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gann course ..........

  1. madmacs

    25,374 posts.
    Posted on Yahoo Gann Study Groups 12/03
    by super romeman
    a 20 page course

    summary headings :excuse the layout

    Excerpts from

    W. D. Gann

    Method For Forecasting

    The Stock Market

    (Course)

    Page 1


    You should keep a yearly, monthly, weekly and overnight chart. You will find on the weekly chart that stocks will often reverse the minor trend and run up two or three weeks, but the third week it will not make a higher top or a higher bottom; yet at other times it will hold for several weeks without advancing above the level made in the first two weeks’ rally. …

    Every movement in the market is the result of a natural law and of a Cause which exists long before the Effect takes place and can be determined years in advance. …

    The major cycle of stocks occurs every 49 to 50 years. A period of "jubilee" years of extreme high or low prices, lasting from 5 to 7 years occur at the end of the 50-year cycle.

    "7" is a fatal number referred to many times in the Bible and it is ruled by the planet Saturn, which brings about contractions, depression, and panics. Seven times "7" equals 49, which is shown as the fatal evil year, causing extreme fluctuations.

    Page 2

    The most important Time cycle is the 20-year cycle, or 240 months and most stocks and averages work closer to this cycle than any other. Five years is one-quarter of twenty and ten years is one-half of twenty and very important because it is 120 months. Fifteen years is three-quarters of twenty years and important because it is 180 months, just the same as 7 ½ years is 90 months, because 84 5/8 is 15/16 of 90.

    The next important major cycle is 30 years, which is caused by the planet Saturn. This planet makes one revolution around the sun every 30 years. Saturn rules the products of the earth and causes extreme high or low prices in products of the earth at the end of each 30-year cycle, and this makes Stocks high or low. The most important cycle of all is the 20-year cycle.

    The next important major cycle is the 10-year cycle, which produces fluctuations of the same nature and extreme high or low every 10 years. Stocks come out remarkably close on each even 10-year cycle. The minor cycles are 3 years and 6 years. The smallest cycle is 1 year, which will often show a change in the 10th or 11th month. …

    In all movements use the angles and also calculate the 1/3, 2/3, ¼, and ¾ points of the major or minor move. One-half is the most important as it equals the 45° angle, which is the strongest and most fatal. The next in importance is 2/3, which would equal a triangle, or 120°. …

    All markets move in three to four sections. The third or fourth movement up or down makes the culmination. A reverse signal is always given before time expires and then the market may make two or three swings up or down into the same territory, going a little higher or a little lower than the tops or bottoms from which the warning signal was given. When this is taking place the market is either being accumulated or distributed.

    Page 3


    The stock market moves in 10-year cycles, which is worked out in 5-year cycles – a 5-year cycle up and a 5-year cycle down.

    Excerpts fromW. D. Gann

    Method For Forecasting

    The Stock Market

    (Course)

    Page 4

    Remember each stock works from its own base or from its own tops and bottoms, and not always according to Average tops and bottoms. Therefore, judge each stock individually and keep up weekly and monthly charts on them. [When Gann says "Average," he means "index," as for example the Dow Jones Industrial Average. Romeman] …

    The number "7" is the basis of time, and a panick occurs and depression in the stock market every seven years, which is extreme and greater than the three-year decline. …

    Monthly moves can be determined by the same rule as yearly; i.e., add three months to a bottom, then add four, making seven, to get minor bottoms and reaction points.

    Page 5

    Important daily changes occur every seven and ten days. During a month natural changes in trend occur around the 6th to 7th, 9th to 10th, 14th to 15th, 19th to 20th, 23rd to 24th, 29th to 31st. … Watch for a change in Trend 30 days from the last top or bottom. This is very important. Then watch for changes 60, 90, 120 days from tops or bottoms. 180 days, or six months, is very important and sometimes marks changes for greater moves. Also the 9th and 11th months from tops or bottoms should be watched for important minor and often major changes. …

    It is important to note whether a stock is making higher or longer bottoms each year. For instance, if a stock has made a higher bottom each year for five years, then makes a lower than previous year, it is a sign of a reversal and may mark a long down cycle. The same rule applies in stocks that are making lower tops for a number of years in a Bear market.

    Study all the instructions and rules I have given you. Read them over several times, as each time they will become clearer to you. Study the charts and work out the rules in actual practice, as well as on past performances. In this way you will make progress and will realize and appreciate the value of my method of forecasting.

    INSTRUCTIONS FOR FORECASTING THE STOCK MARKET

    First, remember time is the most important of all factors and not until sufficient time has expired does any big move up or down start. The time factor will overbalance both space and volume. When time is up, space movement will start and big volume will begin up or down. Time rules. Always consider your annual Forecast.

    Page 6


    Second, consider each individual stock and determine its trend from its position according to distance in time from bottom or top. Each stock works out its 5, 10, 20, 30, 50 and 60 year cycle from its own bottoms and tops, regardless of the movements of other stocks, even those in the same group. …

    Remember that at the end of any big movement, either monthly, weekly, or daily move, some time must be consumed for accumulation or distribution. So, you must allow for this. …

    Excerpts from

    W. D. Gann

    Method For Forecasting

    The Stock Market

    (Course)

    Page 7

    Never decide that the main trend has changes one way or the other without consulting your angles from top or bottom and without considering the position you are in in the cycle of each individual stock.

    Page 8


    It is not necessary to draw angles from a long ways back. You can make the calculations and determine where they cross. For example: Suppose in 1900, in the month of January, a stock made bottom at 15, and I want to calculate where the 45° angle will cross 20 years later in January, 1930. The 45° angle rises at the rate of 1 point per month, then 10 years would be 120 months or 120 points added to 15 at the bottom; the 45° angle would cross at 135 in January, 1930. All of the other angles may be calculated in a long way back in the same way.

    Page 9

    After a stock once drops below or gets above any important angle and then reverses its position by getting back above the angle or dropping back below it, it changes the trend again.











    Excerpts from

    W. D. Gann

    Method For Forecasting

    The Stock Market

    (Course)

    Page 10

    The angles of 90, 180, 270 and 360 form the first important cross, known as the Cardinal Cross. The angles of 45, 135, 225 and 315 form the next important cross, which is known as the Fixed Cross. These angles are very important for the measurements of time and space and volume.

    [For information on the terms Cardinal Cross and Fixed Cross, see:

    http://ceze.com/berglund/english/webcourse/lesson_8.htm ]

    Page 11

    The instructions on the Master Timing Angles give you the cause of all market movements and they can be worked out ahead as far as the year 2000. The figures which we will use are figures made by the United States Government astronomers and are therefore absolutely accurate. A careful study of all these figures and a comparison of the movements of the various stocks will convince you of their value. …

    [For commentary on this paragraph in the course, see:

    http://groups.yahoo.com/group/gannstudygroup/message/59 .]

    My Method of operating in the Stock Market is all based on mathematical points or geometrical angles. The Resistance Levels are all geometrical angles because they are 1/8, ¼, ½, ¾, 1/3, 2/3, etc., which are proportional parts of a circle whether large or small and, therefore, represent geometrical angles.

    There are three important factors to consider, price, time and space movements.

    Page 12

    … the Monthly and Weekly high and low charts are the most important when angles are broken. Daily charts can break angles and recover them and it is impossible for a daily high and low chart to maintain an angle of 45° for a very long period of time except when the final grand rush comes at the end of big bull campaigns. …

    After considering the three important factors, Resistance Levels, time and geometrical angles, the fourth and next very important factor is the volume of sales at tops or bottoms. Sales increase near the top and decrease near the bottom, that is, when a bear campaign has run for a long time and liquidation has about run its course, the volume of sales decreases, which is an indication that the market is getting ready to make a change in trend.
    Excerpts from

    W. D. Gann

    Method For Forecasting

    The Stock Market

    (Course)

    Pages 13 & 14

    [Gann comments on Vanadium Steel’s Weekly High and Low Chart.]

    Page 15

    MONTHLY VOLUME CHARTS ON DOW-JONES THIRTY

    INDUSTRIALS FROM JUNE 1921 TO MAY 1930


    A study of this volume chart will prove very interesting and valuable.
    Excerpts from

    W. D. Gann

    Method For Forecasting

    The Stock Market

    (Course)

    Pages 18-19


    The MASTER CHART is the Square of "12" or 12 x 12, making the first square end at 144. The Second Square of "12" ends at 289, the Third Square of "12" at 432, and the Fourth Square at 576, which will cover most anything that you want, but you can make up as many more squares as you want.

    This chart may be used and applies to anything – TIME, SPACE OR VOLUME, the number of points up or down; days, weeks, months and years.

    [Please see the first two pages of the "Master Charts" course:

    http://groups.yahoo.com/group/gannstudygroup/message/90 ,

    which add a few details not discussed in this course.]

    Page 20


    You have already had the MASTER SQUARE OF TWELVE explained, which represents days, weeks, months and years, and the measurements of TIME in the Square of Twelve or the Square of the Circle.

    The SQUARE OF NINE is very important because nine digits are used in measuring everything, and we cannot go beyond 9 without starting to repeat and using the 0. If we divide 360° by 9, we get 40, which measures 40°, 40 months, 40 days, or 40 weeks, and shows why bottoms and tops often come out on these angles measured by one-ninth of the total circle.

    Page 21

    We have astronomical and mathematical proof of the whys and wherefores and the cause of the workings of geometrical angles. When you have made progress, proved yourself worthy, I will give you the Master Number and also the Master Work.

    [The material that Gann presents on the Square of Nine is essentially the same as the material presented on Pages 2-4 of his "Master Charts" course:

    http://groups.yahoo.com/group/gannstudygroup/message/90

    http://groups.yahoo.com/group/gannstudygroup/message/91

    For an illustration of the Six Squares of Nine that Gann mentions in this course, please see the .gif attached to the following message:

    http://groups.yahoo.com/group/gannstudygroup/message/98 ]

    Study the human body in every way and you will find that it is the work of a Master Mind, and when once you know yourself and know your body, you will know the Law and will understand all there is to know. Remember there is a source of all supply, and that you have within you the power to know all there is to know, but you must work hard, seek and you shall find.

    [See also the course on the Human Body:

    http://groups.yahoo.com/group/gannstudygroup/message/136

    [Students of Gann’s books The Magic Word and The Tunnel Thru the Air will recognize the above quote as similar to ideas he has expressed in those works.

    ["Man has within him the key to the process by which he may know all there is to learn and receive all that he needs from the universal, divine supply. You tune in to this source and supply through the spoken word by putting your message in the air and the divine, universal mind which is in tune with yours will receive it. Other men and women throughout the world, who are in tune, will receive your message and help you. You do not need any wires or any telephones to put your message or spoken word on the air so that it will reach throughout the world. You know that no wires are used with the radio, yet you know that all radios tuned to the same wave length will receive the same message. This is one of the good reasons why you must not speak orally the wrong words, or think the wrong thoughts, because they will be received by the minds in tune with yours and will be returned to you. This is the law: that you reap just what you sow. You receive according to what you give or send out." The Magic Word, p. 90.

    ["You will want to know more about the Bible. Then read the Bible three times and you will know why it is the greatest book ever written. It contains the key to the process by which you may know all there is to know and get all that you need to supply your demands and desires. You will appreciate why Solomon said, ‘Wisdom is the principle thing: therefore get wisdom and with all thy getting, get understanding.’ The future will become an open book." The Tunnel Thru the Air, Foreword, second (unnumbered) page; see also pp. 50 and 75 of the same book]










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