets every time you get RRR levels.

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 Golden Rules by GANN
In order to make a success in trading the stock market, the trader
must have definite rules and follow them.
 Use stop loss orders. Always protect a trade when you make it
with a stop loss order 3 to 5 points away.
 Never over trade. This would be violating your capital rule.
 Never let a profit run into a loss. After once you have a profit
of 1:3 or more, book partial profit so that you will have no loss
of capital.
 Do not buck the trend. Never buy or sell if you are not sure of
the trend according to your charts.
 When in doubt, get out, and don’t get in when in doubt.
 Trade only in active stocks. Keep out of slow, dead ones.
 Equal distribution of risk. Trade in 4 or 5 stocks, if possible.
Avoid tying up all your capital in anyone stock.
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 Golden Rules by GANN
 Never be rigid in your orders or fix a buying or selling price. Trade at
the market.
 Don’t close your trades without a good reason. Follow up with a stop
loss order to protect your profits.
 Accumulate a surplus. After you have made a series of successful trades,
put some money into surplus account to be used only in emergency or
in times of panic.
 Never buy just to get a dividend.
 Never average a loss. This is one of the worst mistakes a trader can
make.
 Never get out of the market just because you have lost patience or get
into the market because you are anxious from waiting.
 Avoid taking small profits and big losses.
 Never cancel a stop loss order after you have placed it at the time you
make a trade. Put stop loss in the system not in mind.
 Avoid getting in and out of the market too often.
 Be just as willing to sell short as you are to buy. Your objective is to keep
with the trend and make money.
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 Golden Rules by GANN
 Never buy just because the price of a stock is low or sell short just
because the price is high.
 Be careful about pyramiding at the wrong time. Wait until the
stock is very active and has crossed resistance levels before
buying more and until it has broken out of the zone of
distribution before selling more.
 Select the stocks with small volume of shares outstanding to
pyramid on the buying side and the ones with the largest volume
of stock outstanding to sell short.
 Never hedge. If you are long in one stock it starts to go down, do
not sell another stock short to hedge it. Get out at the market;
take your loss and wait for another opportunity.
 Never change your position in the market without a good reason.
When you make a trade, let it be for some good reason or
according to some definite plan; then do not get out without a
definite indication of a change in trend.
 Avoid increasing your trading after a long period of success or a
period of profitable trades.
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 Golden Rules by GANN
 When you decide to make a trade be sure that you are
not violating any of these 24 rules which are vital and
important to your success. When you close a trade with
a loss, go over these rules and see which rule you have
violated; then do not make the same mistake the
second time. Experience and investigation will
convince you of the value of these rules, and
observation and study will lead you to a correct and
practical theory for success in stock market.

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