When it comes to Time and Price Analysis of stocks, the legendary trader WD Gann is always remembered as the trader who mesmerized and impressed the trading world during his time with his uncanny time price forecasts.

He would be able to pick a stock or a commodity such as cotton, and would be able to forecast its price at a certain time, and get it correct most times.

Easily his most popular and important teaching on time and price is this principle:

"When time and price square, change is inevitable".

It used to puzzle me during my early days as a stock trader to understand how time and price could be squared.

It did not help that WD Gann did not use simple language to reveal all he knew, choosing to hide some pertinent details on his techniques of squaring price with time.

Thus, in modern times, market technicians have studied and researched into this principle, and devised ways to find time and price.

We now understand that time and price is squared when time and price meets at a junction when the forecasted time and a forecasted price level comes together.

Using Gann ratios, and fibonacci ratios, we can now work out time days or commonly called energy points or days the stocks or market will want to change in trend, or have the highest probability to change in trend.

We can also use Gann and fibonacci ratios and project them from the high and the low prices of past major turning points and get a cluster of price bands to forecast possible price levels.

The day that is so forecasted with the highest cluster of time projections becomes the time day, or the day with the highest possibility of a change in trend, and the price so forecasted with the highest cluster of price projections is the forecasted price level.

Both time days and price bands obtained in this way help to let us know when time and price can be "squared", and therefore allowing Gannsters ( proponents of Gann theories ) to trade on those days the stocks are likely to change in trend. It is therefore easier to pick those days a stock price is expected to bottom or to top over.

Time days are valid to plus or minus a forecasted day.

For the potential Gannster, it is important to get his hands on the literature written by WD Gann himself or on newer books on time price analysis to learn these techniques before embarking out to trade time days and price bands. Trading always carry risk and like any other profession, time must be spent to learn the skills of the trade.