Haven studied Gann’s voluminous material since 1977, the book which intrigued me the most was, “The Tunnel Thru The Air”, written in 1927. In the forward, Gann states the book is mysterious and contains a valuable secret”, clothed in veiled language. Finding this secret was an exhilarating experience. However, I could not have found it without a basic course in Astrology and the ability to use an Ephemeris.
W.D. Gann states the purpose of the book is to teach the immutable laws of nature. Immutable laws are laws which man cannot change, such as the change of seasons, weather (ﬂoods, famines), earthquakes, volcanoes and speciﬁcally the rotation of the planets and their geometrical relationships to one another. The book reveals this valuable secret by describing natural astrological cause and effect timing points, where like causes produce similar effects. One of the greatest keys to successful trading is following these natural laws of vibration. With the secret, I was able to prove, through practical application of this timing point, Gann’s Cotton trade of 1926-27, his Rye trade of 1925 and 1945, and his Coffee trade of 1954.
I had found the correct beginning point to trade the minor cycle of one year. The next step involved a simple, but effective, means to square time and price from the astrological zero or beginning point. This is when I discovered the value in the square of “9”. By placing an overlay over the square of “9”. anchored at the center, with calendar dates on the perimeter (“a wheel within a wheel”), I could simply square price and time from any price and any date. Thus, the credit given to Gann for this innovation in naming this lifetime trading tool, “The Gann Wheel”. Because 85% of anything we learn is from what we see, I had the secret to the timing points which I could SEE WHEN they would occur in the future (Ephemeris), and the ability to SEE price and time square on the GANN WHEEL.
The last step I wanted was a reliable price chart pattern which formed at and around the vibration points to make the greatest amount of proﬁt in the shortest period of time. Why’? Gann said. “It’s much better to trade 3 or 4 times per year and make large proﬁts, than to make 100 to 200 trades per year and be wrong half the time and ﬁnally ending up with a net loss”. I ﬁnally found a reliable chart pattern which I could SEE develop at the vibration points. By using simple Gann techniques, I developed a trading plan of WHEN and HOW to enter this pattern, with a deﬁned risk (stop). The entry in this pattern conﬁrms the start of Gann’s second section, conﬁrms always selling the ﬁrst rally or conﬁrms buying the ﬁrst break, (for ELLIOTTICIANS, conﬁrms that start of the third wave), the biggest and best part of the price trend. The proﬁt objective is determined by one or more squares of price on the GANN WHEEL.
– LONG TRADE:
(1) Natural TIME vibration (4-13-87)’
(2) Plus 90’ Square (3 months (calendar days) or (64/67 market days) (7-15-87)(3) 59.90 Price Square, 90’ (GANN WHEEL)
– SHORT TRADE:
PRICE PATTERN for the greatest amount of proﬁt in the shortest period of time. The pattern is deﬁned by the word G-A-N-N2-S (the S is for SHORT). Enter trade by drawing 1X1 angle from N2. Enter SHORT M.O.C. on CLOSE below 1X1 angle, at 57.40 on August 5th. Place buy stop at S (deﬁned risk) 59.60. Next, place order to add to SHORT position by drawing a horizontal line from (A). Enter SHORT M.O.C. on CLOSE below horizontal line at 55.50 on August 14th. Next, lower stop to original enter on both positions to 57.40 (buy stop). Next, place open buy order to cover both SHORT positions at 51 .00 (180’ opposition from 4-13-87 on GANN WHEEL). Order ﬁlled on 8-24-87 (cancel buy stop at 57.40).