If WD Gann had a secret
…we do not know. From all the published information I’ve had access to, it seems to me that Gann probably took the last secret of his with him to the grave. And what could that be? Perhaps the method to know with almost 100% certainty the price of the next major high or low and what day it would occur.
So why do I often speak highly of WD Gann, praising his methods? Because what I have learned from the information that is available to us today, secret or not, has opened the door to some fantastic and incredible discoveries of my own.
Credit must be given where credit is due. If legends like WD Gann didn’t publish what they did, regardless of whether their motive was purely for profit or partly altruistic, it would have made many current discoveries or understandings of market behavior that much harder to come by.
When we read about the exploits of WD Gann, we are reminded of his remarkable Wheat call in the early 20th century before a writer for The Ticker and Investment Digest. We are reminded that he had the ability to turn a small amount of money into a much larger amount in a short period of time.
“One of the most astonishing calculations made by Mr. Gann was during the past summer  when he predicted that September wheat would sell for $1.20. This meant that he had to touch that number before the end of September. At twelve o’clock Chicago time on September 30 (the last day) the option was selling below $1.08 and it appeared that his prediction would not come to pass.
Mr. Gann said: ‘If it doesn’t touch $1.20 by the close of the market, it will show that there is something wrong with my whole calculation method. I don’t care what the price is now, you must go there. It is common history that September wheat surprised the entire country by selling for $1.20 and no higher in the last hour of trading, closing at that figure.”
“During the month of October, 1909, on twenty-five trading days, Mr. Gann made, in the presence of our agent, two hundred and eighty-six transactions in various stocks, both on the long and short sides of the market. Two hundred and sixty-four of these transactions resulted in profits, twenty-two in losses.”
The fact that WD Gann is a legend is indisputable. The popularity of him continues to grow year after year. And with such exposure, with myth and fact intertwined, debates continue as to whether he got rich trading or selling books and courses. In fact, debates over whether he died rich to begin with continue unabated.
I am convinced that WD Gann did in fact have many of the secrets to forecasting market highs and lows, and that he did not reveal the most powerful ones. And I’m also convinced that he shared enough information, albeit scattered in metaphors, that anyone serious enough about the venture can glean enough to improve their market timing skills several times over.
My conviction was first of logic. You see, if WD Gann got rich trading or selling books and courses he doesn’t take anything away from his genius. It is a fact that WD Gann sold courses and seminars that cost the price of a single-family home in those days. Only a man with recognized genius could pull it off. Who today, praised in the commercial industry, can put together a seminar or course for the price of a house? Nobody.
Now, while this logic helped convince me of WD Gann’s legitimacy, it also helped me at least take his printed works seriously enough to get something out of them. And boy was that the right move!
In the last 6 years I have tracked down much of what I could find out about WD Gann and his teachings. I have read his economic books as well as his extensive (and more expensive) trading course. I have searched the web from top to bottom looking for bits and pieces that I could find. Simply put: this man was indeed a genius.
I’m pretty sure what I’ve gathered from my research is only a fraction of what the man had to offer. Maybe someone out there has locked away the last whispers of a dying genius. Who really knows? But from what I have collected, in its obviously limited amounts, it was enough to open so many amazing doors for me in the field of market analysis and forecasting that I will always be indebted to Mr. Gann and others like him.
Gann’s Wheel, also known as the Square of Nine, is an amazing tool. It has been sold and oversold for years. Many ignore it as nothing more than a useless product to put money in the pockets of those who sell it. Oh, what nonsense abounds! Although I’ve long since moved beyond using this forecasting tool, it opens your mind to the amazing mysteries of the universe. It is as if everything around us could be explained with mathematics, since each thing seems to be related to another.
Oh, I can wax poetic for a long time about this. But I’m sure you’d prefer me to stay on point. With the Square of Nine, you can, with a fair amount of practice, get to the point of making many forecasts with incredible accuracy. You may not know the exact price of wheat or live cattle for a particular day. But then, maybe you can. I found the tool to be a good plugin for working with prices to get to a set of support or resistance prices for any given day, instead of standing on a soap box and stating for sure that corn will hit 205 and not a tick over. That kind of information would be nice to know, but it is not necessary to make a profit in trading.
In my market forecasting arsenal there are several tools that are used to forecast time and price. Each one I have a different level of confidence in. Over the years, I have learned to use all the tools at the right time for the circumstances to make many amazing market forecasts. Of course, my goal is to achieve 100% accuracy with 100% consistency. Without such a goal, I would just sit on my hands and the discovery would stop for me personally. While achieving such a goal would be considered by virtually everyone to be impossible, and perhaps it is, you should never convince yourself of that if you wish to stand out from the masses.
WD Gann had his secrets and probably died taking some very good ones with him to the grave. And we know that he wasn’t 100% accurate with 100% consistency because we read that he won x number of trades out of y trades. An amazing achievement, even if it’s not 100% perfect. But I have no doubt that WD Gann once thought that he would not be able to achieve that lofty goal. To achieve any real success requires that you believe that you can achieve the impossible. In reality, nothing is impossible to achieve. Usually only two things stand in the way of achieving the ultimate goal; you and the time
If you believe, you can achieve it. Only TIME cuts the course shorts. We just run out of time and pass away, and that’s what happened to WD Gann. If WD Gann were alive today, he would be that much closer to achieving the impossible. Any of us who believe the goal is achievable and let go of any negative thoughts of failure, who strive to support the thought, will achieve a great deal, but will eventually be interrupted by TIME. But it’s no reason to give up.
Every time we collect the great works of a legend like WD Gann, we help extend his time. We take what we get from Gann and others like him and move it towards the ultimate goal. As we earnestly and sincerely study and research, we open new doors of discovery for future generations if those new discoveries, in whole or in part, are shared. This sharing can be spread out in chunks across many books and perhaps seminars. Whether the reason for sharing is for profit or altruistic reasons, each piece of the puzzle will contribute to the overall puzzle that could one day be yours.
Perhaps WD Gann didn’t die with his secret after all, as it may be what he has encouraged all along… never stop learning and believing.