James Smithson on WD GANN

What follows is a very interesting article written by James Smithson. He posts it regularly to the various Gann discussion groups and therefore, I cannot imagine why he would not want to see it reposted here. James, where ever you are, if you want this page taken down just say so. Its thought provoking reseach that IMHP should be read by all students of GANN…

SUMMARY

W.D. Gann's outstanding skill was his ability to produce accurate annual forecasts of the stock and commodity markets. Gann stated that his forecasts were based on his secret "time factor". However, careful analysis of his novel entitled "The Tunnel Thru The Air" reveals Gann's belief in the overwhelming importance of astrology. Therefore astrology is the real basis of Gann's annual forecasts. Indeed, astrological analysis is implicit at key points in his books and courses. Consequently it is concluded that if we wish to emulate Gann's outstanding forecasting skills we must follow in his footsteps by firstly learning astrology and then apply this knowledge to the stock and commodity markets.

INTRODUCTION

William D. Gann (1878 to 1955) was an outstanding stock and commodities trader. He was also a prolific teacher of how to make speculation a profitable profession, writing some seven books and producing two courses on trading the stock and commodity markets. However, Gann's superlative skill was his ability to produce annual forecasts of the stock and commodity markets one year in advance. Although he also sent his clients supplements, which corrected his annual forecasts when necessary, the overall accuracy of these annual forecasts is highly impressive. For example, Gann's annual stockmarket forecast for 1929, which was published in November 1928, unequivocally forecast the "Great Crash" in the fall of 1929. However, Gann continued to produce and publish annual forecasts of the stock and commodity markets until shortly before his death in 1955.

THE "TIME FACTOR" IS THE KEY TO GANN'S FORECASTS

Gann's forecasts of the stock and commodity markets were based on the "time factor", the dictionary definition of which is "The passage of time as a limitation on what can be achieved". Gann provided the following comments on the time factor:

"The most important thing of all is the Time factor, which I use in making up my annual forecasts. It is not my object here to give away that secret, but I am showing you plain enough and giving you rules enough that, if you follow them, you will be able to make a success in the stock market" ("Truth Of The Stock Tape", 1923, page 116).

"Many people want to know what method I use to determine future indications on the market. I keep charts of the various active stocks and also a set of averages. My charts are different from the charts of the average statistician because they are based on a discovery of my own. I have discovered a `time' factor that enables me to determine important tops and bottoms one year or more in advance. My annual forecasts on stocks, issued in December for ten years past, have proved remarkably correct. The cotton and grain markets can also be forecast by this `time' factor, which enables me to tell when extreme highs and lows will be made, as well as the minor moves" ("Truth Of The Stock Tape", 1923, page 41 of appendix).

"The time factor and time periods are most important in determining a change in trend because time can over balance price, and when the time is up the volume of sales will increase and force prices higher or lower" ("45 Years In Wall Street", 1941, page 10).

"Time is the most important factor of all and not until sufficient time has expired does any big move start up or down. The time factor will overbalance both space and volume. When time is up, space movement will start and large volume will begin, either up or down. At the end of any important movement – monthly, weekly or daily – Time must be allowed for accumulation or distribution or for buying and selling to be completed" ("How To Make Profits In Commodities", 1951, page 56).

Therefore we learn from Gann that:

  1. The time factor is the most important element in forecasting markets; and therefore he used this time factor in producing his highly-accurate annual forecasts of the stock and commodity markets.
  2. The time factor is so fundamental that it precedes (and therefore causes) changes in prices and changes in volume in the stock and commodity markets.
  3. The time factor is a valuable secret, details of which he is unwilling to reveal. He is however prepared to teach trading rules which, when properly applied, produce profits in the stock and commodity markets.

GANN'S NOVEL ENTITLED "THE TUNNEL THRU THE AIR"

Although Gann was unwilling to explicitly reveal his time factor in his books and courses on trading the stock and commodity markets, he was prepared to leave strong clues in his novel entitled "The Tunnel Thru The Air", which he wrote in 1927. This book describes the events in the United States leading up to the Second World War through the life of the principal character, Robert Gordon. Most importantly, in the foreword to this book Gann wrote, "`The Tunnel Thru The Air' is mysterious and contains a valuable secret, clothed in veiled language&hellip:When you read it the third time, a new light will dawn. You will find the hidden secret&hellip:The future will become an open book".

Gann's "valuable secret, clothed in veiled language" is that, as the Bible clearly states, astrology really works. This theme runs throughout the book and is highlighted in the following quotations:

"Robert was a great believer in Astrology because he had found this great science referred to so many times in the Holy Bible. He had made notes as he read the Bible at different times where it referred to Astrology or the signs in the heavens and was thoroughly convinced that the influence of the heavenly bodies govern our lives" (page 172).

"I believe in the stars, I believe in astrology, and I have figured out my destiny. The Bible makes it plain that the stars do rule" (page 66).

"Through my study of the Bible, I have determined the major and minor time factors which repeat in the history of nations, men and markets" (page 70).

"I have studied the Bible very carefully because I believe it is the greatest scientific book ever written. The laws are plainly laid down how to make a success. There is a time and a season for everything and if a man does things according to the time, he will succeed" (page 204).

"Robert had gone deeply into the Bible study in order to learn more about the great science of Astrology" (page 213).

"He read all the books he could get on astrology and began to understand why thing had happened as they had" (page 215).

THE FRONT COVER OF GANN'S NOVEL ENTITLED "THE TUNNEL THRU THE AIR"

Gann's "valuable secret" that astrology really works is not confined to the content of "The Tunnel Thru The Air". Indeed, Gann subtly reveals his "valuable secret" on the cover of his book.

The illustration on the front cover of "The Tunnel Thru The Air" has three elements:

  1. In the background is an interlocking compass and setsquare, from which comes a tunnel.
  2. In the foreground is a pair of scales, on one side of which is an hourglass and on the other side is a price movement.
  3. Stretching between the background and foreground is a series of interlocking squares.

The esoteric meaning behind this illustration on the front cover of the book is as follows:

The interlocking compass and setsquare is the symbol of the Freemasons (Gann himself was a senior Freemason). More specifically, the compass (which is of course used for drawing circles) symbolises the circle of the heavens, or the astrological zodiac. The setsquare (which is of course used for drawing "square" angles of 90 degrees) symbolises the most important angle between two planets in astrology, which is 90 degrees (or a "square" aspect). Therefore the esoteric meaning behind the Freemasons' symbol is that the great circle of the heavens and the angles between the planets (i.e. the science of astrology) is of fundamental and eternal importance.

Moreover, according to occultism, astrological forces are vibrations which are transmitted to earth via an infinite number of longitudinal waves through the ether. Therefore the tunnel through the air in Gann's illustration (and indeed in the book's title) symbolises this transmission of astrological forces from the heavens to the earth.

On one side of the scales is an hourglass, which symbolises the time factor. On the other side of the scales is a price movement. Therefore this pair of scales symbolises the fact that, in his forecasting of the stock and commodity markets, Gann "weighed up" or examined the time factors (i.e. the astrological influences) and their past, present and future impact on prices.

The series of interlocking squares symbolises the fact that, as Gann observed, the price action of a particular stock or commodity unfolds according to a series of interlocking squares. This is the reason, according to Gann, that "Every stock makes tops or bottoms on some exact mathematical point in proportion to some previous move" (Stockmarket Course) and "Each top or bottom in wheat, or other commodities, comes out in accordance with an exact mathematical proportion to some other top or bottom" ("How To Make Profits In Commodities", page 32).

In summary therefore, the illustration on the front cover of "The Tunnel Thru The Air" highlights the fact that astrological influences (i.e. the angles between the planets in the circle of the zodiac) are transmitted to earth (via waves which resemble tunnels through the air) and, after weighing up the historical influence of these astrological forces on a particular stock or commodity, one can forecast the future price movements (and in particular the future price squares).

THE BACK COVER OF GANN'S NOVEL ENTITLED "THE TUNNEL THRU THE AIR"

Gann's "valuable secret" that astrology really works is not confined to the content and front cover of his book "The Tunnel Thru The Air". Indeed, this "valuable secret" is also subtly revealed in the illustration on the back cover.

The illustration on the back cover of "The Tunnel Thru The Air" shows two sets of interlocking squares stretching to the horizon. One set is shown in the sky and one set is shown on the earth. Also shown on the earth is a pyramid inscribed with the name of W. D. Gann.

In this illustration, the squares in the sky symbolise astrological "squares" (i.e. when the planets form an angle of 90 degrees with respect to each other). The squares on the earth symbolise the unfolding of price action in the stock and commodity markets, in the form of interlocking price squares. Here Gann is illustrating the age-old astrological saying "As above, so below". However, Gann's more specific symbolism is that the astrological squares in the heavens cause the price squares in the stock and commodity markets on earth. Gann made this point elsewhere when he stated, "We use the square of odd and even numbers to get not only the proof of market movements, but the cause" (Stockmarket Course And Commodities Course).

The final point to note about this illustration is the position of the pyramid which bears Gann's name. This is located between heaven and earth, and reflects Gann's view that he was a seer destined to observe astrological squares in the heavens and to forecast their influence on price squares in the stock and commodity markets on earth.

In summary therefore, the "valuable secret, clothed in veiled language" of Gann's book "The Tunnel Thru The Air" is that, as the Bible clearly states, astrology really works.

GANN'S "TIME FACTOR" IS ASTROLOGY

As stated above, Gann's forecasts of the stock and commodity markets were based on the "time factor", which may be defined as "The passage of time as a limitation on what can be achieved". Since astrology may be defined as "The study of the effects of the trends of time", we see that time factor may be synonymous with astrology. It therefore appears that Gann preferred to state that his market forecasts were based on the "time factor", rather than to state that they were based on astrology. Indeed, this is certain after carefully studying Gann's book "The Tunnel Thru The Air" and identifying its "valuable secret" that astrology really works.

The reason for Gann's secrecy is suggested in the following quotation: "It has taken me twenty years of exhaustive study to learn the cause that produces effects according to time. That is my secret and is too valuable to be spread broadcast. Besides, the public is not yet ready for it" ("Morning Telegraph" interview, December 1922).

Therefore Gann preferred not to reveal that astrology is the basis of his market forecasts for the following reasons:

  1. The principle that astrology may be used to produce detailed forecasts of the stock and commodity markets is a valuable secret that had taken Gann much time and effort to master.
  2. Gann firmly believed that his students should, like him, devote much time and hard work to their studies on how to make speculation a profitable profession.
  3. Gann was well aware that the suggestion that the stock and commodity markets are governed by astrological influences is an astounding new paradigm, which violates the conventional wisdom and would therefore attract hostility.

This is highlighted in the following quotation:

> "It appears to be a fact that Mr Gann has developed an entirely new idea as to the principles governing stockmarket movements. He bases his operations on certain natural laws which, though existing since the world began, have only in recent years been analysed with precision and added to the list of so-called modern discoveries. We have asked Mr Gann for an outline of his work, and have secured some remarkable evidence as to the results obtained therefrom. We submit this in full recognition of the fact that a man in Wall Street with a new idea an idea which violates the traditions and encourages a scientific view of the proposition is not usually welcomed by the majority, for the reason that he stimulates thought and research. These activities said majority abhors" ("Ticker & Investment Digest" interview, December 1909).

GANN AND ASTROLOGY

Since Gann's book "The Tunnel Thru The Air" reveals the "valuable secret" that astrology really works and, by implication, astrology is the basis of Gann's stock and commodity market forecasts, one should look for evidence of the use of astrology by Gann in his other writings.

1. Gann's Chapters On Forecasting In His Stock And Commodity Market Courses

Gann produced and sold separate courses for trading the stock and commodity markets. These courses overlapped to some significant extent. One chapter common to both courses is entitled "The Basis Of My Forecasting Method: Geometrical Angles". An important quotation from this chapter is as follows:

"We use three figures in geometry, the circle, the square and the triangle. We get the square and triangle points of a circle to determine points of time, price and space resistance. We use the circle of 360 degrees to measure time and price. There are 360 degrees in a circle, no matter how large or small the circle may be. Certain numbers of these degrees and angles are of vast importance and indicate when important tops and bottoms occur on stocks and commodities, as well as denote important resistance levels. 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" (Stockmarket Course and Commodities Course).

The esoteric meaning behind this statement is as follows:

There are 360 degrees in any circle, the largest of which is the great circle of the heavens, or the zodiac. Certain points on this zodiac (identified by a precise number of degrees) are very important because they relate to specific stocks and to specific commodity markets. Consequently the angles between a planet and these specific points on the zodiac and also the angles between two planets are very important because they signify tops and bottoms in the stock and commodity markets. Two important angles (or "aspects", as they are called in astrology) are the square (or 90 degrees) and the triune (or 120 degrees). Since the angles between a planet and a particular point on the zodiac or between two planets can be calculated years in advance, stock and commodity markets can in principle be forecast years in advance.

It is also important to note that the above quotation by Gann was in the introduction to his chapter on forecasting by means of "Gann angles"; i.e. forecasting by using the 1 X 1, 2 X 1, 1 X 2, etc. trendlines from important tops and bottoms on price charts. Therefore the very important implication here is that (as the chapter title suggests) the basis of Gann's forecasting method was not merely the geometrical "Gann angles" drawn on a price chart, but (more fundamentally) the geometrical angles between planets and the zodiac (which is of course astrology). In summary therefore, Gann is suggesting that the angles between the planets and the zodiac in the heavens (i.e. astrological influences) cause the particular angle of a trendline on a price chart, and this is the real basis of his forecasting method.

2 Gann's Emphasis On Anniversary Dates And Seasonal Tendencies In The Stock And Commodity Markets

Gann's consummate book on the stockmarket was "45 Years In Wall Street" (written in 1949) and his consummate book on the commodity markets was "How To Make Profits In Commodities" (first written in 1941 and updated in 1951).

The common feature of both books is their emphasis on the importance of anniversary dates and seasonal tendencies, as the following quotations illustrate:

"My object in writing this book `45 Years In Wall Street' is to give you some new and valuable rules on time periods which will help to guide you in determining high and low prices in the future. In my research work I have discovered that stocks make an important change in trend in the months when they reach extreme high and low. These are what I call anniversary dates, and these important dates should be watched each year for important changes in trend" ("45 Years In Wall Street", page 92).

"It is very important to watch the date when an individual commodity makes extreme high or low. The first important time period to watch from any anniversary date is third or fourth month, then around the sixth or seventh month, where many important tops and bottoms are reached" ("How To Make Profits In Commodities", page 58).

The esoteric meaning behind these statements is as follows:

Certain points on the zodiac (identified by a precise number of degrees) relate to specific stocks and to specific commodity markets. The sun is unique amongst the planets in that it completes one revolution of the zodiac every year. Moreover on any given day of the year the sun is in exactly the same position (in the zodiac) as it was on that day one year earlier, ten years earlier or a century earlier. Consequently the sun will aspect a particular point on the zodiac on the same day every year. This is the cause of seasonal tendencies in the stock and commodity markets (indeed, this is the cause of all seasonal tendencies on earth).

The important point to note here is that Gann emphasised the seasonal tendencies in the stock and commodity markets to encourage his students to think about and to identify the cause. The cause is the position of the planets, and in particular their angles to a specific point on the zodiac (which is of course astrology).

3. Gann's Recommendation To Study Astrological Influences On The Commodity Markets

Amongst Gann's surviving papers are his two "astrology letters". More specifically, in January 1954 Gann wrote to one of his students recommending that he study the astrological influences on the soybean market ("The longitude of the planets and the longitude of the average of the planets determine the resistance levels as the price of soybeans moves around each cycle of 24 cents per bushel"); and in March 1954 he again wrote to his student recommending that he study the astrological influences on the coffee market ("By studying all of the (astrological) data outlined above and applying it to coffee, you will be able to learn more about what causes the changes in trend").

Gann died in June 1955 and therefore these astrology letters are some of his last teachings. However, it is notable that in these two short letters Gann does not reveal any clear and specific method of astrological forecasting of the commodity markets. Instead, Gann encouraged his student to observe, experiment and learn for himself how the angles between the planets and their angles to specific points on the zodiac forecast the changes in price trends. Indeed, it appears that Gann had for over fifty years kept secret his method of market forecasting and at the age of 76 he was not simply going to reveal it to a student. Nevertheless Gann was continuing his lifelong practice of helping his students to make speculation a profitable profession by giving them guidance and letting them learn for themselves.

CONCLUSION AND RECOMMENDATIONS

1. W.D. Gann's highly-accurate annual forecasts of the stock and commodity markets were based on astrology. Therefore, if we as investors and traders wish to emulate Gann's outstanding forecasting ability, it is absolutely necessary that we learn astrology.

Although astrology may be learned from a variety of sources, the present writer recommends, as a first step, the correspondence courses in spiritual astrology taught by The Rosicrucian Fellowship, which may be contacted at International Headquarters, 2222 Mission Avenue, Oceanside, California 92054, U.S.A.

2. Once we have learned astrology, we must apply this knowledge to the stock and commodity markets. This task requires much hard work, as Gann himself observed:

"I soon began to note the periodical recurrence of the rise and fall in stocks and commodities. This led me to conclude that natural law was the basis of market movements. I then decided to devote ten years of my life to the study of natural law as applicable to the speculative markets and to devote my best energies toward making speculation a profitable profession" ("Ticker & Investment Digest" interview, December 1909).

However, Gann has provided us with specific guidance. In summary, we should obtain daily price charts which depict important tops and bottoms in the stock and commodity markets and we should then observe the following:

i) The angles between the planets (the most important of which is the 90 degrees, or "square", angle); ii) The angles (especially the 90 degrees angle) between the planets and particular points on the zodiac; iii) The longitudinal position of the sun and especially its 90 degrees angle to particular points on the zodiac (because this causes the seasonal tendency in a particular market).

When we have mastered how astrological influences affect the stock and commodity markets, we will be in a position to produce accurate annual forecasts. Like Gann, we will then become the foremost speculators and traders of our generation.

3. Although there are many individuals and companies around the world claiming to teach "Gann analysis" through books, courses, videotapes and computer programs, they should certainly be avoided. This is because, since none of these individuals or companies can produce an accurate annual forecast of the stock or commodity markets, they do not in fact teach Gann's real method.


What follows is some discussion that transpired in the thread James Smithson first posted his article in

was recently sent a copy of Bonnie Lee Hill's commentary on "The Tunnel Thru The Air" by W. D. Gann. Gann enthusiasts everywhere may be interested to read my comments.

Dear Sir,

Thank you for forwarding the commentary by Bonnie Lee Hill on Gann's "The Tunnel Thru The Air" ("TTTTA"). I believe this is a very good booklet. In particular, I totally agree with her philosophy that TTTTA is an important book, least understood, with valuable insights scattered and semi-hidden throughout the book and it is important to construct astrological charts when Gann refers to key dates and periods of time. An especially valuable feature of this booklet is that Bonnie Lee Hill has done a very good job of examining how certain aspects between certain planets are associated with historical turning points in the cotton market.

However, I would make the following comments:

1) As Gann recommended, it is not only important to examine aspects between planets, but also (and simultaneously) aspects between planets and points on the zodiac. A very important Gann quotation is as follows: "There are 360 degrees in a circle, no matter how large or small the circle may be. Certain numbers of these degrees and angles are of vast importance and indicate when important tops and bottoms occur on stocks and commodities, as well as denote important resistance levels" (Gann Stockmarket Course and Commodities Course).

2) We know that Robert Gordon was Gemini ascendant and on page 9 of TTTTA we are told that his brother called him "Cottonhead" because his hair was so white. Therefore Gann appears to be suggesting that Gemini (and its ruler Mercury) are important to an astrological understanding of not only Robert Gordon, but also to the cotton market. Indeed, Robert Gordon was very successful trading cotton and one is reminded of Gann's statement in "Truth Of The Stock Tape" (page 75) to avoid trading in stocks that are your enemies. This is the opposite situation – Robert Gordon appears to have a strong affinity with cotton because Gemini/ Mercury, which rule him, are also important to cotton.

3) I believe it is important to note that astrological influences apparently impact a particular stock or commodity directly (i.e. higher astrological vibrations drive prices higher, and vice versa). Consequently I believe it is mistaken to assume that in order to forecast higher cotton prices one must firstly employ astrology to forecast floods, etc. Instead, it appears that Gann directly forecast higher prices/ higher vibration in a particular commodity or stock and then, in his forecasts, he suggested plausible reasons that would bring this about (e.g. floods, drought, fear of floods or drought, government reports and "sudden and unexpected news").

4) I believe it is well worth supplementing TTTTA by examining Gann's 1922 annual forecast for cotton to get an insight into Gann's forecasting methodology. Here are, in my opinion, some key points:

i) Gann forecast April 3 to 5 1922 low in the cotton market, from which the market would rally to July 27 to August 3 1922. Importantly, Gann forecast a rally of 240 points in price in 120 days (i.e. 1 X 2). At the end of this period time and price were squared and the sharp uptrend would end.

ii) Gann forecast July 27 to August 3 1922 peak in the cotton market, from which the market would fall until October 18 to 24 1922. If you carefully read Gann's commentary, prices are forecast to bottom 60 points below the level of early April 1922. Therefore Gann forecast a downtrend of 300 points in 75 days (i.e. 1 X 4). At the end of this period time and price were squared and the sharp downtrend would end.

iii) Most importantly and fundamentally, Gann apparently forecast the upward swing in the cotton market in 1922 and the subsequent down swing by examining the astrological influences. More specifically, astrology was the foundation of this forecast (and all his forecasts) and he knew how long the particular astrological influences would last and so he then estimated how many points up or down that astrological influence would cause the cotton market to move. In a comment on his 1929 stockmarket forecast, Gann stated that his forecasts comprise the mathematical interpretation of the return of cycles; i.e. the mathematical interpretation of the effect of astrological causes.

5) Returning to TTTTA, we see a similar pattern. More specifically, we should examine Robert Gordon's great campaign in cotton (pages 195/ 196). Gann identified that the astrological forces controlling the cotton market would be strongly positive between June 25th and September 8th 1927. This was a period of 75 days, during which the cotton futures market rose by some 7.5 cents, and at the end of which price and time were squared.

Similarly, with Robert Gordon's great campaign in Major Motors (pages 197/ 199). Robert Gordon (i.e. Gann) forecast that Major Motor's share price would rise between June 30th and September 16th 1927 due to positive astrological influences. This is a period of 78 days, during which he forecast that the price would rise from 192 to 270 = 78 points. After a rise of 78 points in 78 days (i.e. 1 X 1) time and price would be squared and the uptrend would end. Gann was of course strongly hinting at the astrological influence when he stated that Major Motors' share price would rise during this period because of "A new and great discovery of a time factor".

6) Although it is important to carefully examine TTTTA, to gain insights into the cotton market, we should also certainly examine major modern bull markets in cotton (i.e. periods of very high prices/ very high astrological vibration), namely 1973, 1980, 1991 and 1995.

7) Finally, I would comment on what I believe is Gann's fundamental philosophy, as demonstrated in this important book, TTTTA. Gann was following in a long tradition of religious and spiritual leaders, who give individuals (i.e. their followers) guidance as to what is the correct path to follow to reach the same level as them (i.e. the same higher level of consciousness). Consequently he recommends that individuals should carefully read his book TTTTA alongside a thorough reading of the Bible. Overall, Gann is hoping that his book TTTTA will not merely be read by those seeking a greater insight into the financial markets, but as a major aid to achieving religious and spiritual insights and therefore greater religious and spiritual development. This is a lifelong process. Indeed, according to some spiritual traditions full spiritual development requires a number of lifetimes!

Overall I can confirm that I very much enjoyed reviewing Bonnie Lee Hill's commentary on Gann's TTTTA and I hope you find my comments helpful.

Kind regards James Smithson A Note On Chapter 7 Of "The Tunnel Thru The Air"

In chapter 7 Gann makes the following points:

1) Astrology is of paramount importance to forecasting the future. However this is not conventional astrology but true astrology, the key to which may be found in the Bible.

"I hold that the Bible contains the key to the process by which man may know all there is to know of the future, if he will only seek diligently for the rules laid down in the Holy Book" (page 75).

"The Bible is full of references where God has given us signs by which we may know what is coming, if we will only believe them. He says: `O, ye hypocrites, ye can discern the face of the sky; but can ye not discern the signs of the times?'……How few people are willing to study the Bible in order to understand the signs and discern the future and profit by it" (page 83).

2) The principles of astrology are similar to the principles of wireless communication. Indeed, the law of vibration governs both. Under this, vibrations of a specific wavelength and frequency are transmitted through space and have a specific effect on the recipient.

"The great law of vibration is based on like producing like. Like causes produce like effects. Wireless telegraphy, the phonograph and the radio are based on this law" ("The Tunnel Thru The Air", page 77).

This statement is similar to an earlier one by Gann: "It is impossible here to give an adequate idea of the Law of Vibration as I apply it to the markets. However, the layman may be able to grasp some of the principles when I state that the Law of Vibration is the fundamental law upon which wireless telegraphy, wireless telephones and phonographs are based. Without the existence of this law the above inventions would have been impossible" (Ticker & Investment Digest interview, December 1909, page 52). In his later book, entitled "The Magic Word", Gann discusses this process in more detail: "Radio works as the result of sound waves which once set in motion continue to move and can be picked up by a radio receiving set tuned in to the same wavelength. You cannot see these sound waves, but you know they work. Man no longer needs wires to transmit messages. You can tune in on different stations of different wavelengths. You can tune off, or tune out stations that you do not want. Before wireless and radio were invented sound waves had been discovered and many men knew something about how they travelled, but they had not learned how to record and receive sound waves until they discovered radio…….More proof of what the Bible says, `That whatever a man imagines, he can do'. The man who invented wireless and radio imagined he could do it, and he did it. This is the greatest proof of the unseen forces being the most powerful. You cannot see the air waves or sound waves, but you can hear them and you know they work. You cannot see the Divine force that is in the air, but it is there and all powerful, and it will work miracles for you if you will have faith and put it into action" ("The Magic Word", page 59).

Finally, Gann hints at the practical application of these principles in the construction of his annual forecasts: "With my Forecasting Methods, you can make up a forecast for the average market one or more years in advance and also make up a yearly forecast on individual stocks. Each stock moves according to its individual time limit and makes top and bottom at different times, because the vibration and wavelength varies on the different stocks" ("Time Factor And Forecasting Method", included in appendix to "Wall Street Stock Selector").

3) Planetary movements (i.e. astrological influences) are the ultimate cause of cycles.

"One of the smallest cycles, or time factors, which repeats regularly in things that are very active and have a high vibration, is the four- minute cycle. The reason for this is that the earth moves one degree every four minutes. The next cycle is 24 hours, the complete time required for the earth to make one revolution upon its axis……The next important cycle is one year, the time required for the earth to move around the sun" ("The Tunnel Thru The Air", page 78).

4) Although Gann is willing to provide guidance to his readers/ students, he is unwilling to simply disclose his specific methodology for forecasting the stock and commodity markets.

"It is not my aim to explain the cause of cycles. The general public is not yet ready for it and probably would not understand or believe it if I explained it" ("The Tunnel Thru The Air, page 78).

This statement is similar to an earlier one by Gann: "Mr Gann has refused to disclose his method at any price, but to those scientifically inclined he has unquestionably added to the stock of Wall Street knowledge and pointed out infinite possibilities" (Ticker & Investment Digest interview, December 1909, page 55).

A Note On Chapter 8 Of "The Tunnel Thru The Air"

In chapter 8 Gann discusses cycles of transportation. As in so much of Gann's work, beneath the surface there is an astrological undercurrent. More specifically, Gann states that "Man used the air as power for sailing vessels long before he ever dreamed that it could be used to travel thru by airplane" (page 86). The key concept here is power in the air, which recurs throughout this and Gann's later work.

More specifically, later in this book Robert Gordon develops a weapon that takes power from the sun (page 233) and another weapon that can take electric current from the air (page 311). Subsequently Robert Gordon develops an aircraft with a motor that is able to take its power from the air (page 354).

This idea is repeated by Gann in his final book, entitled "45 Years In Wall Street": "Not only atomic power but the power from the sun or from the air has possibilities in the future which would give cheap power and revolutionise manufacturing in many lines" ("45 Years In Wall Street", page 115).

Therefore, in his novel "The Tunnel Thru The Air" and in his final book "45 Years In Wall Street" Gann is intimating that astrological forces represent a major source of power and he believes that these forces will be harnessed in the future.

A Note On Chapter 9 Of "The Tunnel Thru The Air"

In the foreword to his novel "The Tunnel Thru The Air" Gann states that the book has a threefold purpose. Firstly it is an interesting romance, secondly it teaches a moral lesson and proves the natural laws laid down in the Bible and thirdly it shows the value of science, foreknowledge and preparedness.

As in most other chapters, all three of these elements are present in chapter 9. However, there is some emphasis on the second purpose, namely to teach a moral lesson and prove the natural laws laid down in the Bible. More specifically, under the guise of Robert Gordon discussing religion with his mother, Gann expresses some of his core religious beliefs:

"She talked to Robert of his future and told him she hoped he would be a preacher. Robert confided to her that he could never be an orthodox minister, for he could not preach and teach the things which the orthodox ministers were teaching. He did not believe in a personal devil or believe in Hell, but believed in a God of Love and Justice. He did not believe that God would inflict upon any of his children eternal punishment but thought that whatsoever a man soweth, that shall he also reap and that we receive our reward here upon earth. He told her that the Bible plainly said that the kingdom of heaven is within us and he believed it. If we kept our conscience clear and did unto others as we would like to have them do unto us, he believed we would find our heaven and our reward here upon earth" ("The Tunnel Thru The Air", page 99).

Gann repeats these core religious beliefs in his later book "The Magic Word":

"The Bible does not teach reward after death, but promises reward or a reaping now while you are here on this earth. Jesus said, `As ye sow, also shall ye reap'. He did not say `after death' but here and now. Too many have preached that we should live a life of sacrifice here on earth and wait until after death to receive the reward. This is not what people want. They want something practical. They want to receive their reward here on earth. If they put forth the right effort, they want to know that they will receive the reward here on earth" ("The Magic Word", page 26). From: smithsonjames Date: Thu Oct 21, 2004 3:24am Subject: A Note On Chapter 11 Of " The Tunnel Thru The Air"

An important element of chapter 11 of "The Tunnel Thru The Air" is Marie Stanton's note to Robert Gordon (on page 120). Within this short note, the phrase "Time proves all things" is of primary importance.

Here the verb "proves" is being used to mean "tests". Thus the phrase means "Time (i.e. astrological forces) tests all things". This concept appears to be central to Gann's whole method of financial forecasting and was introduced almost twenty years earlier:

"From my extensive investigations, studies and applied tests, I find that not only do the various stocks vibrate, but that the driving forces controlling the stocks are also in a state of vibration. These vibratory forces can only be known by the movements they generate on the stocks and their values in the market........Vibration is fundamental; nothing is exempt from this law; it is universal, therefore applicable to every class of phenomena on the globe" (Ticker & Investment Digest interview, December 1909).

Thus Gann means that everything on earth is vibrating, but astrological forces modify these vibrations. Hence time tests all things.

However, although astrological forces modify the individual vibrations of everything on earth, their effect is often only temporary:

"Stocks are like electrons, atoms and molecules, which hold persistently to their own individuality in response to the fundamental Law Of Vibration" (Ticker & Investment Digest interview, December 1909).

Another definition of the verb "prove" is "to check by the opposite operation (e.g. division by multiplication". Thus another interpretation of the phrase "Time proves all things", as applied to the financial markets, is "Time (i.e. astrological forces) causes financial markets to contract and expand. More specifically, malefic astrological influences cause financial markets to divide down in an orderly mathematical way. Conversely benefic astrological influences cause financial markets to multiply upwards in an orderly mathematical way".

Therefore the phrase "Time proves all things" summarises Gann's core philosophy and methodology:

"By my method I can determine the vibration of each stock and by also taking certain time values into consideration I can in the majority of cases tell exactly what the stock will do under given conditions" (Ticker & Investment Digest interview, 1909).

Thus Gann's primary method of forecasting was apparently to determine the individual vibration of a specific stock or commodity and then to establish the extent to which astrological influences modified these individual vibrations. In short, Gann's primary forecasting method was to examine the extent to which time (i.e. astrological forces) tested a particular stock or commodity.