TableofContentsLegalDisclaimerandCopyrightIntroductionChapter1:TheLawChapter2:Price&LongitudeConversionPart2Chapter3:SquareLongitudesandThe2ndLiteraryKeyChapter4:W.D.Gann'sUseofTheCircleChartChapter5:W.D.Gann'sFourthDimensionofMarketMovementsChapter6:IntraDayApplicationsofTheFourthDimensionChapter7:W.D.Gann'sDoubleNumberedPrice&TimeChartsChapter8:TheCubeCycleConclusionUpdate1

LegalDisclaimerandCopyright

Writtenby:PatrickMikulaCTAMikulaForecastingCompanyP.O.Box152672Austin,TX78715-2672USAhttp://www.mikulaforecasting.com/support@mikulaforecasting.comGann'sScientificMethodsUnveiled:Volume2Copyright:eBookRevisedVersion:Copyright©2012byPatrickMikulaAllRightsReservedISBN978-0-9650518-7-3eBookVersion:Copyright©2010byPatrickMikulaAllRightsReservedOriginalHardcoverversionCOPYRIGHT©1996byPatrickB.Mikula.Allrightsreserved.FirstEditionISBN0-9650518-1-1CopyrightNotice:Nopartofthisbookmaybereproducedwithoutwrittenpermissionfromthepublisher.Nopartofthisbookmaybereproduced,storedinaretrievalsystem,ortransmittedinanyformorbyanymeans,photocopying,electronic,mechanical,orotherwise,withoutthepriorwrittenpermissionofthepublisher.LegalDisclaimer:ImportantNotice:Noclaimismadethatthetradingmethodsorideasinthisbookwillresultinprofitsandwillnotresultinlosses.Thecontentsofthisbookarenotguaranteedtoproduceprofits.Commodityfuturesorstocktradingisariskybusinessand

maynotbesuitableforallrecipientsofthisbook.Althoughthefinancialcorrelationscontainedinthisbookhavebeenreliableinthepastthereisnoguaranteebythebook'sauthorordistributorsthattheywillworkinthefuture.Eachtraderisresponsibleforhis/herownactionsinthemarkets,ifany.Thecontentsofthisbookarenot,andshouldnotbeconsideredasanoffertobuyorsellanycommodityorfuturescontractorstock.Purchaseofthisbookconstitutesyouragreementtothisdisclaimerandexemptsitsauthoranddistributorsfromanyliabilityorlitigation.End

IntroductionPREFACEWHYTHISBOOKISIMPORTANTMostoftheadvancedastrologicalmaterialwhichisattributedtoW.D.GanncomesfromapersonalletterwhichGannwrotein1954andseveralofGann'soriginalcharts.Thesedocumentswerereleasedtothegeneralpublicfromthelate1970stothemid1980s.Inrecentyearstherehavebeenbooks,seminars,homestudycoursesandotherproductsallofwhichsaytheyarebasedonGann's1954soybeanletter.ThepubliclyavailablematerialdealingwithGann'sCircleChartandActiveAngleshasallbeenbasedonthisletterandhasinfactbeenwrong.InthisbookIwillrevealforthefirsttimeanywherethatGann's1954soybeanlettercontainsasecret,deeperlevelofastrologicalknowledgethatcannotbelearnedbymerelyreadingGann'sletter.ThereasonIwasabletodiscoverthehiddenknowledgeinGann'ssoybeanletterissimplybecauseImaybetheonlytraderwhoactuallyusesasoybeanhoroscope,asGanndid.Inaddition,IhavebroughtintoasinglebooksixofGann'soriginalchartstoprovideabsoluteproofthattheastrologicalmethodsinthisbookarecorrectandwereusedbyGann.MostcopiesofGann'schartshavebeenreducedinsizebecausetheoriginalsaresolarge.Somehavebeenreducedfroma24inchdiameterto4inches.InthisbookIhavedonesomethingunprecedented,IhavemadeartisticreplicasofGann'soriginalchartssoyoucanseeclearlytheastrologicalinformationtheycontain.Ofcourse,Iindicatewheretoacquiretheactualchartifyouwanttostudytheoriginal.Inthisbookthereare14artisticreplicasof6originalGanncharts.ThisbookalsocontainsmoreofmyexclusiveliteraryanalysisofGann'swritings.NotonlywillIusetheliterarykeyexplainedinVolume1,butIwillintroduceasecondliterarykey.UsingbothliterarykeysIwillunveilastrologicalknowledgeGannconcealedinthefollowing:TruthofTheStockTape,WallStreetStockSelector,MechanicalMethodandTrendIndicatorForTradinginWheat,Corn,RyeorOats,MasterEggCourseandSpeculation:AProfitableProfession.Volume2alsoprogressesbeyondtheliterarykeysandunveilsmaterialfromWallStreetStockSelectorwhichGannconcealedwithout

theuseofaliterarykey.ThisincludestheastrologicalmaterialconcealedinGann'sdiscussions:"HowCyclesRepeat","WhenAMan'sTrendChanges"and"HowToBalanceU.S.Steel".WhendealingwithGann'sastrologicalmethodsIhaveasaying:Thetruthwithoutproofisjustyouropinion.Gann'sScientificMethodsUnveiled:Volume2movesbeyondopinionbyprovidingproofthatGannusedtheastrologicalmethodsbeingtaught.Thatiswhythisbookisimportant.

IntroductionGann'sScientificMethodsUnveiled:Volume2waswrittenwiththeassumptionthatthereaderisfamiliarwiththebasicastrologicalmaterialpresentedinChapter2ofVolume1.Forthisreasontherewillnotbeanotherlongexplanationoftheastrologicalbasics.ThisintroductionwillprovidetheessentialinformationneededtounderstandtheideasdevelopedinVolume2.NomenclatureofGann'sPriceandTimeAnglesItwillhelpifyouknowthenomenclatureofGann'sPriceandTimeAngles.InthisbooktherearereferencestoGann'straditionalnon-astrologyPriceandTimeAnglessimplyas1x1or1x2angles.Ganndescribedhisnon-astrologytrendlinemethodintermsofthepricetotimerelationship.Gannwrotethenameoftheanglesas,1x4,1x2,1x1,2x1,4x1andsoon.Let'sexaminewhatismeantby1x4.Thefirstnumberin1x4istheincrementmovedupordowninpriceandthesecondnumberistheincrementmovedtotherightintime.Soanupwardsloping1x4angleiscreatedbymovingup1priceunitandoverfourtimeunits.The1x1anglemovesupordown1priceunitandover1timeunit.Thatisallthereistoit.NumberingofFiguresandChartsInVolume2,thefiguresandChartsarenumberedthesamewayasinVolume1.Eachfigureandchartisassignedtwonumbers,forexampleFigure5-7.Thefirstnumberisalwaysthechapternumberandthesecondnumberistheitemnumberwithinthatchapter.ThismeansFigure5-7isthe7thiteminchapter5.BasicAstrologicalInformationThezodiacisacircledividedinto12divisionswhicharecalledsigns.Eachsignofthezodiacrepresents30°ofmotion.SeeFigureI-1.Thesigns,incounterclockwiseorderare:

ZodiacSignGlyphStartDegreeEndDegree

1 Aries 360°-0° 29.9°2 Taurus 30° 59.9°3 Gemini 60° 89.9°4 Cancer 90° 119.9°5 Leo 120° 149.9°6 Virgo 150° 179.9°7 Libra 180° 209.9°8 Scorpio 210° 239.9°9 Sagittarius 240° 269.9°10Capricorn 270° 299.9°11Aquarius 300° 229.9°12Pieces 330° 359.9°

Inastrologytheplanetsalsohavesymbolscalledglyphs.Theplanetaryglyphsareasfollows.

planet Glyph1 Sun2 Mercury3 Venus4 Moon5 Earth6 Mars7 Jupiter8 Saturn9 Uranus10Neptune

11PlutoAplanet'slongitudeisusuallylistedinzodiacdegrees.ForexampleifVenuswas156°aroundthezodiacitwouldbelistedas6° 0'whichreadssixdegreesVirgozerominutes.Geocentriclongitudesandlatitudesarethecoordinatesoftheplanetsviewedfromearth.Heliocentriclongitudesandlatitudesarethecoordinatesoftheplanetsviewedfromthesun.Declinationisthenumberofdegreesaplanetisaboveorbelowthecelestialequator.Theletter"s"identifiesdegreessouthorbelowtheequatorandtheletter"n"identifiesdegreesnorthorabovetheequator.Thiswouldbewrittenas24°s47'or24°n47'.Latitudeisthesameconceptasdeclinationexceptitusesadifferentequator.Therearetwokindsoflatitude,terrestriallatitudeandcelestiallatitude.Terrestriallatitudeisthestandardearthboundlatitudewhichusestheearth'sequator.Celestiallatitudeprojectstheearth'sequatorintospacetodetermineaplanet'sdistanceaboveorbelowtheearth'sequator.Astudyofdeclinationandcelestiallatitudewillshowthattheplanetsmovethroughcelestiallatitudeveryslowlycomparedtotheirmovementthroughdeclination.Inanattempttokeeptheterminologysimple,inVolume1,Icalledtwoplanetsbeingapredeterminednumberofdegreesapartsuchas90°,a"planetaryrelationship".Theactualnameforaplanetaryrelationshipisan"aspect".Sowhentwoplanets,forexampleMarsandJupiter,are90°apartitissaidthatMarsandJupiterareformingasquareaspect.Inpublicationswrittenforastrologersyouoftenwillseethiswrittensimplyas,MarssquareJupiter.Theinformationforthemostcommonaspectsislistedbelow.Name Degrees

ApartGlyphTotal

MovementTraditionalClassification

Conjunction0° 0° MajoraspectSemisextile 30° 30° MinoraspectSemisquare 45° 45° MinoraspectSextile 60° 60° MajoraspectSquare 90° 90° MajoraspectTrine 120° 120° MajoraspectSesquare 135° 135° MinoraspectQuincunx 150° 150° MinoraspectOpposition 180° 180° MajoraspectQuincunx 150° 210° Minoraspect

Sesquare 135° 225° MinoraspectTrine 120° 240° MajoraspectSquare 90° 270° MajoraspectSextile 60° 300° MajoraspectSemisquare 45° 315° MinoraspectSemisextile 30° 330° MinoraspectConjunction0° 360° MajoraspectEnd

Chapter1:TheLawTherewerethreecontextsinwhichGannusedthewordlaw.Thefirstusagewastoexpressthegenerallyaccepteddefinitionfortheword.ExamplesofthisareoccasionswhenGannwroteaboutthegovernmentpassingnewlawsorthelawofsupplyanddemand.ThesecondwayGannusedthewordlawwastorefertowhathebelievedwasascientificlawwhichexplainedwhyastrologyhassomescientificbasis.Thisistheusageofthewordlawwithwhichweareconcernedinthisbook.ThethirdwayinwhichGannusedthewordlawhadaspiritualmeaningaswhenhereferredtothelawofGod.Aslongasastrologyhasexisted,astrologershavetriedtojustifywhyandhowitworksonsomescientificbasis.Onepossiblescientificbasisforastrologycombinesastrologicalideaswithalawofphysicswhichstatesthatforeveryactionthereisanequalandoppositereaction.Astrologersinterpretthislawtomeanthatforeverycelestialactionthereisanequalandoppositeterrestrialreaction.Theideabehindthistheoryisthatastheplanetsmovethroughtheirorbits,theyarekeptfromflyingoffintospacebymagneticlinesofforcewhichareanchoredtothesunandareconstantlyinteractingwiththemagneticlinesofforceoftheotherplanets.Thismeansthateveryplanetactsuponthemagneticlinesofforceofeveryotherplanetandthecombinedplanetaryinteractionaffectsthesun.Together,theinteractionoftheplanetarymagneticlinesofforceandtheireffectonthesun,causethemagneticpropertiesintheearth'satmospheretoincreaseordecrease.Thisinturnaffectseverynaturallyoccurringeventontheglobesuchasweather,plantgrowth,humanpsychologyandsoon.Thisquasi-scientificlawwasreferredtobyGannas"thelaw","mathematicallaw","geometricallaw"or"naturallaw".LookatthefollowingquotationsinwhichGannreferredtothislaw.

Itisanaturallaw.Actionequalsreactionintheoppositedirection.Weseeitintheebbandflowofthetideandweknowthatfromthefullbloomofsummerfollowsthedeadleavesofwinter.W.D.Gann,1929StockForecast,p.17

ThisquotationisaboutasdirectasGannevergetswhendealingwiththis

subject.NoticethatGanndirectlyconnects"naturallaw"and"Actionequalsreaction."Thesearethetwomaincomponentsofthelaw.InVolume1ofthisseries,page15,Idefinedthephrase"naturallaw"as"astrologyfromascientificperspective"andItranslated"naturallaw"inaquotationfromGannas"scientificlawsoftheplanets".InVolume1,itwasonlynecessarytoshowthat"naturallaw"meantascientificperspectiveofastrology.NowinVolume2,wetakeourunderstandingtoamoredetailedlevelanddefinethespecificscientificlawoftheplanetswhichGannused.This,again,is:foreverycelestialactionthereisanequalandoppositeterrestrialreaction.Lookingoncemoreatthequotationabove,weseethatGanndirectlyidentifiedtwoexamplesofcelestialactionequalingterrestrialreaction.FirstGannmentionedthe"ebbandflowofthetide"whichiscausedbythemoontakingactionandtheoceanshavingareaction.Second,Gannidentified"fromthefullbloomofsummerfollowsthedeadleavesofwinter"whichisatransitioncausedbytheearthtakingtheactionofmovingaroundthesunandtheearth'sclimatehavingareaction.InthisquotationGannclearlylaysoutthelawthatcelestialactionequalsterrestrialreaction.Nowreadthesecondquotationbelow.

Advancesandbullmarketswillcomeinthefutureandpanicswillcomeinthefuture,justastheyhaveinthepast.Thisistheworkingoutofanaturallawandthebalancingoftimewithprice.Itisactioninonedirectionandreactionintheoppositedirection.W.D.Gann,NewStockTrendDetector,1936,p.14

InthesecondquotationGannagainmadetheconnectionbetweennaturallawandactionproducingreaction.

Everythingmovesincyclesasaresultofthenaturallawofactionandreaction.Byastudyofthepast,Ihavediscoveredwhatcyclesrepeatinthefuture.W.D.Gann,StockMarketCourse

Inthethirdandfinalquotationforthisdiscussion,Gannagainconnectednaturallawwithactionandreaction.WhenweunderstandhowGannusedthephrasenaturallawandthatheusedastrology,thisquotationtakesonnewmeaning.WewillnextexaminesomereferenceswhichGannmadetothelaw.BelowarethreequotationsinwhichGannwroteaboutthelaw.

TheMasterChartshowsthesameresistancelevelsandbyusingthetimeperiodwithityouwilllearnthebasicmathematicalandgeometricallawformarketmovement.W.D.Gann,MasterEggCourse,1949,p.121

ThechartreferredtointhequotationabovewastheMasterEvenSquare.Gannindicatedwecouldlearnthebasiclawofcelestialactionandmarketreactionbystudyingthischart.

Studytheoutlinesandstudyallpastmarketmovementsbasedonpriceandtimeasindicatedbythesechartsandtherules,andyouwillsoonlearntheworkingofthemathematicallawthatdeterminesmarketmovements.W.D.Gann,MasterEggCourse,1949,p.127

ThechartreferredtointhequotationaboveistheCircleChart.Ganninstructedhisreaderstostudyamarket'shistoryalongwiththeCircleCharttolearnthatcelestialactionproducingmarketreactiondeterminesmarketmovements.

Workoutallfuturetimeperiodsandresistancelevelsinthissameway,andstudythepastrecordsandyouwillseehowwellpricesobeythenaturallaw.W.D.Gann,MasterEggCourse,1953,p.141

InthequotationaboveGannisagainreferringtotheCircleChart.GannindicatedthatbyapplyingtheCircleCharttofuturetimeperiodsitispossibletoseethatpricesobeythelawofcelestialactionproducingmarketreaction.InoneformoranotherGannsaidseveraltimesthathewasnotgoingtorevealthecauseofcycles.ThebestexampleofthiscomesfromGann's1927bookTunnelThruTheAirinwhichhewrotethefollowing.

ITISNOTMYAIMTOEXPLAINTHECAUSEOFCYCLES.ThegeneralpublicisnotyetreadyforitandprobablywouldnotunderstandorbelieveitifIexplainedit.W.D.Gann,TheTunnelThruTheAir,1927,p.78

WhenGannsaidthathewouldnottellthepublicthecauseofcycleshewastalkingaboutfinancialmarketcyclesandotherearthlycycles.InVolume1of

thisseries,onpage8theword"cause"wasdefinedas"anyastrologicaleventwhichmanifestsachangeinthemagneticlinesofforcewhichreachtheearthfromthesun".Nowremembertheexplanationof"thelaw"whichis,foreverycelestialactionthereisanequalandoppositereaction.Withinthelaw,theword"action"hasthesamedefinitionastheword"cause".Let'ssubstitutethedefinitionoftheword"cause"fortheword"action"within"thelaw".Nowthelawbecomes,foreveryastrologicaleventwhichmanifestsachangeinthemagneticlinesofforcewhichreachtheearthfromthesunthereisanequalandoppositereaction.Thecauseofmarketcyclesisthereforethelawworkingitselfoutoveraperiodoftime.Asacelestialactionorcausemanifestsachangeinthemagneticlinesofforcebetweentheearthandsun,aterrestrialormarketreactionoccurs.ThisisthecauseofmarketcyclesforwhichGannbelievedthegeneralpublicwasnotready.Tosaythisinasfewwordsaspossiblewecouldsay,thecauseofmarketcyclesisthelaw.Belowisthedefinitionofthelawforeasyreference.

TheLaw,NaturalLaw,GeometricLawandMathematicalLaw,areallreferencestothequasi-scientificlawwhichstatesforeverycelestialactionthereisanequalandoppositeterrestrialreaction.End

Chapter2:Price&LongitudeConversionPart2Chapter8,inVolume1,iscalledPrice&LongitudeConversion.ThechapteryouarereadinginVolume2,isentitledPrice&LongitudeConversionPart2becauseitisanextensionofChapter8inVolume1.Toapplythemethodinthischapteryoumustconvertplanetarylongitudesintopricesandplotthemonyourpricechart.ThatiswhythismethodiscalledthePrice&LongitudeConversionmethod.Whenyouconvertalongitudetoapriceabove360yousimplyaddincrementsof360tofindtheequivalentprice.Forexampleifaplanetarylongitudeis8° 0'or38°youwouldaddincrementsof360toseethat38°equalstheprices38,398,758,1118andsoon.ThiscanbedoneeasilybyhandorwiththePriceandLongitudeConversionTablesonpages64to69inVolume1.Oncetheplanetaryanglesareonyourpricecharttheyareusedtohelpidentifysupport,resistanceandturningpoints.WhenwritingtheGann'sScientificMethodsUnveiledseriesitismyintentiontoavoidpresentingthesameinformationindifferentvolumes.TheapplicationofthismethodusinggeocentriclongitudeswaspresentedinVolume1,pages56to63.ForthisreasonIwillnotpresentmoreapplicationexamplesofthePrice&LongitudeConversionmethodhereinVolume2.BelowthereisanartisticreplicaofanactualGannChart.Chart2-1belowisanartisticreplicaofGann'sMaycontractsoybeanchart.Chart2-1showsonlyasectionofthischartatitsactualsize.TheoriginalchartshowsdailybarsfromSept.30,1948toFeb.22,1949.Chart2-1showsdailybarsfromSept.30,1948toDec.18,1948.Thisisanartisticreplicabecauseitisnotintendedtobeanexactcopyoftheoriginalchart.Noticethatthe1stfewbarsonChart2-1showsomex'sando's.Ontheoriginalchart,Gannused"x"tomarktheclosingpriceand"o"tomarktheopeningprice.Thex'sando'salongwithseveralnumbercountsfromtopsandbottomsandmanynon-astrologypriceandtimeangleshavebeeneliminatedsoyoucanseetheastrologicalinformationonthechart.TherearefourimportantitemsonChart2-1whichIhavelabeledAtoD.Arrow"A"pointstoalinewhichisthelongitudinalpathofJupiter.Jupiter'slongitudestartsonAugust4that262.75.TheglyphforJupiter isclearlyseentotheleftofthisangle.Ontheactualchart,thisJupiterglyphiswrittenfreehandinGann's

uniquestylemakingitlooklikeacapitalHwiththetopscurvedoutward.Arrow"B"pointstoahorizontallinelabeled 30 .Thelongitude30 isthecrossingpointbetweenSagittariusandCapricorn.WherethelongitudinalpathofJupitercrossesthisline,JupiteriscrossingfromSagittariusintoCapricorn.Arrow"C"pointstoalinewhichisthelongitudinalpathofMars.TheglyphforMars isrightnexttothepointofarrow"C"andclearlyidentifiesthisangle.Next,Arrow"D"ispointingtoahorizontallinelabeled 23 .ThisshowsthatGannobservedwhenMarscrossed23°Sagittarius .FinallynoticethattheMars'angleendswhenittouchestheJupiterangle.AtthepointwheretheMarsandJupiterlinescross,MarsandJupiterareformingaconjunctionmeaningtheyareonthesamelongitude.Gann'ssoybeanchartfrom1948confirmsthatGannplottedplanetarylongitudesonpricecharts.ThebestcopyofGann's1948soybeanchartusedinthisexampleisincludedwiththeW.D.GannCommodityCourse.

Volume1showedthattheword"natural"wasusedbyGanntotaghishiddenastrologymaterial.InGann's1930WallStreetStockSelector,heusedavariationofnaturalintheformof"naturally"totaghishiddenastrology

material.Thewordnaturalinoneofitsforms,wasusedabout25timesinWallStreetStockSelector.Mostoftheseoccurrencesidentifiednodateoridentifiedonlythemonthandyear.Onlytwicedidausageofthewordnaturalidentifyaspecificdate.Thefirstofthesetwo"natural"datescanbeseeninthequotationbelow.

OnMay31,(1929)Steeldeclinedto162-1/2.NoticethatitbrokethelowsofFebruary16andMarch26,1929,andnaturallytraderswouldgetscaredandsellout.W.D.Gann,WallStreetStockSelector,p.89

Intheabovequotation,GannidentifiedthedateMay31,1929andtheprice162-1/2forU.S.Steelasanastrologydatebytaggingitwiththeword"naturally".IfyouwilllookupMay31,1929inaheliocentricephemerisandcheckthelongitudeoftheplanetMarsyouwillseewhyGannidentifiedthisasanastrologydate.OnMay31,1929Marscrossedoverexactly12° 30'whichconvertsintoalongitudeof162-1/2.Chart2-2showsapriceswingchartmadefromtheU.S.SteelpricespresentedbyGannonpages88to90ofWallStreetStockSelector.ThedashedlineslopingupwardistheheliocentriclongitudeofMars .Chart2-2showsthatthepriceofU.S.SteelmoveddownandtouchedthelongitudeofMarsandareversalupwardoccurred.Chart2-2clearlyshowswhatGannwantedustoseewhenhetaggedthisdatewiththeword"naturally".

TheMechanicalMethodandTrendIndicatorForTradinginWheat,Corn,RyeorOatswaswrittenbyGannin1946.ThiscoursewasanupdatedversionofGann'sMechanicalMethodwhichhehadbeensellingforseveralyears.Inthe1940sGannsoldthiscoursebyitselfwiththeintentthatitwouldprovidecomprehensiveinstructionsforhisMechanicalMethodandTrendIndicator.TodaythisMechanicalMethodandTrendIndicatorcourseispartoftheW.D.GannCommodityCourse.Afterpresenting22pagesofinstructionandexamplesinthisMechanicalMethodandTrendIndicatorcourse,Gannincludesone"natural"dateonpage23,thelastpage,wherehewrote:Apr16(1925)low103,down79-1/2centsfrom182-1/2andnearing$1.00perbushel,anaturalsupportlevel--Timetowatchforchangeintrend.W.D.Gann,MechanicalMethodandTrendIndicator,1946,p.23

TheabovequotationidentifiestheMaycontract,Ryemarketlowwhichoccurredatthepriceof103onApril16,1925.WhenwelookupApril16,1925inaheliocentricephemeriswefindthataconjunctionbetweenMarsandPlutooccurredonApril15,1925atthelongitudeof13° whichconvertsintotheexactpriceoftheryelow,103.ThiscanbeseenonChart2-3.Noticethattheyearofthelowwas1925andPlutowasnotdiscovereduntil1930.ThisshowsthatafterPlutowasdiscoveredGannwentbackoverhischartsanddidhistorical

researchtodetermineifPlutohadanyvalueinthefinancialmarkets.Thisexamplewaswrittenin1946atwhichtimeGannwouldhavehadabout15yearstoworkwithPluto.FormanyyearsnowGann'smechanicalmethodshavebeencopiedandsoldtobeginners.ThisexampleshowsforthefirsttimethatGannmostlikelycheckedhismechanicalmethodsignalsagainstoneofhisastrologymethods.

SomeofGann'smostspecificdiscussionsoffinancialastrologyappearinprivatelettershewrotetohisclients.Thereasonforthisseemstobethenegativeviewofspeculationwhichoccurredintheearly1930s.Afterthestockmarketcrashof1929andtheelectionofPresidentFranklinD.Rooseveltin1932,thegovernmentstartedtopassregulationsandtaxlawstoreducegamblingandspeculationinthestockmarket.Itismyopinionthattheregulationsandtaxlawsofthe1930sarewhatcausedGanntorewritehisadvancedcoursesin1936andsellthemascorrespondencecourses.ThisallowedGanntoincreasethesalesofhiscoursesandotherfinancialserviceswhilereducinghisincomefromshorttermspeculationwhichwasbeingpenalizedbythenewtaxlaws.WhenGannconvertedhisadvancedcoursesintocorrespondencecoursesin1936,heapparentlyremovedalloftheopenlydiscussedastrologyideas.TomyknowledgenoneofthecoursematerialGannusedathisseminarsinthe1920sstillexists.Gann'sadvancedcoursematerialfromtheearly1930sismuchmore

openabouthisastrologymethodsthanthecoursematerialsoldafter1936.ThepeoplewhoboughtGann'sadvancedcoursesafter1936couldwriteGannlettersaskingquestions,whichiswhytheywerecalledcorrespondencecourses.Gannlefthisadvancedcoursesseededwithenoughreferencestoastrologythatthestudentofthecoursecouldgoasfarashisabilitytoasktherightquestionscouldtakehim.Ifyoustayedwiththenon-astrologymaterialwhichwasopenlypresented,thensobeit.IfyouwroteandaskedGannaboutthereferencestoastrologyinthecourse,thenGannwouldexplainandtakeyoutothenextlevelofunderstanding.Thisisimportantforusbecausesomeofthoselettersstillexist.In1954Gannwrotealettertooneofhisclientsregardingthesoybeanmarketinwhichheprovidedsomenewinformationabouthisuseoftheplanetarylongitudes.Thefollowingquotationisfromthatletter.

"TheaveragesofthesixmajorplanetsHeliocentricandGeocentricarethemostpowerfulpointsforTimeandPriceresistance.AlsotheGeocentricandHeliocentricaverageofthefivemajorplanetswithMarsleftout,isofgreatimportanceandshouldbewatched."W.D.Gann,PersonalSoybeanLetter,1954

InthisquotationGannidentifiedfourplanetaryaverages.Theyare:thesixouterplanetsofMars,Jupiter,Saturn,Uranus,NeptuneandPlutoaveragedforbothheliocentricandgeocentriclongitudesandthesameouterplanetswithMarsleftout.Whenmakingthecalculationsfortheseaveragestheaveragelongitudechangesgreatlywhenoneoftheplanetscrossesfrom360°to0°.Belowisalistofthe6outerplanetsforthedatesApril14and15,1994.NoticethattheaveragelongitudeofthesesixplanetsonApril14thwas291.22°andthenextdayitfell60pointsto231.34°becauseMarscrossedfrom360°to0°.OnChart2-4,Ihaveplacedthegeocentricandheliocentricaveragelongitudeofthesixouterplanetsonaweeklysoybeanchart.Geocentric .GeocentricApril14,1994 .April15,1994

------------GlyphLongitude.

------------GlyphLongitude

Mars 359.8° .Mars 000.56°Jupiter 221.75° .Jupiter 221.63°Saturn 338.7° .Saturn 338.8°Uranus 296.21° .Uranus 296.23°

Neptune 293.31° .Neptune 293.31°Pluto 237.55° .Pluto 237.51°

------------.

------------

Ave. 291.22° .Ave. 231.34°Chart2-4,isaweeklyMarchcontractsoybeanchartfromJanuary1990toSeptember1995.ThedottedlineonChart2-4isthegeocentricaverageoftheouterplanetsandthesolidlineistheheliocentricaverageoftheouterplanets.Ihaveplacedthelabel"GapA","GapB"and"GapC"onChart2-4toidentifythethreetimeswhenMarscrossedfrom360°to0°.Atthesethreepoints,theaveragesdropsignificantly.Inhis1954soybeanletter,Ganndidnotindicatewhetherheaveragedtheplanetarylongitudesastheyarenaturally,whichproducesgapsintheaverageasseenonChart2-4,orifheadjustedthelongitudestomaketheaveragessmooth.

Tosmooththeaverageofthesixouterplanetsitisnecessarytoadd360toaplanet'slongitudewhenitcrossesfrom360°to0°.ItismyopinionthatGannprobablysmoothedtheangleandavoidedthelargegapsseeninChart2-4.InamomentIwillshowthesamesoybeanchartwiththeaverageofthe6outerplanetswithnogaps.Whenusingthefourplanetaryaverages,Gannidentifiedinthequotationonthe

above,ithelpstounderstandhowgeocentricandheliocentriclongitudesrelate.BelowarethefouraveragesGannidentifiedcalculatedforJanuary8,1996.Geocentric Heliocentric Geocentric HeliocentricMars 300° Mars 308.55°Mars

-----Mars

-----

Jupiter 271.16°Jupiter 268.12°Jupiter 271.16°Jupiter 268.12°Saturn 349.93°Saturn 355.15°Saturn 349.93°Saturn 355.15°Uranus 299.76°Uranus 300.38°Uranus 299.76°Uranus 300.38°Neptune 294.95°Neptune 295.2° Neptune 294.95°Neptune 295.2°Pluto 242.18°Pluto 240.8° Pluto 242.18°Pluto 240.8°

----- ----- ----- ----- ----- ----- ----- -----

Ave. 292.99°Ave. 294.7° Ave. 291.59°Ave. 291.93°Noticethatboth6planetaveragesarefairlyclosetogetherat292.99°and294.7°.Bothofthe5planetaveragesarealsoclosetogetherat291.59°and291.93°.Therearetwobasicprincipleswhichwillhelpyouunderstandhowthegeocentricandheliocentricaveragesinteract.First,thefartheraplanetisfromthesun,thecloseritsgeocentricandheliocentriclongitudesbecome.Second,whenyouplotthegeocentricandheliocentriclongitudesforoneoftheouterplanets,theheliocentriclongitudewillbeastraightlinewiththegeocentriclongitudetravelingaboveandbelowit.Chart2-5belowappliesthesefourplanetaryaveragestothesamesoybeanchartseeninChart2-4.Thepriceofsoybeansgenerallytradesinthesecondzodiacabovezerowhichrunsfrom360to720soIadd360toeachaveragetomakethemcomparablewiththepricedata.NoticeonChart2-5,thatthetwoaveragesmadefrom6planetsstayclosetogetherasdothetwoaveragesmadefrom5planets.WhencalculatingtheaveragesonChart2-5,Ihaveadd360everytimeaplanetcrossedfrom360°to0°whichproducesthesmoothedaverageswhichIbelieveGannusedinthesoybeanmarket.GiventhefactthattheseaveragesstaysoclosetogetherIbelieveitisacceptabletouseeitherthegeocentricorheliocentricaverages.OnChart2-5ifyoufollowthepathoftheseaveragelongitudeangles,youwillseethatmanytopsandbottomsweremadeagainstthem.

InGann's1954soybeanletterheidentifiedonemoreplanetaryaverageasseeninthequotationbelow.

"YoushouldalsocalculatetheaveragesofeightplanetswhichmovearoundtheSun...."W.D.Gann,PersonalSoybeanLetter,1954

ThisisanaverageofthegeocentriclongitudesofMercury,Venus,Mars,Jupiter,Saturn,Uranus,NeptuneandPluto.ThisaveragemovesfasterthanthepreviousfouraveragesshowninChart2-5.Tousethisaverageyoumustsetatoppriceatwhichyouwillstarttheaveragebacktothebottomofthechart.OnChart2-6thisaveragewillbeallowedtorunbetween360and720.OnJanuary1,1990whereChart2-6starts,theaverageoftheseeightplanetswas252.19°sowemustadd360togettheaveragelongitudeupbetween360and720.AfterJanuary1,1990whentheaveragemovesabove720,wemustsubtract360tomovetheaveragebackdowntothebottomofthechart.OnChart2-6,IhaveplacedtheaverageoftheeightgeocentricplanetsonthesamesoybeanchartshowninChart2-4and2-5.

End

Chapter3:SquareLongitudesandThe2ndLiteraryKeyTheversionofSpeculation:AProfitableProfessionwhichissoldtodayaspartoftheW.D.GannCommodityCourseisathirtypagecourseprovidingtherulesandapplicationexamplesforasimplemechanicalmethod.IntheconclusionofSpeculation:AProfitableProfessionGannwrote"...Ibelieveinpassingonmysecretdiscoveriestohelpothers..."andseveraltimesinthistextGannencouragedthereadertoapplyalltherulesinHowToMakeProfitsTradingInCommodities.BecauseIalreadyknewGannhadconcealedastrologicalmaterialinHowToMakeProfitsTradingInCommoditiesitwasmyassumptionthatthephrase"secretdiscoveries"wasareferencetoGann'sastrologymethods.FromthisIconcludedthatGannmusthaveconcealedsomeofhisastrologymethodsinSpeculation:AProfitableProfession.Onpage6ofSpeculation:AProfitableProfessionundertheheading"OneGrainGoesUpWhileAnotherGoesDownAtTheSameTime,"Ganngaveareviewofthesoybeanmarket.Themainfocusofthisreviewwastodescribethewayinwhichthepubliclosesandthetraderswithknowledgewin.InthisdiscussionGannwrote:(Quotation1)1953August20thMayBeanslow-239-1/2.Theyhadsoldat309inApril1953.AfterMayBeansstarteduptradersdecidedpriceswereTOOHIGHandat270theySOLDSHORT.TheWISEMANwhoKNEWtheTRENDwasup,BOUGHT.W.D.Gann,Speculation:AProfitableProfession,1954,p.6

Gannoftenadvisedhisreaderstostudythebiblewhichheclaimedwasabookofscience.Inquotation1,Gannusedthephrase"wiseman"anditistraditionallyassumedthatthewisemenintheNewTestamentwhotraveledtoseetheinfantJesuswereastrologersandthattherewerethree.Gannusedthephrase"wiseman"todescribeatraderwho"knewthetrend".Inquotation1,Gannreallysaid,thatthetraderswhounderstoodastrologyknewthetrend.InthenextparagraphGannwrotethefollowing.

(Quotation2)Dec.17,1953MayBeansdeclinedto295-3/4andmadebottom,

thenadvancedto310aroundthehighofDecember1953.ThepublicdecidedpriceswereTOOHIGHandSOLDSHORTwhileWISETRADERSBOUGHTATNEWHIGHSfollowingMYRULESandcontinuedtoBUYATNEWHIGHSbecausetheTRENDWASUP.W.D.Gann,Speculation:AProfitableProfession,1954,p.7

NowGannusedthephrase"wisetraders"asavariationof"wiseman"buttheveiledmeaningisthesame.Inquotation2,Gannclaimed_that"thepublic"madeamistakewhilethetraderwhounderstoodastrologymadethecorrectmarketdecision.

(Quotation3)....MayBeanssoldat422onApril27thbutclosedat411,lowerthantheyclosedonApril26thwhentherewerenobeansoffered.JulyBeanssoldat415onApril27thandclosedat405,lowerby4¢perbushelthanthenightbeforewhennonewasofferedforsale.THEPICTUREHADCHANGEDOVERNIGHT.THEWISEBUYERSwhohadBOUGHTallthewayupfrom240becamesellers;....W.D.Gann,Speculation:AProfitableProfession,1954,p.7

Inquotation3,Gannusedathirdvariationof"wiseman"intheformof"wisebuyers".Thisshowsusthattheword"wise"isthekeywordbeingusedtoveilGann'sastrologicalmethodssoIcallthese"wise"dates.Ganntookthebiblicalreferencetothethreewisemenandusedthreedifferentvariationsofthisphrasetoidentifythreedateswhichmarkedthreeturningpoints.Ineffect,Gannconcealedonedateforeachbiblicalwiseman.Thesearethethreeveiledastrologicaldatesinthe1954editionofSpeculation:AProfitableProfession.Intheparagraphbelowquotation3,inSpeculation:AProfitableProfession,Gannusedthewordwiseonemoretimesaying,"OnMay3rdtherealsellingstarted....Whydidpricesgodownlikethis?Becausethewisetraders,whenpricesbrokethelowofApril20,SOLDATNEWLOWS..."GanntoldusthatpricesdeclinedonMay3becauseofwhat"wise"tradershadpreviouslydonewhenthepricebroketheApril20low,butGanndidnottellusonwhichdaytheApril20lowwasbroken.Sothisuseoftheword"wise"doesnotidentifyanydate.Also,theword"wise"inthefirstthreequoteswereallineitheritalicorcapitallettersdependingontheeditionyouhave.Thisfourthuseoftheword"wise"isshowninplaintext.Thisshowsthatwhen"wise"wasusedasaliteraryveilforsomeastrologicaleventGannsetitofffromtherestofthetextwitha

changeoffontorstyle,andintentionallylefttheforthreferenceasplaintextbecauseitdidnotidentifyanydateandwasnotusedasaliteraryveil.InSpeculation:AProfitableProfessionGannconcealedhisastrologymethodswithinexamplesfromthesoybeanmarketSpeculation:AProfitableProfessionwaswrittenin1954,thesameyearGannwrotethesoybeanletterwhichwasdiscussedinthepreviouschapter.ItismyopinionthatGannwrotehis1954soybeanletterandSpeculation:AProfitableProfessionsoclosetogetherthathewroteaboutthesameastrologicalobservationsinbothdocuments.BelowIwillcomparesomeofthematerialopenlywrittenaboutinthe1954soybeanletterandthematerialconcealedinSpeculation:AProfitableProfession.Thefirst"wise"dateinSpeculation:AProfitableProfessionseeninquotation1,identifiesthesoybeanlowofAugust20,1953.OnedaybeforeonAugust19,1953,JupiterformedatrinewithNeptune, .ThelongitudeofJupiterduringthisaspectwas21° whichis81°and81is9squared,(9x9).Gann's1954soybeanletterreads,"TheplanetJupiterisat21°Geminiwhichis81°inlongitude...".ThisshowsthatGannwatchedthesamemovementofJupiterwhenhetaggedtheAugust20soybeanlowwiththeword"wise"andwhenhewrotethesoybeanletter.Thesecond"wise"dateinSpeculation:AProfitableProfessionseeninquotation2,identifiesthesoybeanlowofDecember17,1953.Twodaysearlier,onDecember15,1953JupiterformedasesquisquarewithSaturn, .NowlookatthefollowingquotationsfromoneparagraphinGann's1954soybeanletter.First,"TheplanetJupiterat21°Gemini...."DuringtheDecember15thaspectJupiterwasat21° .Nextquotation,"Subtract135°fromJupitergives306or6°Aquarius."TheDecember15thaspectwasasesquisquarewhichmeanstwoplanets135°apart.Finalquotation,"...thepowerofSaturnandJupiteraspects,workingouttimetothesePriceResistanceLevels,iswhathaltstheadvanceinSoybeans."TheaspectofDecember15thwasbetweenJupiterandSaturn.Ihavenodoubtthatthebasicreferencesof,(Jupiter21° 135°Saturn),werewrittenintothe1954soybeanletteratthesametimeGanntaggedtheDecember17thbottomwiththeword"wise"inSpeculation:AProfitableProfession.Thethirdandfinal"wise"dateinSpeculation:AProfitableProfession,seeninquotation3,identifiesthesoybeantopofApril27,1954.Onedaybeforethis"wise"date,JupiterformedanothertrinewithNeptune, .Duringthis

relationship,Jupiterwasat24° or84°andNeptunewasat24° or204°.ThebasicideaGannconcealedinthe"wise"datesisthatplanetsformingaspectsonsquarelongitudeshaveaddedimportance.Tofindtheimportantsquareinthisaspectwemustaveragethetwolongitudes.WhenthisaspectformedbetweenJupiterandNeptune,themidpointbetweenthetwoplanetswas24°Leoor144°(84+204=288÷2=144)whichis12squared,(12x12).ThisistheimportantsquarerelationshipwhichGannwantedustoseewhenhetaggedthisdatewiththeword"wise".Chart3-1isasimplesoybeanswingchartmadefromtheturningpointsidentifiedbyGannininSpeculation:AProfitableProfession.Chart3-1showstheaspectsidentifiedbythe"wise"dates.

Inboththe1954soybeanletterandSpeculation:AProfitableProfession,GannidentifiedtheaspectsbetweenJupiterandSaturnasbeingimportantinthesoybeanmarket.InChapter2,IdiscussedanactualGannsoybeanchartfrom1948.Chart2-1wasthereplicaofGann's1948soybeanchartandappearsinthepreviouschapter.Onbelow,Chart3-2isanotherartisticreplicaofthesame1948soybeanchart.AtthebottomofChart3-2,arrow"A"ispointingtoalarge"13"writtendirectlyunderthedateDecember13th.OnDecember13,1948JupiterformedatrinewithSaturn, andthislarge"13"wasGann'sreminderwhichidentifiedwhenthisaspectoccurred.ThismeanstheevidencethatGannusedtheJupiterandSaturnaspectsinthesoybeanmarketcanbefoundinatleastthreedifferentsources,Gann's1948soybeanchart,concealedinSpeculation:AProfitableProfessionandinGann's1954soybeanletter.

End

Chapter4:W.D.Gann'sUseofTheCircleChartIn1923whenGannwroteTruthoftheStockTapethereweretwobasicwaystoacquirestockorcommodityprices.First,priceswerepublishedinthedailynewspaper.Second,atradercouldgotoabroker'sofficeandwatchthetickertapemachine.Atickertapewasbasicallyatelegraphmachinewhichstampedpricesonalongstripofpapercalledthestocktape.ThetitleofGann'sbookisastatementproclaimingthatthebookcontainsthe"truth"ofthestocktape.Toexplainthis"truth"wewilluseabasicliteraryanalysisofGann'swriting.InVolume1,IshowedthatGannusedtheword"science"asaveilforthewordastrology.Soscientistbecomesastrologer,scientificbecomesastrologicalandsoon.Toshowthe"truth"GannconcealedaboutthestocktapeIhavelistedandtranslatedaquotationfrompage1,ofTruthoftheStockTapewhichusestheword"science".

Speculatorsandinvestorswhosimplyguess,followtips,rumors,newspapertalkandso-called"insideinformation"havenochanceofevermakingasuccess.Unlesstheyfollowsomewell-definedplanbasedonScienceandSupplyandDemand,theyaresuretolose.W.D.Gann,TruthoftheStockTape,p.1

Speculatorsandinvestorswhosimplyguess,followtips,rumors,newspapertalkandso-called"insideinformation"havenochanceofevermakingasuccess.Unlesstheyfollowsomewell-definedplanbasedonAstrologyandSupplyandDemand,theyaresuretolose.Translated-W.D.Gann,TruthoftheStockTape,p.1

ThereareseveralotherinstancesinTruthoftheStockTapewhenGannusedtheword"science"andtheycanbetranslatedtoprovidethesamebasicmessage.The"Truth"mentionedinthetitleofGann'sbookisthatthemovementsofstockandcommoditypricesarecausedbytheplanets.WhenGannwroteTruthoftheStockTapein1923hewasonly45yearsoldandhisfinancialservicesbusinesswasstillgrowing.AtthattimeGannwasunwillingtoconcealhisastrologymethodsinthematerialhesoldtothegeneralpublicbuthealludedtohisuseof

astrology.WhenGannconcealedhisastrologymethodstheywereactuallyinthetextforanyonetofind.WhenGannalludedtoastrologythemethodswerenotactuallyinthetext.ThismeansyoumustlearnGann'sastrologymethodssomewhereelsebeforeyoucanunderstandtheallusionsinhiswritings.AsGann'scareerprogressed,hegraduallyincludedmoreastrologymethodsinhiswritingsandattheendofhislifehewasopenlywritingaboutthem.ThismakesdiscoveringGann'sastrologymethodsfromhisearlyworksmuchmoredifficult.InWallStreetStockSelectorfrom1930,asinTruthoftheStockTapeGannalludedtohisuseofastrologymorethanheconcealedexamplesofhisastrologymethods.AverygoodexampleofhowGannalludedtohisuseofastrologyinWallStreetStockSelectorcanbefoundonpages34and35whereGannwroteaboutaman'sseasonaltrend.Thetwoquotationsbelowprovidetheimportantinformationfromthesetwopages:

Aman'sliferunsincyclesjustthesameasstocks.Hereacheshisapexanddoesnotknowit.Histimeformoneymakingends,andheshouldkeepwhathehasalreadymade,ratherthantrytomakemore.Thereisaseasonaltrendandamathematical,scientificcyclewhichdeterminesthetimeandlimitstowhichamancangoandwhenhebucksthelawandthetideturnsagainsthim,heiscarrieddownbytheundertow.Themostimportantthingforeverymantoknowiswhentoquit.Afteramanhasmademoney,hemustknowwhenhehasenough,stopandkeepwhathehas.W.D.Gann,WallStreetStockSelector,p.34

Myperiodofgoodluckhadrunout,andIwastradinginaperiodwhichshouldhavebeenforrest,recreation,andgainingknowledgeinsteadoftryingtomakemoremoneywhichIdidnotneed.IstartedtradingagainintheSpringof1908,andshouldhavehadsomeruletotellmewhenmytrendhadturnedinmyfavor.IbegantotradeinWheatandthefirstthreetradesImadeshowedprofits.ThiswasasignthatluckwaswithmeandIshouldpressit.W.D.Gann,WallStreetStockSelector,p.35

Noticeinthequotationfrompage34Gannusedtheword"scientific"whichIexplainedisaveilforthewordastrological.Ifweswitchthesetwowords,thequotationreads,"Thereisaseasonaltrendandamathematical,astrologicalcyclewhichdeterminesthetimeandlimitstowhichamancango....".ThiscompletelychangesourperspectiveonwhatGannwrote.Intheabovetwo

quotationsGannexpressedthebeliefthatbyinterpretingapersonalhoroscopeitispossibletoidentifythepositiveandnegativecycleswithinsomeone'slife.Whenthesetimeperiodsendatradershouldrest,whentheystartagainatradershouldpresshisadvantage.WhatpossibleproofintheabovequotationistherethatwhatIhavejusttoldyouiscorrect?WeknowthatGannwasbornonJune6,1878.Inthequotationabove,takenfrompage35,Gannwrotethathistrendturnedinhisfavorinthespringof1908.IfwelookuptheplanetarylongitudesonthedayGannwasborn,Saturn wasatthelongitude1° 42'.SpringstartsaroundMarch21attheVernalEquinox.IfwelookupSpring1908,wecanseethatSaturnreturnedto1° 42'onApril2,1908whichisearlyin"theSpringof1908".GannbelievedhispersonalseasonaltrendturnedpositivewhenSaturnreturnedtothelongitudeitoccupiedinhisbirthchart.SeeFigure4-1.ThisshowsthatwhenGannwroteaboutaman'sseasonaltrendhewasalludingtotheinterpretationofthetrader'shoroscope.TodiscovertheastrologyGannalludedtointhisexampleyouwouldhavetoknownaboutGann'sastrologymethodsbeforereadingGann'sbook.ThisiswhyitisalmostimpossibleformosttraderstodiscoverthesecretsinGann'searlybooks.InGann'squotationfrompage34,above,Gannwrote"Aman'sliferunsincyclesjustthesameasstocks."ThisrevealsthatGannwasinterpretingastock'sseasonaltrendorcycleswiththesamemethodsheusedtointerpretatrader'sseasonaltrendwhichiswhyunderstandingthisexampleisimportant.

InVolume1,IshowedthatthewordnaturalwastheliterarykeytounlockingthehiddenastrologyinGann's1941classicHowToMakeProfitsTradingIn

Commodities.ThesameistrueforTruthofTheStockTapebutonamuchsmallerscale.InTruthofTheStockTapethewordnaturalinoneformoranother,suchasnatureornaturallyisusedabout25times.Onlyonetimeisthewordnaturalusedtoclearlyidentifyaspecificdayandprice.Thepassagewhichcontainsthis"natural"datecanbeseenbelow.

"Theyremainedaroundthissamelevelwithfluctuationsnarrow,untilJanuary,1907whentheybrokeoutofthedistributingzone,andaftersuchalongperiodofadvancingmarkets,withdistributionwhichhadlastedforoverayear,itwasbutnaturalthatadrasticdeclineshouldfollow.AsilentpanicoccurredonMarch14,1907,carryingpricesdownto98.ThiswasoneofthemostrapiddeclinesthathaseveroccurredontheStockExchange."W.D.Gann,TruthofTheStockTape,p.132

ThisquotationcomesfromadiscussionoftheDow-Jones20StockRailroadAverageonpage132ofTruthofTheStockTape.This"natural"dateidentifiedtheJanuary1907topandthentheexactdaytheaveragecrashed,March14,1907.Chart4-2wasmadeusingthepricesshownonthegraphinTruthofTheStockTapepage129.OnChart4-2,thedateswhichareidentifiedbythis"natural"datearelabeled.

Duringthefirstdateidentifiedbytheword"natural",January1907,thereweretwoeclipses:atotalsolareclipseonJanuary14,1907andapartiallunareclipseonJanuary29,1907.Figure4-3,showsthepositionofthesunandmoonduring

thisJanuary14lunareclipse.Duringthiseclipsethesunwasatthelongitude8°30'.IplacedtheglyphforVenus onFigure4-3toshowVenus'longitude

duringtheeclipsewas22° 12'.IfwefollowthepathofVenusafterthiseclipse,wecaneasilydeterminethatVenuscrossedoverthesun'seclipselongitudeof8° 30'onexactlyMarch14,1907,whichisthedayidentifiedbythe"natural"date.Withthis"natural"date,Gannconcealedatimingmethod.FirstGannlookedforaneclipsewhichoccurredduringatoppingformation.Second,Gannidentifiedtheactualdayofthecrashoratleastalargedeclinebydeterminingwhenaplanetwouldbecrossingoverthesun'seclipselongitude.InthisexampletheeclipseoccurredduringatoppingpatterninJanuary1907andthepanicoccurredwhenVenuscrossedthesun'seclipselongitudeonMarch14,1907.

SevenyearsafterheconcealedthepreviouseclipsemethodinTruthofTheStockTape,GannconcealedavariationofthismethodinWallStreetStockSelector.Inthequotationbelowtheword"naturally"isusedasavariationofnatural.ThisisoneofonlytwonaturaldatesinWallStreetStockSelectorwhichidentifiesaspecificdate.

Theswingchartonpage56showsthemajorandminormovementsonSteelfromthedateoflistingontheNewYorkStockExchange,March28,1901,toApril7,1930.Itstartedat42-3/4inMarch,1901,andadvancedto55inApril.

Beinganewstockwithvolumeoffivemillionshares,naturallyittookalongtimetodistributeit.ThefirstbigdeclineoccurredinthepanicofMay9,1901,whenthestockdeclinedto24.W.D.Gann,WallStreetStockSelector,p.119

Thisnaturaldateismorecomplexthanmostothersbecausetheword"naturally"isbetweentwodates.Thedatebeforetheword"naturally"isthefirsttradingdateandpriceforU.S.SteelontheNewYorkStockExchange.Thedateaftertheword"naturally"isthedateofthefirstbigdeclineinU.S.Steelandthelowpriceofthatdecline.TounderstandwhatGannconcealedwiththisnaturaldatewemustusebothofthesedates.ThefirstdatelistedinthisquotationisMarch28,1901.ThisdateisveryimportantbecauseitshowsusthatGannusedwhatiscalleda1sttradehoroscope.A1sttradehoroscopeisahoroscopecastfortheopeningtimeofthestockmarketforthefirstdayastockstartstrading.GannnotonlyprovideduswiththefirsttradedatebutalsothefirsttradepriceforU.S.Steel.ThestartingpriceofU.S.Steelonthefirsttradingdaywas42-3/4whichconvertsinto12°45'.Thiscanbeconsideredthenatallongitudeofthestockprice.OnthefirsttradehoroscopeforU.S.Steel,labeledFigure4-4,Ihaveplaceda"$"torepresentthelongitudeoftheopeningpriceofU.S.Steelstock.ThefirsteclipsetooccurafterU.S.SteelstartedtradingonMarch28,1901wasapenumbrallunareclipseonMay3,1901.Thiseclipseformedwiththesunonthelongitude12° 36'andrememberthatthestartingpricehadalongitudeof12° 45'.TheseconddateGannidentifiedinthisquotationwasMay9,1901whichwasthedateofamarketcrashwhenthepriceofU.S.Steeldeclinedto24.OnMay9,1901theplanetMercury crossedboththesun'seclipselongitudeandthestockprices'1sttradelongitudeof12° 36'-45'andtriggeredthe"firstbigdecline"inU.S.Steelstock.ThisisshownonFigure4-5&4-6.ThefollowingideacanbederivedfromthisexampleinWallStreetStockSelector.Whenaneclipseoccursonalongitudeina1sttradehoroscope,itisimportanttowatchforthenexttimeaplanetcrossesthatfirsttradelongitude.ThisprocedureisverysimilartothemethodGannconcealedinTruthofTheStockTapebutinWallStreetStockSelectorGannaddedthefirsttradehoroscope.IntheforewordofWallStreetStockSelectorGannwrote,"ThemainobjectofthisbookistobringTruthofTheStockTapeuptodate...."andwiththisexampleitappearsthathewasreferringtotheconcealedastrologymethods

aswellastheopenlydiscussednon-astrologymethods.Figure4-4showsthepositionsoftheplanetsandthestockpricewhenU.S.SteelstartedtradingonMarch28,1901.

Figure4-5showsthepositionofthe1sttradinglongitudeforU.S.Steel'sstockprice$,alongwiththepositionofthesunandmoonduringthe1steclipsetooccurafterU.S.Steelstartedtrading.Thiseclipseoccurredwiththesunon12°36'whichisalsothe1sttradelongitudeofU.S.Steel'sstockprice.

Figure4-7isanartisticreplicaofahoroscopeGannmadefortheeggmarket.Onthishoroscopetherearemanyoverlappingplanetaryglyphsandnumbers.Belowthehoroscopetherearefourdatesofhighandlowpricesforeggsandabovetotheleftofthehoroscopeis"1931 ".Theglyphsandnumbersonthischartaretheplanetarypositionsduringeachofthefourdatesofahighorlowlistedbelowthechartandduringthe"1931 "aspect.Ontheoriginalcharttherearemoreglyphsandnumbersthanyouseebelowbutsomearetoofainttomakeout.ThefactthatGannplacedtheplanetarypositionsduringseveraltops,bottomsandaspectsononehoroscopeshowsthathewascomparingtheplanetarypositionsduringthedifferentturningpointsandaspects.Thisexaminationmightincludeasearchforplanetsformingaspectsbetweendifferentturningpointsordifferentplanetsonthesamedegreewhentopsandbottomsoccur.TheimportantpointisthatthischartprovesGanndidsomekindofhoroscopeanalysisontopsandbottomsinthefinancialmarkets.Figures4-8to4-12eachshowonelayerofinformationcontainedonFigure4-7.

TheplanetarylongitudesareplacedonthezodiacastheyappearonGann'soriginalegghoroscope.IhaveaddedthelistofplanetsanddegreesoutsidethehoroscopessoyoucanseewhatGannwrote.Figure4-8showstheplanetslistedbyGannfortheJanuary14,1921high.

Figure4-9showstheplanetsGannlistedfortheJanuary30,1931low.

OnFigure4-12Gannwrote"1931 "intheupperleftcorner.During1931the135°sesquisquare aspectoccurred3timesbetweenSaturn andNeptune

.OnFigure4-12Gannwrotetheplanetarypositionsfromthe whichoccurredonFebruary21,1931.ApparentlyGannwascomparingtheplanetarylongitudesduringthisaspectwiththeplanetarylongitudesduringtopsandbottoms.PhotocopiesoftheoriginalegghoroscopeweremadeavailablebyLambert-GannPublishingintheearlytomideightiesbuttomyknowledgethischartisnolongeravailableforsaletothegeneralpublic.ThisistheonlyoriginalGannchartdiscussedinthisbookwhichiscurrentlynotavailable.

NextIwillpresentseveralreplicasofanactualGannCircleChartwhichwasfirstpublishedintheFebruary1983W.D.GannTechnicalReview.TheW.D.GannTechnicalReviewisnolongerpublishedbutallthebackissuesarecurrentlyavailablefromLambert-GannPublishing.TheCircleChartpublishedintheW.D.GannTechnicalReviewismonochromeandreducedtoaboutthreesquareinchesfromthemuchlargercolororiginalsonotallthewritingwhichGannputonthischartislegible.ThesereplicaswillprovethatGannusedhisCircleCharttoperformthesameanalysisthatwesawonthepreviousegghoroscope.Figure4-13belowisthefirstreplicaoftheCircleChartGannusedtoanalyzetheryemarket.MyresearchhasshownthattheCircleChartwasGann'sfirstPriceandTimeChart.IbelievethatasGanndevelopedhisfinancialastrologyideasheplacedpricesonthehoroscopeandcalledittheCircleChart.

Let'sexaminetheconstructionoftheCircleChart.ThenumbersontheinsideoftheCircleChartstartwith1ontherightsideoftheinnerring.Thenumbersmovecounterclockwisearoundto24thenmoveouttothesecondringto25.Therearetwenty-fournumbersineachring.TheoriginalryeCircleChartgoesupto576,whichisthesquareoftwenty-foursotherearetwenty-fourringsoftwenty-fournumbers.TheCircleChartinFigure4-13goesupto360,thenhasabreakinthewheelandfinallycompletesthelasttworingsendingat576.ThecompletechartistoolargetofitononepagesoIaddedthisbreakinthewheel.AroundtheoutsideoftheCircleChart,Gannplacedseveralastrologicalcycleswhichhecorrelatedtotheprices.First,startingontherightsideoftheCircleChart,arethedegreesin15°incrementswhichrepresentthedegreesofthezodiac.TheseareusedtocorrelatetheorbitalcycleofanyplanettothenumbersontheCircleChart.Secondarethedatesoftheyear,startingwithMarch20.Thesedatesrepresentthesun'smotionthroughthesky.Third,Gannlistedthetimeofdayinhourlyincrementsstartingwith6AM.Thisrepresentstheearthturningonitsaxisandwouldbeusedwithintradaypricemovements.ThatconcludesthebasicconstructionofGann'sCircleChart.Nowlet'sexaminewhatGannwroteontheCircleChartinFigure4-13.First,noticethatGannwrotethedateandpriceofaryemarkethighshownas"1951,Dec12high220-1/2"belowtheCircleChart.Second,Ganncircledthehighpriceof220andwrotethesameidentifyinginformationforthispriceontheoutsideofthechartabovetheprice.Hethendrewanarrowfromthisinformationdowntowardtheprice220.ThiscanbeseenontheoutsideoftheCircleChartnexttothe"10AM".Next,GannwrotetheplanetaryglyphsandtheirlongitudesontheCircleChartforthedateDecember12,1951.OfftothelowerrightoftheCircleChartIhavelistedwhatGannwroteonthechart.Forsomeoftheplanetaryglyphs,Gannincludedthezodiacsigninwhichtheplanetwaslocated.ForexampleGannwrote" 20° ."ThisisimportantbecauseitidentifiesthatGanndidinfactusetheCircleChartasazodiac.Thefirsttwo15°sectionsareAries,thesecondtwoareTaurusandsoonaroundthechart.FortheplanetswhichGanndidnotwriteazodiacsignIaddedthesigninparenthesestotherightoftheglyph,onthelistwhichIadded.Figure4-13clearlyshowsthatGannusedtheCircleCharttoperformfinancialastrologyanalysis.

Figure4-14belowisthesecondreplicaofthesameCircleChartGannusedwiththeryemarket.NoticethatGannwrotethedateandpriceofthehigh"1947,Feb,21CashRyehigh335"belowtheCircleChart.Gannthencircledthehighpriceof335andwrotetheidentifyinginformationontheoutsideoftheCircleChartnexttothepriceanddrewanarrowtotheprice.Thiscanbeseenontherightsideofthechartnextto"5AM".FinallyGannwrotetheplanetaryglyphsandlongitudesforthedateFebruary21,1947ontheCircleChart.AlistoftheglyphsandlongitudesonthisCircleCharthasbeenaddedatthelowerrightsideofFigure4-14.

Figure4-15isthelastreplicaofGann'sryemarketCircleChart.NoticethatGanndidnotwritethedateandpriceofthemarketturningpointbelowtheCircleChartbutinsteadwrotethedatenexttomostofthecorrespondingplanetaryglyphs.ThedateisMay7,1946.NexttoJupiterandMarsGannaccidentallywrote1947.Thiswasamistake.GanndidnotlistapriceforthisdatebutbycrossreferencingMay7,1946withtheryepricechartwhichcomeswiththeW.D.GannCommodityCourseyoucandetermineMay7,1946wasamarkethighof286.OntheCircleChartGannhadcircledtheprice286confirmingthisisthecorrecttop.

ThespecificmethodGannappliedtotheegghoroscopeandryeCircleChartisrevealedinthefollowingquotationfromGann'sMasterEggCourse.

MostalltheimportanthighsandlowsonEggsareshownonthischart.Thelowpriceshavearedcirclearoundthem.Thehighpriceshaveagreencirclearoundthem.Thiswillenableyoutoseewhenthepriceisatthesamelongitudeoftheprevioushighandlowprice,orwhenthepriceis90,120,180andsoforth,fromtheprevioushighandlowprice.W.D.Gann,MasterEggCourse,1949,p.141

ThechartGannreferredtointhisquotationistheCircleChart.Thisquotation

specificallystatesthatGannwaslookingfortopsandbottomstooccuronlongitudesrelatedtothelongitudesofprevioustopsandbottoms.WhenweputthisquotationinthecontextoftheastrologyonGann'segghoroscopeandryeCircleChartitbecomesclearthatGannwascorrelatingtheastrologicallongitudesofpreviousturningpointswiththeastrologicallongitudesofcurrentturningpoints.TodiscovermoreabouttheastrologymethodsGannusedwiththeCircleChartweagainwillusethewordnaturalasaliterarykeytounlockGann'swritings.Belowarethefirstthreelinesfromaparagraphonpage141ofGann'sMasterEggCourse.

Example:1500wasthelowestpriceOctoberEggseversold.ThiswasMay28,1932,andthelongitudeofthepricewas60°andthedatewasMay21.Thismeansthatthepriceoccurred7daysfromthenaturalangle.....W.D.Gann,MasterEggCourse,1953,p.141

Figure4-16isaninetydegreesectionofanactualGannCircleChartwhichcomeswiththeW.D.GannCommodityCourseandisthechartGannmentionedintheabovequotation.NoticethatFigure4-16isnotdividedinto15°incrementslikethepreviousryeCircleChart.Itisdividedinto72,5°increments.ThisvariationshowsthatGanndidnothaveonestandarddivisionfortheCircleChartbutadjustedthenumberofdivisionsontheCircleChartashesawfit.InthequotationjustaboveGannidentifiedthepriceanddateoftheOctobereggcontract'salltimelowas,1500onMay28,1932.OnFigure4-16thelowprice1500iscircled.NextinthequotationGannprovidedtheprice'scoordinatesontheCircleChartwhenhewrote"thelongitudeofthepricewas60°andthedatewasMay21".WhenGannmadeaCircleChartheoffsetanumberfromthedegreelinewhichitactuallyrepresented.OnFigure4-16,theprice1500isrightnexttothe60°line.Anotherwaytoshowthat1500isonthe60ºlineistolookonFigure4-16tothedateGannassignedtothe60°line.ThatdateisMay21.ThisshouldmakeitclearwhatGannmeantwhenhewrote"thelongitudeoftheprice(1500)was60°andthedatewasMay21".

ThelastsentenceinthequotationwearediscussingfromGann'sMasterEggCourserevealstheastrologicalanalysisGannperformedontheeggCircleChart.Gannwrote,"Thismeansthatthepriceoccurred7daysfromthenaturalangle."Ifwelookupthelongitudeofthesunonthedateofthelowprice,May28,1932,wecanseethatitis7°Geminior67°.Thisshowsthatthelowpriceof1500whichhadalongitudeof60°was7°awayfromthelongitudeofthesunwhenthelowoccurred.Thesunmovesapproximatelyonedegreeperdayandwasonthelongitudeoftheprice60°sevendaysearlier.ThisexplainswhatGannmeantwhenhesaidthepriceoccurred7daysfromthenaturalangle.The"naturalangle"isthesun'slongitudeandthelowprice1500occurred7°or7daysawayfromthelongitudeofthesun.ThiscanbeseenonFigure4-17whereIhaveaddedthesun'sglyphontheouterringoftheCircleChart.Thelinedrawn

fromthesun'sglyphtothecenteroftheCircleChartrepresentsthesun'slongitudeonMay28,1932,thedateofthelow.Figure4-17showsthatthelongitudeofthesunis7°awayfromthelongitudeoftheprice,exactlyasGannwrote.ThisCircleChartmethodusesthesamebasicconceptasthePythagoreanmethodwhichwasdiscussedinVolume1.TheideaisthattheplanetsmovearoundtheoutsideofthePriceandTimeChartandtheplanet'slongituderepresentsanaturalanglewhichisimportantforcausingtops,bottomsandresistancelevels.ToreviewthePythagoreanmethodseeChapter10ofVolume1.ThequotationbelowisfromGann'sMasterEggCoursewherehediscussedtheCircleChartusedinthisexample.NoticethatGannopenlywrotethatthenaturalanglesarebasedontheearthandsun'snaturalposition,whichiswhatIrevealedinthisexampleandisshownonFigure4-17.

Itrequires365-1/4daysfortheearthtomake1completerevolutionaroundthesunandmove360°.Thesenaturalanglesandtimeperiodsarebasedontheearthandsun'snaturalposition.W.D.Gann,MasterEggCourse,1953,p.140

GanndiedinJuneof1955sohis1954Soybeanletterwasoneofthelastdocumentshewrote.InthisletterGannprovidedtwopiecesofinformationwhichareimportantforourunderstandingoftheCircleChart.FirstGanndescribedthecorrectpricetolongitudecorrelationswhenhewrote"300Priceequals30°Virgo.302Equals30°Libra.304equals30°Scorpio."ThisisveryimportantbecauseitprovesthatGannoffsetthepricesbetweenthe15°longitudelinesratherthanplacingthemontopofthe15°lineswhichtheyactuallyrepresent.Figure4-18isa90°sectionofaCircleChartthewayGannsetthechartupandFigure4-19isthesame90°sectionofaCircleChartwiththepricesonthelongitudelinewhichtheyactuallyrepresent.WhenIshowanexampleofaCircleChart,thepriceswillbeadjustedtothecorrectlongitudebecausethisprovidesabetterunderstandingofthepricetolongitude

relationshipstheCircleChartrepresents.

Inhis1954SoybeanletterGannalsodescribedtheproperwaytosubdividetheCircleChartwhendealingwithfractionswhenhewrote"...MaySoybeanshigh311-1/4.Thisequaled18°45'inPisces...".TheactualincrementswhichGannusedontheCircleChartweremostlikelytheminimumpricefluctuationofthestockorcommodity.Thismeansthatyoudonotroundthepriceupordowntoawholenumberbutconverttheactualpriceintodegreesbasedonitspositionbetweentwowholenumbers.Forexample,ontheCircleChart,290isat0° 0'and291isat15° 0'sohalf-waybetweenthesetwonumberswouldbehalf-waybetweenthesetwolongitudesmaking290-1/2equalto7° 30'.Thesameistrueforanydivisionofawholenumber.Figure4-20isa90°sectionofaCircleChartwhichIhavesetuptoshowhowthepricetolongitudecorrelationsontheCircleChartworkoutforanythingwhichmovesinone-fourthincrementssuchassoybeans.One-fourthofeach15°sectionproducesa3°45'zone.ItappearsGannusedthiszonesomethinglikeanorbmeaningthatanythingwithin3°45'ofthepricewouldbeconsideredanaccuratecorrelation.

GannusedwhathecalledasquarechartwhichistheCircleChartmadeintheshapeofasquare.ThesquarechartbelowlabeledFigure4-22hasthenumbersonthesamedegreelineastheCircleChartbelowlabeledFigure4-21.Onthesquarechartthe45°angleslabeled"A"and"B"arethesameasthedarkspiralinglineslabeled"A"and"B"ontheCircleChartbelow.ComparethepositionofthenumbersonFigure4-21andFigure4-22.

Let'sexaminehowthesquarechartisconstructed.Ganncalledeachcolumnofnumbersonthesquarecharta"cycle".Thesquarechartstartsatthebottomleftcornerwith15andmovesupto360.ThisfirstcolumnofnumbersonthesquarechartinFigure4-22istheinnerringontheCircleChartshowninFigure4-21.Next,thenumbersonthesquarechartmovefromthetopofthefirstcolumntothebottomofthesecondcolumnwhichstartsthesecondcycle.GanncalledthechartinFigure4-22the"Master360°Squareof12"becauseeachsquarehastwelvecycles.Thefirstsquareoftwelvecyclesendswiththenumber4320andthesecondsquarestartswith4335.

Gannalsousedsquarechartswhichmovedinincrementsof1orhadeachcyclecontaintwelvenumbersratherthantwenty-fournumbersandGannusedafewothervariations.ThewayGannmadeasquarechartwastoplacethenumbersbetweenthefifteendegreelinesthesamewayhemadetheCircleChart.OnFigure4-22,Ishiftedthenumbersupwardtotheircorrectpositiontothedegreelinewithwhichtheyareactuallycorrelated.Inmyopinion,Gannusedthesquarechartsfortwomainreasons.First,thesquarechartallowedGanntoeasilyexperimentwithdifferentdivisionsofthezodiac.Figure4-21andFigure4-22dividethezodiacinto24sections.IfGannwantedtoexperimentwiththezodiacdividedintoanunusualnumbersuchas17oraverylargenumbersuchas90,itwouldbeverydifficulttomakesuchaCircleChart.ByusingasquarechartGanncouldquicklylayoutazodiacdividedintoanyunusualnumberoranylargenumber.ThesecondreasonGannusedthesquarecharthastodowithlines"A"and"B"onFigure4-21andFigure4-22.Lines"A"and"B"areverysimpleonthesquarechartbutareverycomplexontheCircleChart.Besideslines"A"and"B"Gannalsoused45°linesstartingfromtheleftedgeofthesquarechartatthe90°line,180°lineandthe270°line.Thiscreatedawebof45°lineswhichissimpletouseonthesquarechartbutalmostimpossibletotransfertotheCircleChart.Belowisaquotationfromadiscussionofthe"Master360°Squareof12"inGann'sMasterEggCourseinwhichGannusedtheword"natural"toidentifythe

Dec.28,1920highof60.00¢.

Example:1920December28Eggshigh60centsperdozen.Notethatthiswasinthefifthcycleofasecondsquareof12x360andonthe270°or3/4ofthecircle,andwherea45°anglemovingupfromthe9cyclecrossedata45°anglemovingdownfromtheendofthefirstsquareorfrom4320crossedat60cents,makingthisastrongnaturalresistancelevel.Togetthecyclesof360°backfromthisprice,youmovebackonthesameline,oronthe270°line.Thisgivestheresistancelevelsat5640,5280,4920,4560,4200,3840,3480,3120,2760,2400,2040,1680,1320,960,600and240whichrepresentsthedegreeofthehighestprice.W.D.Gann,MasterEggCourse,1949,p.122

InthisquotationGannmadeatypographicalerrorwhenhewrotethat60centsor6000is"onthe270°or3/4ofthecircle"andthenasecondtimewhenhewrote"Togetthecyclesof360°backfromthisprice,youmovebackonthesameline,oronthe270°line."Thisisimportantbecause6000isnotonthe270°line;itisonthe240°line.Figure4-23isthesquarechartwhichGanndiscussedinthequotationabove.OnFigure4-23,Ihavecircledthehighprice6000.Ifyoufollowthelinethat6000ison,backtoitsstartingpointontheleftofFigure4-23youcanseethatitisonthe240°line.ThiscanalsobeseeninthelastsentenceofGann'squotationwhereheactuallyliststhenumbersonthesamedegreelineas6000andyoucanseeheliststhelastnumberas240identifyingthat6000isonthe240°line.Figure4-17showedthatGanncorrelatedthelongitudeofthesunontheoutsideoftheCircleChartwiththelongitudeofapriceontheinsideoftheCircleChart.GannconcealedthesameastrologymethodintheabovequotationdealingwiththesquarechartbutusedMercuryinsteadoftheSun.Gannwrotethat60¢is"astrongnaturalresistancelevel"becauseonDecember28,1920whenthehighoccurred,heliocentricMercurycrossedover240°whichisthelongitudeofthehighprice60¢.OnFigure4-23,Ihavecircled6000andplaced"H "representingheliocentricMercuryateachendofthe240°lineshowingthatthistopwasmadeagainstthisplanetarylongitudeonthissquarechart.

NextwearegoingtorevisitGann's1954soybeanletterandSpeculation:AProfitableProfession.EarlierIpointedoutthatthesetwodocumentswerewrittenatthesametimeandcontainedmaterialwhichwascomplementary.ThemethodsGannconcealedinbothofthesedocumentsdealwithsoybeanssowewillstartbytakingalookatthesoybeanhoroscope.ThedateGannprovidedinhis1954SoybeanletterforthefirsttradingdayofsoybeanfutureswasOctober5,1936.Figure4-24isthesoybeanfuturesfirsttradehoroscope.ThehoroscopebelowdoesnotusetheascentorahousesystembecauseGanndidnotprovidetheexactlocationortimesoybeanfuturesstartedtradingwhichindicatesthathedidnotintendforustousethem.TheamountofvarianceororbwhichIhaveallowedeachaspectisamaximumoftwodegrees.NoticeonFigure4-24therearethreeoppositionsandfoursquareswhichinvolvethemoon,Venus,Jupiter,Saturn,UranusandNeptune.TheplanetswhichareformingsquareaspectsinFigure4-24areconnectedbyasolidlineandtheplanetsformingoppositionsareconnectedbydottedlines.

ThefactthatGanntalkedopenlyaboutastrologyinhis1954soybeanletterhasfooledeveryonewhohasseenitintobelievingthatthelettercontainsonlywhatyouseeonthesurface.WheneverGannwroteaboutthemarkets,healmostalwaysconcealedadeeperlevelofknowledgeandhis1954soybeanletterisnoexception.InthisletterGanndefined"activeangles"bywriting"PricesandTimePeriodswherethelongitudeofthemajorplanetsareorwherethesquares,triangles,oppositionsaretotheseplanets."ThisistheastrologicalmethodofconvertingplanetarylongitudesintopriceswhichwaspresentedinChapter2ofthisbook.Todiscoverwhattheactiveanglesreallyare,lookatthequotationbelowfromthe1954soybeanletterwhereGanngivesaspecificexampleofanactiveangle.

Examplesoflive,activeangles:Atthepresentwriting,Jan.18,1954,SaturnGeocentricis8to9°Scorpio.Addthesquareor90°gives8to9°Aquariusandequalstheprice309forMayBeans.W.D.Gann,PersonalSoybeanLetter,January18,1954

InthisquotationGannrevealstwospecificexamplesasactiveangles,thelongitudeofSaturnat8to9°Scorpio andoneofthesquarelongitudestoSaturnat8to9°Aquarius .Nowlookbackatthelistofdegreesnexttothesoybean1sttradehoroscopeinFigure4-24.Thesoybean1sttradelongitudeofVenusis8° 27'.ItisnocoincidencethatthelongitudeofSaturnwhichGannlistsasanactiveangle,8to9°Scorpio iscrossingoverthe1sttradelongitudeofVenus,8° 27'.ThiscanbeseeninFigure4-25below.Gannalsolistedthesquarelongitude,8to9°Aquarius,asanactiveangle.ThisrevealsthesecrettruththatGann'sactiveanglesare1sttradelongitudeswhicharecurrentlybeingcrossedoveroraspectedbyaplanet.Inhis1954soybeanletterGannprovidedtwomoreexampleswhichwillprovethisdefinitionofactiveanglesiscorrect.

InthequotationbelowGannwroteabouttheCircleChartandprovidedmoreevidencethatourdefinitionofactiveanglesiscorrect.

Example:Dec.2,1953,MaySoybeanshigh311-1/4.Thisequaled18°45'inPisces,closesquareor90°ofJupiter,135°toSaturnand180°oftheaverages,and120°Uranus.300Priceequals30°Virgo.302Equals30°Libra.304equals30°Scorpio.W.D.Gann,PersonalSoybeanLetter,January18,1954

Figure4-26isaCircleCharthoroscopeforthe1sttradingdayofsoybeanfutures.Intheabovequotation,Gannconverts311-1/4into18° 45'whichis

veryclosetothe1sttradelongitudeofSaturn17° 24'.Inthisquotation,GannindicatedthatJupiter,Saturn,Uranusand"theaverages"areformingaspectswiththelongitudeoftheprice.InChapter2wediscussedthefactthatinGann's1954soybeanletter,hesaidthataveragingthelongitudesofseveralplanetscanidentifypointsofsupportandresistance.TheplanetaryaveragetowhichGannreferredtointhisquotationmightbetheaveragelongitudeofMars,Jupiter,Saturn,UranusandNeptunewhichis162.9°,butthereisnowaytobesure.ThefouraspectsGannidentifiedinthisquotationarefrom1°to4°awayfrombeingexact.Rememberthedefinitionofanactiveangleisa1sttradelongitudewhichisbeingaspected.TheseaspectsarewhatGannbelievedactivatedthe1sttradelongitudeofSaturn,causingthe311-1/4high.ThisisshowninFigure4-26.

Thequotationbelowprovidesinformationonthetradewhichfollowedthe311-1/4topshowninFigure4-26.

Havingbeforeyoualltheinformationoutlinedabove,youwouldcertainlyhavegoneshortofMaySoybeansonDec.2,1953andcoveryourshortonDec.17at296becausethepricewasdowntothe45degreeanglefrom44onthemonthlyhighandlowchart.W.D.Gann,PersonalSoybeanLetter,January18,1954

Inthequotationjustabove,Dec.2,1953identifiesthe311-1/4topwhichIjust

explained.Inthisnextexample,Iwillfocusontheseconddate,Dec.17,1953,whenthepricewas296.Afterthe311-1/4highonDec.2thepriceofMaysoybeansfellandmovedaroundtheCircleChartpassingoverthesoybean1sttradelongitudesofJupiter,Venus,Sun,Mercury,NeptuneandMarstostopontheprice296.OnFigure4-27youcanseethatthe1sttradelongitudeofPluto,28° 38'crossesovertheprice296.WhydidGannwantustocovertheshortpositionatthe1sttradelongitudeofPlutoandnotoneoftheother1sttradelongitudes?TheansweristhatonthedateGannidentifiedintheabovequotation,Dec.17,1953,Marsmovedonto28° whichformedasquarewithandactivatedPluto's1sttradelongitudeof28° .ThisshowsthatthepriceofMaysoybeansmoveduptotheactivated1sttradelongitudeofSaturnat311-1/4andthenfelltotheactivated1sttradelongitudeofPlutoat296.ThiscanbeseenonFigure4-27.ThesecretoftheactiveanglesiswhatGannwantedtherecipientofhissoybeanlettertofindastheystudiedthedates,pricesandlongitudesinhisletter.

InthequotationbelowGanndescribedascenariowhichwouldindicatelowerpricesifitweretooccur.

OnJan.18,1954,theplanetSaturnGeocentricis8º30'Scorpio,and15ºScorpiogivesapriceof303,thereforewhenMayBeansdeclinesto302,theywillbebelowthebodyorlongitudeofSaturnandwillindicatelower.W.D.Gann,PersonalSoybeanLetter,January18,1954

NoticethatthequotationaboveusesJanuary18,1954whichGannindicatedwasthedateofanactiveangleinthequotationshownpreviouslyjustaboveFigure4-25.Gannalsoindicatedthatthiswasthedatetheletterwasbeingwritten.Inthequotationabove,Gannsaidthatifthepricedeclinedbelowthelongitudeof

Saturnto302itwouldindicatelowerprices.Saturnisaslowmovingplanetwhichcrossesalittlemorethan1°permonth.The1sttradelongitudeofVenusis8° andSaturncrossed8° activatingVenus'1sttradelongitudefromJanuary8to27,1954.ThismeansVenus'1sttradelongitudewouldstillbeactivated9daysafterGannwrotehissoybeanletter.InthisquotationGannconcealedascenarioforthe9daysVenus'1sttradelongitudewasactiveafterhewrotetheletter.Ganninstructedthatifthepriceofsoybeansfellbelowtheactivated1sttradelongitudeofVenuswhileitwasstillbeingactivatedthenweshouldexpectlowerprices.ThisexampleisshowninFigure4-29.Agenerallessonfromthisquotationisthatifthepricemovesthroughanactiveangleitindicatesthepricewillcontinuemovinginthesamedirection.Chart4-28isasoybeanpricechartmadefromtheturningpointsGannidentifiedinSpeculation:AProfitableProfessionandhis1954soybeanletter.

ThenexttwoexamplesshowninFigure4-31and4-33willrevealthesolutiontooneofGann'ssoybeantradeswhichisidentifiedonpage26ofSpeculation:AProfitableProfession.ToshowthesolutiontothissoybeantradeIwilluseamethodGannconcealedinhisMasterEggCourseandtheinformationhewroteinhis1954soybeanletter.Gannidentifiedtheentrypointforhissoybeantradewhenhewrote"ThewritersoldJulyBeansshortat412onApril30,..."Theyearforthistradewas1954.OntheCircleChart,theprice412isonthelongitude0°Gemini0'or60°.OnApril30,1954geocentricVenus wasat1°Gemini55'or61.92°.In1954,1/8¢wasstilltheminimummovementforsoybeans.TheCircleChartweareusingis

dividedinto15°sectionssotofindthedegreevalueof1/8¢,wedivide15°by8whichyields1.875°.OntheCircleCharttheclosest1/8¢divisiontoVenus'longitude,61.92°,is412-1/8whichisjust1/8¢above412whereGannsaidhesoldshort.ThiscanbeseenonChart4-30andFigure4-31.CompareFigure4-31belowwithFigure4-17whichshowstheCircleChartastrologymethodGannconcealedinhisMasterEggCourse.NoticethatthemethodusedtoshowhowGanntimedhisentryintothis1954soybeantradeinFigure4-31isthesamemethodGannconcealedinhis1953MasterEggCourse.

Gannidentifiedtheexitpointforhissoybeantradewhenhewrote"Wecoveredshortsat370onMay12..."InChapter2ofthisbookImentionedthatGanndescribedseveralplanetaryaveragesinhis1954soybeanletter.SpecificallyGannwrote,"AlsotheGeocentricandHeliocentricaverageofthefivemajorplanetswithMarsleftout,isofgreatimportanceandshouldbewatched."ThisisthefiveouterplanetaveragewhichwaspresentedonChart2-5.IfwecalculatethegeocentricaverageofthisexactplanetarycombinationforthedayGanncoveredhisshortposition,May12,itworksoutto151.76°.Thisis( 87.53°+214.87°+ 109.9°+ 203.98°+ 142.53°)÷5=151.76°.Whenweplace

151.76°ontheouterringoftheCircleChart,theclosestpriceitcorrelateswithis370-1/8whichisonly1/8fromGann'sexitprice370.ThisisshownonChart4-32andontheCircleChartinFigure4-33.ThisisimportantbecauseitshowsthatGannwatchedtheplanetaryaveragesonhisPriceandTimeChartsaswellasdirectlyonhispricecharts.

ThefollowingsixexampleswillapplytheCircleCharttothesoybeanmarketusingtwoofthemethodsderivedoutofGann'swritingsanddiscussedinthischapter.First,wewillbeobservinghowtopandbottompricesinsidetheCircleChartrelatetoaplanet'spositionaroundtheoutsideoftheCircleChart.Second,wewillbelookingforpricestocorrelatewithactiveangles.Belowisa1sttradeCircle-Chart-horoscopeforsoybeanslabeledFigure4-35.Belowisadailypricechartforsoybeans.Point"A"onthechartbelowisthe757-1/2topwhichoccurredonMonday,July19,1993.WhenthistopoccurredtheNovember93contracthadthehighestopeninterestsoweareusingthatcontract.Overtheweekendbeforethistop,Venuscrossed12° 12'andformedatrine(120°)aspectwiththesun's1sttradelongitude.Thisactivatedthesun's1sttrade

longitude.OnMondaythepriceopenedupthedailylimitof30¢to757-1/2,andmadethefinaltopjust1/2¢abovethisactiveangle.SeeChart4-34andFigure4-35.

Venusaspected,andthereforeactivated,thesun's1sttradelongitudeandthetopformedjust1/2¢beyondthesun'sactiveangleat757-1/2.

OnChart4-36,point"B"istheMonday,October4,1993bottomof604.WhenthesoybeanmarketmadethisbottomtheNovember93contracthadthehighestopeninterestsowewillusethiscontract.OnOctober4,1993themoonmovedfrom15° 45'to27° 40'.OnFigure4-37themoon'smovementhasbeenshaded.Noticethatsoybeansmadeitsbottomontheedgeofthemoon'sareaofinfluenceat604,whichiscircledonFigure4-37.Themoon'slongitude27°40'equals57.66°whichis2.33°awayfrom60°wherethelowprice604islocatedontheCircleChart.Todaythesoybeanminimumticis1/4¢whichequals3.75°ontheCircleChart.Thismeansthemoon'slongitudewaslessthan1ticawayfromthe604low.

Thelongitudeofthemoonwaslessthan1ticawayfromthelowpriceof604onthedayofthelow,Oct.4,1993.

Chart4-38isadailysoybeanchart.Point"C"istheMonday,May23,1994topof732-1/2.Whenthistopoccurred,theJuly94contracthadthehighestopeninterestsowewillusethatcontract.Figure4-39belowshowsa1sttradeCircle-Chart-horoscopeforsoybeanswiththeprice732circled.Onthedayofthe732-1/2high,Venuscrossedoverthelongitude3° 3'whichformedasquare(90°)aspectwith,andthereforeactivated,the1sttradelongitudeofMercury.Figure4-39showsthatthehighpriceoccurredalmostontopofMercury'sactiveangle.The1sttradelongitudeofMercuryis3° 3'whichisapproximately732-1/4only1ticfromthehighprice.

Thedayofthe732-1/2topVenusactivatedMercury's1sttradelongitude.Thehighpricewasmade1ticawayfromMercury'sactiveangle.

OnChart4-40point"D"istheWednesday,February1,1995low.WhenthesoybeanmarketmadethislowtheMarch95contracthadthehighestopeninterestsoIwillusethatcontract.TheMarch95contractmadeit'slowat554-1/2.OntheCircleChart,thelowprice554-1/2equals7° 30'or247.5°.Onthedayofthelow,Jupiterwasonthelongitude10° 24'whichequals250.4°whichislessthat1ticawayfromthelowprice.ThiscanbeseenonFigure4-41below.

TheFeb.1,1995lowprice544-1/2equals7° 30'or247-1/2°ontheCircleChart.OnthisdateJupiterwason10° 24'or254.4°whichislessthan1ticawayfromthelowpriceontheCircleChart.

Chart4-42isadailysoybeanchart.Point"E"isthesummerrallytopwhichoccurredonMonday,July17,1995.Atthistime,theNovember95contracthadthehighestopeninterestandmadeit'stopat661.Onthedateofthistop,Mercurycrossed12° 12'whichformedasquare(90°)aspectwiththesun's1sttradelongitude.Thisaspectmadethesun's1sttradelongitudeanactiveangle.Below,Figure4-43showstherelationshipbetweenMercury,thesun's1sttradelongitudeandthehighpriceof661.OntheCircleCharttheprice661equals195°andonesoybeanticequals3.75°whichmeansthistopislessthan1ticfromthesun'sactiveangle.

Mercuryactivatedthesun's1sttradelongitudeandthe661topwasmadeonthesun'sactiveangle.

Belowisthepricechartforourfinalexample.Point"F"onChart4-44istheseasonalturningpointforthesecondhalfof1995.ThislowoccurredonMonday,August7,1995whentheNovember95contracthadthehighestopeninterest.TheNovember95lowpricewas592.OntheCircleChart,592equals0° 0'or240°andonthedayofthelowPlutowason27° 49'or237.81°whichislessthan1ticawayfrom592ontheCircleChart.Figure4-45onthebelowshowsthisrelationshipbetweenthepositionofPlutoandthe592low.

TheAug.7,1995lowof592occurredonPluto'slongitude.

Chart4-46,isaweeklysoybeanchartshowingthesixturningpointsusedinthepreviousexamples.ThepricebarswhichstartanewcontractarelabeledChart4-46showsthattheseweremajorturningpointsduringthistimeperiod.

End

Chapter5:W.D.Gann'sFourthDimensionofMarketMovementsOneofGann'sfinancialastrologyideaswastocorrelatethecoordinatesystemofapricechartwiththecelestialcoordinatesystem.ThisisanideawhichIbelieveGannworkedonintermittentlythroughouthiscareer.In1923Gannidentifiedtimeasamarket"factor".In1930Gannreferredtotimeasan"element".In1931Gannidentifiedmorefactorsthanjusttimebywriting,"Therearethreeimportantfactorstoconsider,price,timeandspacemovements."Inthesame1931document,Gannwrote,"Afterconsideringthethreeimportantfactors,ResistanceLevels,timeandgeometricalangles,thefourthandnextveryimportantfactoristhevolumeofsalesattopsorbottoms."In1941Gannwrote,"Afterconsideringthethreeimportantfactors...FORMATIONS,TIME,andRESISTANCELEVELS...thefourthandnextveryimportantfactorisVOLUMEOFSALESATTOPSANDBOTTOMS."Thenin1946,Gannwrote,"Timeisthemostimportantfactorinforecastingmarketmovements.WhileSPACEandVOLUMEareimportantandmomentumisalsoafactortobeconsidered,TIMEwilloverbalancebothSPACEandVOLUMEandarrestmomentum."InadocumentIhavebeenunabletofindapublicationdateforGannusedanewnameforthefactorsofthemarketcallingthem"dimensions"whenhewrote,"...thereisafourthdimensionorelementinmarketmovements.","Thepitchortrendisthefourthdimension..."Thefollowingisalistofalltheabovementionedmarketfactors.1.Time2.Price3.Spacemovements4.ResistanceLevels5.Geometricalangles6.Volume7.Volumeofsalesattopsorbottoms8.Formations9.Momentum

10.Pitchortrend

WhatIhaveattemptedtodobycompilingthislistoftenmarketfactorsisshowthatoverGann'scareerhedevelopedtheideaofmarketfactors.NoticethateventhenameGanngavetotheseitemschangedashecalledthemfactors,elementsanddimensions.Thename,"elementsofmarketmovements",providestheclearestexplanationofwhatGannmeant.Nextwewilldiscussthe10marketelementsstartingwithtime.In1951GannwroteTheBasisofMyForecastingMethodForGrains.ThiscoursetaughttheuseofGann'snon-astrologyPriceandTimeAnglesbutalsocontainedadiscussiontitled"LatitudeandLongitude".Inthediscussion,"LatitudeandLongitude,"Gannwrote,"Longitudemeasuresthetimerunningacrossthechart,asitmovesovereachday,weekormonth."ThisrevealsthatGanncorrelatedthechartcoordinateoftimewiththeplanetarycoordinateoflongitude.Gannwroteseveralpassagesindicatingthathemeasuredtimeusingthesun.ReadingthequotationbelowyougettheimpressionthattheangleofthesunwastheonlywayGannmeasuredtimebutGannmadeseveralotherstatementswhichrevealthereismoretomeasuringtimethanjustthesun.

"Manfirstlearnedtorecordandmeasuretimebytheuseofthesundial,andbydividingthedayinto24hoursof15°inlongitude.Thereflectionofthegeometricalangleonthesundialindicatedthetimeofday.Sincealltimeismeasuredbythesun,wemustusethe360°circletomeasuretimeperiodsforthemarket,....."W.D.Gann,MasterEggCourse,1949,p.125-126

ThequotationbelowprovidesamuchbetterexplanationofhowGannmeasuredtimesoIwillexplainthissecondquotationindetail.

"Weuse9anglestomeasuretime.The45°angleisthebalance,orgravitycenter.Thereare3importantanglestotheleftofthe45°angleand3totheright.The1x3angletotheleftandthe3x1totheright."W.D.Gann,MasterEggCourse,1949,p.125

Whenweplotaplanet'spathonapricechartitcreatesanangle.The"9anglestomeasuretime,"aretheninelongitudinalpathsoftheplanets.Theseare(1)Sun,(2)Mercury,(3)Venus,(4)Mars,(5)Jupiter,(6)Saturn,(7)Uranus,(8)Neptuneand(9)Pluto.The2nd,3rdand4thsentencesintheabovequotationarereferencestobiblical

astrology,andGann'sattempttoupdatethebiblicalastrologyprinciples.Inthe2ndsentence,Gannindicatedthatthe45°angleiscalledthegravitycenter.Thesunisoursolarsystem'sgravitycenterthereforethe"45°angle"mentionedinthe2ndsentenceisreferringtothesun'slongitudinalpath.Ifthe45°angleisthepathofthesun,howcantherebe3anglestotheleftandrightofthesunasdescribedinthe3rdsentence?Figure5-1isaJewishMenorahwiththesuninthecenterand3anglestotheleftand3anglestotheright.IdidnotmakeuptheideathatthearmsoftheMenorahrepresenttheseplanetsinthisconfiguration.ThisisjustonepieceofinformationfromaverylargebodyofknowledgewhichcanbeconsideredBiblicalAstrology.AbasicprincipleofBiblicalAstrologyisthatthepeopleofancienttimeshadadvancedbutsecretastrologicalknowledgeandknewthatthesunwasinthecenterofthesolarsystemasshowninFigure5-1.ThisiswhyGannwrotethatthereare3anglestotheleftand3anglestotherightofthe"gravitycenter".InthefinalsentenceGannupdatedtheMenorahtoreflectmodernastrologicalknowledge.GannidentifiedoneadditionalangleoneachsideoftheMenorahwhenhewrote,"The1x3angletotheleftandthe3x1totheright."ByeliminatingthemoonBfromFigure5-1whichGanndidnotidentifyasanangleheusedtomeasuretime,andaddingoneadditionalangleoneachsidewearriveatFigure5-2.Figure5-2showsthreeanglesplusonetotheleftofthegravitycenterandthreeanglesplusonetotherightofthegravitycenter.Figure5-2isaperfectrepresentationofupdatedBiblicalAstrologyandthe9anglesGannusedtomeasuretime.ThismeansGanndidnotcorrelatetimewiththelongitudeofanyoneplanetbutinsteadusedthe360ºlongitudinalorbitsofdifferentplanetstomeasuretimeperiodsinthemarkets.

Nextwewilldiscussthe2nd,3rdand4thmarketelementswhichrelatetoprice.Inthesame1951course,TheBasisofMyForecastingMethodForGrains,Gannwrote,"Therefore,thepricemovementisthesameaslatitude."Thisseemsstraightforwardbutitisnot.ByaclosestudyofGann'sastrologyitcanbedeterminedthatGanncorrelatedpricewithdeclinationnotlatitude.Sowhydid

Gannmentionlatitude?Thereisaterrestriallatitudeandlongitudeandacelestiallatitudeandlongitude.Gannmentionedlatitudeandlongitudebecauseitallowedhimtomakeageneralreferencetobothterrestrialandcelestialsystemsofmeasurementwithoutspecificallynaminganyastrologicalmeasurementssuchasdeclination.Tocorrectlycastahoroscopeyoumusthavetheterrestriallatitudeandlongitudeofthebirthlocationandthecelestiallongitudesoftheplanets.Ganndiduseterrestriallatitudetocasthoroscopesbuthecorrelatedpriceswithdeclinationnotcelestiallatitude.LaterinthischapterIwillshowareplicaofanactualGannchartwhichprovesGanncorrelatedpricewithdeclination.Inthelistof10marketelements,the2ndelementwas"price".The3rdelement,"spacemovement"referredtothepricerange.The4thelement,"resistancelevels"referredtospecificpricelevels.Thismeansthe2nd,3rd,and4thelementsofthemarketwerealldifferentwaysofcorrelatingthepricewithdeclination.Noticethatmarketelements6and7,"Volume"and"Volumeofsalesattopsandbottoms,"werebasicallythesamething.Ganninstructed,"Alwayswatchyourvolume,becauseitshowswhethertheenergyorpower,whichmovesthemarket,isincreasingordecreasing."NoticethatGanndidnotsayvolumewastheenergywhichmovesthemarket.Instead,Gannsaid,volumeshowedtheenergywhichmovesthemarket.Thisisabigdifference.Ganncorrelatedvolumewiththeamountofcelestialenergyaffectingamarket.Gannreferredtocelestialenergyinthequotationas"theenergyorpower,whichmovesthemarket,."ThiscorrelationisnoteasilyboileddowntoanumberlikelongitudeanddeclinationthereforeGannplacedspecialemphasisonthevolumeofsalesattopsandbottomswhichrevealedthehighandlowlevelsofcelestialenergyaffectingamarket.The8thand9thelementsofthemarketwere"formations"and"momentum."BothoftheseelementswerediscussedsobrieflybyGannthatitleadsmetobelievethatheneversuccessfullycorrelatedthemwithanyastrologicalelement.Thisleavesthe5thand10thelementsofthemarket,"geometricangles"and"pitchortrend."Gannwrotethattherewasafourthdimensionorelementofmarketmovementswhichhesaidwasthe"pitchortrend"ofthemarket.Thepitchortrendofamarketcanbeverysteepwhenthemarketrunsupordownquicklyorthepitchortrendcanbegradualasthemarketmovesupordownveryslowly.TheastrologicalelementwhichGanncorrelatedwiththepitchortrendofthemarketwasrevealedintheheadingofadiscussionwhichreads"Time,Price,Volume,Velocity,PitchorTrend."Thelasttwoitemsshownin

thislist,"Velocity,PitchorTrend,"representedtheastrologyelementandthenon-astrologyelementwhichGanncorrelated.Specifically,Gann'sfourthdimensionofmarketmovementswasthevelocityofatrendwhichhecorrelatedwiththevelocityoftheplanets.Thevelocityofaplanetismeasuredonapricechartindegreesperday.Whenweplotaplanet'spathonapricechart,itcreatesanangle.Sotheslope,pitchortrendofaplanet'sanglewouldrepresenttheplanet'svelocity.The5thand10thelements,"geometricangles"and"pitchortrend"werereferencestothesamething,measuringthevelocityofaplanetonapricechartbytheslopeofitslongitudinalangle.Theoriginallistoftenmarketelementshasbeenmodifiedandlistedagainbelow.1.Time=Longitude2.Price,Spacemovements,ResistanceLevels=Declination3.Geometricalangles,Pitchortrend=PlanetaryVelocity4.Volume,Volumeofsalesattopsorbottoms=AmountofCelestialEnergyAffectingaMarket5.Formations=notenoughinformation6.Momentum=notenoughinformationTodeterminehowGannusedplanetaryvelocity,whichhecalledthefourthdimension,wemustagainlooktoGann'swritings.BelowarefourquotationsfromGann'scourseentitledMasterCalculatorForWeeklyTimePeriodstoDetermineTheTrendofStocksandCommoditieswhichmentionsthefourthmarketdimension.

Quotation#1-WeprovethefourthdimensionwiththeMasterCalculatororSquareof52intimeperiodsof7dayseachfor7weeksormoreandthesamepricerelation.Quotation#2-Wegetthefourthdimension,asshownontheMasterCalculator,bydrawing45°anglesfromthe1/2pointorgravitycenter,whichisthemostimportantforpriceresistance.Quotation#3-Thepitchortrendisthefourthdimensionandshowswhetherthemarketissloworfastbytheangles,whetherveryacuteorabovethe45°angleorflatandslow,belowthe45°angle,whichcausesaslowcreepingmarketthatmaylaterregainimportantanglesandincreasethepitchoftheangleandstartmovingupfaster.Quotation#4-GetthefourthdimensionbybalancingpriceandtimeinweeklytimeperiodsasshownontheMasterSquareof52.

Inthequotation#1,Ganncalledthe52x52overlaybytwonames"MasterCalculatororSquareof52".Thereare52weeksinayearsoa52x52overlayisanoverlaywithaweeklyscalemadetocover1year.Threeofthefourquotations(1,3,4)indicatethatthefourthdimensionofthemarkethassomethingtodowiththe52x52overlay.Threeofthefourquotations(2,3,4)indicatethatthefourthdimensionhassomethingtodowithabalancebetweenpriceandtimeusingthe45°angle.Tosummarizethesefourquotations,Gannsaidheusedaweekly(52x52)overlaycalleda"calculator"tobalancepricewithtimeandthisprovedthevalueofthefourthdimension.BalancingPricewithTimewasamethodGannkeptcarefullyhidden.EvenwhenGannconcealedhisastrologymethodsinhiswritings,hewroteverylittleaboutBalancingPricewithTime.ThebestexampleofGann'sBalancingPricewithTimewaspublishedinWallStreetStockSelectorbackin1930.ThismeansthatthemethodGannsaidwas"oneofthemostimportantandvaluablediscoveriesIhaveevermade"hasbeenhiddeninapubliclyavailablebookforover65years.Nowforthefirsttime,IwillrevealthemethodBalancingofPricewithTimeandthereforeGann'suseofthefourthdimensionthroughtheexampleheconcealedinWallStreetStockSelector.InthebookWallStreetStockSelectoronpages67to74,Ganndescribedatradingmethodwhichusedaledgersystemto"balanceastockjustthesameasyoucanbalanceyourbooks."Gannwroteonpage68thathesoldthismethodforasmuchas$1,000.Whenyoureadthedescriptionofthismethodyouwillwonderwhyanyonewouldpaysomuchmoneyforthissimplemethod.Ibelievethepeoplewhoboughtthismethodfor$1,000didnotbuywhatGannopenlydescribedonpages67to74ofWallStreetStockSelectorbutinsteadboughttheastrologymethodwhichGannconcealedinthediscussiontitled,"HowToBalanceU.S.Steel"whichstartsonpage72ofWallStreetStockSelector.Thisastrologymethodwhichshowedhowto"balanceastock,"latercametobecalledBalancingPricewithTime.Onpages68to71ofWallStreetStockSelectorGannprovidedatableshowingtheDate,Open,High,Low,CloseandtheLossorGainonthedayforU.S.Steelstock.Thistablestartswiththe1621/2lowofMay31,1929whichstartedthefinalrunuptothe1929topandendswithDec.31,1929.BelowinTable5-3isareplicaofthefirstsixdatesonthetableshowninWallStreetStockSelector.

Table5-3,correlateswiththediscussion,"HowToBalanceU.S.Steel"onpages72to74ofWallStreetStockSelector.Inthisdiscussion,Gannmentionedmanydatesbutdrewattentiontoonlyfivedaysasbeingimportant.ThefirstdatewastheAugust29lowof251-5/8.Ganndrewattentiontothisdatebywriting,"Thiswasyourfirstwarningthatthestockwasgettingreadytoturnthemaintrenddown."TheseconddatewastheNovember13lowof150.Gannidentifiedthisdateasbeingimportantbywriting,"Whenthestockdeclinedto150again,itwasapurchase...."ThethirddatewastheNovember21topof171-3/4.Gannidentifiedthisimportantdatebywriting,"Thiswas3days'consecutivehigherclosings,whichwasanotherindicationthatthetrendhadturnedupagain."ThefourthdatewastheDecember9topof189.Ganndrewattentiontothisdatebywriting,"...wasanindicationofatopforadecline,...."ThefifthandfinaldatewastheDecember23lowof156-3/4.Gannidentifiedthisimportantdatebywriting,"Fromthelowof156-3/4onDecember23,thetrendofU.S.Steelturnedupagain."Chart5-4isadailypricechartofU.S.SteelstockmadefromthepricesGannprovidedonpages68to71ofhisbook.OnChart5-4,IhavelabeledthefivedatesGannidentifiedinhisdiscussionofthispricedata.

Table5-5haseightcolumnsfromAtoH.ColumnsA,BandCarethedateandtheU.S.Steeldailyhighandlowrespectively.ColumnsDandEshowhowfarthehighandlowpricesofU.S.SteelhadmovedupwardfromtheMay31bottomof162-1/2.ColumnFshowshowfargeocentricVenushadmovedstartingfromtheMay31bottomatwhichtimeVenuswasat27.89°.ColumnGshowsaratiobetweentheamountthehighpricehadmovedincolumnDandamountVenushadmovedincolumnF.OnJune4,thehighpricehadmoved7-7/8upfromthelowandVenushadmoved2.5°.Wewillalwaysdividethepricemovementbythelongitudinalmovementandroundtotwodecimalplaces.Thiswillcreateapricetolongituderatio.Whenwecalculate7.875÷2.5,ityields3.15whichmeansthehighpricehadmoved3.15timesasfarasVenus,creatingthe3.15:1ratiowhichisincolumnG.ColumnHcomputesthesameratiobetweenthemovementofthelowpriceandthemovementofVenus.ThefunctionofTable5-5istocalculatearatiobetweenthedistancetraveledbythepriceandthedistancetraveledbysomeastrologicalbody,inthiscaseVenus.

AsIdescribedabove,thefirstdateGannidentifiedinhisdiscussiononpages72to74ofWallStreetStockSelectorwastheAugust29lowof251-5/8.LookatthelowerhalfofTable5-5toAugust29.Onthisdatethelowpricehadmovedup89-1/8pointsandVenushadmoved89.22°.Whenwecalculate89.125÷89.22,ityields.9989roundedtotwodecimalsis1.00creatinga1:1ratio.ThisiswhatGannmeantby"HowToBalanceaStock."Themovementofthepriceisbalancedorequalto,themovementofVenus.Let'slookatthisrelationshipfromtheviewpointofGann'sfourthdimensionwhichisvelocity.FromMay31toAugust29therewere77tradingdaysandthepricemoved89.125pointsmakingthevelocityoftheprice,1.1575pointspertradingday.Overthis77dayperiodVenusmoved89.22°makingthevelocityofVenus,1.1587°pertradingday.DividingthevelocityofthepricebythevelocityofVenusyields1.00,againdisplayingthe1:1ratio.ThisishowGanncorrelatedthevelocityofpriceswiththevelocityoftheplanetsandrevealshowGannusedthefourthdimensionofmarketmovements.OnMay31,1929whenthe162-1/2lowwasmade,Venuswasat27.89°.IfweplotthepriceandVenusonachart,Venuswillbetoofarbelowthepriceforanycomparisons.Toseethe1:1relationshipwhichisrevealedinTable5-5,wemuststartthelongitudeofVenusatthelow.WecandothisbyfindingthedifferencebetweenthelowpriceandthelongitudeofVenus,whichis134.61,(162.5-27.89).NextwetakethelongitudeofVenusforthedateofthelowandeverydayafter,andadd134.61.ThiscanbeseenonChart5-6andChart5-7.

IhavestatedbeforethatGannderivedhisnon-astrologymethodsfromhisastrologymethodsandthisholdstruewhendealingwithGann'sPriceandTimeangles.ItismyopinionthattheoriginalwayGannappliedtheastrologymethodbeingdiscussedwasbyusingaverysimpletable,somethinglikeTable5-5.Further,Ibelievebyusingatabletostudytheratiobetweenpriceandcelestialmovement,Gannbegantoseeratiosrepeatingatpointsofsupportandresistance.ThesereoccurringratioswhichGannobservedwerethe1:1,1:2,1:4andsoon,fromwhichGanneventuallyderivedhisnon-astrologyPriceandTimeAngles.

ThepreviousexamplefromWallStreetStockSelectorusingU.S.Steelshowedthataplanetaryanglerepresentsthe1:1ratio.Ifwedividethedailymovementofaplanetinhalfandplotitonachart,wewouldhavea1:2angle.Ifwedoubledthedailymovementofaplanetandplottedit,wewouldhavea2:1angle.WecouldgothroughthissameprocessforeveryratioGannconsideredimportant.Chart5-8showstheratios1:1,2:1and4:1.ThebottomangleonChart5-8istheactualplanetaryanglesettostartfromthelow,whichrepresentsthe1:1angle.Themiddleangleismadetoincreasetwiceasfastastheactualplanetaryanglesoitrepresentsthe2:1angle.Thetopangleismadetoincrease4timesasfastastheactualplanetaryanglesoitrepresentsthe4:1angle.InChart5-8whenthepricetouchesthe4:1angle,thepricehasmovedup4priceunitsforevery1degreeofplanetarymotion.GannappliedthismethodwithdeclinationaswellaslongitudebutforlackofabetternameIcalltheseanglesPriceandLongitudeAngles.

GannhadtwowaystoapplythePriceandLongitudeAngles.ThefirstmethodGannusedtoapplythePriceandLongitudeAngleswastomakeatableanddividethepricemovementbythecelestialmovement.Thesecondmethodusedpricechartoverlays.Anoverlayisasquaredrawnonapieceofclearmaterialwiththenon-astrologyPriceandTimeAnglesdrawnfromthecornersofthe

square.Justasthenon-astrologyPriceandTimeAnglesarebasedonGann'sastrologymethodssotooaretheoverlays.ThenamesofGann'stradingtoolswereselectedverycarefully.TheoverlaysaretheonlytradingtoolGannevercalleda"calculator".Acalculationistheprocessoftakingtwoormorenumbersandperformingamathematicalprocedurewhichyieldssomeanswer.TounderstandwhatGanndidwiththecalculatorswemustfigureoutwhatGannwasactuallycalculating.OneofGann'soriginalchartswhichcomeswiththeW.D.GannStockorCommodityCourseisentitled,"PathofPlanets".TheoriginalPathofPlanetschartwasabout46incheswideand26incheshigh,andshowedtheyears1935through1941.AnartisticreplicaofthePathofPlanetsfirstyear,1935,isshownonChart5-9.ThisisanartisticreplicabecauseIhaveleftenoughspacebetweentheanglessotheycanbeseenclearly.Also,theplanetarynamesandglyphsidentifyingeachanglehavebeenadded.OntheactualPathofPlanetschartthereareplanetaryglyphsidentifyingeachanglebuttheyarenotallonthefirstyearofthechartwhichisshowninChart5-9.NoticeontheleftofChart5-9thereisanoverlappingscalewhichstartswith0inthecenterthenmovestothetopofthechartat90,thenturnsdownandmovestothebottomofthechartat270andfinallyturnsbackupandmovestothecenterofthechartat360.Thisisthe360°oflongitude.GannlaidoutChart5-9with0inthecentersohecouldplotdeclinationandlongitudeonthesamechart.Also,ifthechartdidnothaveanoverlappingscale,itwouldbe52incheshigh.Declinationisaplanet'sdistanceaboveorbelowthecelestialequatorwhichisrepresentedbythe0centerlineonChart5-9.OntherightsideofChart5-9thedeclinationscalestartswith0inthecenterandmovesbothupanddown4,8,12etc.NoticeonChart5-9,Gannchartedbothgeocentricandheliocentriclongitudes.Thisincludesgeocentricsun,Mars,Jupiter,Saturn,UranusandNeptuneandheliocentricMars,Jupiter,Saturn.ThedeclinationswhichGannplottedareforthesun,Mars,Jupiter,Saturn,Uranus,andNeptune.Thereissomeinformationwhichwasshownfortheyears1936to1941whichisnotpresentedonChart5-9.First,thedeclinationsofUranusandNeptunewerediscontinuedattheendof1939.Forthethreeyearperiod,1938to1941,GannplottedgeocentricVenusandMercury.GeocentricPlutowasplottedfor1941.ThePathofPlanetschartprovesthatGannuseddeclinationandnotcelestiallatitude.IhaveverifiedeverylineplottedonthePathofPlanetschartandtherearenocelestiallatitudes.Comparedwithdeclination,planetarymovement

throughcelestiallatitudeisveryslowthusreducingitsutility.ThisisprobablythereasonGannchoosetoworkwithdeclination.InGann's1954soybeanletterwhichwasdiscussedinpreviouschapters,Gannstatedthatheusedaveragesofbothgeocentricandheliocentricplanets.KnowingforafactthatGannusedplanetaryaverages,andthattheyarenotonthePathofPlanetschartisimportantbecauseitgivesusaverygoodindicationthatGannmademorethanonechartoftheplanetarypaths.MostlikelyGannmadeseveralchartslikethePathofPlanetsonwhichheplottedplanetaryaverages.

ThemainpointofourcurrentdiscussionwasthesecondwayinwhichGannappliedthePriceandLongitudeAnglestoapricechart.ItismyopinionthatGannmadechartssimilartothePathofPlanetschartseeninChart5-9,onsometypeoftransparentonionskingraphpaper.ThisallowedGanntoplacethetransparentchartontopofhispricebarchartsandalignthecorrectdatesthen

movethechartupordownuntilthedesiredplanetaryanglewasontopofthemarketloworhigh.ThisallowedGanntoquicklystartanyplanetaryanglefrompastturningpointsanddetermineifthecurrentpricemovementwasbalancingwithaplanetsmovement.ForGanntoutilizethismethod,thepriceandtimescalesonhispricechartswouldhavetobesetthesameasthescaleontheplanetaryoverlayoratleastbeinproportion.ThisiswhyGannseemedtohaveanobsessionwithsettingthecorrectpricetotimescaleonallofhischarts.ThismethodalsoshowswhywerarelyseeplanetaryanglesplottedonGann'spricebarcharts.TheoverlaysallowedGanntoactivelyapplythePriceandLongitudeAnglestohispricechartsandstillkeephisastrologymethodssecret.Charts5-10toChart5-12showtheprocesswhichIbelieveallowedGanntoquicklystartplanetaryanglesfrommarkettopsandbottoms.First,Chart5-10showstheplanetaryoverlayandapricebarchartseparated.

Gannplacedtheplanetaryoverlayontopthepricechart.Nexthemovedtheoverlayleftorrighttoalignthedatesontheplanetaryoverlaywiththedatesonthepricechart.InChart5-11theplanetaryoverlayisplacedontopofthepricechartandmovedtotherighttoalignthedate,May5th.

FinallyGannmovedtheplanetaryoverlayupordowntoalignthedesiredplanetarypathwiththedesiredhighorlow.BelowonChart5-12,theoverlayhasbeenshifteddowntoalignthepathofMars withthelowpriceofMay5th.AtthispointwehaveadjustedthelongitudeofMarstostartfromtheMay5thlowandcannowobservewherethepricemovementbalanceswiththemovementofMars.ThisisthesecondwayinwhichGannappliedthePriceandLongitudeAngles.Ifwestartedtheplanetarylongitudefromthelowpricewithoutanoverlaywewouldhavetousethelowpriceandtheplanetarylongitudetomakeacalculation.TheplanetaryangleoverlayswereusedbyGanninsteadofmakingthealignmentcalculationbetweentheturningpointandtheplanetaryanglesandthisiswhyGannnamedtheoverlays"calculators".

Inthefourquotationsdealingwiththefourthdimensionseenpreviouslyinthischapter,Gannstatedheusedaweekly(52x52)overlaycalleda"calculator"tobalancepricewithtimeandthisprovedthevalueofthefourthdimension.NoticethatthePathofPlanetschartseeninChart5-9issettoaweeklyscale.GannmostlikelywasusinganoverlaysimilartothePathofPlanetschartwhenhewrotethefourquotationsseenpreviouslyinthischapter.ThemessageGannintendedwiththosefourquotationswasthatbyusingaPriceandLongitudeOverlaytobalancepriceandlongitudinalmovement,hecouldprovethevaluablecorrelationbetweentherateofplanetarymovementandtherateof

pricemovement.NowthatweknowthetwowaysinwhichGannappliedPriceandLongitudeAngles,wewillreturntotheU.S.SteelexamplefromWallStreetStockSelector.LookbacktoChart5-7toseewhereweleftoff.Chart5-7showedhowGannbalancedthemovementofU.S.SteelstockandthemovementofgeocentricVenusbetweenthedatesMay31,1929andAugust29,1929.SoonaftertheAug.29balancingpoint,U.S.Steelmadeatopandturneddown.TheseconddatewhichGannidentifiedinhisdiscussiononpage73ofWallStreetStockSelectorwasNov.13,1929.Gannmadebalancingtheseconddatefairlysimple.IfweagainusegeocentricVenusandstartthisangleonthe1stbalancingpoint,Aug.29,at251-5/8,andruntheangledownwardwefindthatitbalanceswiththehighpriceontheseconddateGannidentified,Nov.13.Chart5-13showsgeocentricVenusstartingfromtheAug.29lowof251-5/8andsettorundownward1$:1°whichisaVenus1x1angle.OnAug.29,1929atmidnight,Venuswasatthelongitude117.109°andatmidnightonNov.13,1929,Venuswasat209.554°,whichmeansVenustraveled92.45°.OnAug.29thelowpriceofU.S.Steelwas251.625andonNov.13thehighpricewas160,whichmeansthepricetraveled91.625.Whenwedividethepricemovementof91.625bythemovementofVenus,92.45,ityields.99orrounded1.00.Thisrevealsa1:1pricemovementtolongitudemovementratio.WecanalsolookatthisfromtheperspectiveofGann'sfourthdimension.BetweenAug.29andNov.13therewere58tradingdays.Whenwedividethepricemovementby58daysitrevealsthatU.S.Steel'svelocitybetweenthesetwopointswas1.58(91.625÷58)pointspertradingday.WhenwedothesameforVenus,itrevealsVenus'velocitywas1.593(92.45÷58)degreespertradingday.WhenwedividethevelocityofthepricebythevelocityofVenus,ityields1.00,creatinga1:1ratio.Chart5-13clearlyshowsthatthemovementofgeocentricVenusbalancedwiththepricemovementbetweenAug.29andNov.13.

EverynowandthenGannusedanameforoneofhismethodswhichdidnotseemtomakeanysense.InonecaseGannreferredtohisgeometricanglesas"moving-trend-lineaverages."WhenweputthisinthecontextofGann'sastrologymethods,itmakesalotmoresense.WeknowfromGann's1954soybeanletterthatheusedtheaverageofseveralplanetarylongitudes.ItismyopinionthatwhenGanncalledhisgeometricangles"moving-trend-lineaverages,"hewasmakingaveiledreferencetoplanetaryanglescreatedbyaveragingdifferentcombinationsofplanetarylongitudes.ThelastdateweusedinthepreviousexamplewasNov.13andwebalancedU.S.Steeltothepriceof160.ThenextdateidentifiedbyGannwastheNov.21highof171.75.OnChart5-14,IhavecalculatedtheaveragelongitudeofgeocentricMercuryandVenusatmidnightandadjustedthisaveragelongitudesoitismovingupfromthesecondbalancingpoint,theNov.13highof160.BetweentheNov.13highof160andtheNov.21highof171.75thepriceofU.S.Steelmoved11.75points.TheMercuryVenusaveragestartedat160onNov.13andatmidnightonNov.21wasat171.418showingthatitmoved11.418points.Whenwedividethepricemovementbythemovementoftheplanetaryaverage,ityields1.029,(11.75÷11.418),creatinga1:1.029ratio.Wecanalsolookatthisrelationshipfromtheperspectiveofthefourthdimension.BetweenNov.13andNov.21thereare6tradingdays.Overthistimeperiodthepricemoved1.9583pointspertradingdayandtheMercuryVenusaveragemoved1.903°pertradingday.Whenwedividethesetwoit

yields1.029,againrevealingtheratioof1:1.029.ThisisnotascloseasIwouldliketoseetheratioworkoutbutconsiderthattheaverageofMercuryandVenusisafastmovingangleandthesecalculationsweremadeatmidnight,thestartoftheday.IfwefollowthisaveragelongitudethroughthedayofNov.21wecanseethatitmovesatotalof11.75°reachinganexact1:1ratiobetweenthepriceandtheplanetaryaverageatapproximately5:30AM.

ThefourthdatefromGann'sdiscussioninWallStreetStockSelectoristheDec.9highof189.Chart5-15,showstheaveragelongitudeofheliocentricearthandMars, / madetorundownfromtheextremehighof261-3/4onSept.3,1929.FromSept.3toDec.9thepriceofU.S.Steelmoved72.75pointsandtheearthMarsaveragemoved72.704°.Whenwedividethesetwonumbersityields1.00creatinga1:1ratiobetweenthepricemovementandlongitudinalmovement.ThisisshownonChart5-15below.Wecanalsolookatthisfromtheperspectiveofvelocity.BetweenSept.3andDec.9therewere73tradingdays.Overthistimeperiodthepricehadavelocityof.996pointspertradingdayandtheearthMarsaveragehadavelocityof.9959°pertradingday.Thisrevealsthesame1:1ratio.ThisagainillustrateshowGannusedthefourthdimensionofmarketmovements,velocity,tobalancepriceandtime.

ThelastdateGannidentifiedinhisdiscussioninWallStreetStockSelectoristheDec.23,1929lowof156-3/4.Chart5-16,showstheaveragelongitudeofgeocentricMercury,VenusandMars, / / madetorundownfromtheextremehighof261-3/4onSept.3,1929.FromthehighonSept.3tothelowonDec.23,thepriceofU.S.Steelmoved105pointsandtheMercury,VenusandMarsaveragemoved104.633°.Whenwedividethesetwonumbersityields1.00creatinga1:1ratiobetweenthepricemovementandlongitudinalmovement.Againlet'slookatthisfromtheperspectiveofGann'sfourthdimensionwhichisvelocity.BetweenSept.3andDec.23therewere86tradingdays.Overthistimeperiod,thepricehadavelocityof1.22pointspertradingdayandtheMercury,VenusandMarsaveragehadavelocityof1.216°pertradingday.Whenwedividethesetwonumbersitrevealsthesame1:1ratio.ThisagainillustrateshowGannusedthefourthdimensionofmarketmovementstobalancepriceandtime.

Chart5-17below,isanartisticreplicaofGann's"MayCoffeeMoonSigns"chart.TheoriginalofthischartisveryclutteredsoonlytheinformationwhichisimportanttotheexplanationofthisastrologymethodisshownonChart5-17.ThereareonlytwopricebarsonChart5-17fortheJune19lowandtheOct.9low.OnChart5-17,lookatthefourangleswhichstartfromtheJune19low.IhavetriedtoplacetheglyphsandanglelabelsonChart5-17intheirrelativepositiontotheoriginalchartsoyoucaneasilyfindthemontheactualchartifyouhaveacopy.ThreeofthefouranglesstartingfromJune19areclearlylabeled.Thesearethesun forwhichGannwrotethesun'sglyphtwice,geocentricMarsforwhichGannwrote"Geo "," G"and" "andfinallyheliocentricMarsforwhichGannwrote" Helio".ThefourthanglewhichstartsfromJune19willbediscusseslast.NextlookatthepricebarforthedayOct.9.ThereisoneanglestartingfromtheOct.9lowwhichisclearlylabeledwiththesun'sglyph .FinallyforChart5-17,lookatthelowestanglestartingfromtheJune19low.Thisistheanglewhichwehavenotdiscussedyet.Noticethatthisanglewaslabeledwithasideways"9"andthenaMarsglyph pointingstraightup.Gannhadlabeledthetradingdaysfromaprevioustopandasthenumbersprogress88,90,92,thenumber90wasalmostrestingontopofthisangle.Gannlabeledthisanglebycombiningthenumber"90"andtheMarsglyph" "into"9 "makingthecircleoftheMarsglyphalsothezeroin90.Thiswasdrawnsidewayssoit

wouldlineupwiththeothernumbersinfrontandbehindit.Thisanglelabeled"9 "ismadetoincreaseat1/2theslopeorvelocityofheliocentricMarsandisinfactaheliocentricMars1:2anglangle.ThisprovesthatourunderstandingofthePriceandLongitudeAngleswhichwederivedoutofGann's1930WallStreetStockSelectorisinfactcorrect.ThePriceandLongitudeAnglesonthe"MayCoffeeMoonSigns"chartarenotplottedforeverylineonthechart.GanndrewthesePriceandLongitudeAnglesacrossnineortenmonthsusingonlyoneortwopointsforeachangle.Thismeansthatifyouplottedtheseanglesforeverylineonthecharttheywouldbeslightlyofffromtheanglesonthe"MayCoffeeMoonSigns".Thisseemstoindicatethatonthisparticularchart,GannwasonlyinterestedinthegeneralpositionofthePriceandLongitudeAngleforjudgingwhichplanetwascorrelatingwiththepricemovementratherthantryingtoidentifyexactmathematicalbalancingpoints.Onequestionwhichisfrequentlydebatedbyastrologersis,shouldgeocentricorheliocentriclongitudesbeused.ItisveryfrustratingforadvancedastrologerstolearnthatGannusedbothgeocentricandheliocentriclongitudesbecausetheycannotexplainwhy.Gann'sPriceandLongitudeAnglemethodwhichIhaveexplainedinthischapterprovidestheanswertothisquestion.Gannusedboththegeocentricandheliocentriccoordinatesystemsbecausehewaslookingfordifferentratesofastrologicalmotiontocorrelatewiththerateofpricemotion.

Chart5-18showsaU.S.SteelchartwithallfiveofthePriceandLongitudeAngleswhichGannconcealedinWallStreetStockSelector.ThefirstthreeplanetaryangleswediscussedfromGann'sbookarelabeledas#1,#2and#3.Noticethatangle#1'sbalancingpointisthestartofangle#2,andangle#2'sbalancingpointisthestartofangle#3.Finally,noticethatthelasttwoplanetary

anglesbothstartedfromtheextremehighofSept.3,1929.

WhenapplyingthePriceandLongitudeAnglesyoumuststartbysettingthe1:1pricetolongituderelationship.Therearetwopracticalpricetolongituderelationships.Thefirstistosetthe1:1angleas,1minimumticto1°ofmovement.Forthegrainmarketsthiswouldbe1/4¢:1°.ForT-Bondsthisis1/32:1°.FortheS&P500futuresthisis.05:1°.Theminimumbidaskincrementforsmallstocksissometimestoosmalltouseforthe1:1angle.AsanexampleonthefirsttradingdayforMicrosoft,March13,1986,thehighbidwas1-4164revealingaminimumticofjust1/64.ForindividualstocksIwouldrecommendtryingastandard1/8forthe1:1anglecreatinga1/8:1°relationship.Belowarefourlistsofpricetolongituderelationshipsusing1ticto1°.TotherightofeachpricetolongituderatioistheequivalenttraditionalGannpricetotimeratio.

GRAINS T-BONDS S&P-500 STOCKS2¢:1°=8x1 1/2:1°=8x1 .4:1°=8x1 1$:1°=8x11¢:1°=4x1 1/8:1°=4x1 .2:1°=4x1 1/2:1°=4x13/4¢:1°=3x1 3/32:1°=3x1 .15:1°=3x1 3/8:1°=3x11/2¢:1°=2x1 1/16:1°=2x1 .1:1°=2x1 1/4:1°=2x11/4¢:1°=1x1 1/32:1°=1x1 .05:1°=1x1 1/8:1°=1x11/4¢:2°=1x2 1/32:2°=1x3 .05:2°=1x2 1/8:2°=1x2

1/4¢:3°=1x3 1/32:3°=1x3 .05:3°=1x3 1/8:3°=1x31/4¢:4°=1x4 1/32:4°=1x4 .05:4°=1x4 1/8:4°=1x41/4¢:8°=1x8 1/32:8°=1x8 .05:8°=1x8 1/8:8°=1x8Thesecondsetofpricetolongituderelationshipssetsthe1:1angleas1point,centordollarto1°ofmovement.Belowarefourlistsofratiosusing1point,centordollarto1°.TotherightofeachpricetolongituderatioistheequivalenttraditionalGannpricetotimeratio.

GRAINS T-BONDS S&P-500 STOCKS8¢:1°=8x1 8pt:1°=8x1 8pt:1°=8x1 8$:1°=8x14¢:1°=4x1 4pt:1°=4x1 4pt:1°=4x1 4$:1°=4x13¢:1°=3x1 3pt:1°=3x1 3pt:1°=3x1 3$:1°=3x12¢:1°=2x1 2pt:1°=2x1 2pt:1°=2x1 2$:1°=2x11¢:1°=1x1 1pt:1°=1x1 1pt:1°=1x1 1$:1°=1x11¢:2°=1x2 1pt:2°=1x2 1pt:2°=1x2 1$:2°=1x21¢:3°=1x3 1pt:3°=1x3 1pt:3°=1x3 1$:3°=1x31¢:4°=1x4 1pt:4°=1x4 1pt:4°=1x4 1$:4°=1x41¢:8°=1x8 1pt:8°=1x8 1pt:8°=1x8 1$:8°=1x8Charts5-19to5-24,showsomeofthesimilaritiesanddifferencesbetweengeocentricandheliocentriclongitudes.UnderstandinghowgeocentricandheliocentriclongitudesinteractishelpfulwhenapplyingthePriceandLongitudeAngles.

OnChart5-19,Ihaveadjustedthelongitudesoffourgeocentricplanetstostartat5onJanuary1,1993.TheplanetsthenrunfromJan.1993through1995.NoticethatMercury,sunandVenushavesimilargeocentricvelocities.Chart5-20showstheheliocentriclongitudesforthesamefourplanetsseeninChart5-19.NoticethattheheliocentricvelocitiesforMercury,sun,VenusandMarsaredistinctlydifferent.

Thefartheraplanetisfromthesun,thecloseritsgeocentricandheliocentriclongitudesbecomeandthereforetheirvelocitiesalsobecomeincreasinglysimilar.Charts5-21and5-22showthatthegeocentricandheliocentricvelocitiesofVenusareclosertogetherthanthegeocentricandheliocentricvelocitiesofMercury.

OnCharts5-23,noticethatthegeocentriclongitudeofJupiterandSaturnrevolvesarounditsrespectiveheliocentriclongitude.Thisbasicstructureofthegeocentriclongituderevolvingaboveandbelowtheheliocentriclongitudeistrueforalloftheouterplanets.FollowingareavarietyofexamplesusingstocksandfuturesshowinghowthePriceandLongitudeAnglesshouldbeapplied.Therearesomeexampleswhichshowthesameanglesondailyandweeklychartssoyoucanseehowthedailychartrelationshipsfitintoalargerpicture.

Chapter5Section2ChartExamplesChart5-24forAcusonstockshowsthelongitudinalangleofheliocentricJupiterdrawndownwardfromthreedifferenttops.Allthreeanglesaresetto1/8:1°whichrepresentsthe1x1angle.Gann'sideabehindtheuseofthePriceandLongitudeAngleswasthattopsandbottomsunfoldinthefinancialmarketsatpointswerepricemovementisinproportiontoastrologicalmovementstartingfromapreviousturningpoint.Noticethebottomatpoint"A"balancedwiththemovementofHelio.JupiterstartingfromtheApril22top.Thebottomatpoint"B"balancedwiththemovementofHelio.JupiterstartingfromtheNov.18top.Finallythebottomatpoint"C"balancedwiththemovementofHelio.JupiterstartingfromtheMay24top.

OnChart5-25,IhavetakentheaveragelongitudeofHelio.JupiterandSaturnandstarteditfromtheJune3low.Thisangleissetto1/4:1°whichrepresentsthe2x1angle.Gannoftensaidthattopsandbottomsoccurredinproportiontoprevioustopsandbottoms.Balancingmeansthepointwherepriceandlongitudehavemovedthesameamountandthiscanonlyoccurona1x1angle.Thisexampleusesa2x1anglewhichisinproportiontothe1x1.ThismeansthatwhenthepriceofAcusontouchedthe2x1angleandformedtopsatpoints"A"and"B"itsmovementwasinproportiontothemovementoftheJupiter/Saturnaverage.

Whenlookingforturningpointsthemostimportantsituationisabalancingpointbetweenatopandabottomasopposedtobalancingpointswhichformbetweentwotopsortwobottoms.Chart5-26providesadailyviewofthefinaltopforAcusonstockwhichwasshownonChart5-25.Thereisnopoint"A"onChart5-26.Thetopislabeledpoint"B"becauseitisthesamepoint"B"shownonChart5-25.ThesolidlineonChart5-26istheHeliocentriclongitudeofMarsstartingfromtheJuly21low,andissetto1/8:1°whichrepresentsthe1x1angle.Thedashedlineisthesame2x1JupiterSaturnaverageangleshownonChart5-25.Noticeatthefinaltop,themovementofthepriceandMarsbalancedoutverywellandthepricewasalsoonthe2x1JupiterSaturnangle.

Chart5-27isadailychartforAppleComputer.Theaveragelongitudeofthesunandgeo.JupiterisstartedfromtheJune27low.Thisangleprovidedsupportforthelowsatpoints"F"and"H".Finally,ApplestockbalancedwiththeSunJupiterangleatpoint"J"whereitformedasidewaystoppingpattern.Chart5-28below,isaweeklychartforApplewhichshowshowthissunJupiteranglefitsintothelongertermpicture.

Chart5-28isaweeklychartforAppleComputer.A2x1Geo.JupiteranglestartsfromtheOct.4,1993lowandtheNov.19,1993top.Theturningpoints"A","B","C","D","E","G"and"I"formedwhenthepriceofApplestockreacheda2x1angle.The2x1angleisnotabalancingangle;itisaproportionalanglemeaningitrepresentsapositionwhichisinproportiontotheactualmovementofJupiterwhichwouldberepresentedbya1x1angle.Theanglewhichprovidedsupportatpoints"F","H"andbalancedwithApplestockatpoint"J"isthesun/JupiteraverageangleshownonChart5-27.

Chart5-29isadailychartforCircusCircus.ThelongitudesofHelio.MarsandGeo.MercuryaremadetostartattheOct.6top.Atpoint"A"Mercurywasonlyafractionawayfromthelowpriceasitbalancedwiththepricemovement.ThemovementofMarsbalancedwiththemovementofthepriceatpoint"B".ItisimportanttorememberGannsaidthatbalancingpointsareaplacetowatchforchangeintrendnotaguaranteeofachangeintrend.

Chart5-30isaCircusCircusdailychartwhichisanextensionofChart5-29.EarlierIstatedthatthemostimportantsituationiswhenplanetarymovementbalanceswithpricemovementbetweenahighandlow.Forthistohappenthepricemustcrosstheplanetaryangleonthewayupordown.Atpoint"A"thepricefellbelowtheGeo.Marsangle.Atpoint"B"thepricefellbelowtheGeo.MarsangleandtheGeo.Mercury/Marsaverageangle.Thedailypricethenmoveduptopoint"C"wherethepricemovementbalancedwiththemovementofMarsandtheMercury/Marsaverage,andatopformed.

Chart5-31isaweeklychartforCircusCircuswhichshowsthesametimeperiodandanglesasCharts5-30&5-29.NoticethatoverthistwoyearperiodalltheanglesinvolvedMercuryandMars.

Chart5-32isaweeklychartforDisneywhichhasa2x1geo.Marsangle

startingfromtheJuly20,1993low.NoticethatthepriceofDisneymadeaseriesofsmallweeklytopslabeled"A","B","C"and"D"whenitreachedthe2x1angle.The2x1anglerepresentsapointatwhichthemovementofDisneyisinproportiontothemovementofgeo.Mars.

Chart5-33showsthatthepriceofMcDonaldsmadeatopatpoint"A"asitcameincontractwiththe2x1Jupiterangle.

Chart5-34isaWeeklychartforMCIandshowsa1x2geo.Mars/JupiteraverageanglestartingfromtheJuly21,1993top.ThepriceofMCIdidnotmoveabovethisangleuntilpoint"A"andthenmadeabottomatpoints"B"and"C".ThisshowsthattherateofmovementorvelocityoftheMars/JupiteraveragecorrelatedwiththevelocityofMCIstock.

Chart5-35isaweeklychartforMicrosoftstockwitha1x2helio.VenusanglestartingfromtheAug.10,1993low.This1x2anglerepresentspointswhichareinproportiontotheactualvelocityofhelio.Venus.ThepriceofMicrosoftmadeaspiketopatpoint"A"againstthe1x2Venusangle.

Chart5-36isadailychartforMicrosoftwhichshowsthelastmoveupintothefinaltop.Thereisageo.Venus2x1and1x1anglestartedfromtheJan.31,1995lowwhichwasalowerbottomthanthebottomwhichformedinearlyJanuary95.ThiswasalsojustabouttheonlylowerbottomtoformaftertheAug.10,1993lowshownonChart5-35.Microsoftmadeatopatpoint"A"whenthepricetouchedthe2x1VenusanglewhichmeantthepricemovementorvelocitywasinproportiontothemovementorvelocityofVenus.

Chart5-37isaweeklychartforMotorolawhichhasa1x1geo.MarsanglestartingfromtheDec.21,1993low.ThepriceofMotorolaformedatoppingcongestionareaasitbalancedwiththemovementofMarsatpoint"A".

TheidealtechnicalstructuretoapplythePriceandLongitudeAnglestoisa

swingingmarketwherewecanbalanceouttopsandbottomsagainstprevioustopsandbottoms.TheDJIAoftenmovesupataslowanglenotprovidinggoodopportunitiestoapplythismethod.However,from1980to1985theDJIAdidprovideanadequateswingingstructuretoapplythismethodsoIwillexaminetheseyears.Chart5-38showstheweeklyDJIAfrom1980through1981witha1x1geo.MarsanglestartingfromtheMarch28,1980low.TheDJIAbalancedwiththemovementofMarsatpoint"A"wherethetopwasmade.

Chart5-39istheweeklyDJIAfrom1981through1982.WewillagainusetheplanetMars.A2x1geo.MarsanglestartsdownfromtheMay1,1981topandabottomformsonthisangleatpoint"A".Next,a1x1helio.MarsanglestartsdownfromtheDec.4,1981topandtheDJIAformsabottomonthisangleatpoint"B".

Chart5-40isaDJIAweeklychartfromAug.1983toMay1985.A1x1geo.MarsanglestartsdownfromtheDec.2,1983top.TheDJIAmetresistanceagainstthisangleatpoint"A"andbalancedoutwiththemovementofMarsatpoint"B"whereabottomformed.

Chart5-41isadailychartforwheatfutures.Alltheanglesonthischart1x1

sunangles.Thefirst1x1sunanglestartsupfromtheMar.2,1995lowandbalanceswiththemovementofthewheatatpoints"A"and"B".Nexta1x1sunangleisdrawndownfromtheJune29,1995top.Wheatbalancedwiththemovementofthesunwhenittouchedthissecondangleatpoint"C".Finallya1x1sunangleisdrawnupfromtheJuly10,1995low.Thepriceofwheatbalancedwiththemovementofthesunbytouchingthisangleatpoints"D","E"and"F".

Chart5-42isachartforCocoafutureswitha2x1geo.MercuryanglestartingfromtheFeb.24,1995top.ThepriceofCocoamovedabovethislineatpoint"A"thenfellandformedabottomonthisangleatpoint"B".ThismeansthattheCocoamarketformedabottomatapointwhichwasinproportiontothemovementofMercuryoverthistimeperiod.

Chart5-43isadailychartforsoybeans.A1x1VenusanglestartsfromtheFeb.1,1995low.ThepricemovementofsoybeansbalancedoutwiththemovementofVenusatpoints"A","B","C","D"and"E".

Chart5-44isadailychartforCoffeefutureswiththe1x1,1x2and1x4geo.VenusanglesallstartingfromtheMar.10,1995top.ThepriceofCoffeefell

andmadeabottomatpoint"A"justabovethe1x2Venusangle.Thismeansthatfromtoptobottomthepriceofcoffeefellatavelocitywhichwasinproportiontotheactualvelocityofgeo.Venus.

Chart5-45isashorttermdailychartforLiveCattleshowingonlyfourmonths.Thesun'sanglesetto,.1:1°startsupfromtheJune22,1995lowandbalancesoutwiththemovementofLiveCattlejustbeforethedeclinestartedatpoint"A".A1x1anda2x1sunanglerundownwardfromtheAug.2,1995top.Themarketmoveddowntoofastforthe1x1sunanglebutformedabottomonthe2x1sunangleatpoint"B".

Chart5-46showsWorldSugarwitha2x1geo.VenusanglestartingdownfromtheJan.4,1995top.ThepriceofWorldSugardidnotmoveabovethisangleuntilpoint"A"andthendeclinedtoabottomonthis2x1angleatpoint"B".

Chart5-47isadailychartforCorn.A1x1sunangleisdrawnfromtheNov.23,1994low.Thevelocityofcornbalancedwiththevelocityofthesunatpoints"A"and"B"wheretopsformed.

Chart5-48isadailychartforOrangeJuicefutureswith2x1and4x1geo.MercuryanglesdrawnfromtheDec.19,1994top.ThepriceofOrangeJuicefelltopoint"A"andformedabottomonthe4x1Mercuryangle.Atpoint"A"thevelocityofOrangeJuicewasinproportiontothevelocityofMercury,startingfromtheDec.19,1994top.

Chart5-49isalongtermmonthlychartoftheDJIAwitha1x1and2x1Saturnanglestartingfromthe1932low.TheDJIAmademajortopsduringthe

1970'sandamajorlowin1974ontheseangles.Chart5-49showsthatbetweenthe1932lowandthe1972toptheDJIAmovedinproportiontothemovementofSaturnandbetweenthe1932lowandthe1974lowthepricemovementbalancedwiththemovementofSaturn.Chart5-50below,showsaclose-upofpoints"A"to"D".

Chart5-50isaclose-uplookattheSaturnanglesandturningpointsontheDJIAshowninChart5-49.Thetwomostimportantlongtermturningpointsshownabovearepoints"C"and"D".TheDec.1972topatpoint"C"wasthehighestpricetheDJIAhadreacheduptothattimeandthistopformedonthe2x1Saturnangle.TheDJIAthenhadanextendedbearmarketwhichdeclinedtopoint"D"whichwasmadejustabovethe1x1Saturnangle.

Chart5-51isalongtermmonthlychartoftheDJIAwitha4x1Saturnangleanda1x1Jupiterangledrawnfromthe1932low.Noticethatthe1987topatpoint"A"wasmadeonthe4x1Saturnangleandthe1987crashbottomatpoint"B"wasmadeonthe1x1Jupiterangle.Thismeansthatfromthe1932lowtothe1987topthemovementoftheDJIAwasinproportiontothemovementofSaturnandfromthe1932lowtothe1987crashbottomthemovementoftheDJIAbalancedwiththemovementofJupiter.Chart5-52belowshowsaclose-upofpoints"A"and"B".

Chart5-52isamonthlychartoftheDJIAshowingaclose-upviewofpoints"A"and"B"fromChart5-51.Youcanseeclearlythatthe1987topwasmadeagainstthe4x1Saturnangleandthe1987crashbottomwasmadeagainstthe1x1Jupiterangle.Theunderlyingprinciplefortheserelationshipsisthatthevelocityoftheplanetsinfluencesthevelocityofthemarket.Gann'sfourthdimensionofmarketmovementswasvelocitybecauseGannbelievethisprincipleexistedineverymarket.

End

Chapter6:IntraDayApplicationsofTheFourthDimensionThestartofGann'sfamewashis1909interviewandtradingdemonstrationwhichhegaveforarepresentativeoftheTickerandInvestmentDigest.ConsideringGann'sentirecareer,thewayGannperformedhis1909tradingdemonstrationiswithoutadoubthislongestrunningmystery.The1909articleprovideslittledetailaboutGann'stradingdemonstrationsothereisnowaytodeterminepositivelyhowitwasdone.TomyknowledgethisbookisthefirsttimeapossiblesolutiontoGann's1909tradingdemonstrationhasbeenprovidedforthegeneralpublictoexamine.TheTickerandInvestmentDigestarticlesaysthatGannwasunawaretheresultsofthetradingdemonstrationweregoingtobementionedinthearticle.Thespecificfactsaboutthisdemonstrationarethatduring25tradingdaysinOctober1909,Gannmade286tradeswhichyielded264profitabletradesand22losses.U.S.SteelistheonlystockGanntradedwhichwasidentified.Thepieceofinformationinthe1909articlewhichIconsidertobethemostimportantisthattherepresentativeoftheTickerandInvestmentDigestwatchedGannperformthetrades.ThisfactisimportantbecausethereisnomentionofGannusinganyhoroscopes,pricechartsofanykind,PriceandTimechartssuchastheSquareofNineoranythingelse.ApparentlyGannsimplywatchedthetickertapeandcarriedoutthemarketanalysisinhishead.InGann's1930book,WallStreetStockSelectorheprovideduswithsomeinsightintohowheperformedhis1909tradingdemonstrationwhenhewrotethefollowing.

In1909,aftertheTickerMagazineannouncedthefactthatIhadmadeaworld'srecordinthestockmarketfollowingscientificspeculation,menandwomenfromallpartsofthecountrywroteorcametoseemetogetmymoneyortellmewhattodowithit.WallStreetStockSelector,WhatFitsaManToWriteasanAuthority,p.9

RememberthatinGannterminologythewordscientificisaveilforthewordastrological.BelowisthetranslationofthisquotationwhichtakesourunderstandingofGann's1909tradingdemonstrationinatotallydifferentandcomplexdirection.

In1909,aftertheTickerMagazineannouncedthefactthatIhadmadeaworld'srecordinthestockmarketfollowingastrologicalspeculation,menandwomenfromallpartsofthecountrywroteorcametoseemetogetmymoneyortellmewhattodowithit.Translation-WallStreetStockSelector,WhatFitsaManToWriteasanAuthority,p.9

Thequestionnowbecomes,"WhatastrologicallybasedmethodcouldGannhaveperformedentirelyinhisheadwhiletheTickerandInvestmentDigestrepresentativewatched."IamgoingtoshowyouthemethodsIbelieveGannusedduringhis1909tradingdemonstrationbutIcannotprovideGann'sintricateknowledgeofintradaystockactivityorhisintuitivedecisionmakingability.ThemethodswhichIbelieveGannappliedduringthishistorictradingdemonstrationweretwointradayapplicationsofthefourthdimensionofmarketmovements.Belowisanintradayswingchartshowingthebasicapplicationofthismethod.Themoon'slongitudehasbeenmadetostartattheJuly6thlowandissettorise1ticfor1°oflunarmovement.Thisangleisa1x1moonangle.Noticethatthe1x1moonangleisstairstepped.Thesmallstepsarecausedbythemoon'smovementovernightandthelargestepsarecausedbythemoon'smovementovertheweekend.Noticethatthemoon'slongitudeduringthecourseofonedayisrelativelyflatrepresentingonlyagradualchangeinpriceduringthetradingday.Whenthepricemadethetopagainstthe1x1moonangleatpoint"A",thenumberofticsmovedbythepriceandthenumberofdegreesmovedbythemoonhavebalancedbetweentheJuly6thlowandpoint"A".RememberthatduringGann's1909tradingdemonstration,heperformedthemarketanalysisinhishead.Byrememberingthemoon'slongitudinalpricelevelforthecurrentdayGannwouldhavebeenabletoidentifywhenthepricemovementwasbalancingwiththemoon'smovementbysimplywatchingthetickertapeandnotingwhenthestockpricetouchedthepricelevelofthe1x1moonangle.Itisstatedinthe1909articlethatGannhad"anextraordinarymemoryforfigures."Ifthiswastrue,Ganncouldhavewatched1x1moonanglesfromseveralpreviousturningpoints,onseveralstocks,allatonetime.Beloware15minuteand1hourbarchartsonwhichIhaveappliedthismethod.

Chart6-2isa15minutebarchartoftheS&P500futures.A2x1moonanglehasbeendrawnfromtheJuly5low.Atpoint"B"thepricemoveduptoatopjustunderthisangle,comingveryclosetoanexactproportionalrelationshipwiththemovementofthemoon.Atpoint"A1"thepricemadeabottomonthis2x1angleandthispointwillbeusedonChart6-3.

OnChart6-3,a2x1moonangleisdrawnfromthetoponJuly10.An8x1moonangleisdrawnfromalowonJuly11whichispoint"A1"fromChart6-2.Atpoint"A"thepricetouchedthesetwolineswhichmeantthepricehadmovedadistancewhichwasproportionaltothelongitudinalmovementofthemoonstartingfromthesetwopreviousturningpoints.

OnChart6-4,a2x1moonanglehasbeendrawnfromtheJuly10top.Thepricemovementmadeabottomagainstthisangleatpoint"C".Whenthepricecrossedthis2x1moonangleatpoint"C"itmeantthevelocityoftheS&P500wasinproportiontothevelocityofthemoon.

OnChart6-5,atpoint"D",thepricemovementoftheS&P500wasinproportiontothelongitudinalmovementofthemoonstartingfromtheJuly12top,andabottomformed.

OnChart6-6atpoint"E",a15minutebarcharttopwasmadewhenthemovementofthepricebalancedwiththemovementofthemoonstartingfromtheJuly11low.

Chart6-7isanhourlybarchartshowingthesamePriceandLongitudeAngles

seenonCharts6-2to6-6.TheanglesonChart6-3havebeenleftoffChart6-7becausetheycoveronly3daysmakingtheirrelationshipsdifficulttoseeonanhourlychart.Bycomparingthishourlychartwiththeprevious15minutecharts,youcanseehowtheseanglesfitintoalongertermpicture.BynowyouprobablyunderstandwhatthePriceandLongitudeAnglesrepresentsoIwillnotdescribetherelationshipsontheremaining15minuteandhourlycharts.

Chart6-10isanhourlybarchartforcopperwhichshowsthesamePriceandLongitudeAnglesasthe15minutebarchartsshowninCharts6-8and6-9.

Chart6-14isanhourlybarchartoftheD-MarkwhichshowsthesamePriceandLongitudeAnglesasthe15minutebarchartsshowninCharts6-11,6-12and6-13.

Chart6-17isanhourlybarchartforgoldwhichshowsthesamePriceandLongitudeAnglesasthe15minutebarchartsshowninCharts6-15and6-16.

Chart6-22isanhourlybarchartforT-BondswhichshowsthesamePriceandLongitudeAnglesasthe15minutebarchartsshowninCharts6-18,6-19,6-20and6-21.

Chart6-26isanhourlybarchartforcrudeoilwhichshowsthesamePriceandLongitudeAnglesasthe15minutebarchartsshowninCharts6-23,6-24and6-25.

Chart6-27,isanhourlychartforMotorolastock.Inthischapterthereareonlytwoexamplesshowinghowthemoon'svelocitycorrelateswiththeintraday

pricevelocityofindividualstocks.TheseareChart6-27andChart6-28.Someofthenewquotemachinesofferintradayquotesonover150,000stocks.Therearemanystockswhichdonothaveenoughvolatilitytocorrelatewiththemoon'svelocityonintradaytimeframes.Whenapplyingthismethodtoindividualstocksitisbesttofindstockswithatrackrecordofintradaypricevolatility.

Chart6-29isanhourlybarchartoftheS&P500futuresfrom1982.

Chart6-30isanhourlybarchartoftheS&P500futuresfrom1983.

Chart6-31isanhourlybarchartoftheS&P500futuresfrom1984.

Chart6-32isanhourlybarchartoftheS&P500futuresfrom1985.

Chart6-33isanhourlybarchartoftheS&P500futuresfrom1986.

Chart6-34isanhourlybarchartoftheS&P500futuresfrom1987.

Chart6-35isanhourlybarchartoftheS&P500futuresfrom1988.

Chart6-36isanhourlybarchartoftheS&P500futuresfrom1989.

Chart6-37isanhourlybarchartoftheS&P500futuresfrom1993.

EarthRotationalAnglesThesecondmethodwhichIbelieveGannusedduringhis1909tradingdemonstrationemployedthesamebasictechniqueofcorrelatinganastrologicalvelocitytothepricevelocity.Inhisbook,TheTunnelThruTheAir,Gannstatedthatthe4minutetimecyclewasoneofthesmallestcycleswhichrepeatedregularly.Hereasonedthatthiscyclehadaninfluencebecausetheearthrotates1°onitsaxisevery4minutes.IbelievethatduringGann's1909tradingdemonstrationGannkepttrackofthepriceandtimeofintradayswingtopsandbottomsandcorrelatedthepricemovementwiththedegreesrotatedbytheearthonitsaxis.GiventhatGannwatchedseveralstocks,thisisamethodwhicheasilycouldhaveproduced286tradesinthe25tradingdaysofhis1909demonstration.ItismyopinionthatGannwatchedthetickertapeforreversalpricepatternswherethepricemovementbalancedwiththenumberofdegreestheearthrotated.Becausetheearthrotatesauniform1°every4minutesitisverypossiblethatGannmonitoredtheserelationshipsinhishead,orwithonlyapencilandpad,astherepresentativeoftheTickerandInvestmentDigestlookedon.

Chart6-38showsa4minutebarchartfortheSeptember95,S&P500futurescontractforthedayofJuly5th.Ihavedrawnananglestartingfromthe553.5topwhichoccurredduringthe4minutebarendingat,9:42AM.TheangleonChart6-38declines1ticforevery1°ofearthrotationor.05every4minutes,whichmakesthisa1x1EarthRotationalAngle(ERA).NoticethatthepriceoftheS&P500formedabottomonthisangleatpoint"A"andthenformedabottomingpatternjustbelowthisangleatpoint"B".Whenthepricetouchedthisangleitmeantthatthepricemovementandtheearth'srotationalmovementwerebalanced.

WhenapplyingtheEarthRotationalAnglesona4minutebarchartitisnecessarytohaveaswingingintradaypricestructure.Noteverystockandfuturecontracthasenoughintradayactivitytocreatesuchapricestructureona4minutechart.Chart6-39isa4minutebarchartofT-BondfuturesforJune2,1995.OnChart6-39noticethattherewasalargemoveupinthefirst25minutesoftradingandtherestofthedaywasspentmovingsideways.TheintradaypricestructureonChart6-39didnotprovideanyopportunitiestoapplythistrendlinemethod.Below,IhaveappliedEarthRotationalAnglestotheSeptember95,S&P500futurescontractfortheentiremonthofJuly1995.ThefollowingchartsdonothaveanylettersidentifyingtheturningpointswhichoccurredontheEarthRotationalAngles.Ifyousimplyfollowthecourseofeachangleyouwillfindthatmanyturningpointsoccurredontheseangles.

ThisconcludestheexamplesofhowGanncorrelatedtheEarth'sRotationalAnglewithintradaypricemovement.InChapters5and6,IhaveshownhowGanncorrelatedplanetaryvelocitywithpricemovementusingtimeframesfromlongtermmonthlyDJIAchartsto4minuteS&P500charts.Chapters5and6provideenoughexamplestoprovethattherelationshipbetweenplanetaryvelocityandpricevelocitydoesexistonvirtuallyeverytimeframe.End

Chapter7:W.D.Gann'sDoubleNumberedPrice&TimeChartsFigure7-1,isanartisticreplicaofanactualGannDoubleNumberedHexagonChart.GannmadethesedoublenumberedchartswithavarietyofhisPriceandTimeCharts,notjusttheHexagonChart.ThereplicainFigure7-1hastwonumbersineachcell,whichiswhyIcallthemDoubleNumberedPrice&TimeCharts.NoticethattheHexagonChartinFigure7-1,andtheHexagonChartspresentedinVolume1,aresetupdifferently.Themaindifferenceisthatthe0°-360°startingpointisshiftedfromthecenteroftherightside,downtothebottomrightcorner.Finally,noticethatGannwrotethesignsofthezodiacaroundtheoutsideofthischartwhichprovesithassomeastrologicalfunction.

GannwroteonlyafewdiscussionsabouttheDoubleNumberedPrice&TimeCharts.AcloseexaminationofthesediscussionsrevealsthatGanndidconcealafewexamplesofhisastrologicaluseforthesecharts.UnfortunatelytherearesomeproblemswiththeastrologicalexamplesofthismethodwhichGannconcealed.SomeoftheconcealedexampleshavetypographicalerrorswhichmakesitverydifficulttodeterminetherelationshipGannintendedtoconceal.Othersarepoorlywordedanddisjointedmakingthemdifficulttoexplain.ForthisreasonIwillexplaininmyownwordsthefunctionoftheDoubleNumberedPrice&TimeCharts.GannwrotethatontheDoubleNumberedPrice&TimeCharts,thetopnumberineachcellrepresentsthepriceandthebottomnumberineachcellrepresentstime.PreviouslyIexplainedthatGanncorrelatedtimewithlongitudeandthisis

thecorrelationGannusedwiththesecharts.Thismeansthebottomsetofnumbersrepresentsplanetarylongitude.Thetopsetofnumberswillstillrepresentprice.InChapter5and6,IexplainedhowGannusedthePriceandLongitudeAnglestobalancepricemovementandlongitudinalmovement.Gannwasnotonlyinterestedinobservingthebalancingofpriceandlongitude,hewasalsointerestedinobservingwherethepriceandlongitudebalanced.TheDoubleNumberedPrice&TimeChartswereusedbyGanntoidentifythepositiononthePriceandTimeChartatwhichthepricemovementandplanetarymovementbalanced.ThebasicideawasthatabalancebetweenpriceandlongitudewasmoreimportantifitoccurredatcertainplacesonthePriceandTimeChart.Ifweequate1centorpointofpricewith1degreeoflongitude,thenwecanbalancepriceandlongitudeonastandardsinglenumberedPriceandTimeChart.WhenGannwantedtoassignmoreorlessthat1pointto1degreeheusedtheDoubleNumberedPrice&TimeCharts.ThisisthesecretfunctionoftheDoubleNumberedPrice&TimeCharts.TherearetwobasicwaystoapplytheabovemethodtotheDoubleNumberedPrice&TimeCharts.WiththefirstmethodacountofthepriceandlongitudinalmovementisbegunfromthestartingpointofthePriceandTimeChart.Withthesecondmethod,acountofthepriceandlongitudinalmovementisbegunfromtheactualhighorlowpriceonthePriceandTimeChart.Asthecountmovesforwardwitheithermethod,thepositionofbalancingpointsarenotedwithbalancingpointsonimportantanglesinthePriceandTimeCharthavingaddedimportance.TheDoubleNumberedSquareofNineseeninFigure7-2issetat$1/8to1°.Thebottomnumberineachcellrepresentslongitudeandmovesinincrementsof1.Thetopnumberineachcellrepresentspriceandmovesinincrementsof1/8.1/8indecimalformis.125.OnFigure7-2,spaceislimitedsoIhaveincludedonlythefirsttwodecimalpointsofeachpriceshowing.125as.12.Thismeans1512incell121isactuallytheprice$15.125.TheexamplesinthischapterwilluseChartsfromChapters5and6.Chart5-26showingAcusonstockhasbeenredrawnandisnowChart7-3whichwillbeusedalongwithFigure7-2inthefirstexample.Figure7-2isaDoubleNumberedSquareofNine.ThepointsintheSquareofNinewhichGannindicatedwereimportantforsupportandresistancearethenumbersontheCardinalCrossandtheFixedCross.TheCardinalCrossiscomposedofthehorizontallinemarking0°and180°andtheverticalline

marking90°and270°.TheFixedCrossiscomposedofthetwo45°anglesmarking45°,225°135°and315°.OnFigure7-2,1150,whichiscircled,istheJuly21,1994,$11.50lowpriceofAcusonstock.ThislowisthestartingpointoftheHeliocentriclongitudeofMarsonChart7-3andthestartingpointofthepriceandlongitudecountonFigure7-2.Asthefinaltopwasmade,thepriceofAcusonbalancedwithheliocentricMarsbetweentheprices18to18.25.Fromthelowpriceof11.5tothebalancingpointsof18to18.25therewasanincreaseof52to54incrementsof1/8.Ifyoustartat1150incell92onFigure7-2,andcountforward52to54spacesyoucanseethattheprice1800isinthe144thcelland1825isinthe146thcell.OnFigure7-2,the144thto146thcellsareoutlinedwhichrevealsthattheyareonthe135°angleontheSquareofNine.ThismeansHeliocentricMarsandAcusonstockbalancedatapricewhichwasonanimportantangleintheSquareofNine.ThisisthetypeofsetupwhichGannlookedfortohelpidentifyturningpoints.

Figure7-4,isaDoubleNumberedHexagonChartwhichhasthepricemovinginincrementsof25.Thisrepresentstheminimumticforcornfutureswhichis.25¢.Chart7-5isthesamecornpricedatashowninChart5-47.OnChart7-5thesun'slongitudeisstartedfromthe238lowandsettorise1ticor.25¢forevery1°ofthesun'smovement.InthisexamplewewillstartcountingthepriceandlongitudinalmovementfromthestartingpointoftheHexagonChart.OnFigure7-4,balancingpoints"A","B"and"C"arecircled.TheimportantanglesontheHexagonChartarethe30°angleswhichareshownonFigure7-4.Balancingpoint"A"onFigure7-4isthecellcontaining"5150,206"whichshowsthatthepricehadmovedup51.50¢whichis206ticsandthesunhadmoved206°.

Chart7-5showsbalancingpoints"A","B"and"C".Figure7-4,showsthatbalancingpoint"A"didnotoccuronanimportantangleintheHexagonChart.Balancingpoint"B"iscircledonFigure7-4andcontains"5850,234"whichmeansthepricehadmovedup58.5¢or234ticsandthesunhadmoved234°.OnFigure7-4,balancingpoint"B"occurredonthe120°anglewhichisimportantintheHexagonChart.Finally,Figure7-4showsthatbalancingpoint"C"occurredagainstthe150°angle,anotherimportantangleontheHexagonChart.

Figure7-6isaDoubleNumberedEvenSquaresometimescalledtheSquareofFour,withthepriceincrementsetto.05or1tic.Chart7-7showsthesamecopperpricesasChart6-8.Themoon'slongitudeonChart7-7issettorise1tic(.05)for1°.OnChart7-7,themoon'slongitudestartsfromthe133.3lowandabalancingpointoccurredattheprice141.20.OnChart7-7thisbalancingpointislabeled"A".Betweenthelowandthebalancingpointthepriceincreased7.90pointsor158ticsandthemoontraveled158°.ForthisexamplewewillstartcountingfromthecenteroftheEvenSquare.OnFigure7-6,Ihavecircledthecellcontaining"790,158".Thisrepresentsthe7.90pointstraveledbythepriceandthe158°traveledbythemoon.Noticethatthisbalancingpointoccurredagainstthe90°angleontheEvenSquare.

TheimportantanglesontheEvenSquarearethesameastheSquareofNine.ThesearetheCardinalCrossanglesof0°,90°,180°,270°andtheFixedCrossanglesof45°,135°,225°,315°.

ThefinalexampleinthischapterusesFigure7-8andChart7-9.Chart7-9isafourminutebarchartfortheS&P500andwasalsoshowninChart6-49.OnChart7-9,anEarthRotationalAnglestartsfromthe565topanddeclines1tic(.05)foreach1°theearthrotatesonitsaxis.Balancingpoint"A"onChart7-9occurredatapproximately560.75.Fromthe565toptothebalancingpointthepricedecreased4.25pointsor85tics,andtheearthrotated85°.OntheHexagonChartinFigure7-8thisbalancingpointiscircled.Thecircledcellcontains"425,85"whichrepresentsthepricedecreaseof4.25pointsandthe85°rotatedbytheearth.Noticethatthiscellisonthe300°anglewhichisanimportantangleontheHexagonChart.

BystudyingthescrapsofGann'sresearchwhichstillexist,itisdifficulttodeterminetheextenttowhichGannusedtheDoubleNumberedPriceandTimeCharts.MyworkwiththesechartshasshownthatPriceandLongitudeAnglebalancingpointsoftenoccuronimportantnumbersinthePriceandTimeChartsbutfindingtheserelationshipscanbetimeconsuming.ThereisoneshortcutIusewhenapplyingthemethodinthischapter.WhenIplotaPriceandLongitudeAngleonapricebarchart,IputcoloredslashesonthePriceandLongitudeAngletomarktheimportantnumbersinthePriceandTimeChart.Bydoingthis,IcanobservehowcloseabalancingpointistoanimportantnumberonaPriceandTimeChartbysimplyobservingthebalancingpointsdistancefromthenearestcoloredslash.ThisisjustonepossibleshortcutforusingtheDoubleNumberedPriceandTimeCharts.WhydidGannhavemorethanonePriceandTimeChart?TheanswertothisquestionwillhelpyouunderstandhowGannsawthemarkets.EachPriceandTimeChartrepresentsadifferentrateofexpansionandcontraction.Gannexperimentedwith,andused,differentPriceandTimeChartsbecausehewastryingtodeterminewhichPriceandTimeChartbestcorrelatedwiththeexpansionandcontractionofthepricesindifferentmarkets.ThemovementsofthenumbersoneachPriceandTimeChartcanbedefinedbyamathematicalsystem.GannbelievedthatthePriceandTimeChartswereashortcuttobeusedinsteadoftheactualmathematics.UnderstandingthePriceandTimeCharts,showsusthatGannsawthefinancialmarketsastheunfoldingofpreset

mathematicalsystems.ItmaybeoverwhelmingatfirstbutitisimportanttounderstandthatGanndidnotbelievetherewasasinglePriceandTimeChartforeverymarket.Volume1andVolume2havepresentedthePriceandTimeChartswithwhichmanytradersarefamiliar.ThesePriceandTimeChartsaretheCircleChart,HexagonChart,SquareofNineandtheEvenSquarebutGannmadeotherPriceandTimeChartswhichrepresenteddifferentratesofexpansionandcontraction.Figure7-10and7-11showGann'sTriangleChart.Figure7-10isastandardsinglenumberedTriangleChart.Figure7-11isaDoubleNumberedTriangleChartwiththepricemovinginincrementsof10.

TheTriangleChartisusedinthesamebasicwayastheHexagonChart,SquareofNineandtheEvenSquare.TheimportantnumbersintheTriangleChartarethenumbersalongtheleftedge,rightedge,andnexttoorontopof,thecenter

line.DonotbehesitanttoexperimentwithmakingyourownPriceandTimeChartsormodifyingGann's.ThereisnoreasonwhyanewPriceandTimeChartcannotdefinetheexpansionandcontractionofpricesevenbetterthanGann'sdo.

End

Chapter8:TheCubeCycleWhenIbeganstudyingGann'swork,oneofmyfirstquestionswas,"WhydidGannabandontheSevenZonesofActivityandstartusingtheeightdivisionsoftherange."TounderstandwhyGannswitchedfromthe7zonestothe8divisionswemustunderstandthebasicsofeachmethod.TheSevenZonesofActivitywerepresentedbyGanninhis1923TruthofTheStockTape.TheSevenZonesofActivityaresevenpriceareasbetweenahighandlowpricebutarenotastraightdivisionofthepricerangeintosevensections.TheSevenZonesofActivityhaveboundarieswhicharevariable.Betweenthehighandlow,somewherenearthemiddle,thereexiststhenormalzonewhichrepresentssomethingclosetointrinsicvalue.Itisnotclearwhetherthisisonepriceoramiddlezonewithatopandbottom.Abovethenormalzonearethe1st,2ndand3rdzonesabovenormalandbelowthenormalzonearethe1st,2ndand3rdzonesbelownormal.SomeofthezonesidentifiedbyGannareassmallastwopointsandotherzonesheidentifiedweremuchlarger.ItseemsasthoughtheSevenZonesofActivityarethepricelevelswherethepricemeetssupportandresistancemakingitstopsandbottoms.SeeFigure8-1.Nowletsexaminetheeightdivisionsoftherange.ThismethodisactuallymuchclearerthantheSevenZonesofActivity.Theeightdivisionsareacquiredbysimplydividingthehightolowpricerangeby8.Whenthepricecompletesadeclineoranadvancethepricerangeisdividedby8andthesepricelevelsareusedassupportandresistanceasthepricemovesbackintheotherdirection.Figure8-1,showstheSevenZonesofActivityandtheeightdivisionsoftherange.OnthenextpageisadiscussionofGann's30yearCubecyclewhichseemsunrelatedtothe7zonesandthe8divisionsbutinamomentIwillshowhowtheyareallrelated.

In1931Gannwroteashortdiscussiontitled,"TheHexagonChart,"inwhichhediscussedbuildingacube.Acubehassixfaces,atop,bottomandfoursides.Gannequatedeach60°sideoftheHexagonChartwithonesideofthecube.Gannindicatedthe360°aroundtheHexagonChartrepresented360monthsor30years.ThismeanseachsideoftheHexagonChartwhichcontains60°represents60monthsor5years.BelowinFigure8-2youcanseeaHexagonchartwitheach60°incrementlabeled.The1st60°sectionisthebottomofthecubeandrepresents5years.The2nd,3rd,4th,and5th60°sectionsrepresentthefoursidesofthecube.The6th,60°sectionrepresentsthetopofthecubeandcompletesthe360monthor30yearCubecycle.

Sofarthischapterhaspresentedtwoseeminglyunrelatedideas.First,the7ZonesofActivityand8divisionsoftherangeandsecond,buildingacubewiththe30yearcycle.ItismyopinionthatthesetwoideasarerelatedbythesourcematerialwhichinspiredGanntodevelopthem.OnebookwhichIbelievewasaninspirationforGannwasTheHarmoniesofTheWorldwrittenin1619byJohannesKepler.TheHarmoniesofTheWorldisadifficultbookwhichpresentscomplexrelationshipsbetweenmusic,planetarymotion,geometricshapesandotheritemsinanattempttoshowsomekindofuniversalharmony.Keplerworkedwithratiosbetweenperiheliaandapheliaofdifferentplanetsandassignedonegeometricshapetoeachofthefivespacesbetweentheknownplanets.Saturnwastheoutermostknownplanetatthattime.Figure8-3isanartisticreplicaofadrawinginTheHarmoniesofTheWorldwhichshowsthatKeplerassignedthegeometricshapeofacubetothespacebetweenSaturnandJupiter.IfGann'sinspirationforcallingthe30yearcyclea"cube"wasTheHarmoniesofTheWorldthenGann's30yearCubecyclemusthavesomethingtodowithSaturn,Jupiterorboth.

ItismyopinionthatGann'smethodswhichusedthe7zonesand8divisionswereinspiredbyKepler'suseofthespacesbetweentheplanetsinTheHarmoniesofTheWorld.GannpresentedtheSevenZonesofActivityin1923andtheearliestpresentationoftheeightdivisionsoftherangewhichstillexistsisfrom1931.BydrawingtheorbitsofMercury ,Venus ,Earth ,Mars ,Jupiter ,Saturn ,Uranus andNeptune whichwereknownin1923,youcanseethattherearesevenspacesbetweentheseplanets.ThisisthesymbolicbasisforGann'sSevenZonesofActivity.In1930whenPlutowasdiscovered,GannhadtoupdatetheSevenZonesofActivity.ByaddingtheorbitofPlutototheotherorbitsitcreateseightspacesbetweentheplanets.ThisiswhyandwhenGannabandonedtheSevenZonesofActivityandadoptedtheeightdivisionsoftherange.ThisisshowninFigure8-4.Themethodsusingthe7zonesand8divisionsarenotastrologymethods.Theyaremethodswhichhaveasymbolicbasisinastrology.Thesevenzonesaresymbolicofthesevenspacesbetweentheplanetsin1923andtheeightdivisionsaresymbolicoftheeightspacesbetweentheplanetsafterPlutowasdiscoveredin1930.Newtraderssometimesthinkthereisamagicvaluetodividingthepricerangeintoeight

divisions.Therealityisthatifanotherplanethadbeendiscovered,Gannwouldhaveabandonedtheeightdivisionoftherangeandstartedwritingabouttheninedivisionsoftherange.ItismyopiniontheonlydivisionoftherangewhichGannactuallyusedinhistradingwasthe50%division.

InTheHarmoniesofTheWorld,JohannesKeplerassignedthegeometricshapeofacubetothespacebetweenSaturnandJupiter.Gann'sdiscussionofthecubedealswiththe30yearcycle.ThefollowingquotationprovesthatGanndidinfactcorrelatethe30yearcyclewithSaturn.

Thenextimportantmajorcycleis30years,whichiscausedbytheplanetSaturn.Thisplanetmakesonerevolutionaroundthesunevery30years.Saturnrulestheproductsoftheearthandcausesextremehighorlowpricesinproductsoftheearthattheendofeach30-yearcycle,andthismakesStockshighorlow.Themostimportantcycleofallisthe20-yearcycle.W.D.Gann,MethodforForecastingtheStockMarket,1931

TheactuallengthofSaturn'sorbitisnot30years.Itismuchcloserto29.45years.Gannwrotethatthe30yearmarketcycleiscausedbySaturnbuthedidnotsaythe30yearmarketcycleiscausedbyoneorbitofSaturn.Thisis

importantbecauseGanndidnotintendforustotryandlineuptheexactmarketcyclewithexactlyoneorbitofSaturn.Gannwantedustocorrelatethe30yearmarketcyclewithSaturn'smovementbutnotspecificallyoneorbit.TheCubecyclewillbeappliedtothestockmarket.TousetheCubecyclewemustdeterminewheretostartcountingthecycle.TheyearGannusedinhisastrologycalculationsfortheopeningoftheNewYorkStockExchangewas1792andsowewillstartcountingthe30yearCubecyclein1792.The1stcuberunsfromtheexchangeopeningin1792toDec.31,1821the2ndcuberunsfromJan.1,1822toDec.31,1851,the3rdcuberunsfromJan.1,1852toDec.31,1881,the4thcuberunsfromJan.1,1882toDec.31,1911,the5thcuberunsfromJan.1,1912toDec.31,1941,the6thcuberunsfromJan.1,1942toDec.31,1971,the7thcuberunsfromJan.1,1972toDec.31,2001.Eachcubeisa30yearcycledividedinto6,5yearsections,onesectionforeachfaceofthecube.In1995thestockmarketisinthe5thsectionofthe7thcube.Inotherwords,weareinthe24thyearofa30yearcycle.Eachsectionofthecurrent7thcube,shouldrepeatthemovementsfromoneofthesectionswhichislistedaboveit.section: 1st 2nd 3rd 4th 5th 6thcubeside:Bottom side1 side2 side3 side4 TopCUBE

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1st 1792-17961797-18011802-18061807-18111812-18161817-18212nd 1822-18261827-18311832-18361837-18411842-18461847-18513rd 1852-18561857-18611862-18661867-18711872-18761877-18814th 1882-18861887-18911892-18961897-19011902-19061907-19115th 1912-19161917-19211922-19261927-19311932-19361937-19416th 1942-19461947-19511952-19561957-19611962-19661967-19717th 1972-19761977-19811982-19861987-19911992-19961997-20018th 2002-20062007-20112012-20162017-20212022-20262027-2031InWallStreetStockSelector,Gannwroteasectiontitled"HowCyclesRepeat"inwhichhecorrelatedthetwogreatestbullmarketsuptothattime.ThefirstbullmarketranfromMarch1861toJuly1869lasting8yearsand4months.ThesecondbullmarketranfromAugust1921toAugust1929lasting8years.Inthediscussion"HowCyclesRepeat"Gannincludedapriceswingchartofarailroadaveragefrom1856to1896.ItismyopinionthatGanndidnotshowarailroad

averagechartthroughthetimeofthebookswritingin1930becauseitclearlyrevealedhowGannbelievedcyclesrepeated.OnChart8-5,IhavebroughttogethertherailroadaveragepricesfromdifferentpartsofGann'smaterialtoshowwhatGanndiscussedinthesection,"HowCyclesRepeat".

Chart8-5,showsthemonthlyhighandlowbarchartoftherailroadaveragesfrom1856to1935whenGannstoppedlistingtherailroadaverages.PartofChart8-5istheW.D.GannRailroadAverageandpartistheDowJonesRailroadAverage.OnChart8-5,Ihavedrawnanarrowconnectingtheyears1861and1921.Inthetableonpage188showingtheyearsofthecubesections,noticethat1921linesupwith1861.1921isthelastyearofthe2ndsectioninthe5thcubeand1861isthelastyearofthe2ndsectioninthe3rdcube.Chart8-5alsoshowsanarrowconnectingthe1869topandthe1929top.1929isinthesamepositioninthe5thcubeas1869inthe3rdcube.Thisshowsthatinthediscussion"HowCyclesRepeat"GanndescribedthebasicwayinwhichhebelievedthestockmarketrepeatedthemovementsofapreviousCubecycle.OnChart8-6,IhaveoverlappedtheRailroadAveragesfortheyears1861to1880and1921to1935toshowyouspecificallyhowthe30yearCubecyclerepeated.Chart8-5and8-6showthatthe5thCubecyclefrom1921to1929repeatedthe3rdCubecyclefrom1861to1869whichiswhatGannwantedustolearnfromhisdiscussion,"HowCyclesRepeat".ThesetwochartsalsoshowthatthiscyclecontinuedtorepeatafterGannwroteWallStreetStockSelectoras

thecyclefrom1929to1932repeatedthebasiccyclefrom1869to1873.

Gannsawthestockmarketfundamentallydifferentthanmostpeopleseethestockmarkettoday.WecanseethisinmanystatementsmadebyGann.Forexamplein1936,GannwrotethattheDowJonesIndustrialAveragewouldnevercrossits1929high.ThereasonGannmadethispredictionwasbecauseofthewaythestockmarkethadmovedduringhislife.LookatChart8-6,noticethatthe1929railroadaveragetopwasbasicallythesamepriceasthe1869railroadaveragetop.Gannbelievedthatthestockmarketrepeatedthesamepricelevelsoverlongperiodsoftimewhenthesametimecyclesrepeated.Generallywethinkofthe1929topasthehighestpriceinhistoryuptothattime,buttheDJIAwasnotinexistencein1869astherailroadaverageswere.By1936manyregulationshadbeenimplementedtostopgamblinginthestockmarketandthetaxstructurewassettodeterspeculation,allasareactiontothe1929crash.GannbelievedthatthegovernmentinterferenceinthestockmarketwouldholddownmarketvolumeandstoptheDJIAfromretracingtheextremehighsof1929thenexttimethatcyclerepeated.ThisiswhyGannpredictedtheDJIAwouldnevercrossthe1929high.ThisimageGannhadofthestockmarketrepeatingthesamepricelevelswhenthesametimecyclesrepeatedisaradicallydifferentimageofthestockmarketthanmostofushavetoday.ManyofthecommoditymarketsstillworkinthismannerbutthestockmarketaveragesandindexessimplydonotrepeatthesamepricelevelsoverlongperiodsoftimeastheydidduringmuchofGann'slife.Therearemanyreasonswhythestructureofthestockaverageshavechanged.

Considerthedifferencebetweenwhowasholdingthestocksmanyyearsagovs.today.In1929stockswerebeingheldbygamblersfromallovertheworld.Todaystocksaremainlyheldbyfundsofsomekindwhosemangager'sjobitistobuyadiversifiedpackageofstocksandholdforthelongterm.Thisisinmyopinionwhythestockmarkethasamuchmoredifficulttimesustainingabearmarkettodaythanitdidmanyyearsago.DuringGann'slife,manyofthestockswereheldbyindividualswhowouldpanicafteracrashandsellout,whichsustainedthebearmarket.Todaystocksareheldbyfundsdirectedbythosewhosejobitistonotsellout.Thisiswhyafterthecrashin1987therewasnobearmarket.Thestronghandsheldontotheirstockafterthecrashbelievinginthelongtermupwardmotionofthemarket.Nomatterwhatthereasonsare,itisafactthatthestockmarketstructureobservedbyGannofstockaveragesrepeatingextremehighandlowpricesoverlongperiodsoftimeissimplynotpartofthemodernstockmarketstructure.The30yearCubecyclewillstillworktodaybutIdonotbelieveitwillworkinthesamemanner.ThetimingelementofthismethodcanstillworkbutIdonotbelievetheideathatwecanusepastcyclestodeterminetheextremepriceswillwork.Thestockmarketchartsonthefollowingpagesshoweach5yearsectionofthecurrent7thCubealongwiththesamesectionofapreviousCubewhichseemstohavebeenrepeated.Thedottedlineonthesechartsisalwaysthepreviouscycleandthesolidlineisthecurrent7thCube.ThepricescaleforthepreviouspricemovementwillalwaysbeontherightandthecurrentCube'spricescaleisontheleft.Charts8-7to8-12weremadebyadjustingthelowpriceofeachdataseriesclosetothebottomofthechartandthehighpriceofeachdataseriesclosetothetopofthechart.Inthiswayifthemarketcyclesaresimilarthetwolineswillbeoverlappingandiftheyarenotsimilartheywilldiverge.Charts8-7through8-12areallmadeusingthemonthlyclosingprices.ThemoderndatacomesfromtheDJIAandthedatafromthe1800scomesfromanaverageofleadingstocksoftheday.IfyouwilltakesometimetostudyChart8-7to8-12,IbelieveyouwillseethegeniusbehindGann'sworkwithmarketcycles.

Chart8-12showsthe6thandfinalsectionofthetwomostrecentCubecycles.Thesearethetwomostlikelycyclestorepeatinthe6thandfinalsectionofthecurrent7thCubecyclefrom1997to2001.OnChart8-12Ihavelabeledthecommonpointsofthesetwocycles.Points"1"identifyatopinthesecondorthirdquarterof1997.Points"2"identifyabottomtowardstheendofthe1stquarterof1998.Points"3"identifyatopinthelastquarterof1998andpoints"4"identifyabottominthemiddleoftheyear2000.Points1,2,3,and4representthemostlyturningpointsforthefinalsectionofthe7thCubebutitisimportanttorememberthatthemarketcanrepeatthefinalsectionofanypreviousCubecycle.

Gannalsoappliedthismethodwithtimeperiodotherthanthe30yearcycle.OneoftheothertimecyclesGannusedwasthe20yearcycle.Gannneverspecificallyidentifiedtheastrologicalcauseofthe20yearcyclebuthedididentifyitindirectly.Belowisaquotationfrom1935inwhichGannrevealedwhichyearsstartandendthe20yearcycle.

Aftertheendofthe20-yearcyclein1860,thenextcyclebeginsat1861andrunsto1880,thenextcyclebeginsat1881andrunsto1900,thenextcyclebeginsat1901andrunsto1920,thenextcyclebeginsat1921andrunsto1940.W.D.Gann,Forecasting,1935

LookattheyearsinwhichGannstartsanew20yearscycle,1861,1881,1901and1921.In1861onDec.29,JupiterformedaconjunctionwithSaturn.In1881onApril13,JupiteragainformedaconjunctionwithSaturn.In1901onSept.28,JupiterformedaconjunctionwithSaturn.Finallyin1921onAug.23,JupiterformedaconjunctionwithSaturn.ThecyclewhichiscreatedbycombiningJupiterandSaturnvariesinlengthfromjustunder20yearstojustover20years.BelowIhavelistedtheactuallengthsof4completeJupiter/Saturnconjunctioncycles.

onSep.28,1901to onAug.23,1921=7269days÷365.25=19.90years onAug.23,1921to onNov.15,1940=7024days÷365.25=19.23years onNov.15,1940to onApr.16,1961=7457days÷365.25=20.416years onApr.16,1961to onApr.16,1981=7305days÷365.25=20yearsTheaverageofthesefourconjunctioncyclesis19.8865years(19.9+19.23+20.416+20/4).Thegenerallyacceptedaverageofthiscycleis19.86years.ItisimportanttodeterminetheactuallengthofthecurrentcyclebecausethedifferencebetweenashortandlongJupiter/Saturnconjunctioncyclecanbeover1year.Inthequotationjustabovefrom1935,Gannindirectlyidentifiedtheastrologicalcauseofthe20yearcyclebylistingfour20yearcycleswhichstartinayearcontainingaconjunctionbetweenJupiterandSaturn.OnceGanndecidedonacyclelengthsuchas10or20years,hethenplottedandoverlappedsectionsofdata.Chart8-13showssix20yearsectionsofthestockmarketcovering1861to1880,1881to1900,1901to1920,1921to1940,1941to1960and1961to1980.GanncalledthistypeofchartaMasterForecastingChartandmadethemforstockaverages,individualstocksandcommodities.GannbelievedthatifyoumadeaMasterForecastingChartforamarketusingthecorrectcyclelengthyouwouldbeabletoseetherepeatingcyclesinthatmarket.The20yearMasterForecastingChartinChart8-13is20calendaryearsandthereforewillnotlineupexactlywiththeJupiter/Saturnconjunctioncyclejustas1orbitofSaturnwillnotlineupexactlywiththe30yearCubecycle.

BelowisaquotationfromGannwhichwaspresentedearlierinthischapter.InthisquotationGannidentifiedSaturnasthecauseofthe30yearcycle.

Thenextimportantmajorcycleis30years,whichiscausedbytheplanetSaturn.Thisplanetmakesonerevolutionaroundthesunevery30years.Saturnrulestheproductsoftheearthandcausesextremehighorlowpricesinproductsoftheearthattheendofeach30-yearcycle,andthismakesStockshighorlow.Themostimportantcycleofallisthe20-yearcycle.W.D.Gann,MethodforForecastingtheStockMarket,1931

InthisquotationGannsaidthatSaturn"causesextremehighorlowpricesinproductsoftheearthattheendofeach30-yearcycle".FuturestradinginsoybeansstartedonOctober5,1936whenSaturnwason17° .Saturnwilltouchmostlongitudesthreetimes,oncemovingforward,oncemovingretrogradeandasecondtimemovingforward.StartingfromOctober5,1936Saturncompleteditssecondorbitwhenittouched17° forthefinaltimeduringitssecondorbitonNovember20,1995.InthelastsentenceoftheabovequotationGannwrote"Themostimportantcycleofallisthe20-yearcycle."InthischapterIshowedthatGannbelievedthe20yearcyclewascausedbythe

19.86yearinteractionofSaturnandJupiter.StartingfromOctober5,1936Jupitercompleteditsfifthorbitwhenittouched18° onNovember13,1995.ThismeansthatinmidNovember1995the20yearSaturn/Jupitercyclecompletedforthethirdtime.SeeFigure8-14.Thelastbullmarkettomovesoybeanfuturepricesabove$8.00toppedin1988,over85monthsago.Itismyopinionthatastheoldcyclescompleteandthenewcyclesstartthesoybeanmarket,whichisaproductoftheearth,willachievehighpricelevelsin1996and1997.

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ConclusionAsmanyofyouwhohavereadVolume1know,IamveryproudofhavingdiscoveredW.D.Gann'sastrologicalsecretsindependently.Therearemanypeoplewhosellinformationandalmosttoaonetheylearnedtheirmaterialfromsomeoneelse.W.D.Ganndidnottakehissecretstothegrave.Heconcealedthemallinhisbooksandcourses.IcansaywithconfidencethatW.D.Gannconcealedeveryimportanttradingsecrethehadinhiswritings.WhenweconsidertheentirebodyoforiginalGannmaterialwhichispubliclyavailable,IwouldestimatethatVolume1and2containapproximately40to50%oftheastrologicalmaterialwhichIhavediscovered.Myonlyregretinwritingthisseriesisthatittakessolongtodevelopthematerialintobookformat.TomyknowledgethereisonlyonesourcewhichhascopiesofalltheoriginalGanndocuments,excepttheegghoroscope,discussedinthisbook.ThisisLambert-GannPublishing,whichalsohascopiesofthehandwritten1954soybeanletter.MostoftheoriginalGanndocumentsareincludedwiththeW.D.GannStockorCommodityCourseandtheW.D.GannTechnicalReviewsoldbyLambert-GannPublishing.End

Update1Afterthecloseoftradingfor1996thetwochartsbelowweremade.Thefirstchartbelowshowsthepricedatafortheyears1932-1936and1992-1996ontheleftsideofthechart.Therightsideofthechartshowsthepricedatafortheyears1937-1941.Thisrepresentsonepossibleforecastfortheyears1997to2001.

Thissecondchartshowsthepricedatafortheyears1932-1936and1992-1996ontheleftsideofthechart.Therightsideofthechartshowsthepricedatafortheyears1967-1971.Thisrepresentsanotherpossibleforecastfortheyears1997to2001.

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