The Synergy of W. D. Gann’s Mathematical Principles

In Vol. 1, No. 13, of ‘The New W. D. Gann Technical Review’, Nikki Jones wrote two extremely important paragraphs about the value of looking at Mr. Gann’s actual charts.

"When the seminar attendees are given the opportunity to look at Mr. Gann’s actual charts after three full days of exciting forecasting and trading lessons, they immediately realize how powerful these lessons have been. They go home with an understanding that is not possible without seeing how mathematics and geometry continue to mold markets now just as they did is his time.

The basis of this methodology is a good chart. We have spent countless hours in research time to be able to teach proper charting methods. Our new trading products will contain all the knowledge required to ‘Record History for Profit’ correctly. The information recorded in that chart contains all the keys to market movements in the future."

The value of having a large Gann-style hand drawn chart has been proven to me over and over again in analyzing and profitably trading the soybean market. The daily chart hanging on my office wall is approximately 15 feet long and 4 feet high. Looking at that chart day after day imprints clearly on my mind Mr. Gann’s principles that continually repeat in the market.

My old school dictionary gives the following as one of the definitions for the word ‘synergy’ - "Co-operative action of discrete agencies such that the total effect is greater than the sum of the two effects taken independently".

Rather than one particular principle working out for every top and bottom in the market, it is the combination or ‘synergy’ of Mr. Gann’s mathematical principles that is the least understood and most powerful part of his analysis.

The following chart is current July Soybeans continuous from the major low at 425 on Jan 2, 2002.

From that low to the swing bottom on April 5, 2002 is 65 trading days. From the major low of 425 to the yearly top at 600 on July 10, 2002 is 130 trading days, proving the value of Mr. Gann’s 50 percent principle. I find that a change in trend at 50 percent or ½ of the time between major and minor changes in trend is very common. In fact, it is a major tool in the confirmation of a future forecasted date.

The next important low occurred on Oct. 9^th, 2002 at the price of 530. Going forward from there exactly 65 trading days gives us the next important low of 536 on Jan. 14, 2003. I would have marked 130 trading days on the chart on April 17^th, 2003, and, just as expected, a swing high occurs exactly there at the price of 623. Because we have a forecasted date beyond April 17^th, I would not expect the run to end there, but a reaction should be expected.

 

Another interesting similarity in these two market sections is that the 65-day lows were both preceded by a very sharp rundown of six trading days. This type of move is very characteristic of the soybean market and provides excellent trading opportunities when one is fully aware of the mathematical and repetitive moves in a market.

A third similarity between these sections lies in their movements on the Natural Squares Calculator number grid or Mr. Gann’s Square of Nine.

The first market section from 425 to 600 lacked just six cents of completing four full squares. This lack of reaching the full square usually indicates weakness in a market. Using square root mathematics we find that:

Square Root 425 = 20.61

Square Root 606 = 24.61

The second market section from 530 to 633 actually overran two full squares by seven cents showing strong tendencies. However the intermediate low in January at 536 was within one cent of the 633 high. Using square root mathematics we find that:

Square Root 530 = 23.02

Square Root 536 = 23.15

Square Root 633 = 25.16

Revolving in and around this repetitive 130-day move is the 90 degree move in calendar time that is so important to Natural Squares Calculator timing. The top of July 10, 2002 at 600 is an important anniversary date, which also is a part of the Calculator timing.

1998 Intermediate top on July 8

1999 Major low of 401 on July 9

2000 Major low of 463 on July 10

From the major high on July 10, 2002, to Oct 9, 2002 = 91 calendar days

From the low on Oct 9 to the high on Jan 6 = 89 calendar days.

The Natural Squares Calculator clearly shows that not only are these three dates approximately 90 days apart, the prices reached on those days are also 90 or 180 degrees apart. Using square root mathematics we find that;

July 10 High 600 – Square Root 600 = 24.49

Oct 9 Low 530 - Square Root 530 = 23.02

Jan 6 High 574 – Square Root 574 = 23.96

We have examined just three of the many principles that help us identify market turns and thus add to our trading profits.

1: Identical moves of 130 trading days with an intermediate 65 day low

2: Close Square of Nine harmony of the highs and lows of those moves

3: Typical ‘Natural Squares Calculator’ timing of cycles

Seminar attendees are taught how to use these and other principles and how to prepare both a major cyclical forecast and a forecast for the year’s tops and bottoms. They then are taught how to trade those forecasts that may be more important than how to prepare the forecast.

The discovery of synergy came from the research of Mr. Gann’s charts by Lambert-Gann Educators, Inc. It is the foundation of the teachings both at the course level and at the seminar level. This research has proven without any doubt that the true market understanding that Mr. Gann demonstrated over and over was a result of the ‘synergy’ that was created by his use of mathematical principles.

You now have a rare and unique opportunity to study Mr. Gann’s original charts and personally learn how "the total effect is greater than the sum of the two effects taken independently". The resultant ‘synergy’ should have a dramatic impact on your trading profits.

Join us at the next ‘W. D. Gann Experience’ seminar