W.D. Gann and MATHEMATICAL FORMULA FOR MARKET PREDICTIONS
W.D. Gann MATHEMATICAL FORMULA
FOR MARKET PREDICTIONS
THE MASTER MATHEMATICAL PRICE
TIME AND TREND CALCULATION
This chart is made on transparent
plastic so that you can place it over daily, weekly, or monthly high or low
chart and see at a glance the position on the time and place based on the
geometrical angles. It is designed to give QUICK ACCURATE EASY CALCULATIONS:
SAVE TIME AND PREVENT ERRORS.
The square of 12 is always important
in working out time periods because there are 12 month in a year. The square of
144 is the GREAT SQUARE
One column in the square of 144
contains 144. This would equal $144 on grain, 144 points on stocks or using a
scale of 10 points to 1/8 inch it will equal 1140 points on cotton.
MASTER 144 SQUARE CONTAINS 324 square
inched and each square inch contains 64 units which gives 20,736. This is
20,736 weeks or months and the proportionate parts of this are used for the
measurement of time and price because this is the great cycle.
THE
GREAT CYCLE OF THE SQUARE OF 144.
The time period of this square is
20,736 days, weeks or months. One-half(1/2) is 10,368 days. One-fourth(1/4) is
5,184 days. One-eighth(1/8) is 2,592 days. One-sixteenth(1/16) is 1,296 days.
One-thirty-second(1/32) is 648 days and the one-sixty-four(1/64) is 324
calendar or market days. 1/128 is 162 days and 1/256 is 81 days or the square
of 9.
WEEKLY
TIME PERIODS.
THE GREAT CYCLE in weeks is 2962 and 2
days and 1/2 of this period is 1481 weeks and 1 day. One-fourth is 740 weeks.
One-eighth 370 weeks and 2 days, One-sixteenth is 185 weeks, 1 day.
One-thirty-second is 92 weeks, 4 days and 1/64 is 41 weeks, 2 days.
MONTHLY
TIME PERIODS.
THE GREAT CYCLE in month is 681 months
and 23 days. One-half of this is 28 years, 9 months and 23 days. One-fourth is
14 years, 5 month and 8 days. One-eighth is 7 years, 2 1/2 months.
One-sixteenth is 43 months and days. The weekly and monthly time periods from
major high and low and be checked determine the future trend.
THE
MASTER NUMBERS:
The Master Numbers are 3, 5, 7, 9 and
12. The No. 9 and its multiple is the most important because 9 digits added
together equal 45. The next number of greatest importance is 7, the number
mentioned more times in the Bible than any other number. There are 7 days in
the week and 7 calendar days as well as 5 market days, and their multiples
should be carried on your Daily, Weekly and Monthly Charts. The square of 7 is
49, which is a very important time period. The 2nd square of 7 is 98
and the third square of 7 is 147 and the fourth square of 7 is 196 and 196 is
also the square of 14. The next number in importance is No. 5 which is the
balancing number between 1 and 9. The square of 5 is 25 and the second square
of 5 is 50 which is just I over the square of 7 making 49 to 50 very important
for a change in trend. There squares of 5 is 75 and 5 squares of 5 is 100 and
100 is the square of 10, which is also important for changes.
The No. 3 is mentioned in the Bible
next to the No. 7 and 3 is important because 3 x 3 equals 9, the square of 3,
and it is the first old number that forms a square greatest that itself. Three
must be used in every way possible, 3 x 7 equals 21, 3 x 5 equals 15, 3 x 9
equals 27 and 3 x 12 equals 36, very important because it is the square of 6.
The No. 12 is also spoken of in the Bible many times and is of great
importance. Jesus selected 12 disciples. There are 12 month in the year, and 12
signs of the Zodiac. The important 12's in the square of 144 are 12, 24, 36,
48, 60, 72, 84, 96, 108, 120, 132 and 144. These are all important for both
time and price in days, weeks and months.
Referring to the No. 9, 7 x 9 is 63
and is of great importance because the square of 8 is 64, therefore, around 63
to 64 is very important to watch the change in trend. 7 x 12 is 84 and this is of very great
importance and the number next to this is 90, which is 10 x 9 and 90 is 1/4 of
the circle, which is very important for time and price changes. Next in
importance is 9 x 12 which is 108 of 3/4 of 144.
The importance of the circle of 360
deg. must not be overlooked in connection with the square of 144 because the
proportionate parts of the circle agree with the parts of 144. 2 1/2 times 144
equals 360 and 1 1/4 times 144 equals 180, 1/2 of the circle, and 90 is 5/8 of
144. 9 is 1/16 of 144, 18 is 1/8, 27 is 3/8, 36 is 1/4, 45 is 5/16 and always
very important for time and price changes and for resistance levels. 48 is 1/3
of 144 and 54 is 3/8 and 63 is 7/16, 72 is 1/2 of 144, 81 the square of 9, is
9/16 of 144 and 90 is 5/8, 99 is 11/16, 108 is 3/4, 117 is 13/16, and 126 is
7/8 and 135 is 15/16 of 144. These are the most important in the square of 12
and should be watched closely when time periods in days, week or months reach
these points on the Master Calculator. Remember that you should always watch
the Daily Chart for the first indication of the change in trend and at the same
time look at the position on the Weekly Chart on 7 days time periods which is
next in importance. The Monthly Chart is of the greatest importance for changes
in the main trend.
THE
IMPORTANCE OF 3 AND 5.
The movement in PRICE and TIME whether
on a Daily, Weekly or Monthly chart has three important points, the PRICE, the
TIME AND VOLUME of sales, the PITCH or TREND which is the geometrical angle
which show whether time is influencing and driving prices up or down on slow
angle or an acute fast moving angle. There are also four factors that influence
prices, PRICE, TIME AND VOLUME AND VELOCITY. Time is the most important factor
because when time is up volume increases and the velocity of speed of the
market increases and the PITCH or TREND on the angles moves up faster or down
faster.
There are three other important points
to consider on a Daily, Weekly or Monthly High and Low Chart. There are LOW
PRICE, the HIGHEST PRICE and the RANGE 1/2 between the high and low.
FIVE
FACTORS FOR TIME AND PRICE
There are high, low, halfway point,
opening and closing prices. The trend is indicated by closing price, especially
when the market very active. If the prices closes above the half way point or
near the high, the trend is up. If it closes below the half way point or near
the low, the selling is greater than the buying and the trend is down, at list
temporarily. In connection with the Master Time and Trend Calculator apply all
of the rules with the Master Time Factor and geometric angles.
STRONGEST
POINT FOR TIME AND PRICE RESISTANCE.
In using the Master Square of 144, the
strongest points are 1/4, 1/3, 2/3, 3/8, 1/2, 5/8, 3/4, 7/8 and the complete
square of 144.
The points where the most angle cross
are the strongest for resistance in PRICE and TIME.
TRIAGLE
POINTS.
The triagle points or where the green
angles cross the most important: These are 72, 144, 36, 48, 96, 108 and of
couse 72, and at the end of the square 144 at the tom and the bottom.
SQUARES
IN THE SQUARE OF 144.
These squares where the angles cross
are of great importance for time and price resistance. These are 36, 45, 54,
63, 72, 90, 108, and the top and the bottom. When the price is at a point equal
36 and the time period in days, weeks or month is at 36, TIME and PRICE SQUARE
and it is important to watch for change in trend. With the square of 144 you
can get any square from 1 to 144. Suppose you want to get the square of 72: you
move across to 72 for time and if price is at 72 moving up on the chart, PRICE
and TIME have balanced, or square out, and we at the 45 degree angle and at the
half way point the Master Price, Time and Trend Calculator.
WHERE
TO WATCH FOR CHANGE IN TREND
Most changes in trend occur when the
TIME PERIODS are at one-half of the square of 144 and at the end of square or
at the 1/3, 2/3, 1/4, and 3/4 points in the square of 144; you must always
watch the square in time of the HIGHEST PRICE and the MINOR HIGHS and LOWS,
also the square of time of the LOWEST PRICE and the SECOND OR THIRD higher
bottom, and also the time required to square the Range and where this square
works out of Master Square of 144.
EXAMPLE:
The lowest price that wheat ever sold was 28c per bushel, In March 1852,
therefore every 28 month would square the lowest price. The highest price that
wheat over sold was in May 11, 1917 when the May Option sold at 325, therefore
it would require 325 month to square the highest price. The lowest price that
the May option ever sold was 44c, therefore it would require 44 month in time
to square the low price. The range between 44 and 325 is 281c which would
require 281 months, 281 weeks or 281 days to square the range. You would look
on the Master Chart and see that 2 squares of 144 equals 288, therefore, you
would watch for change in trend between 281 and 288 or near the end of the second
square of 144. 7 x 44, the extreme low, equals 308, therefore, 6 1/2 times 44
would equal 286, which is within two points of the end of the square of 144 or
the end of the second square making
286 an important time period to watch for a change in trend. In squaring the
range 325, the highest price for May wheat would be 2 squares of 144 and 17
over, therefore, when the time reached 36 days, weeks or months in the Master
Square of 144 you can see that resistance would be met because moving up the
time period of 136 you can see that the 45 deg. angle moving down from 72,
which is the INNER SQUARE and the line drawn across from 36 on the price scale
crosses at 36. In this way you can see that the Master Chart would indicate a
resistance in time and price corresponding with the square of the highest
price, the lowest price, and the Range. All other time periods from a high
price, low price, or the range of any commodity or of the stock should be
worked out in this same way.
You will succeed in using the Master
Mathematical Price, Time and Trend Calculator by going over the charts and
laying the calculator over them and working out past history. In this way you
will learn just how it works and prove to yourself the great value of the
Master Calculator.
HOURLY
TIME PERIODS
When Markets are very active and
making a wide range in price, it is important to keep an hourly High and Low
Chart will give the first change in trend.
There are 24 hours in a day,
therefore, 6 days are required to pass throught 144 and a total of 864 days to
pass the square of 144.
At the present time, all exchanges are
open 5 days a week with the exception of holidays and most of them are open 5
hours each day, therefore, it will require 28 days and 4 hours to pass
throughtt 144 and the rate of 5 hours per day and 5 days per week.
GREAT
YEARLY TIME CYCLE:
To pass throughtt the square of 144,
which equals 20,736, it requires 56 years, 9 months and 23 days, which is very
important time cycle. Next in importance is 1/2 of this time period which is 28
years, 5 months and 8 days and 1/4 which is 14 years, 2 months and 19 days. The
14 year cycle is always very important because it is 2 seven year periods. 14
years equal 168 months and 169 months is the square of 13 making it very
important for a change in trend and this is also an important time resistance
point.
1/8 of the Great Cycle is 7 years, 1
month and 10 days and is quite important. 1/16 is 42 months and 20 days, 1/32
is 32 months and 30 days. This is an important time period because is is close
to 22 1/2 months which is 1/16 of the circle of 360 degrees.
NINE
SPACES AND NINE TIME PERIODS:
The chart being divided up into 9
sections gives all the squares of 9 for price resistance of time resistance
which, as referred to above is 9c on the Daily Chart for grains and the same
for Weekly and Monthly Charts: that is, 1c to each 1/8 inch. For different
commodities, different scales are used. (See Special Instructions for the
different commodities.)
The Chart being divided up into 9 sections
gives a 16 the squares of 9 for rpice resistance or time resistance which, as
referred to above, is 90 points of the Daily Chart, 135 on the Weekly Chart,
and 270 on the Monthly and 2880 on the 20 points scale and 9 spaces equal 180
points.
The angles in red are all drawn on the
squares of 9. The Inner Square of 450 is drawn from 72 because 72 is 1/2 of
144. These angles come out at 72, 144 and 72.
The straight lines are in green and
are 1/3 of the square of 144 in price or time.
GREEN
ANGLES:
The green angles are the angles of 2 x
1 which up two spaces of 2 points in one period of the time. The other angle
below the 450 angle is the angle of 1 x 2 which requires 2 time periods to move
up 1 space or 1c per bushel on grains for each time period of 1 day, week or 1
month. These angles move down from the top at the rate of 2 points or 2 spaces
per time periods or at the rate of 1/2 space, 1/2 point or 1/2c per time
period. The distance that the green angles and the red angles are apart
determines how far prices can advance or decline.
When the market enters the INNER
SQUARE it is important for a change in trend and time angles and Position in
the square tell at the time it entered whether the price is going up or down.
Also when price breaks below a 45° on the INNER SQUARE it show weakness in
proportion to the time from high or low price.
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