The New W. D. Gann Technical Review

Vol. 2, No. 8	October 7, 2003
Go to Newsletters Archive

A Great Trading Opportunity

In this article, we are going to examine the current exciting move in the soybean market. We also would like to congratulate the group of seminar students who have been concentrating on correctly trading this move. We have heard from quite a few former and current students who have achieved phenomenal profits, some of which are seven figures amounts, from learning how to forecast and trade this runaway market.

This move is a classic W. D. Gann move that was totally unexpected by the fundamental analysts. It is almost as if Mr. Gann wrote about this move in the ‘Form Reading’ section of How to Make Profits in Commodities. Let’s take a closer look at some of the signals given by this market over the past two years.

The first chart is a weekly chart of November Soybeans. In the ‘W. D. Gann Experience’ seminar that was held in May in C’oeur D’Alene, Idaho, we changed focus slightly from July soybeans to November soybeans for this run. The reason was that the run should end before November soybeans went into delivery. The greatest move in prices almost always comes in the lead contract.

This chart clearly shows the major bottom that occurred on July 9, 1999 followed by 2 series of higher weekly bottoms. The market during this time also was being held on the top side by triple tops. However, the series of weekly bottoms were progressively higher pointing to the likelihood of the triple tops being taken out, eventually leading to much higher prices.

W. D. Gann wrote clearly in How to Make Profits in Commodities about triple tops and bottoms made weeks and months apart. On page 42 and 43 he writes;

Triple Tops and Bottoms: TRIPLE TOPS and BOTTOMS are the MOST IMPORTANT. By going over past records you will find that the greatest advances and declines, or those that last the longest, start from TRIPLE TOPS or BOTTOMS. TRIPLE BOTTOMS occurring several weeks apart are more important than several days apart. TRIPLE TOPS occurring several months apart are more important that several weeks apart, and the most important campaigns start when TRIPLE TOPS or BOTTOMS occur several YEARS APART.

For example; The same low level occurring in THREE CONSECUTIVE YEARS at different times, or the same high level occurring in THREE CONSECUTIVE YEARS at different times, indicates THE GREATEST REVERSAL and GREATEST ADVANCE or DECLINE. Therefore, it is IMPORTANT to WATCH for these TRIPLE TOPS OR TRIPLE BOTTOMS, because they are very significant of changes in trend, and very important to trade against. Example later of Triple Tops and Bottoms.

Fourth Top Same Level. This is something that very seldom occurs, but when a top is made around the same level for the FOURTH TIME and wheat, cotton, or soybeans fail to go through this level, it means a big REVERSAL AND RAPID DECLINE. Our rule says that when wheat, soybeans, or cotton advance to the same level a fourth time, the trend nearly always reverses and it goes through to HIGHER LEVELS. When they reach the same level the fourth time watch prices very closely for a MAJOR CHANGE IN TREND.

As you can see, he describes the November soybean market very clearly. He says to watch very closely for a major change in trend when the market reaches the top for the fourth time. When November soybeans went back to the triple tops for the fourth time and went through to higher levels, it signaled a major change in trend and moved into a major uptrend.

This next chart is a daily chart of November soybeans showing the escalation of the market from the last of the series of higher weekly bottoms.

Once the market finished accumulation with double bottoms at the 507 area, it started the run with a breakaway gap and has stayed above a four cents per day angle.

Seminar attendees are taught Ken Gerber’s soybean forecasting method and how to determine the correct cycle combinations for a meaningful forecast. May 2003 seminar attendees actually created the forecast, forecasting the time of the low in July and the subsequent time of the high.  

This market also emphasizes the value of keeping a weekly chart that was talked about in Vol 2, No. 7 of The W. D. Gann Technical Review.

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.

Lambert-Gann Educators, Inc.
1040 Spencer Road
SABINA OH 45169

Copyright © 2002, by Lambert-Gann Educators, Inc. All rights reserved.