William Delbert Gann (June 6, 1878 – June 18, 1955) or WD Gann, was a finance trader who developed the technical analysis tools known as Gann angles, Square of 9, Hexagon, Circle of 360 (these are Master charts). Gann market forecasting methods are based on geometry, astronomy and astrology, and ancient mathematics.[1][2] Opinions are sharply divided on the value and relevance of his work.[3] Gann wrote a number of books on trading
Biography[edit]
Gann was born June 6, 1878 in Lufkin, Texas. His father was a cotton farmer. He started trading in 1902 when he was 24.[6] He was believed to be a religious man by nature[7], who believed in religious as well as scientific value of Bible as the greatest book ever written. This can be repeatedly observed in his books.[8] He was also a 33rd degree Freemason of the Scottish Rite Order, to which some have attributed his knowledge of ancient mathematics, though he was also known to have studied the ancient Greek and Egyptian cultures.[9]
Writing style[edit]
Gann often wrote in an esoteric and indirect style what many found the writings of Gann difficult to follow, and he could be doing so deliberately to conceal his true method[10]. For example, Patrick Mikula[11][12] found that, in his course How to Make Profits Trading in Commodities[13], Gann had the habit of using the term “natural dates” to refer to the days when one of the following astrological phenomena occurs:
Double ingresses (when two or more planets, not counting the Moon, enter a new sign within two consecutive days)
Stations (when a direct planet turns retrograde, or vice versa)
Declination of the Moon at extreme
Eclipses
Likewise, Henry W Steele[14] demonstrates in a Youtube video that the numbers in Gann’s work often refer to a different subject from what they appear on the surface. For example, on page one and two of Forty-Five Years in Wall Street[15], there is a paragraph describing the different stocks at different prices on 14 June 1949, but Steele discovered that those “prices” are actually astrological aspects appearing in the sky on that day.
Gann angles[edit]
Main article: Gann angles
Gann described the use of angles in the stock market in The Basis of My Forecasting Method (1935). Calculating a Gann angle is equivalent to finding the derivative of a particular line on a chart in a simple way.[16] Each geometrical angle (which is really a line extended into space) divides time and price into proportionate parts. The most important angle Gann called the 1x1 or the 45° angle, which he said represented one unit of price for one unit of time. If you draw a perfect square and then draw a diagonal line from one corner of the square to the other, you have illustrated the concept of the 1x1 angle, which moves up one point per day.[17]
Price-zodiac conversion[edit]
One of the most controversial techniques that Gann used is that he converted the price directly to zodiac degrees[10][11][12]. For example, if a commodity is trading at $120 per share, he would convert it to 120° of the zodiac, which is 0° Leo. If the price makes a major aspect (e.g. conjunction, trine, square, etc.), then it is believed that the price will reach a short-term top or bottom.
As demonstrated in a private letter to a client on the coffee market[18], Gann uses scales other than 1 dollar per 1 degree. Two notable scales are $12 and $30 to one degree, because the two largest planets in the solar system, Jupiter and Saturn, take approximately 12 and 30 years to orbit the Sun respectively[10]. Using $120 as an example again, it would become 10° and 4°, which are 10° and 4° Aries in terms of zodiac.
Gann also uses a scale of $0.07 ($1/15) to 1 degree, which is based on the Earth’s rotation in 24 hours (for 24 times 15° is 360°)[10]. Using $120 as an example, $120 times 15 will be 1800°, and when it is divided by 360°, the remainder is 0. Therefore, it will become 0° Aries in the zodiac.
The Square of Nine[edit]
The Square of Nine is a matrix of consecutive natural numbers, with 1 in the central square, and other values spiral out from it. It is thought that this is a simple mathematical device that allows the user to quickly calculate the square root of numbers before the age of computers[11]. The reason of doing do is that Gann also convert the square root of the prices into zodiac degrees, and compare them with the planetary positions[19].
Eclipses[edit]
There are two ways that Gann made use of eclipses. The first one is that, when a planet returns to its position during a recent eclipse, then trend is likely to change[11]. The second way is that when a planet crosses an eclipse spot which happens during a market top (or bottom), then the down (or up) move will accelerate[12].
Planetary averages[edit]
Gann maintained two formulas for calculating planetary averages[18]. The first one is called the Mean of Five (MOF), which is arithmetic mean of the geocentric and heliocentric longitudes of the outer five planets: Jupiter, Saturn, Uranus, Neptune and Pluto. The other is called the Cycle of Eight (COE), which include all eight planets in its calculation, using both geocentric and heliocentric longitudes (the Sun replaces the Earth in the geocentric calculation). He thinks that when these averaged values make an aspect to the price, it will create support or resistance[10].
Personal view on religion[edit]
Even though Gann was thought to be “religious”[7], a careful analysis of his writings finds that he did not agree with the conventional Christian teachings. On page 99 to 100 of his novel The Tunnel Thru the Air (1927)[8], Gann revealed some of his personal believes towards religion through a conversation between the protagonist, Robert Gordon, and his mother:
“She talked to Robert of his future and told him she hoped he would be a preacher. Robert confided to her that he could never be an orthodox minister, for he could not preach and teach the things which the orthodox ministers were teaching. He did not believe in a personal devil or believe in Hell, but believed in a God of Love and Justice. He did not believe that God would inflict upon any of his children eternal punishment but thought that whatsoever a man soweth, that shall he also reap and that we receive our reward here upon earth.
“He told her that the Bible plainly said that the kingdom of heaven is within us and he believed it. If we kept our conscience clear and did unto others as we would like to have them do unto us, he believed we would find our heaven and our reward here upon earth. Said that times and conditions were changing rapidly; that the new inventions and discoveries caused men to think differently than in the old days; that the old religious ideas would pass away and give place to more liberal, advanced ideas. He hoped to live to see the day when men would not only be too proud to fight, but would be too full of love for their fellowman to settle disputes with the sword. This was God's plan and it would come to pass this way, and he believed that he could be a great power for peace and hoped to live to see a world of peace with all nations united under one kingdom and one God, the God of Love and Justice.”
Twenty-three years later, on page 21 of his book The Magic Word[20] (1950), he expressed similar ideas:
“The Bible is simple when rightly understood. It teaches the Divine Law, its uses and abuses. Whether a law is divine or natural, it is made plain that if you disobey the law, you must pay the penalty and if you obey or follow the law, your reward is certain.”
“The Bible does not teach reward after death but promises reward or a reaping now while you are here on this earth. Jesus said, ‘As ye sow, also shall ye reap.’ He did not say ‘after death’ but here and now. Too many have preached that we should live a life of sacrifice here on earth and wait until after death to receive the reward. This is not what people want. They want something practical. They want to receive their reward here on earth. If they put forth the right effort, they want to know that they will receive the reward here on earth.”
“All natural laws teach and prove that we do get our reward on this earth. Job obeyed the law and got twice as much as he had while he was still on earth. There is nothing in the Bible that says these laws will not work today and I shall prove by the Bible that they do.”
Controversy[edit]
There has been a general disagreement whether Gann himself made profits by speculation[21][22]. Alexander Elder, in his book Trading for a Living[23], said “I interviewed W.D. Gann’s son, an analyst for a Boston bank. He told me that his famous father could not support his family by trading but earned his living by writing and selling instructional courses. When W.D. Gann died in the 1950’s, his estate, including his house, was valued at slightly over $100,000.” Larry Williams, in the book The Right Stock at the Right Time[24], also stated he met W.D Gann son. Larry Williams stated that John Gann said “He asked why if his dad was a good as everyone said, the son was still smiling and dialing calling up customers to trade”. Larry Williams in the same book says “I also met F.B Thatcher who had been Gann’s promoter and advance man who said that Gann was just a good promoter, not necessarily a good stock trader”.
link: https://en.wikipedia.org/wiki/William_Delbert_Gann
Introduction to
THE MAGIC WORD
The Bible teaches a divine law and how you can make it work. It teaches two things: Obedience
to the law brings reward, disobedience to the law brings punishment. The Good Book does not
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dead. This is a practical religion and the Magic Word, Jehovah, will teach you how to get what
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In the beginning the Word already existed; the Word was with God, and the Word was God.
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The Word was the source of life, and this life brought light to people.
The light shines in the darkness, and the darkness has never put it out.
God sent his messenger, a man named John,
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He himself was not the light; he came to tell about the light.
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The Word was in the world, and though God made the world through him, yet the world did not
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free pdf link:http://gann.su/book/eng/(1953)%20The%20Magic%20Word.pdf