| Vol. 3, No. 1 |
February 25, 2004
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[The following is a reprint of an article in ‘The W D Gann Technical
Review’ written by Billy Jones in March 1983.]
Gann Study
W. D. Gann made some discoveries in the markets that helped
him determine the duration of a move. He found, for instance, that the base
of a market determines the height of the move.
Based on proportion, he stated that the size of the base determines
the height of the bull market to follow. Some bases are clearly set apart by
gaps or leave a significant sign of accumulation. Gann stated that the base
times 7 determines the height.
The May Wheat Chart shown here has the base marked off with
dashed [solid] lines. The base happens to be 17 days and 18 cents. These measurements
multiplied by 7 gives you 119 days and 126 cents. Adding 119 days to the bottom
comes out near the final high and 444 plus the126 equals 570 in price.
The base measurement (on the wheat chart) forecasts a clear
and precise top; others have not been as close. If a base is as clear-cut as
this one, then the forecast can be fairly accurate.
The base is not quite as clear on the May Soybean Chart and
the contract change would mess up the price prediction, but a 5-week bottom
would signify a 35-week up move if the base could be actually counted. (The
daily chart of May soybeans had a clear-cut 26 days base, which predicted a
182-day move that is near the 35-week estimate).
Gann speaks of the rule of 7 throughout his course and books.
These numbers that he speaks of in his courses are not to be discounted. They
have more meaning than we credit them for.
ACKNOWLEDGEMENT:
The charts reproduced in this article were produced by Market Analyst II software.
DISCLAIMER:
Every effort has been made to ensure that the content and conclusions presented in The New W. D. Gann Technical Review are complete and accurate.
No part of The New W. D. Gann Technical Review contains trading advice - stated or implied, nor is an invitation to trade. The directors and associates of Lambert-Gann Educators, Inc. are NOT licensed trading or investment advisors. Lambert-Gann Educators, Inc. is an organization designed to assist traders and investors to become more knowledgeable and independent.
The giving of advice is therefore contrary to the very objectives of Lambert-Gann Educators, Inc.
Traders requiring trading or investment advice should contact a licensed advisor.
Stockbrokers and futures brokers are licensed advisors.
Neither Lambert-Gann Educators, Inc., nor anyone else involved in the production of The New W. D. Gann Technical Review, will be liable for any liability, loss or damage directly or indirectly caused, or believed to be caused, by The New W. D. Gann Technical Review.
Traders, to be successful, must take full responsibility for their own actions.
With respect to trading results, past performance is not necessarily an indication of future performance.
By maintaining your subscription to The New W. D. Gann Technical Review, you acknowledge that you understand and accept the contents of this disclaimer.
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Copyright © 2002, by Lambert-Gann Educators, Inc. All rights reserved.
All of Mr. Gann's books and courses are available from the Lambert-Gann Publishing, Inc.
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