| To most of the technical analysts and financial traders, the name, William Delbert Gann, is well-known. Gann was one of the greatest traders in the early twenty centuries, who has extremely arcane trading analysis techniques and methods that based on ancient mathematics, geometry and astrology. Yet, as it was never unveiled explicitly, the theory of Gann is admired by most, but grasped by few. His Methods
According to his followers, the accuracy of W. D. Gann's prediction was up to 85%. His predictions actually were not restricted to financial market, Gann also gave predictions on the election of US President and the beginning and ending of World Wars. Gann claimed that his every forecast was solely based on mathematical principles. With sufficient information, he could forecast the forthcoming events with his cycle theory based on ancient mathematics and geometry. In his mind, the nature of things had not changed, all of the events were based on mathematical principles.
What are the mathematical principles?
W. D. Gann said that the 360 degrees of a circle and the numbers from 1 to 9 were the origin of mathematics. In a circle, there may place a square and a triangle. Outside the circle, we may also construct a square and a triangle. These constructions are in fact the dimensions of the market. Strange enough? In fact, W. D. Gann believed that the market reversal points (tops and bottoms) were related by the mathematical principles. There are no single market top or bottom cannot be explained by angles and support / resistance levels. In other words, if he was given the time and prices of the historical tops and bottoms of any market, he could utilize the mathematical and geometrical principles to predict futures market turning points. Why were these principles able to be applied to the market trends? W. D. Gann said that he had every proof from astrology and mathematics!
His Market Predictions
Interesting enough, W. D. Gann lived in the early Twenty Centuries while the economic life of the world was in total chaos. Gann experienced the first World War, the historic stock market crash in 1929, the great depression in the Thirties and the out-break of the World War II. In these years of frustration, conducting investment business was risky, not to mention market predictions.
Since the Twenties, W. D. Gann began to publish annual market forecast reports. These reports provided market forecasts for the whole year to come. It was nothing new by providing these types of service. The new things were that W. D. Gann actually depicted the market movement of the whole year by providing detailed time and prices of the market reversal points! His annual forecasts were in fact the road maps to wealth. He did not only forecast the market, he also provided forecasts of major social events. Although, he predictions might not be totally correct, his approach turned a new leaf in market forecasting. Surprisingly, he accurately predicted the stock market crash of the century in 1929 to the date. In his annual forecast published on November 3, 1928, he explicitly predicted that September of 1929 would be the dangerous month. Stock prices would slump on "Black Friday". In fact, the Dow Jones Industrial Average toped out on September 3, 1929 at 386.10. Two months later, the Dow fell to below 200! The bear market brought to the western world the great depression and the Dow eventually bottomed out at only 40.56 in July 1932.
W. D. Gann's Writings
W. D. Gann passed away at 77 on June 14, 1955. He had numerous writings including:
"W. D. Gann Stock Market Course"
"W. D. Gann Commodity Market Course"
"The Truth of the Stock Tape"
"Wall Street Stock Selector"
"Stock Trend Detector"
"45 Years in Wall Street"
"How to Make Profits Trading in Commodities"
"How to Make Profits Trading in Puts and Calls"
"Tunnel Thru' the Air"
"The Magic Words"
Most of his writings are related to investment and trading. "Tunnel Thru' the Air" is however a love story. Gann claimed that the first time you read, it would be a book of love story. The second time you read, it would be a book of parables. The third time you read, it would be a book of market truths! |
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