Most traders focus on price and indicators.
W.D. Gann focused on time.
Gann believed that markets do not change randomly. They move through structured time periods, and when those periods mature, the price reacts.
Gann did work with dates, time counts, and specific periods.
What he did not do was treat dates as stand-alone predictions.
In this article, we’ll look at how WD Gann used time in his market forecasting work, why most traders misunderstand this concept, and how time fits into the broader structure of price movement.
This post explains how WD Gann used time cycles to project future market periods and evaluate when price and time were aligning for change.
This page focuses only on time.
The numerical foundation behind Gann’s work is explained separately.
How WD Gann Applied Time in His Trading Strategies
Gann’s perspective on time was different from that of most traders. That sets him apart from most traders and individuals. He viewed Time as a “Structure” made up of many layers, also known as ‘Wheel Within the Wheels‘.
This structure helped him identify future time windows and evaluate whether the market was approaching a point of change (turning point).
Most traders still view time in a linear way.
That means they know and understand only one way to use Time in their trading strategies: they use Time to find a Date or bar to locate a turning point.
However, my years of research and Gann’s charts show that Gann uses Time in two distinct ways in his trading strategies.
The Graphical and the Mathematical Approach. We’ll discuss both approaches to time in detail.
The Graphical Use of Time in Gann’s Charts
Graphical Approach: The way Gann represented Time visually was innovative and went beyond traditional methods. He wisely used Time as a critical element in his charts.
Gann’s Graphic approach involved using Angle lines and Overlays of Geometric shapes to gain a deeper understanding of the role of Time in trading. These weren’t your typical charts—Gann’s charts emphasised the significance of Time.
On these charts, he carefully plotted future Potential reversals and trend changes. This approach allowed him to visually identify when an event was likely to happen, offering a holistic view that combined Price and Time.
One of the major benefits of this Graphical approach is that it makes the concept of Time easy to see and understand. It’s like having a picture that tells you a story about the market’s future.
The Mathematical Use of Time in Gann’s Market Forecasting
Mathematical Approach: W.D. Gann’s ability to connect numbers and time in trading was a crucial part of his forecasting work and only makes sense once you understand how W.D. Gann used numbers.
He created Mathematical models that included parameters related to Time. He used these models to predict potential market movements in Price and time based on Natural Geometric Cycles.
Many of the Gann students believe that his Mathematical Time approach is limited to identifying specific dates or bars. However, this approach extends beyond that and provides much more.
For example, Gann’s personal charts disclose a technique he used to predict and pinpoint price fluctuations, using the concept of Time. That’s valuable information and worth a thousand dollars.
For traders seeking to use the WD Gann time-based strategies, this concise guide is for you:
Gather Your Data: Start by collecting some old trading data. The more data you have, the better.
Start Drawing: Once you have your data, start making your chart. Mark when significant price changes happened. Look for patterns in the timing of these changes.
Factor in Natural Events: This may sound esoteric, but Gann was known to consider lunar phases, equinoxes, and solstices when trading. While modern traders may not extensively study astronomy, but understanding the significant events and their effect on markets can be extremely valuable.
These natural events formed part of Gann’s method for projecting future market time periods.
Applying Gann’s Time Concepts in Real Trading
For those who’ve made it this far, your journey to understand how Time plays into Markets and trading is only beginning.
If you wish to learn deeper and discover the Master Secret to identify future Intraday highs and lows using the Concept of Time, then my upcoming course, ‘Looking Ahead‘, has everything you need.
Give yourself the edge with tools, strategies, and insights that aren’t just Game-changing— but also timeless. – Divesh
If you’d like to learn more about the “Looking Ahead” course, please email me at [email protected]. I’ll be happy to provide you with all the details you need.
