William Delbert Gann, popularly known as WD Gann, is a name that resonates deeply within the world of financial markets.
Born in 1878 in Lufkin, Texas, Gann was more than just a trader—he was a pioneer. His unique trading and market analysis approach has fascinated and puzzled financial professionals.
What makes Gann’s methods so enduring, and why do traders still study his techniques today? Let’s dive into his life and legacy to uncover the secrets of his success.
Who Was WD Gann?
WD Gann was not born into wealth or privilege.
Growing up in a modest background, he had limited access to formal education. However, his constant curiosity and determination led him to explore the financial markets in ways no one had before.
By the early 1900s, Gann had made a name for himself as a trader, and his predictions often seemed out of this world. Whether forecasting major market moves or predicting commodity prices with remarkable accuracy, Gann’s work stood out.
What set him apart was not just his success as a trader. But his methodology—a blend of mathematics, geometry, astrology, and esoteric principles.
While some dismissed his techniques as mystical, others were inspired to delve deeper into his theories, many of which continue to influence modern trading strategies.
The WD Gann Approach: Time and Price Analysis
WD Gann’s trading methodology primarily revolves around the connection between time and price.
WD Gann believed that markets move in predictable cycles and that understanding these cycles could give traders a significant edge.
Unlike conventional technical analysis, which focuses primarily on chart patterns and indicators, Gann’s methods emphasize the importance of timing.
One of WD Gann’s most famous trading tools is the Gann Square, also known as the Square of 9. This tool uses a spiral grid to help traders identify key support and resistance levels based on time and price relationships.
Gann also introduced the concept of angles, such as the 1×1 angle, which represents a balance between time and price. These angles help traders determine the strength of a trend and anticipate potential reversals.
Gann’s Predictions and Controversies
Gann’s predictions were often remarkably accurate.
For example, he famously forecasted 1929’s stock market crash and pinpointed significant market turning points in commodities and stocks.
However, his methods were not without controversy. Critics argued that his predictions were too vague or open to interpretation. Some even accused him of relying on luck rather than skill.
Despite scepticism, WD Gann’s record speaks for itself. He maintained high accuracy in his trades and consistently outperformed his peers. His book The Truth of the Stock Tape and other writings continue to be studied by traders worldwide.
The 1909 Wheat Prediction by WD Gann
Back in 1909, he made headlines for accurately Predicting the future price of wheat.
At that time, the daily price of wheat would only change by about 1 cent, and it had never reached $1.20 per bushel. Despite this, Gann said it would go up to $1.20 by the end of September.
People were doubtful at first, but Gann stood by his forecast. On the last day of trading in September, the price of wheat started at around $1.07. Gann said that if the price didn’t hit $1.20 by the end of the day, then his prediction method was imperfect.
Amazingly, in the last hour of trading, the price jumped from $1.07 to $1.20, just as he had predicted. This event made him famous and trusted for his ability to forecast market prices.
So, How Gann made his 1909 Wheat Prediction (calculated)
Gann had a unique way of predicting prices that included using Geometry (shapes and lines), Astronomy (the study of stars and planets), and Ancient Mathematics.
My research shows that the secret behind his 1909 wheat price prediction was a hidden mathematical formula. This formula was based on past wheat prices, and Gann had written about it in a mysterious book called ‘Tunnel Through The Air.’
The Role of Esotericism in WD Gann’s Work
One of the most appealing aspects of Gann’s trading strategies is his use of esoteric principles, including astrology and numerology.
Gann believed that celestial cycles influenced human behaviour, which in turn affected financial markets.
While this aspect of Gann’s work has often been met with scepticism, it has also inspired a niche following of traders who incorporate astrological cycles into their strategies.
For Gann, markets were not just about numbers—they reflected universal laws. To support his theories, he often cited biblical references and ancient philosophies.
This holistic approach set him apart from other traders & analysts and added a layer of depth to his work that still inspires traders today.
Why WD Gann’s Trading Methods Still Matter
In an era dominated by algorithmic trading and complex financial models, one might wonder why a century-old methodology still holds relevance.
The answer lies in Gann’s timeless trading principles: discipline, risk management, and understanding market cycles.
While the tools and technologies have evolved, the human emotions driving markets—fear, greed, hope—remain the same.
Moreover, Gann’s emphasis on the connection between time and price inspires traders who seek to go beyond conventional analysis. His techniques offer an original perspective that combines logic with insight, making them as relevant today as they were in his time.
Practical Advice for Traders Based on WD Gann’s Insights
Study Market Cycles: Gann emphasized that history repeats itself. Study past market movements to identify recurring patterns and cycles.
Use Time and Price Tools: Incorporate tools like the Gann Square and Gann Angles into your trading strategy to identify potential turning points.
Practice Discipline: Gann’s success was rooted in strict risk management and discipline. Always have a trading plan and stick to it.
Explore Beyond the Charts: While technical analysis is crucial, consider external factors like economic cycles and even astrological influences to gain a broader perspective.
Final Thoughts
WD Gann was more than just a trader. He was a visionary.
His innovative approach to market analysis has stood the test of time, offering valuable insights to anyone willing to study his methods.
While not every trader may choose to adopt his techniques, the principles of discipline, observation, and continuous learning advocated by Gann applies to everyone.
As we navigate the ever-changing financial markets, Gann’s legacy reminds us that the answers often lie in the patterns of the past. By understanding the relationship between time and price, traders can uncover opportunities others might overlook.
Whether you view him as a genius or a mystic, one thing is sure: the contribution of WD Gann to the world of trading will continue to inspire generations to come.
Here are a few FQAs about WD Gann and his trading methods and work.
What are Gann indicators?
Gann indicators are a set of technical analysis tools based on W.D. Gann’s work. They are used to identify potential support and resistance levels, predict future price movements and identify potential trend reversals.
Some of the most common Gann indicators include:
Gann angles: These lines are drawn to the price axis at specific angles. They are used to identify potential support and resistance levels.
The Square of Nine: This grid is used to identify key price levels.
The Circle of 360: This Circle is divided into 360 degrees. Each degree represents a potential price level.
How much money did WD Gann made through trading?
The exact amount of money that Gann made is unknown. However, some estimates range from $100,000 to $50 million. Gann likely made a significant amount of money from trading, but the exact amount is impossible to say for sure.
Ultimately, we may never know for sure how much money Gann made. However, he was undoubtedly a successful trader and made a significant amount of money from his trading career.
What is the Gann time cycle?
Gann’s time cycle is a theory developed by W.D. Gann, a famous trader and market analyst. Gann believed that the market moves in a natural time cycle and that traders could predict future price movements by understanding these cycles.
Gann said there are various time cycles, such as the 3-year cycle, 7-year cycle, 11-year cycle, and 20-year cycle. He also theorized that these cycles could be merged to form longer ones.
What is the Gann Square?
The Gann Square, also known as the Square of 9, is a tool used to identify key support and resistance levels based on time and price relationships.
Did WD Gann’s predictions always come true?
While Gann had a remarkable track record, no trader can predict markets with 100% accuracy. His methods require careful study and application.
Can modern traders learn & use Gann’s techniques?
Yes, Gann’s principles are timeless and can be adapted to modern trading strategies, especially when combined with current tools and technology.
Was Gann’s work scientific or mystical?
Gann’s methods blended mathematics and esoteric principles. While some aspects appear mystical, much of his work is grounded in logical analysis.
