This first volume in a four-part series lays the foundations for the understand of the science of W. D. Gann’s Law of Vibration. Patterns is really the “introductory” volume to the series, because it does not yet present Dr. Bennett’s breakthrough insights into Gann Theory, but lays the groundwork required to understand the higher insights when they are presented in Volume 2, Numbers.  However, Patterns is still a deep and valuable course, filled with information and tools that most analysts have never seen before.

Patterns is based upon an exercise originally presented by Dr. Jerome Baumring in the 1980’s as an essential first step in the development of an understanding of how underlying wave components, or cycles, are combined to produce a composite or summational wave. The theory states that financial markets are comprised of such structural components, much like a Fourier model, where these underlying waves or cycles combine to create the phenomena we see as “the market.”

And understanding of how to measure and derive these component waves from a composite pattern, is critical for any kind of insight into cycle analysis. This course teaches this process of analysis and understanding through the initial use of Theoretical Wave Models, beginning with simple 4-wave models, and then advancing on to more complex 5 and 6 wave models, which begin to create composite wave structures that very closely model recognizable market movements.

The reader is taught through this primer to understand the relationship of the underlying composite waves, and the harmonic relationships that such waves will generally have in nature and the markets. From this insight, the reader then learns how to reverse engineer a composite model to dissect the underlying waves, to determine their lengths, and other mathematical variables. Once this is done, it is possible to begin to track individual cycles as they run through the charts, thereby enabling the analyst to forecast short term turning points, as well as general trends and major highs and lows.

Understanding the relationship of underlying composite waves is critical to a higher form of Gann science, the art of pattern recognition. After the text lays the general foundations of wave mechanics theory, it then proceeds to develop a vast collection of varied composite waves in order to build a catalog of every possible composite patterns, which can be used to identify patterns in the markets, so as to understand exactly what is occurring on the underlying scale when we see these now familiar patterns. When one learns to recognize these patterns, and the mechanics behind them, one can them begin to know what to expect following them, since we know what the underlying wave structure implies. Familiar patterns present tell-tale signs of what is to come, at least for those who know how to read them.

These principles are critical to the understanding of Gann’s Law of Vibration, since vibration itself is nothing but an expression of harmonic components in nature that interrelate to produce conjoined effects in any potential medium of expression. To learn to read these mathematical relationships can provide an insight into the causes and effects of many, if not all, elements in natures. Our life itself is governed by cycles that contain basic rhythms and periods that determine the flow of our lives.

Our days are determined by the rotation of the Earth and the morning, noon, evening and night that produces the 4 ¼ cycles of our day. Our months are composed of the 4 ¼ cycles of the moon progressing through its 4 phases, new, 1st quarter, Full, 3rd quarter, one for each week, determining our months, except for the human error in calendar creation, which attempts to unevenly force 13 yearly full moon cycles into an artificial 12 cycle schedule.  The Mayans understood this, and one of their 19 calendars provides a 13-moon template of equal months tied to the lunar cycle.

Our years our divided into 4 seasons, Spring, Summer, Fall and Winter, again as the result of even cyclical movements, which few may understand well, but which control all our lives from birth until death. The sun produces an 11-year Sun Spot Cycle which influences our weather, our markets, and many more subtle things yet to be understood by “the public”. And many other longer cycles can easily be illustrated, like the 7-year cycles which seem to determine our life phases with an uncanny logic than few can deny once investigated.

The point is that our life experience is dominated by unknown underlying forces or cycles that conjoin for a mass effect that is our experience of life. Similarly do the markets respond to such influences, and to understand them, just like to understand ourselves, we must see, know, measure and predict those forces. This course teaches us to read these underlying influences in the markets, not by studying any kind of cycles or causes, but by simply looking at the composite phenomena and then breaking down its components to read and predict into the future.

The first half of this course explains the technicalities, process and principles of wave mechanics in great detail, and lays out how this phenomenon controls the structures behind the market. The second half of the course shows what to do with these principles and how to apply them in the markets.

Rather than elaborate each application here, I simply refer you to the Table of Contents to see the very specific concepts and subjects that are presented, in relationship this base theme of wave mechanics. If you are not immediately clear what these ideas are and how they are applied, then you can rest assured that the material in this course will be new and useful to you.


3 APPLIED FORECAST TYPES

As we progress from the theoretical section to the applied, Dr. Bennett shows how these principles can be used to generate 3 entirely different forecasting processes, which are more advanced than what is understood by most technical analysts. These powerful tools create 3 noncorrelated types of forecasts generating different projection results which can be cross-correlated to strengthen confidence in one’s market expectations:

1.     Forecast Type 1 – This approach takes the analysis of a particular interval or multiple underlying intervals and shows how to project those time periods forward into the future to determine potential turning points based upon these cyclical progressions. This is a very valuable tool, and though quite simple in its conception, once you understand the fundamentals of this work, it provides valuable reversal indications in any market.

2.     Forecast Type 2 – This type of forecast identifies similar sections in the market based upon their wave mechanically determined intervals or periodicity. It then allows the user to select segments of past market history which most ideally model current price action. There are multiple layers of complexity that both determine and refine this type of forecast, but the ultimate output provides and actual turn-by-turn forecast for any market using past date to project future outcomes.

3.     Forecast Type 3 – Composite Wave Projections. These are a much more sophisticated type of forecast model, but clearly explain how Gann made many of his most famous forecasts like his 1929 Forecast of the Stock Market. This also explains exactly what Gann was doing with his Master Forecasting Charts, and teaches how to create and use Master Forecasting Charts for any market. These models take sophisticated composite inputs and correlate them to produce forecasts for the future. There is a trick to creating such forecasts, which is determined by understanding the wave intervals so as to properly know the elements that require combination for the required output. This forecast type, with Dr. Bennett’s explanation, will allow the reader to recreate many of Gann’s most famous forecasts from the past. Not only does she explain how to do it, but she provides software that makes it easy to do it for any historical or current period in any market.

There are many more fascinating tools and elements presented in the text, like a recreation of Marechal’s famous stock market prediction in the 1930’s, comments about how Alan Andrews’ Pitchfork tools can be better applied understanding wave mechanic theory, numerous principles out of physics and engineering that can be easily applied to the markets once this theory is understood, and much, much more. Again, we refer you to the Table of Contents Tab for full details.