Since the February, 1988 issue of the GANN AND ELLIOT WAVE, another natural cause and effect timing point occurred the week beginning Monday, February 29 and ending Friday, March 4. Speciﬁcally, trades from the short side were presented in the T-Bonds, Muni-Bonds, T-Notes, T-Bills, and Eurodollars. Trades from the long side were presented in the Live Cattle, Hogs, Gold, Silver, Platinum, Crude Oil, Heating Oil, and CRB Index.
In chapter III of Gann’s book, “How to Make Proﬁts In Commodities,” Gann states, “Time is the MOST important factor of all and not until sufﬁcient time has expired does any big move start up or down. TIME must be allowed for accumulation (buying) or distribution (selling ) BEFORE the trend can change.”
Once you are aware of WHEN these natural timing points for the minor cycle of one year occur, the next step is to watch for the G-A-N-N2-(BIS) pattern to form on and around these TIME periods. Why? Because it takes TIME for accumulation or distribution to occur BEFORE the Natural Timing point is conﬁrmed by the G-A-N-N2 price pattern. The G-A-N-N2 price pattern affords plenty of time (3-4 weeks) to SEE accumulation or distribution take place from G to B/S. As Gann says in Chapter II, page 29, of “How to Make Proﬁts In Commodities,” “When you SEE the same picture or formation occur the second and third time on and around these Natural Timing points, you KNOW what it means.”
There is an old adage, “a picture is worth a thousand words.” I’ve changed this old adage to read, “a G-A-N-N2 picture, which occurs on and around these Natural Timing points, is worth ‘X’ number of dollars.” You can ﬁll in the ‘X’ with the numberof contracts you trade.
Why is the knowledge of these Natural Cause and Effect timing points so important to you as a trader? The following is an excerpt found on page 200 in Gann’s book, “The Tunnel Thru the Air “ which explains what occurs when these Natural Laws of Cause and Effect are violated.
Robert (Gann) was talking with an old veteran trader, Mr. Henry Watson. Mr. Watson told Robert the history of Daniel Sully. Mr. Sully had made 10 to 15 million dollars in the Cotton Market, but by violating and not following the “Natural Law.” in March of 1904, he lost his whole fortune.
For those who are familiar with an Ephemeris, turn to March, 1904, and you can SEE the Natural Cause point which occurred in the ﬁrst week of March, 1904,a leap year like 1988.
As an intelligent trader, don’t you owe it to yourself to be prepared for these Natural Timing points and get in “sync” with these Natural Laws and reoccurring price patterns just as Gann did?
POSITION TRADE: SHORT JUNE, 1988 T-Bonds: Natural TIME vibration (2-29-88 through 3-4-88). Like produces like (3-5-87 TOP in T-Bonds).
The price pattern at the vibration point is deﬁned by the word G-A-N-N2-S (S is for SHORT). Enter trade by drawing lXl angle from N2, enter SHORT M.O.C on CLOSE below lXl angle at 92-15 on 3-4-88. Place buy stop at ‘S’ (deﬁned risk at 94-13). Next, place an order to add to SHORT position by drawing a horizontal line from ‘A’. Enter SHORT M.O.C on a CLOSE below horizontal line at 9 1-01 on 3-li-88. At this point the price, an ‘M’ top, has conﬁrmed entry into Gann’s second section. Next, lower buy stop to original entry to 92-15 on both posltions. Next, draw a 51.4 degree angle from 55 2, 94-17 from 3-3-88, 360/7 = 51.4 degrees (51.4 degrees is the casing angle from the cardinal points to the peak on the Great Pyramid at Gizeh).
Next, add third short position M.O.C., by drawing lXl angle from 4-4-88 (after price touched 54 2 9 1-04, Even Square Pyramid Block on the GANN WHEEL square of ‘9’) on close below lXl angle at 89-16 on 4-14-88. Next, draw horizontal line from 4-4-8 8 low and add fourth short position M.O.C. on close below horizontal line at 88-18 on 4-18-88. Next, lower buy stop to 89-16 on four short positions. Next, add ﬁfth short position by drawing lXl angle from 5-12-88 at 86-29 and horizontal line from 5-12-88 (after price touched 53 2, 87-25, odd square Pyramid Block). Short M.O.C. on 5-17-88 at 86-10. Next, lower buy stop to 87-26 on ﬁve short positions. Next, as we are coming into the contract month, June as this is being written, place an order to cover the ﬁve short positions at 84-13 (18 2), otherwise, cover at the close on 5-31-88 and switch to September, 1988 TBonds.
In Gann’s book, pages 43-44, “How to Proﬁt From Commodities.” Gann lists 28 Valuable Rules and states, “Anyone who follows them will make a success.” The Key word is FOLLOW. Throughout the June TBond trade, Rule #25 was FOLLOWED. Rule #25 states, “Don’t guess what the trend is. Let the market PROVE what the trend is.”
- In “Sync” With Natural Laws of Cause and Effect By Jim Purucker