Livermore talks about 3 point(dollar) moves on $30 stocks. But that was back when you could trade stocks on 5% margin(see Smitten's book and you'll discover stocks were trading on 5% margin back then). So a 3 point(dollar)moves on $1.50 margin for a $30 stock would be a 10% move against the stock price or a 200% move against the $1.50 margin back then. Today, we can trade that $30 stock on a 50% margin of $15. So that 3 point(dollar) move back then would be equal to a $30 (200% of $15) move today.
So consider both the 10% and 20% Pivotal Points (see How to Trade In Stocks by Jesse Livermore) for your monthly, weekly, and daily charts. Secondly, consider the Initial Margin Pivotal Points for your Intraday charts. Finally, consider the Margin Call Pivotal Points for your 1 minute charts.
Hope this helps to clarify my previous thought.
I have been around the futures market since 1994. The average futures trading account lasts about 6 months.
If you have just started or are thinking about trading, stop right now. Don't continue trading until you have read this book and the following books: Jesse Livermore's "How to Trade In Stocks"; Edwin Lefevre's "Reminiscences of a Stock Operator"; Richard Smitten's "The Amazing Life of Jesse Livermore"; Grant Noble's "The Trader's Edge"; and Mark Douglas' "Trading in the Zone."
You can use Futuresource.com for good intraday charts down to 1 minute candlesticks and 5perside.com's barchart links for historical candlestick charts with Commitment of Traders studies.
One of the most important things to do when reading these old masters of trading talk about their own trading is to look past the actual dollar and cents per contract they discuss.
In order to better see what they are saying, you need to use the same ratios they were seeing at the time when they were trading.
For example, when Gann talks about 3 cent moves on wheat contracts trading at 50 cents per bushel back in the 1930's-50's you need to see that as 3/50 or 6 percent moves which would be 24 cent moves on wheat futures contracts traded at $4.00 per bushel today.
Livermore talks about 3 cents moves on $30 stocks. But that was back when you could trade stocks on 5% margin(see Smitten's book and you'll discover stocks were trading on 5% margin back then). So 3 cent moves on $1.50 margin for a $30 stock would be a 1/10 of 1% move against the stock price or a 2% move against the $1.50 margin back then. Today, we can trade that $30 stock on a 50% margin of $15. So that 3 cent move back then would be equal to a 30 cent (2% of $15) move today.
I hope this will help put another number into the lock to help you open the doors of understanding and see for yourself that the market behavior doesn't change because human nature will never change.
What you see today you will see a thousand years ago and a thousand years into the future. Human nature drives the markets and human nature does not change.
Remember to keep it simple.
If your position is not proved correct within a reasonable time period take it off. Never let the market prove you wrong and give you a bigger loss by going past your reasonable time period. Use time instead of price to determine your real or mental stop loss. That way you will have more capital to trade with on your next postion.
When the markets get into their final stage of a bull or bear run, you will find your trading system based on price movement is giving you bad signals. Check out "The Phantom's Gift" for more info. Put it into Google and find the pdf for yourself.
My wish for you is to deepen your understanding and wisdom of human nature.
For those who had read other Gann's books before, you may feel that this one is quite similar to his previous books (this is Gann's last book published). In fact, the rules set here are over 95% identical with those laid out in "45 Years in Wall Street" Gann published two years before this. However, as one reviewer wrote that the above average price ($49) of this highly valuable book is still lower than one single pip of a commodity futures contract, I think it should still be an essential item in any Gann friend's personal collection.