"Prove all things and hold fast to that which is
|Scientific Stock Forecasting
W.D. Gann was (1878 - 1955 ) was born in the small Texas town
of Lufkin. He was son of a cotton farmer. Gann has been acknowledged by many for
breakthroughs and accurate techniques of technical analysis of the financial markets in regard
to price, time and geometry. Gann was reported to have taken more than 50 million dollars out of the
markets during his lifetime. (That is around $600 million in today's money.)
Gann worked very hard and developed his techniques and wrote many
books and courses. His courses sold for between $1,500 - $5,000.
Large Profits on Small Risks.
Gann said that the man who guesses and gambles on hope is
sure to lose, while that man who follows the science of mathematics and buys when insiders buy and sells when
insiders sell makes profits. The proof of the pudding in in the eating. Time proves all things, even when
stocks and commodities make tops and bottoms. With the Master Time Factor Gann was able to tell
long before important events take place when stocks and commodities would reach highs or lows, because he
knew by mathematical science when time cycles repeat. These valuable rules are all in the Bible if you know
where to find them.
How Gann Forecasted Stock, Cotton and Grain
Many people want to know what method Gann used to determine the future indications on the
markets. The way he did it was he kept charts of the various active stocks and also a set of averages. His
charts were different from the charts kept by the average statistician because they were based on the
discovery of his own. He discovered the time factor that enabled him to determine important tops and bottoms
one year or more in advance. He make Annual Forecasts on stocks, issued in December for the year ahead and
they proved correct.
He also kept Time and Volume charts on stocks. His volume charts enabled him to sell when
accumulation or distribution in stocks was taking place. By using his time factor he was able to determine in
advance tops and bottoms of minor siwngs. He studied each stock separately as in all bull markets. He said
that some stocks are in a bearish position. To be correct he said one must study individual stocks, not
averages. He also stdies each group of stocks separately, such as motors, oils, steels, rails and coppers, as
different groups are leaders in bull and bear markets under different conditions. He determined the leading
group by applying the time factor and the study of volume.
Gann was considered an expert tape reader and did watch the ticker daily for indications of
quick changes. The Ticker Magazine in 1909 said he is a gifted
matehmatician, has an extraordinary memory for figures and is an expert tape reader. Take away his science
and he would beat the market on his intuitive tape reading alone.
The cotton and grain markets can also be forecasted by this time factor, which enabled him to
tell when extreme highs and lows would be made, as well as the minor moves. He kept time charts on
commodities as no volume of sales is published. After all the importinat thing for every trader is to know is
the day approximatel high and low prices will be make. The price makes little difference so long as you know
about then bottom or top prices will be reached.