If you have an uptrend and you retrace no more than 38%, this indicates that the trend is still

up.

Always trade at 50% or 61.8% retracement, try to avoid 38% retracement

Going lower than 61.8% retracement, indicates that the trend might not resume
illiam Delbert Gann (June 6, 1878 – June 18, 1955) or WD Gann, was a finance trader who
developed the technical analysis methods like the Gann angles[1] and the Master Charts,[2] where the
latter is a collective name for his various tools like the Square of Nine,[3] the Hexagon Chart,[4] and the
Circle of 360.[5] Gann market forecasting methods are based on geometry, astronomy and astrology,
and ancient mathematics.[6][7][8] Opinions are sharply divided on the value and relevance of his
work.[9][10][11][12] Gann authored a number of books and courses on shares and commodities
trading.[13][14][15][16][17][18]

Contents

 1Biography
 2Writing style
 3Trading techniques
o 3.1Planetary configurations
 3.1.1Planetary combinations for different markets
 3.1.2Planteray influences on the weather along the Mississippi
o 3.2Price-zodiac conversion
o 3.3Gann angles
o 3.4The Spiral Chart and the Hexagon Chart
 3.4.1The Spiral Chart
 3.4.2The Hexagon Chart
 3.4.3Practical examples
o 3.5Eclipses
o 3.6Planetary averages
 4Personal view on religion
 5Controversy
 6Bibliography
 7See also
 8References
 9External links

Biography[edit]
Gann was born June 6, 1878 in Lufkin, Texas. His father was a cotton farmer. He started trading in
1902 when he was 24.[19] He was believed to be a great student of the Bible,[20][21] who believed that it
was the greatest book ever written.[22] He was also a 33rd degree Freemason of the Scottish Rite
Order,[23] to which some have attributed his knowledge of ancient mathematics, though he was also
known to have studied the ancient Greek and Egyptian cultures.[24]

Writing style[edit]
Gann often wrote in an esoteric and indirect style that many found the writings of Gann difficult to
follow,[23] and he could be doing so deliberately to conceal his true method.[25][26] For example, Patrick
Mikula[27][28] found that, in his course How to Make Profits Trading in Commodities,[2] whenever Gann
used the term “natural dates”, he was indirectly referring to one of the following astrological
phenomena:

1. Double ingresses (when two or more planets, not counting the Moon, enter a new sign within
two consecutive days)
2. Stations (when a direct planet turns retrograde, or vice versa)
3. Declination of the Moon at extreme
4. Eclipses
Likewise, Henry W Steele[29] demonstrates in a YouTube video that the numbers in Gann's work
often refer to a different subject from what they appear on the surface. For example, on page one
and two of Forty-Five Years in Wall Street,[30] there is a paragraph describing the different stocks at
different prices on 14 June 1949, but Steele discovered that those “prices” are actually astrological
aspects appearing in the sky on that day.
However, in his private communication, Gann was much more direct and candid about his use of
astrology. For example, in a private letter to a student, he openly demonstrated how he used
planetary cycles to make predictions in the coffee market.[31]

Trading techniques[edit]
Planetary configurations[edit]
Even though it is often debated that whether Gann used astrology to time the market,[8][25][21][32][33] it is
found that many “natural dates” described in Gann's How to Make Profits Trading in
Commodities[2] coincided with recurring astrological themes.[27] Below are some more examples in the
Wheat market in How to Make Profits Trading in Commodities.[2] All the important tops and bottoms
are associated with astrological patterns.[27] Please note that, although the book was published in
1941, some dates mentioned (marked with *) were far into the futures. In other words, they are
forecasts by Gann in 1941:

Wheat
Example Dates Astrological Event Patterns
Market

Dec Sun conjuncts retrograde

Top
1919 Mercury at 9 Sag on 12th

Dec Sun conjuncts retrograde Sun conjunct retrograde Mercury

1 Bottom
1932 Mercury at 12 Sag on 14th in Sagittarius.

Dec Sun conjuncts retrograde

Top
1945* Mercury at 14 Sag on 7th

May Sun conjuncts retrograde

2 Top
1917 Mercury in 25 Tau on 16th
 Dec Sun conjuncts retrograde
Bottom
1932 Mercury at 12 Sag on 14th
Sun conjunct retrograde
Mercury, moving 7 signs forward
each time.
Jul Sun conjuncts retrograde
Top
1947* Mercury in 21 Can on 14th

Jan Venus conjunct Jupiter at 7

Top
1925 Cap on 20th Jan

Retrograde Venus (26 Ari)

Apr 11.25 geocentric revolutions
New High square Jupiter (26 Cap) on
3 1937 (4050°) of the Venus-Jupiter
19th
synodic cycle.

Venus (29 Can) opposite

Jul
Bottom retrograde Jupiter (26 Cap)
1949*
on 1st

For instance, when discussing the first example above, there is a quote from p. 107: “1932 -
December, low ... This was a decline ... from the high ... in December 1919; time, 156 months. Add
this time to December 1932, and it will balance in December 1945, making this important.”[2] On the
surface, it looks like that Gann was talking about a fixed 156-month cycle. However, it turns out that
all three dates coincided with a conjunction of the Sun and retrograde Mercury in the sign
of Sagittarius.[28]
Planetary combinations for different markets[edit]
Financial astrologers believe that different commodities are affected by different planetary
combinations.[34][35] Inside Gann's How to Make Profits Trading in Commodities,[2] the following
associations could be identified:[27]

 Lard: Venus-Jupiter
 Cotton: Sun-Mercury conjunctions
 Corn: Venus-Saturn
 Soybean: Mars-Jupiter
 Wheat: Sun-Mercury conjunctions, Venus-Jupiter, and Venus-Uranus
 Rye: Sun-Mercury conjunctions, Venus-Jupiter, Venus-Saturn, and Venus-Uranus
Planteray influences on the weather along the Mississippi[edit]
Similarly, Bonnie Lee Hill[25][36] believes that Gann used astrological patterns to predict the weather in
the area around the Mississippi River, and hence the price of most agricultural commodities. She
thinks that Gann had hidden the rules inside his novel The Tunnel Thru the Air,[22] and they are listed
below:
 Implication
Weather Time Aspect
Planets Details in Cotton
Condition Window Formed
Prices

If the two planets in

question form any
of the given The supply
aspects within the would
Flood Uranus and Neptune stated time decrease and
window, then the the price
Mississippi River would go up.
will flood in that
year.

If the two planets in

question form any
of the given The supply
Before Multiples of
aspects within the would
mid-April the 8th
Raininess Jupiter and Neptune stated time increase and
in each (45°) or
window, then the the price
calendar 12th (30°)
rainfall along the would fall.
year harmonic
Mississippi will be
ideal to grow crops.

If the two planets in

question form any
of the given
The supply
aspects within the
would
stated time
Drought Saturn and Neptune decrease and
window, then the
the price
Mississippi River
would go up.
area will
experience horrible
drought.

Price-zodiac conversion[edit]
This chart is inspired by an example in W. D. Gann's Mechanical Method and Trend Indicator (1946), in which
Gann drew attention to the price level (¢103) on 16 April 1925, and 103° is also where the heliocentric Mars
and Pluto were on that day.

One of the most controversial techniques that Gann used is that he converted the price directly to
zodiac degrees.[25][27][28] For example, if a commodity is trading at $120 per share, he would convert it
to 120° of the zodiac, which is 0° Leo. If the price makes a major aspect (e.g. conjunction, trine,
square, etc.), then it is believed that the price will reach a short-term top or bottom.
When a price, after converting into a degree in the longitude, is in aspect with the planets, the trend
is likely to change. For example, in Mechanical Method and Trend Indicator,[37] Gann drew attention
to the price level (¢103) on 16 April 1925, “Apr 16 low 103, down 79½ cents from 182½ and nearing
$1.00 per bushel, a natural support level—Time to watch for change in trend.”[18] Coincidentally, 103°
(or 13° Cancer) was where the heliocentric Mars and Pluto were in conjunction on that day.[38]
Gann also used scales other than 1 dollar or point per 1 degree.[31] Two notable scales are $12 and
$30 to one degree, because the two largest planets in the solar system, Jupiter and Saturn, take
approximately 12 and 30 years to orbit the Sun respectively.[25] Using $120 as an example again, it
would become 10° and 4°, which are 10° and 4° Aries in terms of zodiac. Gann also uses a scale of
$0.07 ($1/15) to 1 degree, which is based on the Earth's rotation in 24 hours (for 24 times 15° is
360°).[25] Using $120 as an example, $120 times 15 will be 1800°, and when it is divided by 360°, the
remainder is 0. Therefore, it will become 0° Aries in the zodiac.
Here is an example from a private letter to a client on the coffee market:[31]

 The high in the May Coffee Santos D on 19 March 1954 was 8729.
o Using a scale of one point to one degree, 8729° = 360° × 24 + 89°, and 89° is 29° Gemini.
o Using a scale of 30 points to one degree, 8729°/30 = 291°, and 291° is 21° Capricorn.
o Using a scale of 12 points to one degree, 8729°/12 = 727.5° = 360° × 2 + 7.5°, and 7.5° is
7°30’ Aries.
o Using a scale of one cent (100 points) to one degree, 8729°/100 = 87.29°, and 87.29° is
27°17’ Gemini
Gann angles[edit]
Main article: Gann angles
Gann described the use of angles in the stock market in The Basis of My Forecasting
Method (1935). Calculating a Gann angle is equivalent to finding the derivative of a particular line on
a chart in a simple way.[39] Each geometrical angle (which is really a line extended into space) divides
time and price into proportionate parts. The most important angle Gann called the 1x1 or the 45°
angle, which he said represented one unit of price for one unit of time. When one draws a perfect
square and then draw a diagonal line from one corner of the square to the other, it illustrates the
concept of the 1x1 angle which moves up one point per day.[40][10]
Here is an example from a private letter of Gann to a client on the coffee market:[31]

 The high in the May Coffee Santos D on 19 March 1954 was 8729.
 The low on 16 April 1932 was 435. Counting backward from March 1954, 276 months has
passed.
o Using 30 points per month, the 45° line is at 435 + 30 × 276 = 8715
o If 8715 is used as a resistance, it was just 14 from the 8729 high.
 The low on 1 Oct 1936 was 300. Counting backward from April 1954, 210 months has passed.
o Using 30 points per month, the 45° line is at 300 + 30 × 210 = 6600
o Using 40 points per month, the 60° line is at 300 + 40 × 210 = 8700
o If 8700 is used as a resistance, it was just 29 from the 8729 high.
The Spiral Chart and the Hexagon Chart[edit]
The Spiral Chart[edit]

The Spiral Chart by W. D. Gann.

The Spiral Chart is a square matrix of consecutive natural numbers, in which the number 1 is in the
central square, and other values spiral out from it.[13] The direction of the spiral is in counterclockwise,
because Gann liked to overlay astrological charts onto the Spiral Chart, and most astrological charts
spin counterclockwise.[27] It is worth noting that this chart is often mistakenly called the “Square of
Nine” by modern traders, when the term was originally used by Gann to refer to another tool in his
course.[5][4]
For the Spiral Chart, it is found that Gann used the following directions to overlay planetary
positions:[14]

 The axis going from 1 to 2,11, 28, and so on are 0° or 0° Aries, the spring equinox (in
the Northern Hemisphere, same for below).
 The axis going from 1 to 4, 15, 34 and so on are 90° or 0° Cancer, the summer solstice.
 The axis going from 1 to 6, 19, 40, 69 and so on are 180° or 0° Libra, the autumn equinox.
 The axis going from 1 to 8, 23, 46, 77, etc. is 270° or 0° Capricorn, the winter solstice.
On the eight cardinal angles (45° multiples), the sequence of numbers which would appear is given
by:[41]

Integers on the cardinal angles (45°×) of the Spiral Chart

Degree
0° 45° 90° 135° 180° 225° 270° 315°
Layer

1 2 3 4 5 6 7 8 9

2 11 13 15 17 19 21 23 25

3 28 31 34 37 40 43 46 49

4 53 57 61 65 69 73 77 81

5 86 91 96 101 106 111 116 121

n 4n²−3n+1 4n²−2n+1 4n²−n+1 4n²+1 4n²+n+1 4n²+2n+1 4n²+3n+1 (2n+1)²

On other angles, there is a formula to roughly determine what numbers would be falling on it. For
any natural number P>1, its approximate angular value A (in degrees) is given by:
Ap = MOD[180×(P−1)½−225,360]°
For example, from the Spiral Chart, it is known that the angular value of 73 is 225°. Substitute P with
73 into the above formula:
A73 = MOD[180×(73−1)½−225,360] = MOD[180×8.4853−225,360] = 222.35, which is close to 225.
The Hexagon Chart[edit]
The Hexagon Chart by W. D. Gann

Very similar to the Spiral Chart, the Hexagon Chart is also a matrix of consecutive natural numbers,
but the difference is that it starts with 0 in the central point, and the numbers spiral out in the form of
a hexagon instead a square.[27] The spiral direction in Gann's original course is also
counterclockwise, because of its astrological overlay.[28] Mathematically, the numbers in each
additional layer represent the hexagonal numbers, which are the number of distinct dots consisting
of the outlines of regular hexagons.[42]
Similarly, it is found that Gann used the following method to overlay planetary positions on the
Hexagon Chart:[15]

 The axis going from 0 to 1,11, 28, and so on are 60° or 0° Gemini.
 The axis going from 0 to 2, 10, 24, and so on are 120° or 0° Leo.
 The axis going from 0 to 3, 12, 27, and so on are 180° or 0° Libra.
 The axis going from 0 to 4, 14, 30, and so on are 240° or 0° Sagittarius.
 The axis going from 0 to 5, 10, 24, and so on are 300° or 0° Aquarius.
 The axis going from 0 to 6, 10, 24, and so on are 0° or 0° Aries.
Again, the above mathematical relationship could be demonstrated by this mathematical formula:[41]

Integers on the cardinal angles (60°×) of the Hexagon Chart

Degree
60° 120° 180° 240° 300° 360°
Layer

1 1 2 3 4 5 6
 2 8 10 12 14 16 18

3 21 24 27 30 33 36

4 40 44 48 52 56 60

5 65 70 75 80 85 90

n 3n²−2n 3n²−n 3n² 3n²+n 3n²+2n 3(n²+n)

Similarly, for any natural number P>1, its approximate angular value A (in degrees) is given by:
Ap = MOD[210×P½−180,360]°
For example, from the Hexagon Chart, it is known that the angular value of 36 is 0°. Substitute P
with 36 into the above formula:
A36 = MOD[210×36½−180,360]° = 0°
Practical examples[edit]

In March, Saturn was at 224° and Venus was at 344°. The corn top price was ¢137, which was around 104°,
thus the three points loosely formed a Grand Trine.

According to Patrick Mikula,[27] the rule of using the Spiral Chart or the Hexagon Chart is as follows:

1. Identify the planetary combination(s) which governs the price movements of the commodity.
For example, as stated above, corn is sensitive to Venus and Saturn.
 2. Look for a date when the planetary combinations ruling the commodity makes a
major astrological aspect, like opposition, trine and square.
3. Overlay the Spiral or Hexagon Chart onto the horoscope in the following way:
o On the Spiral Chart, 0° Aries shall align with the axis of 1, 2, 11, 28, 53 and so on.
o On the Hexagon Chart, 0° Aries shall align with the axis of 0, 6, 18, 36, 60 and so on.
4. Find the current price on the Spiral or Hexagon Chart. For example, $36 is roughly at 135°
on the Spiral Chart, and at 0° on the Hexagon Chart.
5. See if the price makes any aspect to the planetary combination:
o If the combination involves Jupiter, then compare the angle of the price to Jupiter;
o Else, compare to the outer planet of the two.
o In the case of Venus-Saturn, since Jupiter is not involved, the price is compared against
Saturn.
6. If the price makes an important aspect to Jupiter or the outer planet, then a turning point may
have been reached.
o The important aspects in the Spiral Chart are the multiples of 45° and 120°, i.e. 0°, 45°,
90°, 120°, 135°, 180°, 225°, 240°, 270° and 315°.
o The important aspects in the Hexagon Chart are the multiples of 60° and 90°, i.e. 0°,
60°, 90°, 120°, 180°, 240°, 270° and 300°
7. By repeated experimentation, the trader can determine with chart (Spiral or Hexagon) works
better on which commodity, and so forth.
Here are a few actual trading examples in Corn given by Gann in How to Make Profits Trading in
Commodities: A Study of the Commodity Market.[2] As stated earlier, Gann thought that the price of
corn was influenced by the aspects of Venus and Saturn, thus the angle of the price on the Hexagon
Chart is compared against Saturn. Please note that the minimum fluctuation in corn futures is ¼
cent.[43]

Corn ¢ %
Date Planetary Aspects Price-Planet Aspects
Market Off Off

Oct Bottom at Venus (312°) square ¢33½ (311°) conjunct Venus

½ 1.5%
1866 ¢33¾. Saturn (222°) and square Saturn.

Oct Bottom at Venus (173°) square ¢34 (324°) inconjunct Venus

½ 1.4%
1884 ¢34½ Saturn (83°) and trine Saturn.

Jun Top at Venus (72°) square ¢77 (223°) semisexile Venus

1½ 2.0%
1891 ¢75½ Saturn (162°) and sexile Saturn.

May Bottom at Venus conjunct Saturn ¢62¾ (44°) sexile the

¼ 0.4%
1916 ¢63 (104°) conjunction.
 May Venus (34°) trine Saturn ¢192½ (214°) opposite Venus
Top at ¢197 4½ 2.3%
1920 (154°) and sexile Saturn.

May Top at Venus (73°) trine Saturn ¢84¾ (313°) trine both Venus
¼ 0.3%
1923 ¢84½ (193°) and Saturn.

Mar Venus (344°) trine ¢135½ (104°) trine both Venus

Top at ¢137 1½ 1.1%
1925 Saturn (224°) and Saturn.

Jun Venus (75°) opposite ¢122½ (344°) square both

Top at ¢122 ½ 0.4%
1928 Saturn (255°) Venus and Saturn.

Jul Bottom at Venus (133°) trine ¢77 (223°) square Venus and
½ 0.7%
1928 ¢76½ Saturn (253°) sexile Saturn.

Jun Venus (100°) opposite ¢87¼ (342°) trine Venus and

Top at ¢88 ¾ 0.9%
1930 Saturn (280°) sexile Saturn.

Apr Bottom at Venus (353°) sexile ¢50½ (233°) trine Venus and
1 1.9%
1931 ¢51½ Saturn (293°) sexile Saturn.

Apr Bottom at Venus (63°) trine Saturn ¢26¾ (186°) trine both Venus
¾ 2.7%
1932 ¢27½ (303°) and Saturn.

Oct Bottom at Venus (250°) sexile ¢43¾ (129°) trine Venus and
¼ 0.6%
1933 ¢44 Saturn (310°) opposite Saturn.

Apr Bottom at Venus conjunct Saturn ¢41 (84°) trine both Venus and
1 2.5%
1934 ¢40 (324°) Saturn.

Please note that the price-degree conversions are based on the formula described in the previous
section, instead of the exact graphical angles on the Hexagon Chart.

Eclipses[edit]
There are two ways that Gann made use of eclipses. The first one is that, when a planet returns to
its position during a recent eclipse, then trend is likely to change.[27] The second way is that when a
planet crosses an eclipse spot which happens during a market top (or bottom), then the down (or up)
move will accelerate.[28]
Planetary averages[edit]
Gann maintained two formulas for calculating planetary averages.[25][31] The first one is called the
Mean of Five (MOF), which is arithmetic mean of the geocentric and heliocentric longitudes of the
outer five planets: Jupiter, Saturn, Uranus, Neptune and Pluto. The other is called the Cycle of Eight
(COE), which include all eight planets in its calculation, using both geocentric and heliocentric
longitudes (the Sun replaces the Earth in the geocentric calculation). He thinks that when these
averaged values make an aspect to the price, it will create support or resistance.[25]

Personal view on religion[edit]

Even though Gann was thought to be “religious”,[20] a careful analysis of his writings finds that he did
not agree with the conventional Christian teachings. On page 99 to 100 of his novel The Tunnel Thru
the Air (1927),[22] Gann revealed some of his personal believes towards religion through a
conversation between the protagonist, Robert Gordon, and his mother:
“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. Said that times and conditions
were changing rapidly; that the new inventions and discoveries caused men to think differently than
in the old days; that the old religious ideas would pass away and give place to more liberal,
advanced ideas. He hoped to live to see the day when men would not only be too proud to fight, but
would be too full of love for their fellowman to settle disputes with the sword. This was God's plan
and it would come to pass this way, and he believed that he could be a great power for peace and
hoped to live to see a world of peace with all nations united under one kingdom and one God, the
God of Love and Justice.”
Twenty-three years later, on page 21 of his book The Magic Word (1950),[44] he expressed similar
ideas:
“The Bible is simple when rightly understood. It teaches the Divine Law, its uses and abuses.
Whether a law is divine or natural, it is made plain that if you disobey the law, you must pay the
penalty and if you obey or follow the law, your reward is certain.”
“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.”
“All natural laws teach and prove that we do get our reward on this earth. Job obeyed the law and
got twice as much as he had while he was still on earth. There is nothing in the Bible that says these
laws will not work today and I shall prove by the Bible that they do.”

Controversy[edit]
There has been a general disagreement whether Gann himself made profits by
speculation.[45][46] Alexander Elder, in his book Trading for a Living,[11] said “I interviewed W.D. Gann’s
son, an analyst for a Boston bank. He told me that his famous father could not support his family by
trading but earned his living by writing and selling instructional courses. When W.D. Gann died in the
1950’s, his estate, including his house, was valued at slightly over $100,000.” Larry Williams, in the
book The Right Stock at the Right Time,[12] also stated he met W.D Gann's son. Larry Williams stated
that John Gann said “He asked why if his dad was a good as everyone said, the son was still smiling
and dialing calling up customers to trade”. Larry Williams in the same book says “I also met F.B
Thatcher who had been Gann’s promoter and advance man who said that Gann was just a good
promoter, not necessarily a good stock trader”.