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W. D. GANN'S APPROACH DEFINED














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W. D. GANN'S APPROACH DEFINED
















Definition

Higher Power

If you really want to get yourself in trouble, produce some form of evidence that you are looking at anything that could be even remotely related to religion or anti-religion of any kind. People have very differing views on whether divine guidance can or could be a part of any form of future prediction by any mortal man. And if it's going to be a factor, then it is another issue as to where the power that was bestowed on this mortal individual came from. I'm sure that this was one of the greatest difficulties that Gann faced in his lifetime, being as successful as he was, because he was a very devout Methodist, and what he did to make so much money was constantly questioned. I'm sure many thought that he was powered by the devil, and that is the reason why he wrote his writings in the way that they are written --- to avoid confrontations.

Fate

Akin to the problem in the above paragraph is the unwillingness of most people to believe that there could be an order in the markets that follows natural order. Most people believe that there is nothing wrong with believing that there is a natural order when referring to something "physical", such as the sun coming up every day. They also usually don't have any problem conceding that man's will is tuned by this phenomena, as he copes with his environment, such as preferring to sleep when it's dark. But if you ask them to believe that the will of man's investment decisions is also commanded by a natural order, then you will be accused of stepping over the line. It stabs at the root of what people hold dear to their individualism. They will immediately feel manipulated if they think that they had acted on an investment decision because of something other than their own free will and investment savvy.

Natural Order

What is misunderstood is that the individual's decisions are not what has followed natural order, but the combined effect of the masses is what has followed natural order. So to the extent that the market follows a natural order, the individuals that have traded with the natural order are the winners, and the individuals that have traded against the natural order are the losers. The difficulty lies in the convincing someone that the stated natural order effect is in fact a reality. It is relatively easy to understand and accept that many living animal creatures on the earth respond to their natural environment with timed responses, but man likes to think of himself as an exception. Consider the cicadas that stay in the ground and come out every thirteen to seventeen years. Consider the clams that open for the moon, the birds that migrate, the bears that hibernate, the fish that swim up river to spawn --- all timed responses to their natural environment. These are more easily understood than the cicada's cycle. It's even easier to admit that natural cycles of growth affect crop prices, and that there will be a harvest and "season", and heating oil will be used more in the winter. We seem to not have a problem with these. But the fact of the matter is --- the sooner we are willing to admit that natural order orders our lives more than we realize, the further down the road we will be. The only way to "see" this phenomena is to look at the affects of it, according to Gann.

The Affects

W.D.Gann wrote, "...I find that not only do the various stocks vibrate, but that the driving forces controlling the stocks are also in a state of vibration. These vibratory forces can only be known by the movements they generate on the stocks and their values in the market." Although I don't fully understand all that he has said there, (which he has said in different ways), I think I understand part of it. This method attempts to show that the price action is affected by the timing signals generated from 100% time inputs. The only way that the above natural order phenomena can be proven to be the driving force behind the markets is for there to be a correlation between the signals generated from time and the affect on the price action, as Gann has stated. Refer to my commentary on the signals for my version of the above proof.

 

By David Barry
















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The basic tool for the manipulation of reality is the manipulation of words. If you can control the meaning of words, you can control the people who must use the words. Philip K. Dick