Quotes from the Master: WD Gann
Gann, the market master, wrote books and courses dealing with stocks, commodities, support and resistance, cycles, the law of vibration, Gann angles (the Gann fan), the Square of Nine (the Gann Wheel), the Hexagon Chart, squaring of price and time, and more. Gann was a Mason and Shriner and what he learned in those lodges is inseparably woven into his trading ideas. Although he has his detractors, few can argue that WD Gann wasn't one of trading's all time Greats. He's right up there with the others such as Jessie Livermore, Richard Wycoff and a handful of others. Here are some of the noteable words of wisdom Gann left us.
"TIME is the most important factor in determining market movements and by studying the past records of the averages or individual stocks you will be able to prove for yourself that history does repeat and that by knowing the past you can tell the future. There is a definite relation between TIME and PRICE. Now, by a study of the TIME PERIODS and TIME CYCLES you will learn why tops and bottoms are found at certain times and why Resistance Levels are so strong at certain times and bottoms and tops hold around them. The most money is made when fast moves and extreme fluctuations occur at the end of major cycles."
Forcasting by Time Cycles Course
"My calculations are based on the cycle theory and on mathematical sequences."
"Mathematical science, which is the only real science that the entire civilized world has agreed upon, furnishes unmistakable proof of history repeating itself and shows that the cycle theory, or harmonic analysis, is the only thing that we can rely upon to ascertain the future."
"Mathematics is the only exact science. All power under heaven and on earth is given to the man who masters the simple science of mathematics."
"Every movement in the market is the result of a natural law and of a Cause which exists long before the Effect takes place and can be determined years in advance. The future is but a repetition of the past, as the Bible plainly states…"
After years of patient study I have proven to my entire satisfaction as well as demonstrated to others that vibration explains every possible phase and condition of the market."
"After exhaustive researches and investigations of the known sciences, I discovered that the Law of Vibration enabled me to accurately determine the exact points to which stocks or commodities should rise and fall within a given time. The working out of this law determines the cause and predicts the effect long before the Street is aware either."
"By knowing the exact vibration of each individual stock I am able to determine at what point each will receive support and what point the greatest resistance is to be met.
"Those in close touch with the market have noticed the phenomena of ebb and flow, or rise and fall in the value of stocks. At certain times a stock will become intensely active, large transactions being made in it; at other times this same stock will become practically stationary or inactive with a very small volume of sales. I have found that the Law of Vibration governs and controls these conditions.
"Thus, I affirm, every class of phenomena, whether in nature or in the stock market, must be subject to the universal law of causation and harmony. Every effect must have an adequate cause.
"If we wish to avert failure in speculation we must deal with causes. Everything in existence is based on exact proportion and perfect relationship. There is no chance in nature, because mathematical principles of the highest order lie at the foundation of all things. Faraday said: `There is nothing in the Universe but mathematical points of force.'
"Vibration is fundamental; nothing is exempt from this law; it is universal, therefore applicable to every class of phenomena on the globe.
"After years of patient study I have proven to my entire satisfaction as well as demonstrated to others that vibration explains every possible phase and condition of the market."
"The Ticker and Investment Digest," December 1909
"Every movement in the market is the result of a natural law and of a Cause which exists long before the Effect takes place and can be determined years in advance. The future is but a repetition of the past, as the Bible plainly states: `The thing that hath been, it is that which shall be; and that which is done is that which shall be done, and there is no new thing under the sun.' -Eccl. 1:9."
W. D. Gann, "Method for Forecasting the Stock Market," p. 1
"If we know the cause of the effect, then there can be no doubt about predicting the future event or effect. I have always looked for causes and when once I determine a cause I can always be sure of the effect or future event which I predict."
W. D. Gann, The Tunnel Thru the Air, pp. 77-78.
"Each TOP or BOTTOM in Wheat, or other Commodities, comes out in accordance with an exact mathematical proportion to some other TOP or BOTTOM."
W. D. Gann, How to Make Profits in Commodities, p. 32
"Every stock makes a top or bottom on some exact mathematical point in proportion to some previous high or low level."
W. D. Gann, "Resistance Levels," p. 1
"There is no top and bottom price which cannot be determined by mathematics. Every market movement is the result of a cause and when once you determine the cause, it is easy enough to know why the effect is as it is."
W. D. Gann, "Natural Resistance Levels and Time Cycle Points," p. 10
"`I figure things by mathematics,' Mr. Gann explained. `There is nothing mysterious about any of my predictions. If I have the data I can use algebra and geometry and tell exactly by the theory of cycles when a certain thing is going to occur again.'"
The Evening Telegram, New York, Monday, March 5, 1923
"The Bible tells us that God is a spirit and that you meet God in the air. This is the reason you must use the spoken word and broadcast your prayer, or message, by putting it into the air. Man has within him the key to the process by which he may know all there is to learn and receive all that he needs from the universal, divine supply. You tune in to this source and supply through the spoken word by putting your message in the air and the divine, universal mind which is in tune with yours will receive it. Other men and women throughout the world, who are in tune, will receive your message and help you. You do not need any wires or any telephones to put your message or spoken word on the air so that it will reach throughout the world. You know that no wires are used with the radio, yet you know that all radios tuned to the same wave length will receive the same message. This is one of the good reasons why you must not speak orally the wrong words, or think the wrong thoughts, because they will be received by the minds in tune with yours and will be returned to you. This is the law: that you reap just what you sow."
Gann in The Magic Word (p. 92)
Quotes ABOUT Gann
In an essay called "Veiled Language Uncovered" in the first issue of "Trader's World," James Hyenzyk writes:
"... the best source of Ganns astrological theories is the book Truth of the Stock Tape. If studied carefully, this book will reveal to one Ganns use of the phases of the moon, the lunation chart and the solar ingress chart in putting together a one-year forecast. Gann also discussed how he determines the swings of the Stock Market by using a Time Factor, the commodity curve, the money curve, and the curve of stocks. I strongly recommend that the serious Gann student use this book in combination with the Gann Commodity and Stock Course to develop a better understanding of how to forecast the markets." (p. 21)
Les Clemens, in Gann Masters Technical Analysis Course, says:
"His library contained volumes of books and manuscripts on harmonic waves, proportion, growth, gravity, electricity, nature, and natural phenomena. However, there were no books on open interest, volume, stocks, or commodities." (p. 14)
