WD Gann’s Master Charts
- D. Gann developed a number of MASTER CHARTS which had wonderful forecasting capacity.
These embody the MASTER 12 CHART, THE NEW YORK STOCK EXCHANGE PERMANENT CHART, THE MASTER 9 CHART, SIX SQUARES OF NINE, THE MASTER 360 and THE SQUARE OF THE CIRCLE.
THE MASTER 12 CHART is the one we’ll use on this instance because it is likely one of the most common. It is used on a number of commodities and shares.
We will use Wheat because it has been buying and selling for a very long time and can present an excellent instance of how the chart is used.
First discover that there are 12 columns on the chart with 12 numbers in every column. We begin with 1 on the backside of the primary column and quantity as much as 12. The 2nd column begins with 13 and goes as much as 24 and so forth all the way in which to the 12th column which has 144 on the prime. These numbers signify TIME.
The numbers alongside the highest are of nice significance. These are 12-24-36-48-60-72-84-96-108-120-132 and at last 144.
The different numbers of significance are these on the heart or half method level working horizontally throughout the sq..
The Wheat market started buying and selling in 1841. This is the start. At the underside of the primary column we’ll put the yr 1842 in the identical house with the #1. This signifies that that is one yr from the start. The subsequent yr, 1843, is positioned within the house with the quantity 2 and so forth as much as the highest of the column, the place we see 12 and the yr 1853.
This is completed all the way in which throughout. At 144 we see the yr 1985. This completes the primary MASTER 12 SQUARE.
The years throughout the highest of the MASTER CHART denote market tops and the years throughout on the centre shall be related to the Wheat market bottoms.
Those of you who’re accustomed to the Wheat market know that this chart forecast the long run tops and bottoms with wonderful accuracy.
Wheat swings had been as follows: Top 1841, backside 1848, prime 1853-54, backside 1860, prime 1865-66, backside 1871-72, prime 1877, backside 1884, prime 1888-89, backside 1895-96, prime 1899-1900, backside 1907, prime 1913-1918 (WAR YEARS), backside 1920, prime 1925, backside 1932 (ALL TIME LOW), prime 1937, backside 1943-44, prime 1950, backside 1956-57, prime 1961, backside 1967-68, prime 1973-74 (ALL TIME HIGH), backside 1979 and we are able to search for a prime in 1985 and particularly 1986 after we enter the brand new sq. of THE MASTER 12 CHART.
You can see that the market highs are related to the years on the prime of the sq. and the bottoms are related to these on the heart or ½-way level.
As the Wheat market completed the primary half of the MASTER 12 CHART in time, or went from the sixth column into the seventh, the market went to excessive highs. This will in all probability happen once more as we go from the primary sq. into the second sq..
The excessive highs of the Wheat market had been in 1867 at $3.00, 1919 at $3.44 and 1974 at $6.46. This follows the cycle of maximum highs which happen 50 to 52 years aside. (Some say that is the 54 yr cycle.)