## Price

While Gann's theories of time dealt with WHEN prices will move, his theories of price determine HOW MUCH prices will move.

Gann's price theories deal with percentages. They may be a little easier to understand and use than Gann's time theories.

Price is divided into segments called ranges. Gann's price ranges, like his time periods, are defined on a basis of periodic highs and lows. These periods could be on an intra-day, daily, weekly, monthly, yearly or life-of-contract basis, depending on how large a period you're analyzing.

Significant price ranges do not require an entire calendar year to occur. The PRICE LEVEL rather than the actual DATE of a major high or low is important. An annual high could occur on January 1, and 30 days later a drastic low could occur. Prices may move between these two limits for the rest of the calendar year. The annual high and low then, which established the price range for the rest of the calendar year, would only be 30 days apart.

The price ranges, regardless of the time required for them to occur, are divided by eighths and also by thirds, and are defined in terms of percentages of the previous price trend. For example, the price level of a small price range can be at the 50% level. However, the same price level of a LARGER price range may only be at the 25% level of the larger range.

Table 1 lists Gann's price levels and their percentages, within a range.

Gann Price Levels

Table 1

Level

Percentage

Each 1/8 and 1/3 price level in a price range offers different degrees of support and resistance to further price movements. (This theory of support and resistance will be further explained in the section, "Gann's 50% Retracement Rule.")

The 1/8- or 3/8-level of a price range may offer such little resistance (to rising prices) or support (to falling prices), that, on an intraday chart, a price reaction may hardly be noticeable.

However, on the same intraday chart, once prices reach the 50% or 100% retracement level of a previous trend, the amount of resistance or support - or the lack of it - may be dramatic.

These price reactions, and their respective percentages, are known as retracements.