Legendary trader William Delbert Gann’s analysis method revealed. Do you know who Gann was, he was a trader with a mysterious analytical ability whose accuracy was regarded between 81-92%. He was always quoted referencing for his analysis based on mathematics & scientific methods.
But in reality his methods were based on Time, that is he used Time to predict the change in market trends. Some researchers predict that he was using esoteric and some say he used mathematics, we believe with the latter adding to that in our opinion, he was also well versed with ancient/ vedic mathematics.
According to Gann
"TIME is the most important factor in determining market movements and by studying the past records of the averages or individual stocks you will be able to prove for yourself that history does repeat and that by knowing the past you can tell the future. There is a definite relation between TIME and PRICE. Now, by a study of the TIME PERIODS and TIME CYCLES you will learn why tops and bottoms are found at certain times and why Resistance Levels are so strong at certain times and bottoms and tops hold around them.
The most money is made when fast moves and extreme fluctuations occur at the end of major cycles."
– Forcasting by Time Cycles Course – W.D. Gann
The Time Factor is a phenomenon which exists in all financial markets. Once understood, it is a powerful tool that can allow you to calculate predictable and repeating market cycles so that you can better time your investment decisions. I am not only convinced that a Master Time Factor exists in all financial markets, I am certain that it is present because I have seen it. I have also been able to predict it occurring within the markets time and time again.
Gann developed the theory that there is a discernible relationship in all financial markets between price and time. He believed that the geometric representation of price through time revealed important cyclical patterns in markets that had predictive values.
Many have explained in different variations the premise for why Gann’s theories work. The most simple that resonates with me however is that as human nature will never change, history is destined to repeat itself.
A question arises, how do we know, that Gann used Time Cycles?
Richard Wyckoff, editor of the Ticker and Investment Digest and one of the most respected writers on the stock market of all time, wrote an article on Gann’s discoveries and his exceptional trading ability. The article was titled ‘William D. Gann. An Operator Whose Science and Ability Place Him in the Front Rank.His Remarkable Predictions and Trading Record’.
In order to verify Gann’s trading record, an independent observer monitored Gann’s trading during October: During the month of October, 1909, in twenty-five market days, Mr. Gann made, in the presence of our representative, 286 transactions in various commodities & stocks, on both the long and the short side of the market. 264 of these transactions resulted in profits; 22 in losses. The capital with which he operated was doubled 10 times, so that at the end of the month he had 1000% on his original margin.
It has been witnessed that he gave in one day 16 successive orders in the same stock, eight of which turned out to be at either the top or the bottom eighth of that particular swing. The above we can positively verify. Such performances as these, coupled with the foregoing, are probably unparalleled in the history of the Street.
(Ticker and Investment Digest, Volume 5, Number 2, December, 1909, page 54.)
Please view the latest GBPUSD Charts predicting the market turns in time values;