There are two quite different sides to Gann analysis, the deeply theoretical, seeking to understand the essence of the science behind Gannís market theory, the Law of Vibration, and the outright practical, looking for working tools and techniques that will help with applied trading. Though our greatest interest is in the cosmological theory behind Gannís work, and the universe in general, we also specialize on the practical tools that traders need to specifically analyze and trade the markets. Some Gann experts excel at theory, while others are simply practical traders who are less focused on ideas in deference to trading techniques. This category will specifically focus upon the books and courses that provide very specific and applied tools from Gannís toolbox used for real time trading. Some may explore deeper theoretical principles and some may just focus on pure trading tools, but this category will give working techniques to better fill the arsenal of any trader. We often recommend that new Gann students focus first on developing a practical trading ability, so that they can fund their future research with profits from their trades, and then also apply new insights from their theoretical study to their practical trading as they advance. This section will help to identify those most practical tools.
Dan Ferrera is one of the most respected market analysts and educators in the Gann field. For 20 years his works have been some of the most popular in our catalog. Aside from being one of the clearest interpreters of Gann, he also has produced his own advanced work, The Spirals of Growth & Decay, developed prior to his analysis and presentation of Gannís theories. For those seeking a solid, Masterís Degree level education in technical Gann analysis, we cannot recommend anything more highly than Ferreraís works.
Ferrera has written detailed course on every angle of Gannís work and provides a fast track into a deep understanding of each field of Gannís work as well as advanced topics in technical analysis. He has works on cycles analysis, Gannís Square of 9, Gannís Mass Pressure Charts, one on risk management and Gannís swing trading system, another on the details of Gannís complex geometrical and mathematical tools, one on astrological Bible interpretation, on teaching how to create yearly forecasts like his own yearly Outlooks, which give a prediction for each year, and more. If you are wanting to get a first taste of Gann and to save yourself years of hard work putting together his ideas, Ferrera is a perfect place to start, and walking through his series of fantastic is like getting a Masterís degree in Gann and technical analysis.
W.D. Gann Works
W. D. Gannís private courses represent the most important of all of Gannís writings, and go into much greater detail than his public book series, with which most people are only acquainted. They should be carefully studied in their full detail, as they contain the deepest insights into Gannís theories ever presented. Stock traders must be sure to study all the commodity courses and vice versa, since Gann often put techniques that applied to all markets in only one or another course.
We stock the complete collection of the works of W.D. Gann, both his courses and books. Our set of Gannís courses were initially collected and compiled by Dr. Baumring and Donald Mack in the 1980ís from dozens of original rare private course that were distributed by Gann throughout his career. Many people mistakenly think that Gann just wrote two courses called the Master Stock Course and Master Commodity Course. This couldnít be further from the truth! Each of Gannís ďcoursesĒ were actually small, ďsectionsĒ of a few pages to a few dozen pages, individually bound in paper folders. These various pieces were then compiled into different sets which he sold as various collections at different prices to different students over the decades. Some were more commonly sold to all students, while other were more secretive and sold only to close private students who often signed non-disclosure agreements, and paid exorbitantly high prices. It is these rarest pieces that make the difference between one collection and another.
The later courses Gann sold in the 1940ís and that he ďcalledĒ the Master Courses were nothing but various compiled collections of these smaller pieces, and would vary according to who purchased them and what price they paid, and were never set until after Gannís death when purchased by Ed Lambert. For instance, there are pieces that Gann advertised in the 1950ís as ďnewĒ like his Master Mathematical Formula for Market Predictions, or his rare #3 Master Time Factor Course which were never included in his ďMaster CoursesĒ, and similarly were never included with any of the Lambert Gann courses sold by Lambert or the Jonesí from the 60ís until now. So these ďmasterĒ courses are and have always been incomplete collections. Further, the Lambert Gann courses sold by Billy Jones through the turn of the century, were retyped and re-edited by Billy so that they did not provide the original unadulterated content that Gann produced, making them unreliable, edited versions. Our editions are exact facsimiles of the original copies sold by Gann, with no editing or adulteration of any kind.
Our 6 Volume set of Gannís Collected Writings was further supplemented by new finds of rare pieces, like those mentioned above, rediscovered by the Institute over the past 30 years since Baumringís death, and comprises the most complete and the only properly organized set of courses that are available. Gann has very particular sets that he sold only to his higher end clientele, placed in specific order to provide a particular logic to his work. Our collection maintains this order and includes a further collection of rare and historical courses, letters and private materials which make our collection the most complete and important collection available. Serious students of Gann should beware most ďsupposedĒ collections of Gannís writings as most are unauthorized, incomplete, and distorted representations of his work, and cannot be trusted. Our set it the most reliable set of Gannís unadulterated and most important work availableÖ
While W.D. Gannís own original work is a critical element for any Gann researcherís collection, most people will find Gannís work to be extremely vague, complicated and difficult to penetrate on their own. In our experience, it can take many years, if not decades for the ordinary analyst to, by themselves, digest and apply the deeper techniques of Gannís, without significant help by well-seasoned analysts and traders who have dedicated years to decoding and creating practical tools from Gannís techniques. This is why there is a fundamental and valuable secondary market of works presenting and developing Gannís ideas, and making them accessible to any trader. We believe that the best teachers in this field are not competitors, but are fellow contributors to an ongoing field of research, and that their work is mutually supportive and will provide expanded insights when more material is understood.
We maintain the largest collection of secondary works on Gann Theory of anyone in the field. Many of these books we publish ourselves, and are written by top Gann experts and experienced Gann traders from across the world. However, we also review works written by other Gann experts across the field, and add to our catalog any material we consider to be of high quality and importance from the global community of Gann analysts. With our experience in the field, we are well qualified and to provide a peer review of these materials, so as to filter out the best quality work from that of a lower caliber, and then present these to our clientele who demand the highest standards. So any book or course that you find in this catalog can generally be considered to be of the upper echelon of works on Gann analysis. We have new authors submit their research to us ongoingly, so that we are always adding new items to our catalog with fresh insights, alternative techniques or new ideas. In this way we are able to save our clients significant wasted funds in exploring the territory at their own cost.
Daniel T. Ferrera's General Outlook 2008 Edition A Forecast of Financial Economic Trends for the Coming Year
By Daniel T. Ferrera
Introduction to the 2008 Outlook
Every year W. D. Gann published his annual forecast for the upcoming year. Over the course of the year, he would send out adjustments and/or supplements to the forecast for his subscribers. Over the past 10 years, it would be hard to argue that Mr. Ferrera has not been one of the most successful forecasters of the modern era. In his first course, The Mysteries of Gann analysis Unveiled, he predicted a stock market low in 2003 where most analysts were expecting a high and wrote:
"My personal belief is that the year 2003 will probably be a low and not a high. There are many interesting numeric and astrological cycles that support this view. The correlation between the Lunar North Node and American Economic expansion indicates that the US economy will peak out when the Lunar Node is in Leo from September 17th, 1998 to April 4th, 2000. From here the economy should really start to cool down. Saturn enters Gemini on January 27th of the year 2001, which has historically been bad for the United States economically. Numerically, every major low from August of 1982 has followed a Fibonacci sequence in years. 1982 +3 = 1985, 1982 + 5 = 1987, 1982 + 8 = 1990, 1982 +13 = 1995 and 1982 +21 = 2003. Cycles also indicate a Republican President that is assassinated in office and strong prospects of a major US military conflict near 2003."
What happened? The stock market did have a major low in 2003, the economy turned sourer in 2001 and the United States has been engaged in a major military conflict for more than 5 years. The only prediction that has not occurred pertains to the President, though he is a Republican President.
In his cycle material, Wheels Within Wheels, released in 2002, Mr. Ferrera illustrated how Gold would have a major advance, interest rates would continue to decline into 2007, and he predicted that the stock market would experience a strong advance from 2003 to 2006. In a specific section of the book, he illustrated how to use the economic work of Samuel Benner and Louise McWhirter. He wrote,
"I will give you Samuel Benner's forecasting pattern for 'business activity'. Periods of 'good times and high prices', i.e. the time to sell stocks and other values of all kinds. Their cycles are 8-9-10 years and repeat. For example, 1972 was the last projected 'business activity' top in the sequence. Add 8-years projected 1980 as the next 'business activity' top. Next add 9 years to 1980 projected 1989 as a 'business activity' top. Next add 10 years projected 1999 as a 'business activity' top. Now the cycle starts over again and we add 8-years to project 2007 as a 'business activity' top."
What happened? Gold advanced to the highest levels seen in over 27-yrs, reaching over $900/ounce. Interest rates continued to decline for 5-years and the stock market advanced strong during the predicted 3-year period, with stock values reaching a top in October 2007 from which prices have declined nearly 20%.
Now as an affordable educational and informational piece, Mr. Ferrera has put together an Annual Forecast, or Outlook for 2008. For those researchers serious about the work of W. D. Gann, or general techniques of financial market forecasting, this report should provide many insights that are often overlooked by other researchers.
The individual who makes money buying stocks in 2008 will have to use far greater discrimination than ever before in selecting the right stocks to buy. When once stocks have reached a final top and start trending down, they will continue to work lower and rallies will get smaller. Those who hold on and simply hope will likely have bigger losses. The markets will move over a very wide range and sharp, severe declines will be followed by even quicker rallies. It will be necessary most of the time for a trader to be very agile and manage positions quickly in order to take advantage of the opportunities as they develop in an active market.
This year occurs in a cycle, which shows the ending of the 5-year bull market phase caused by the planet Saturn and the potential beginning of a prolonged bear campaign. The bull market campaign, which began in October 2002, has lasted as expected and was typical based on the history of this country. As W.D. Gann’s work illustrates:
“There are usually two significant Bull Markets every thirty years. Typically, the 1st Bull Market will begin in years ending with a “2” such as 1922, 1952 and 1982. The 1st Bull Market is usually longer than the 2nd Bull Market and typically ends in the 9th or “0” year of the pattern (1929, 1959, 1990) with a major correction in the “7th” year like 1927, 1957 and 1987. The 2nd Bull Market leg typically begins in the “12th” year of the pattern (1932, 1962, 1992). It is usually shorter than the 1st leg and ends in the “17th” year on average (1937, 1967, 1997) after which a consolidation or sideways pattern of approximately 13-years begins with a slight upward bias.”
In Gann’s forecasting course he said:
“Stocks move in 10-year cycles, which are worked out in 5-year cycles – a 5-year cycle up and a 5-year cycle down. Begin with extreme tops and extreme bottoms to figure all cycles, either major or minor”.
From here on he explains his rules for adding specific cycle lengths or time periods to tops and bottoms. This is where you need to use the planetary periods to calculate the future turning point.
So here we see once again the usefulness of Gann’s market perspective, which was also verified by the Foundation for the Study of Cycles. The Bull campaign began in 2002 and initiated a major correction after a 5-year run in the “7th” year of the pattern. In addition, this time period also brought in the anticipated business activity top forecasted by the number sequence work of Samuel Benner. Typically, share values are lower a full 2-years after the projected date. So, here we would expect stock prices to be generally lower going into 2009. Incidentally, the next 30-year section of Gann’s forecasting pattern begins with an anticipated low for 2012. This year also falls in line with Samuel Benner’s sequence work for predicting “periods of hard times and low stock prices.” Representing the ideal time to accumulate stocks. The 5-year negative influence of Saturn also terminates around late September early October of 2012. My cycle work or DTF-Barometer shows a confirming low in 2009 coinciding with Benner’s sequence.
The fact that both the Dow 30 & S&P500 have attained new highs during the negative phase of the 36-year cycle, i.e. “The Super Bear Market” section typically means that when declines occur, they must be in proportion to the advance to balance out. The year 2008 will likely witness some sharp, severe panicky declines in many high priced stocks. The only positive support for stocks is that 2008 is an election year cycle. Looking back at other years ending in “8” that were also election years, we find: 1988, 1968, 1948, 1928, 1908 and 1888. Most years were sideways basically ending the year + or - %5. The years 1908, 1928 were the only election years that had strong bull trends throughout their years and 1988 finished up +12% in a pattern that was very choppy and volatile. The election years of 1968, 1948 and 1888 were basically flat years where the market finished up %5 in 1968 & 1888 and down %5 in 1948.
Mysteries of Gann Analysis Unveiled
Looking at all years ending in “8” we find that the best opportunity to buy stocks for appreciation has historically been the period from late March, early April, where stocks generally advance into August or September. The basic Stock Market pattern for election years ending in “8” is as follows:
Further narrowing our list of market patterns based on election years ending in “8” we find that the years 1968 and 1948 occur in similar flat sections of the summation wave of the 36-yr and 42-yr pattern.
As a result of focusing on years that are in a similar section or phase of the overriding larger cyclic pattern the decennial patterns for these years are much more alike and their basic forms tend to follow one another quite well. The main difference in their overall behavior is the change in trend that occurred in November for 1948.
The year 2008 being in a similar flat section of the 36 & 42-year summation wave should perform similar to these two curves. Here we see the period from March/April is highlighted to be the best time to purchase stocks for a short pull to June/July. Another potential purchase can be made if the market declines into August with an exit strategy to liquidate by October 25th.
Looking at the next chart showing the combined influence of the outer planets: Jupiter, Saturn, Uranus, Neptune and Pluto, we see that the year 1948 shows a similar decline or reaction in the summation wave of these planets. In other words, the year 1948 appears to be the best overall fit for anticipating the price action of 2008. This is also Gann’s master cycle or 60-year time factor, which typically works well when you use it in view of the larger patterns involved. Most long-term economic forecasts are based on the Kondratieff or 'K' Wave, which is the theory that capitalist economies are prone to major economic cycles lasting 50 to 60 years.
Planetary celestial longitudes for the above chart were converted to wave amplitudes using the trigonometric cell calculator -SIN(X*PI()/180), where X is the celestial longitude in degrees. The factor PI()/180 converts the degree measure to radian measure required by the Microsoft Excel program. Composite fundamental waves were calculated by summing the wave amplitudes of individual planets, starting with the outermost planet Pluto as the fundamental wave of longest wavelength and lowest frequency, and successively adding to it the wave amplitudes of Neptune, Uranus, Saturn, and Jupiter, in that order.
Now focusing entirely on the year 1948, due to all factors discussed above, we get the following curve or mass pressure chart for 2008. This curve indicates that the best buying opportunities should form February 15th to 17th, with a potential for another low around March 17th to 19th. The largest % gain should occur from these low levels into the 2nd week of June around the 15th. A secondary top may also occur in the 2nd week of July around the 12th if you are still holding onto wining positions at this time. The market is anticipated to decline from these levels into the 2nd week of August around the 12th with a potential bounce rally into September 7th. The second best buying opportunity of the year is indicated at the projected lows for the end of September around the 30th. From these levels, the market could experience a very rapid 1-month rise into October 29th. The following decline is expected to be sharp and severe, so one must either side with caution and/or exit early or be highly observant and nimble with their positions. The final opportunity to buy is indicated at the potential lows at the end of November followed by a “Christmas rally” into year-end.
My “Money Trail” curve, which anticipates the markets general direction 5 weeks in advance, indicates a rally for the month of February. In addition, those familiar with my “Market Opportunist” system based on market breadth know that it has given a recent buy signal, which is typically good for a minimum 18% advance in the averages.
Money Flow is a displaced 5-period rate of change of the Yield Gap between stocks and high grade bonds.
Important Dates for Change in the Major Trend
The following dates should be watched for important changes in the major trend of all individual stocks and stock market averages or indices. If any stock makes top or bottom around any of these dates, you can anticipate a reversal in trend, especially if there is a sharp decline or a sharp advance around these dates: Feb 8th to 10th, March 21st to 23rd, May 3rd to 7th, June 20th to 24th, August 3rd to 8th, Sept 21st to 24th, Nov. 8th to 11th, Dec. 20th to 24th. These dates are based upon a permanent cycle, which does not change. Important tops and bottoms are made in many stocks every year around these times. Watch the stocks that reach extreme high or low levels around these natural dates.
Dates for Activity and Wide Fluctuations
The following dates indicate times when stocks will be very active and have wide fluctuations, making tops and bottoms. While all stocks will not make tops and bottoms around these dates, some of the most active ones will and if you watch the ones that turn around these dates, it will prove helpful in your trading:
January 1st, 6th & 25th
February 2nd, 4th, the 12th to 15th, 17th & 29th
March 3rd, 9th, 17th to 19th, 22nd & the 27th to 29th
May 2nd, 16th, 19th & 27th
June 7th, 14th, 22nd, 24th & 29th
July 12th, 20th & 28th
August 1st to 3rd, 5th, 11th, 21st, 25th & 30th to 31st
September 7th, 13th, 15th, 21st, 25th & 28th
October 7th, 10th, 26th & 29th
November 2nd to 3rd, 4th to 5th, 14th, 19th & 30th
December 13th & 19th
Due to the 5-month cycle, the 10th to 14th of the following months should be monitored for swing highs and lows in most share values. This has been a very strong and persistent cycle for many years and must be monitored for potential flips or inversions. The last of which occurred December 05. Since this time, the 5-month cycle has maintained a perfect saw tooth pattern.
Overall 2008 should be a down year for the stock market. The dominant cycles (36-yr, 10-yr, 41-month & 24-months) are all in downward phases of their movements, which should cause all declines to be much sharper due to the combined weight or influence of these cycles. We have already declined 19% from the highs of October 2007 and the original cyclic model indicates that the end of the year should be around 1250 to 1240 price levels on the S&P500. Mass Pressure indicates a similar bearish outlook but only ending down only 2% or so. Both Spectral Analysis and my original cycle work presented in Wheels Within Wheels forecast a similar downward trend or market curve.
January Effect: The last week of January closed lower than the first week, which typically indicates a down year and further supports the prior analysis. For more information on this subject, refer to Wheels Within Wheels.
2-1-2 Pattern: Within Gann’s 10-year pattern of 5 years of advancing prices followed by 5 years of declining prices, he further divided and broke down the 5 year segments as 2 years up, 1 year down, 2 years up totaling up as the generalized 5 year segment. The chart below illustrates this basic pattern as a fixed numerical cycle without using the Saturn cycle, which is the actual time factor used to measure this market pattern. As you can see, even as a fixed measurement, it has called the market fairly well. Using the actual turning points caused by Saturn, we should downtrend well into April-May for the 1-year down component of this 2-1-2 pattern.
Now just to clarify Gann’s stock market work, when you factor the above 10-yr pattern (5 up & 5 down), with the 212 pattern (2 up, 1 down, 2 up) along with Gann’s 30 yr trend, which simply says that the stock market tends to rise for 17-yrs and consolidate for 13 years, you get the following sequence, which basically repeats every 30-yrs. Gann worded it as: the 2nd Bull market ends in the 17th year, after which a sideways pattern begins for 13-years.
Mysteries of Gann Analysis Unveiled
I have intentionally illustrated this pattern from 1982 to 2012 so you can see the elegant simplicity and forecasting value of this perspective of market behavior. Also note that during the 13-year sideways consolidation pattern that the 1-yr declines of the 212-pattern completely retrace the 2-year advancing component of this sequence. According to Gann, this pattern repeats over and over, with the next 30-yr cycle beginning in 2012, which is just a repeat of the 30-yrs illustrated above. This 30-yr pattern was extremely important in all of Gann’s annual stock market forecasts.
Public Confidence for 2008
As long as the public believes that everything is all right, they will hold on expecting higher prices, but when public buying power has exhaust itself at the end of major cycles we find that the largest number of stock speculators in history lose confidence and all start to sell, it requires no stretch of imagination to picture what will happen. When the time cycles are up, neither Republicans, Democrats nor our hopes for a good President can stem the tide. As Gann says, it is a natural 1aw. Already the news is full of recession fears coupled with the higher costs of living due to high oil and energy prices. We see it in the ebb and flow of the tides and we know that from the full bloom of summer always follows the dead leaves of winter. Most investors do not think; they always invest on hope and that is why they lose. Investors and traders must pause and think and use all available information to manage their holdings.
Overall, our nations prosperity causes jealousy throughout the world, and as economic conditions get worse in foreign countries, greed and, jealousy will lead to greater resentment and potentially war. As the old saying goes; “It is the hungry dog that starts the fight.” A study of the rise and fall of nations shows that when any country enjoys unusual prosperity for a long period of time, war is one of the main causes of the start of recessions. While most Americans grow tired of the situation in Iraq and the so called “War on Terror”, we will likely hear a lot of talk about peace from our newly elected leader. However, the facts show that many of the leading foreign countries as well as our own country, are spending more money preparing for war than they are for peace. Gann wrote: “When a man or a country is armed and gets ready to fight, he usually gets what he is ready for.” Although 2008 is unlikely to see any further escalation of war, cycles indicate that 2009 to 2010 could see a rise in international warfare ending with more peaceful and prosperous times beginning in 2010.
The Dollar, Gold & Oil
Although demand for these commodities will remain high, we are likely to see prices decline due to reactions caused by the minor cycles and a likely rise in the US dollar. Both commodities are priced in dollars and as the US dollar has weakened over the last several years, these commodities and others have risen accordingly. In fact, the Government’s “economic stimulus plan” that plans on giving most Americans a rebate around $1200 is somewhat comical when you look at the weak dollar. Basically, they are giving you a rebate at low value levels knowing that they are going to stimulate the dollar causing you to pay them back at higher values. From 2001 to present, the dollar has declined approximately 40%. If you discount the current $3.00/gallon gas prices at the pump by 40%, you find that Gas would be about $1.80 if the dollar had remained stable or strong. Gold would be about $550/ounce instead of $916 but most don’t pay attention to the fact that these things are priced in dollars. There has been some increased demand for these commodities, but understand that the majority of their price appreciation has really been caused by a declining dollar. This fact has also caused large-scale foreign ownership of our stocks. Foreign investors, especially “oil rich” nations have been taking advantage of their strong currencies relative to ours, by purchasing significant ownership of our major corporations.
The economy is due to reach its lowest point in the 18.6-yr cycle around December 2008. From here it is anticipated to begin improving back to normal conditions into July 2013. In prior published materials I wrote the following: “In general, the economy usually runs in cycles of 4.65 years or 4-years and 8-months if you prefer. As a basic rule, the economy will advance above normal for 4.65 years, then decline back to more normal levels over the next 4.65, then drop to below normal over the next 4.65 years and then return back to normal, where the business cycle starts all over again. This cycle in total measures about 18.6 years. Under this basic scenario, the economy was due to reach a peak in it’s above normal phase in August of 1999. It should continue to decline for 9.3 years (9-years 4-months) where it will reach it’s below normal level. So this basically means that economic conditions will slowly decay until the year 2008, when conditions will start to improve again. This cycle is harder to find in economic data because of the “Wealth Effect” that is created in strong bull markets, which tends to somewhat hide this cycle. But if you subtract 4-years & 8-months from August 1999, you get the year 1994, which was considered to be a mini-recession during Clinton’s first term as president. In any event, I have found this to be a useful tool since economists, as a general rule cannot seem to do anything more than analyze the past. I was certainly prepared for the new economy to potentially reach a peak in 1999 based on this simple information. Again, forewarned is forearmed. Only time will tell if this basic economic cycle continues to prove true, but now at least you have the information, which is better than nothing at all. Here is a picture of how it basically looks:
Therefore, the 18.6-year Economic cycle within the larger Stock Market cycles (36-year, 10-year, 41-month & 24-month) and Gann’s 30-year pattern support 2008 as a negative stock market year with poor economic conditions adding weight to its decline.
2008 Monthly Outlook Based on 1948 & Historical Patterns
It is also very important to use and project the following Gann angles on the Dow Jones Industrial Average and the S&P500. The 1x 1 angle being the most useful for projecting support or resistance trends ahead of the market. The correct rates of change based on the Master Time and Price Squares are as follows:
1 x 2 = 3.74 pts/day
1 x 1 = 7.48 pts/day
2 x 1 = 14.97 pts/day
3 x 1 = 22.46 pts/day
4 x 1 = 29.95 pts/day
1 x 2 = 0.625 pts/day
1 x 1 = 1.25 pts/day
2 x 1 = 2.5 pts/day
3 x 1 = 3.75 pts/day
4 x 1 = 5.00 pts/day
These are all based on calendar days, not trading days so adjust your charts accordingly. Those who utilize these angles on their charts will find them of value. Particularly in combination with the other trading tools mentioned prior. I’m including my last Trader’s World article on this subject so you can see how well the geometry of these angles work in the markets.
Also due to the importance of the 5-month cycle, I have included the saw tooth chart below along with the dates that the Bradley Siderograph changes trend, which may allow you more precise timing within these projected highs and lows for the stock market.
If time permits, I may provide low cost monthly supplements and/or adjustments to this general outlook for 2008.
Market Geometry and Chart Scaling (Traders World Article)
W.D. Gann and George Bayer were both fascinated with the concept of squaring the circle. Gann discussed this many times in his natural resistance levels for time and price, his angle courses, seasonal dates for trend changes, his 1/8th rules, Mylar overlay charts, etc. George Bayer had his hidden in his “Polish ellipse” and his: Hand Book of Trend Determination.
Basically the word joke hidden in the term “Polish ellipse” has nothing to do with the country of Poland. Bayer was referring to the orbits of planets, which rotate on a North and South Pole axis (i.e. polish) and revolve around the sun in elliptical orbits.
Natural Resistance Levels & Time Cycle Points
“The resistance levels given below are based upon natural law and can be applied to the measurement of both time and space. Around these points stocks meet resistance going up or down or traveling the same number of points from a top to a bottom. Tops and bottoms of major and minor movements come out on these resistance levels.
When man first began to learn to count, he probably used his fingers, counting 5 on one hand and 5 on the other. Then counting 5 toes on one foot and 5 on the other, which made 10, he added 10 and 10 together, which made 20, adding and multiplying by 5 and 10 all the way through. This basis for figuring led to the decimal system, which works out our 5, 10, 20, 30 and other yearly cycles, as well as other resistance points. Man's basis for figuring is 100, or par, on stocks and $1.00 as a basis of money value. Therefore, the 1/4, 1/8, 1/16 points are all important for tops and bottoms and for buying and selling levels.
Taking the basis of 100, the most important points are 25, 50 and 75, which are 1/4, 1/2 and 3/4. The next most important points are 33 1/3 and 66 2/3, which are 1/3 and 2/3 points. The next points in importance are the 1/8 points, which are 12 1/2, 37 1/2, 62 1/2 and 87 1/2. The next in importance are the 1/16th points, which are 6 1/4, 18 3/4, 31 1/4, 43 3/4, 56 1/4, 68 3/4, 81 1/4 and 93 3/4.
There is no top and bottom price, which cannot be determined by mathematics. Every market movement is the result of a cause and when once you determine the cause, it is easy enough to know why the effect is as it is. “Man first learned to record and measure time by the use of the Sun dial, and by dividing the day into 24 hours of 15-degrees in longitude. The “reflection” of the geometrical angle on the Sundial indicated the time of day. Since all time is measured by the Sun, we must use the 360 degrees of the circle to measure time periods for the market.”
Everything moves to a gravity center or to a point halfway between some bottom and top or some other important resistance point. For example: We divide the circle of 360° by 2 and get 180. We divide by 4 and get 90; then divide 90 by 2 and get 45; divide 45 by 2 and get 22 1/2; divide 22 1/2 by 2 and get 11 1/4; divide 11 1/4 by 2 and get 5 5/8; divide 5 5/8 by 2 and get 2 13/16, which is the lowest division of the circle that we can use for time periods. Each of these points is 1/2 of one of the other important divisions of the circle. Gann’s plastic overlays of the Square of 52, 144, etc. all illustrate this method for scaling a price chart so that price and time balance geometrically.
George Bayer also hid this same overlay in his “Stock and Commodity Trader’s Hand-Book of Trend Determination. Bayer gives a lot of weird values in exact degrees minutes and seconds, but the entire book can basically be summed up by a simple formula:
The Weird Number = [(360-deg)/(A x 52)] x B. Where “A” is typically a value of “1”,”2”,”4”, or “6”. In the majority of calculations “B” is usually “1” but there are a few where “B” is “6”, “10” or “15”. The “52” in the above formula represents the number of weeks in a year. If you don’t have an accurate daily ephemeris, you could use a formula like this to approximate where a given planet may be. If you plot this as a chart, you get an overlay that is nearly identical to Gann’s Square of 52 overlay.
Seven years ago, I illustrated these techniques of balancing price and time with Gann’s Square of 52 overlay in the article titled “Mathematical Formula For Market Predictions.” This article charted the Dow on a 2-year chart from 1998 to 2000.
If you want any of Gann’s geometric techniques to work, you must scale your charts based on this overlay pattern, which is itself based on “Squaring the Circle.” Typically, if I am looking at something new, I scale my chart using a 2-year or 4-year overlay so that I have enough data to make sure that all calculations are accurate before setting up my square for the current year. Once the chart scaling has been fit with the data, everything that W.D. Gann said about market geometry begins to works like magic. I have been using the same charting scales for the Dow and S&P for over 10-years now without any change.
The following charts illustrate the geometry of Gann’s 1x1, 2x1, and 3x1 angles on graph paper style charting based on the above scaling method. Also, I have included the recently completed 2-year square of the S&P as well as the current 2-year square, which began September 22nd, 2006. The charts speak their own language; so I will just end this article here and let the pictures do the rest of the talking.
Dr. Goulden takes a different approach to market analysis than most normal traders and educators. As a Cambridge educated scholar, Goulden is interested in deep principles and in exploring the foundations and implications of both trading techniques and the systems behind them. Before he was ever interested in the markets, he was asked by a friend why Gannís tools and system are considered to be based upon metaphysical principles. He found this question intriguing and engaged in deep research in the field to answer this question. In this process he recreated a new set of tools based upon principles of Ancient Geometry and Celestial Mechanics. His tools are taken from the same sources as Gannís and are quite powerful, but are slightly different from Gannís, so that traders often use them as non-correlated cross-confirmation tools giving similar technical indications but from different perspectives.
His work is deep and has many layers of application and exploration that can be derived from it. His latest work on financial astrology, The Secrets of the Chronocrators, looks back to the astrological and astronomical systems of the ancients, reviving the more mathematical and technical astrology of the Great Masters of the medieval and prior times. Exploring principles like Spherical Astronomy and subtle movements of the Solar System, it seeks to develop a more advanced and scientific system of astrology determination as distinguished from the simpler forms that are generally known. It represents a new movement to re-explore the deeper scientific systems of the ancients that were lost in the press towards the development of a purely mechanical science.
Goulden is a superb educator and the most active Forum moderator that we have seen, with each of his Forums for his courses having 1000ís of posts with detailed questions and answers, deviling deeply into further and new fields of research beyond what is presented in his courses. His Online Forums serve as an advanced classroom where the details of his theories are discussed and elaborated and where students share their research and work with each other while overseen by Goulden, who continually presents new ideas and suggestions.
Hasbrouck Space and Time
One of our great historical discoveries is the Hasbrouck Space-Time Archives, a collection of rare research materials and forecast letters lost for over 30 years. This research develops a new theory of market influence based upon Solar Field Force Theory that was developed during the birth of the space age. The Hasbroucks were deeply connected to the esoteric and financial market communities from the 1920ís through the 1970ís, and contributed a new and recontextualized presentation of information taken from older original esoteric sources. They present a new field of study of solar phenomena, space weather prediction, earthquake prediction and market forecasting.
Muriel Hasbrouck was the inspiring force behind the research, which a foundation in Theosophy and trained as a classical pianist, she pursued an interest in original source works in astrology, through the turn of the 19th century into the early 20ís. She studies with greats like Walter Russell, Paul Foster Case, Aleister Crowley, and Israel Regardie within the esoteric fields. In the market realms she was close with many of the great analysts of her day like Edson Gould, Edward Dewey, Hamilton Bolton, SA Nelson, and more. She and her husband Louis produced a well-received forecasting letter for 30 years called Space Time Forecasting of Economic Trends, and are now quite famous for forecasting the exponential bull market of the 90ís and subsequent crash 50 years in advance! Their theories of Solar influence upon human and earthly experience through geomagnetic influences still lie at the cutting edge of scientific speculation.
Dr. Jerome Baumring
The work of Dr. Baumring is the core inspiration upon which this entire website is based. Baumring is the only known modern person to have cracked the code behind WD Gannís system of trading and market order. However, even further, Baumring rediscovered and elaborated the system of scientific cosmology at the root of Gannís Law of Vibration. There is absolutely no other Gann teaching that goes anywhere near as deep as Baumringís work, or that even so much as attempts to approach the core ideas developed by Baumring. This study is for those who are interested in the mysteries behind the markets and the ordering system behind the universe itself. This is the study of cosmological theory on its deepest level, and of the interaction between man and the cosmos in which he lives, explored through an examination of causation and propagation of forces in the financial markets.
Dr. Baumringís course program is not easy, and should not be approached without the willingness to commit at least a few years to the study. It is a long and detailed course, requiring the equivalent level of research and difficulty as most PhD programs, but in the field of Gann Analysis, which is not taught at any university. It requires many years of challenging work including the reading of many dozens (if not 100ís) of books required to develop the foundations needed to understand Gannís approach to the markets. It is a very serious study that should only be approached by those willing to dedicate themselves to intense thinking and vast research across many fields of knowledge including: astronomy, biology, physics, finance, cycles, wave mechanics, geometry, mathematics, astrology, numerology, number theory, numerous esoteric and alternative scientific theories, and much, much more. Baumring summarized his system by the term ďNumerical AstrophysicsĒ in an attempt to give a modern name to an ancient theory that Gann himself had discovered.
Of all the analysts and traders we have known, the most advanced have all come to their understanding through following the lead of Dr. Baumring, or through having gone through a similar and parallel study and path of research to his. His teachings represent the ďbest of the bestĒ of all material on Gann publicly available, but it will not give up its secrets to a mere superficial perusal. Baumring does not spell out simple explanations of how Gannís techniques work, but rather leads his students into the depth of the science behind the system, while slowly elaborating how the techniques build upon this deeper science. For those seeking a fast path to the application of Gann exoteric trading principles, this is NOT it! Baumringís work is not merely some market trading program, and indeed if approached this way may be found to be dissatisfactory.
Baumring himself often said to his students, ďIf you only are looking to make money, donít bother studying Gann, itís too difficult. Simply study swing trading systems, risk management and options strategies, and you can make all the money you want to make.Ē (Note: we have excellent books on these alternativesÖ) There are much easier and more direct methods to learn to effectively trade the markets than studying Gann. Those in more of a hurry to apply Gannís work to trading may want to begin with the work of Ferrera or one of our most applied analysts, like Prandelli or Gordon Roberts, and save the Baumring work for a later time to explore at your leisure.