Looking @ W.D. Gann – Part Six

I intend that this is going to be a brief look at time cycles, but when I’m writing the intro to this post I can’t see how I can make it short – apologies if it drags on.

In Gann’s courses and books he says “That TIME is the most important factor of all”.

Think about that for a minute, TIME…… If you knew when a high was due to top out or a bottom was due to make a low then you’d be able to accurately trade the markets in complete CONFIDENCE that you were going to be right – easy!  Yeah right.

This is what 1000’s of traders who’ve studied Gann are searching for they’re looking for the key in the market that tells them when a move is starting or finishing – to date I’ve yet to come across anyone who can with 100% accuracy do this.

Time Cycles

Everything in life moves in cycles, day, night, seasons, natural growth entities such as life, planets, business cycles, stock market cycles and so on

Gann in his courses mentions certain time cycles to apply to charts and consider. i.e. look back 1 year, 2 years, 3 years, 5 years, 10 years etc etc.  the reason Gann suggests this is that he is convinced markets repeat over time and the markets are just a repetitive structure/entity.  So if the markets were rising today in all the years analysed then expect todays market to rise etc.

It’s not quite that simple but that’s the message Gann was trying to get across to people, review historical data going back not just months and years but DECADES for clues as to market direction for that year based on past market action determined by his Time Cycles.

Click here to view Gann’s Financial Timetable – Notice he produced it in 1909, and has been very accurate for 100 years of not only stock market action but also social events – i.e. stirkes, wars etc!!!!!!!!!!!!! (This links into the socionomics theory by Elliott Wave International – Gann was obviously very well aware of stock market activity, Economic growth and decline & the social aspects/consequences of it all being inter-linked!

This is just one of the reasons that I state that he was a truly great investor and trader for his time as this sort of thing is hardly done in today’s markets!

*If I may add in here some analysts use “Static” Time Cycles that they discover, these cycles then suddenly disappear from view, this to me suggests that Time cycles are not therefore static as if they were we’d always be able to see them and apply.

History shows us that there was a 52 month market cycle in the 1950’s that existed for 20 odd years and in the 1970’s suddenly disappeared just as fast as it had appeared! In a static linear world this just can’t happen, so something else must drive these cycles.

Remember my Gann shortcut page @ £250 provides a fast and quick shortcut to obtaining Gann’s vital courses.

The Hovis Trader

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1 Comment

  1. This now concludes my look at W.D. Gann and some of his methods – there’s a lot that I’ve not been able to cover, that content is contained within his books and course – if you are interested then I’ll let you explore further for yourself .

    Please don;t think that you need to be a Gann expert to trade the markets, you don’t, knowing and understanding Gann’s work enlightens your mind to other possibilities and avenues to compliment ones current techniques.
    THT

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