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."