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REDISCOVERING GANNS LAW OF VIBRATION














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REDISCOVERING GANN’S LAW OF VIBRATION

BY JAMES SMITHSON

INTRODUCTION

William D. Gann (1878 to 1955) was an outstanding technical

analyst. He was also a prolific teacher of how to make speculation a

profitable profession, writing some seven books and producing two

courses on trading the stock and commodity markets. However,

Gann's superlative skill was his ability to forecast accurately the

stock and commodity markets. Gann’s forecasting method was based

upon what he called the Law Of Vibration. This paper seeks to

rediscover Gann’s Law Of Vibration.

GANN’S GREAT DISCOVERY OF AUGUST 8TH 1908

Almost exactly one hundred years ago Gann made one of his most

important discoveries, if not his most important discovery.

More specifically, as Gann recorded in his booklet entitled “Why

Money Is Lost On Commodities And Stocks And How To Make Profits”

(1954):

“1908 May 12th left Oklahoma City for New York City. August 8th

made one of (his) greatest mathematical discoveries for predicting

the trend of stocks and commodities. Started trading with a capital

of $300 and made $25,000. Started another account with $130 and

made $12,000 in thirty days’ time”.

On August 8 1908 Gann was 30 years old. Moreover Gann was 76

years old when in 1954 he wrote his booklet “Why Money Is Lost On

Commodities And Stocks And How To Make Profits”. Therefore Gann

clearly made an important discovery on August 8 1908 because he

recalled that precise date 46 years later.

In December 1909 Gann gave an interview to the “Ticker And

Investment Digest” magazine. That was sixteen months after his

important discovery of August 8 1908. The overall conclusion from

this interview is that Gann had discovered a unique method of

precisely forecasting the trend of stocks and commodities, which

was based upon what he called the Law Of Vibration, and he was

achieving great financial success in its practical application.

Therefore Gann’s major discovery of August 8 1908 appears to have

been some crucial and practical part of his forecasting method, that

he called the Law Of Vibration. Sixteen months later, in his interview

to the “Ticker And Investment Digest”, Gann provided a partial

explanation of this Law Of Vibration.

More specifically, in his interview Gann made it clear that he would

not provide a detailed explanation of his Law Of Vibration (“Mr Gann

has refused to disclose his method at any price”, Ticker interview).

However, Gann was willing to provide a general description of his

Law Of Vibration (“We have asked Mr Gann for an outline of his

work, and have secured some remarkable evidence as to the results

obtained therefrom”, Ticker interview).

THE PRINCIPLES OF GANN’S LAW OF VIBRATION

The principles of Gann’s Law Of Vibration, as discerned from his

interview of December 1909 to the “Ticker And Investment Digest”,

are as follows.

1. Stocks and commodities (and everything else on earth) vibrate.

Moreover, vibration provides a comprehensive explanation of

price movements in financial markets.

“Vibration is fundamental; nothing is exempt from this law; it is

universal, therefore applicable to every class of phenomena on the

globe…. After years of patient study I have proven to my entire

satisfaction, as well as demonstrated to others, that vibration

explains every possible phase and condition of the market”

(Ticker interview).

2. Stocks and commodities vibrate in accordance with both their own

individual energy/ vibration (i.e. internal vibration) and also in

accordance with energy/ vibration transmitted through space (i.e.

external vibration).

“From my extensive investigations, studies and applied tests, 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” (Ticker interview).

3. The overall energy/ vibration of a stock or commodity is reflected

in its price.

“These vibratory forces can only be known by the movements they

generate on the stocks and their values in the market” (Ticker

interview).

4. Financial markets essentially comprise a series of impulses that

produce price movements with specific rates of vibration.

“Science teaches that an original impulse of any kind finally

resolves itself into periodic or rhythmical motion” (Ticker

interview).

5. The price movement of a stock or commodity unfolds in a coherent

way. This is because stocks and commodities are essentially

centres of energies and these energies (or vibrations) are

controlled mathematically.

“Stocks, like atoms, are really centres of energies. Therefore they

are controlled mathematically…. There is no chance in nature

because mathematical principles of the highest order lie at the

foundation of all things” (Ticker interview).

6. When the overall vibration of a stock or commodity is in balance

its price will maintain a constant rate of vibration (i.e. prices will

form a trend). Consequently this overall rate of vibration (or trend

line) can be precisely measured and future prices forecast by

means of the so-called Gann angles or Gann fan lines (i.e. 1 x 1, 1

x 2, 1 x 4, 1 x 8 angles, etc. and their subdivisions).

“The power to determine the trend of the market is due to my

knowledge of the characteristics of each individual stock and a

certain grouping of different stocks under their proper rates of

vibration. Stocks are like electrons, atoms and molecules, which

hold persistently to their own individuality in response to the

fundamental Law Of Vibration…. After exhaustive researches and

investigations of the known sciences, I discovered that the Law Of

Vibration enabled me to accurately determine the exact points to

which stocks or commodities should rise and fall within a given

time. The working out of this law determines the cause and

predicts the effect long before the Street is aware of either”

(Ticker interview).

7. These principles can be applied to forecast the trend of stocks or

commodities over multiple time frames. For example, a minor

impulse may produce a price movement with a specific rate of

vibration that lasts only a few hours. Alternatively, a major

impulse may produce a price movement with a specific rate of

vibration that lasts for a number of years (e.g. the rise in the Dow

Jones Industrial Average from 1921 to 1929).

“The law which I have applied will not only give these long cycles

or swings, but the daily and even hourly movements of stocks”

(Ticker interview).

8. The external energy/ vibration acting on a stock or commodity is

in fact astrological influences.

Unfortunately Gann does not explicitly state this in his Ticker

interview. This is perhaps not surprising in view of the fact that

Gann made it clear he would not provide a detailed explanation of

his Law Of Vibration (“Mr Gann has refused to disclose his method

at any price”, Ticker interview).

Consequently one has to turn to Gann’s semi-autobiographical

novel entitled “The Tunnel Thru The Air”, which he wrote

eighteen years later in 1927, for supporting evidence of this key

principle. Such supporting evidence includes the following.

“Robert was a great believer in astrology because he had found

this great science referred to so many times in the Holy Bible….

He had made notes as he read the Bible at different times where

it referred to astrology or the signs in the heavens and was

thoroughly convinced that the influence of the heavenly bodies

govern our lives” (The Tunnel Thru The Air, page 172).

“I believe in the stars, I believe in astrology, and I have figured

out my destiny. The Bible makes it plain that the stars do rule”

(The Tunnel Thru The Air, page 66).

“Through my study of the Bible, I have determined the major

and minor time factors which repeat in the history of nations,

men and markets” (The Tunnel Thru The Air, page 70).

“I have studied the Bible very carefully because I believe it is the

greatest scientific book ever written. The laws are plainly laid

down how to make a success. There is a time and a season for

everything and if a man does things according to the time, he

will succeed” (The Tunnel Thru The Air, page 204).

“Robert had gone deeply into the Bible study in order to learn

more about the great science of astrology” (The Tunnel Thru The

Air, page 213).

“He read all the books he could get on astrology and began to

understand why things had happened as they had” (The Tunnel

Thru The Air, page 215).

9. Astrological influences act in a way that is analogous to radio

waves; i.e. they have a specific wavelength, they travel through

space and they are received by and influence those stocks and

commodities that vibrate with a resonant frequency.

“It is impossible here to give an adequate idea of the Law Of

Vibration as I apply it to the markets. However, the layman may

be able to grasp some of the principles when I state that the Law

Of Vibration is the fundamental law upon which wireless

telegraphy, wireless telephones and phonographs are based”

(Ticker interview).

10. From time to time a stock or commodity will lose its sensitivity

(or receptivity) to astrological influences (i.e. to external energy/

vibration). As a consequence it will become inert (i.e. its rate of

vibration will fall) and its price will typically enter a downtrend.

“Stocks create their own field of action and power; power to

attract and repel, which principle explains why certain stocks at

times lead the market and ‘turn dead’ at other times” (Ticker

interview).

11. Thus the key technique in applying the Law Of Vibration is to

accurately identify the major astrological influence driving a

particular stock or commodity, to identify the resultant rate of

vibration and to forecast how future astrological influences will

impact this rate of vibration.

“By my method I can determine the vibration of each stock and by

also taking certain time values into consideration I can in the

majority of cases tell exactly what the stock will do under given

conditions” (Ticker interview).

12. Taken together, these principles of the Law Of Vibration

constitute a coherent theory of how financial markets work.

Indeed, they constitute a new paradigm. However, as with any

new paradigm, it challenges the conventional wisdom and

therefore encounters resistance from practitioners of the

conventional wisdom.

“It appears to be a fact that Mr Gann has developed an entirely

new idea as to the principles governing stock market

movements…. We have asked Mr Gann for an outline of his work

and have secured some remarkable evidence as to the results

obtained therefrom. We submit this in full recognition of the fact

that in Wall Street a man with a new idea, an idea which violates

the traditions and encourages a scientific view of the proposition,

is not usually welcomed by the majority, for the reason that he

stimulates thought and research. These activities said majority

abhors” (Ticker interview).

THE PRACTICAL APPLICATION OF GANN’S LAW OF VIBRATION

We will now turn from an examination of the general principles of

the Law Of Vibration, as discerned from Gann’s interview to the

“Ticker And Investment Digest”, to an examination of the key steps

in its practical application. These key steps in the practical

application of Gann’s Law Of Vibration are as follows.

1. Identify the point in time that marks the start of an uptrend or

downtrend. This can be achieved by examining the daily, weekly

or monthly price chart of the stock or commodity.

2. Identify the predominant astrological influence (or cycle) driving

the uptrend or downtrend. In order to achieve this it will be

necessary to examine previous cycles of the stock or commodity

in order to identify which particular astrological influences have

driven the stock or commodity in the past. In this task it will be

especially helpful to examine the all-time high and all-time low

price of the stock or commodity because at these price extremes

the astrological influences will typically be very strong or very

weak, respectively. Thus, under the Law Of Vibration, a high price

is caused by a high rate of vibration, which in turn is caused by

strongly positive astrological influences (and vice versa).

3. Identify the general rate of vibration of the uptrend or downtrend.

This can be achieved by placing the origin of the Gann angles (or

Gann fan lines) at the starting point (in time and price) of the

uptrend or downtrend. In this task it will be helpful to have

prepared a transparent plastic chart overlay inscribed with the

major Gann angles (i.e. 1 x 8, 1 x 4, 1 x 2, 1 x 1, 2 x 1, 4 x 1, 8 x 1,

etc.) and their subdivisions.

4. Forecast the approximate date when the predominant astrological

influence (or cycle) that is driving the uptrend (and was identified

in point 2 above) will end. This can be achieved by consulting an

ephemeris and the astrological chart of the start of the uptrend or

downtrend.

5. Forecast the future price when the uptrend or downtrend will end.

This can be achieved by identifying the intersection of the general

rate of vibration of the uptrend or downtrend (point 3 above) and

the forecast date that the uptrend or downtrend will end (point 4

above).

6. Monitor one’s forecast, which comprises all of the above elements.

In particular, note that short-term positive astrological influences

will increase the rate of vibration and temporarily drive prices

above the long-term rate of vibration (i.e. above the long-term

Gann angle identified in point 3 above). Conversely, note that

short-term negative astrological influences will decrease the rate

of vibration and temporarily drive prices below the long-term rate

of vibration (i.e. below the long-term Gann angle). However, when

these short-term influences expire, stock or commodity prices will

revert to their long-term rate of vibration (i.e. the long-term Gann

angle).

EXAMPLES OF THE PRACTICAL APPLICATION OF GANN’S LAW OF

VIBRATION

Two examples of the practical application of Gann’s Law Of

Vibration, which are provided in his interview to the “Ticker And

Investment Digest”, will now be examined.

1) September 1909 Wheat Futures Contract (please see chart).

“One of the most astonishing calculations made by Mr Gann was

during last summer (1909) when he predicted that September wheat

would sell at $1.20. This meant that it must touch that figure before

the end of the month of September. At twelve o’clock, Chicago time,

on September 30th (the last day) the option was selling below $1.08

and it looked as though his prediction would not be fulfilled. Mr Gann

said, ‘If it does not touch $1.20 by the close of the market it will

prove that there is something wrong with my whole method of

calculation. I do not care what the price is now, it must go there’. It

is common history that September wheat surprised the whole

country by selling at $1.20 and no higher in the very last hour of the

trading, closing at that figure” (Ticker interview).

1) Gann identified the start of the uptrend in the September 1909

wheat futures contract as a price of 94 cents on January 26 1909.

2) Gann identified the predominant astrological influences driving

this uptrend.

3) Gann identified the long-term rate of vibration of this uptrend,

which was 0.1053 cents per day (or 1 cent per 9.5 days).

4) Gann forecast that the predominant astrological influences driving

this uptrend would remain in force until at least the end of this

futures contract (i.e. until at least September 30 1909).

5) Gann forecast that at the end of the futures contract the price

would be $1.20. This was based on the starting point of the

uptrend (point 1 above), the long-term rate of vibration (point 3

above) and the contract’s expiry date of September 30 1909.

6) In monitoring his forecast, Gann observed that since the

beginning of the uptrend on January 26 1909 short-term

astrological influences had temporarily driven prices above and

below the long-term trend or rate of vibration. Gann also

observed that between July 21 and August 26 1909 stronger

short-term negative (or malefic) astrological influences had

driven prices down well below the long-term rate of vibration.

Moreover Gann observed that commencing August 26 1909 (i.e.

the low point of 96 cents) these strongly negative short-term

influences started to expire and he forecast that they would fully

expire over the next month, when prices would revert to their

earlier long-term rate of vibration.

Importantly, Gann received corroboration of the low point in

August from the fact that a price of 96 cents on August 26 1909

equates to a rate of vibration of 0.0132 cents per day (based on

the starting point of 94 cents on January 26 1909). This rate of

vibration is one eighth of the long-term rate of vibration of 0.1053

cents per day. Another perspective is that on August 26 1909 the

long-term rate of vibration of this wheat futures contract had

halved three times. Thus from August 26 1909 Gann forecast and

observed the simultaneous expiration of the short-term negative

astrological influences and the doubling three times of the rate of

vibration, as the long-term rate of vibration was regained on

September 30 1909.

2) United States Steel Stock Price (please see chart).

“He (i.e Mr Gann) came to me when United States Steel was selling

around 50 and said, ‘This Steel will run up to 58 but it will not sell at

59. From there it should break 16 points’. We sold it short around

58 3/8 with a stop at 59. The highest it went was 58. From there it

declined to 41; -17 points” (Ticker article).

1) Gann identified the start of the uptrend in U.S. Steel as a price of

21 7/8 cents on October 23 1907.

2) Gann identified the predominant astrological influences driving

this uptrend.

3) Gann identified the long-term rate of vibration of this uptrend,

which was 0.0950 cents per day (or 1 cent per 10.5 days).

4) Gann forecast that the predominant astrological influences driving

this uptrend would remain in force until October 1909 and hence

in November 1908 he was only forecasting a short-term

correction. More specifically, Gann made his forecast “When

United States Steel was selling around 50", which was in early

November 1908. Gann then forecast that due to short-term

negative astrological influences a correction would start on

November 14 1908 (i.e. within two weeks).

5) Based on the starting point of the uptrend (point 1 above) and the

long-term rate of vibration (point 3 above) and the starting date

of the correction (point 4 above), Gann was able to forecast that

“Steel will run up to 58 but it will not sell at 59”. In fact the price

of U.S. Steel peaked at 58 on November 14 1908.

6) Gann then forecast that the short-term negative astrological

influences that he had identified would remain in force until

February 23 1909.

7) Gann then had to forecast what the rate of vibration would fall to

on February 23 1909 (i.e which Gann angle would provide support

before the long-term uptrend was resumed). Importantly, in

making this forecast Gann sub-divided the rate of vibration. More

specifically, and as the price chart of U.S. Steel shows, Gann

forecast that the price of U.S. Steel would fall to the bottom of its

current vibratory band and then finally fall three quarters of the

band below. Thus Gann firstly forecast that the short-term

correction would last until February 23 1909 and secondly that

the rate of vibration of U.S. Steel would fall on that day from its

long-term rate of 0.0950 cents per day to (1/1.5) X (1.25/2) X

0.0950 = 0.0396 cents per day. This is in fact exactly what

happened. More specifically, on February 23 1909 U.S. Steel made

a low price of 41 cents (which based on the starting point of 21

7/8 cents on October 23 1907 equates to a rate of vibration of

0.0396 cents per day). From that point the long-term uptrend of

U.S. Steel was resumed.

An important point from this example is that Gann did not merely

use his so-called Gann angles as a crude measure of the rate of

vibration of stocks and commodities. More specifically, he did not use

them simply to measure the doubling and halving of the rate of

vibration. Rather, he also discovered and employed sub-shells within

a principal energy level. This is analogous to modern quantum

theory. Therefore we have discovered another important principle of

Gann’s Law Of Vibration; namely the rate of vibration of stocks and

commodities, as measured by so-called Gann angles, conforms to a

series of principal energy levels and sub-shells. As we have seen, an

important implication (and practical application) of this is that rates

of vibration, as measured by these principal energy levels and subshells,

constitute support and resistance levels. This therefore

clarifies the statement made by Gann: “By knowing the exact

vibration of each individual stock I am able to determine at what

point each will receive support and at what point the greatest

resistance is to be met” (Ticker interview).

Moreover, this principle in turn sheds light upon a somewhat obscure

concept that Gann briefly introduced in both his stock market course

and his commodities’ course, namely the concept of lost motion:

“As there is lost motion in every kind of machinery, so there is

lost motion in the stock market due to momentum, which drives

a stock slightly above or below a resistance level. The average

lost motion is 1 7/8 points.

When a stock is very active and advances or declines fast on

heavy volume, it will often go from 1 to 1 7/8 points above a

halfway point or other strong resistance level and not go 3

points. The same rule applies on a decline. It will often pass an

important resistance point by 1 7/8 points but not go 3 full

points beyond it. That is why I advise using a stop-loss order 3

points above a top or 3 points below a bottom” (W. D. Gann

Stock Market Course, chapter 10).

In summary therefore, from examining examples of the practical

application of Gann’s Law Of Vibration, we have identified three

further principles of the Law Of Vibration:

13) The rate of vibration of stocks and commodities conforms

to a series of principal energy levels and sub-shells. More

specifically, the principal energy levels equate to a doubling

and halving of the rate of vibration and the sub-shells equate

to a fourfold division of a principal energy level.

14) These principal energy levels and sub-shells constitute

important support and resistance points.

15) When a stock or commodity is very active, momentum will

often drive the price very slightly above or below the precise

support or resistance point, which is determined by the rate

of vibration (in conjunction with astrological influences).

GANN’S ANNUAL FORECASTS

As the above examples from the Ticker interview show, around 1909

Gann was employing his Law Of Vibration to precisely forecast stock

and commodity prices up to several months forward. However,

starting around 1915 Gann produced and sold annual forecasts of

the stock and commodity markets. Although Gann produced these

annual forecasts up to his death in 1955, relatively few survive.

Nevertheless, from the surviving annual forecasts, it appears that

Gann produced them in exactly the same way as he had produced his

earlier shorter-term forecasts; namely based on the Law Of

Vibration.

One particularly accurate annual forecast was Gann’s 1929 stock

market forecast (which Gann reproduced in the appendix of his book

“Wall Street Stock Selector” that he wrote in 1930). In summary,

Gann’s 1929 annual stock market forecast was completed and

distributed on November 23 1928 and included the following

elements:

1) A narrative which stated “General Outlook For 1929. This year

occurs in a cycle that shows the ending of the bull market and the

beginning of a prolonged bear campaign…. The fact that it has run

longer and prices have advanced to such abnormal heights means

that when the decline sets in it must be in proportion to the

advance. The year 1929 will witness some sharp, severe panicky

declines in many high-priced stocks”.

2) A projected graph or chart of the Dow Jones Industrial Average

which forecast this index would peak on August 7 1929 and then

start a major downtrend for the rest of the year.

3) A projected graph or chart of the Dow Jones Railroad Average

which forecast this index would peak on August 8 or 9 1929 and

then start a major downtrend for the rest of the year.

Although it should be noted that the Dow Jones Industrial Average

and the Dow Jones Railroad Average both peaked on September 3

1929 (rather than in early August), overall Gann’s annual stock

market forecast for 1929 was highly accurate.

Moreover, from a careful examination of Gann’s 1929 stock market

forecast it is possible to discern further principles of the Law Of

Vibration. These principles are as follows.

16) Although the Law Of Vibration comprises a number of

elements, the time factor is the most important. More

specifically, throughout his career Gann used the term “time

factor” as a substitute or synonym for astrological influences.

Therefore astrological influences are the most important

element in the Law Of Vibration.

“The time given for tops and bottoms is the most important

factor for you to know and watch. It makes no difference about

the price a stock is selling at. So long as you know when it will

reach low or high levels you can buy or sell and make money….

Remember you must buy and sell at the right time regardless of

prices. No matter how high stocks are, if they are going higher,

you should buy. It makes no difference how low they are; if the

trend is down and they are going lower, you must sell short and

go with the trend” (1929 Annual Stock Market Forecast).

17) In applying the Law Of Vibration to the stock market, it is

important not only to assess the astrological influences (i.e.

external vibrations) but also the internal vibrations of a

stock. For example, assume that during a general stock

market uptrend there is a short-term correction (due to

negative astrological influences) and most stocks fall in price.

If during that period of time a particular stock merely moves

sideways, rather than falls, it indicates that the internal

vibrations of that stock are especially strong and therefore it

will subsequently perform strongly when the overall uptrend

(i.e. positive astrological influence) is resumed.

“The Dow Jones 30 Industrial stocks are representative of the

active industrials and most of them will follow the Industrial

Curve (i.e. Gann’s forecast) very closely. But some of the

individual stocks that are in strong or weak position will vary

from this Curve and make tops and bottoms at different times.

These special stocks and their position will be covered in the

supplements each month” (1929 Annual Stock Market Forecast).

18) Stocks and commodities typically do not switch from an

uptrend to a downtrend until their rate of vibration has

slowed down. This reduction in the rate of vibration can of

course be observed as prices move sideways (or down) over

time to lower (and slower) Gann angles.

“The ones (i.e. the stocks) that make top in the early part of the

year and fail to reach higher levels in July or August will be the

ones to lead the decline, because they will have had longer time

for distribution. Guard against selling short the late movers until

they have had time to complete distribution” (1929 Annual Stock

Market Forecast).

It is important to note that although for many years Gann produced

and sold annual forecasts of the stock and commodity markets he did

not intend his subscribers to rely on these alone. Indeed, Gann

recognised the importance of his subsequent monitoring of these

markets and his regular updates. Consequently Gann issued

supplements, or updates, three times each week by means of his

“Supply And Demand Letter”, which he described as follows:

“People often write for my opinion on Baldwin, U.S. Steel,

General Asphalt or some special stock. I judge the stock by the

position of time and volume as it is today. If in a few days I see a

large amount of volume, up or down, I change my position, so it

is not always what I think of a stock today, but what I am going

to think of it later that counts. That is why I issue a tri-weekly

letter because the market changes and I can advise my

subscribers to change their position and protect themselves

against losses. If the market never reversed its trend, there

would be no need of a tri-weekly letter” (“Wall Street Stock

Selector”, 1930, appendix).

Thus, in the practical application of the Law Of Vibration the time

factor, or astrological influences, are the most important element.

Consequently, in preparing his annual forecasts, Gann was required

to assess numerous astrological influences over the subsequent

year. Assessing months in advance how strong astrological

influences (both positive and negative) will be and how long they

will remain in force is a complex task and prone to error on occasion.

Therefore Gann found it necessary to issue regular letters to his

subscribers in order to clarify and correct his annual forecasts when

necessary, as well as to identify particular stocks and commodities

that were especially strong or weak. Therefore, at a fundamental

level, Gann was constantly forecasting and monitoring external

vibrations (in the form of astrological influences) and internal

vibrations (in the form of assessing the particular strength or

weakness of individual stocks and commodities).

CONCLUSION

This paper has identified, or rediscovered, many of the elements of

Gann’s Law Of Vibration. However, the most important and most

difficult element is to identify and assess the past, present and

future astrological influences on a stock or commodity.

Consequently over the next year, as we approach the centenary on

August 8 2008 of Gann’s discovery of the Law Of Vibration, this

should be the principal focus of Gann researchers world wide.

Indeed, correctly identifying the true principles of astrology and the

precise astrological influences impacting a particular financial

market should perhaps be the focus of technical analysts in general

who truly wish to extend the frontiers of technical analysis in the

early twenty-first century.

Finally, the centenary of Gann’s discovery of the Law Of Vibration,

August 8 2008, is also the start of the next Olympic Games, which

will take place in Beijing, China. However, the ancient Greeks not

only provided the world with the Olympic Games but also an early

example of financial forecasting through correctly assessing

astrological influences. More specifically, the Greek philosopher and

mathematician Thales of Miletus (who lived from 625 to 547 B.C)

provides this example:

“There is an anecdote of Thales the Milesian and his financial

device, which involves a principle of universal application, but is

attributed to him on account of his reputation for wisdom. He

was reproached for his poverty, which was supposed to show

that philosophy was of no use. According to the story, he knew

by his skill in the stars while it was yet winter that there would

be a great harvest of olives in the coming year. So, having a little

money, he gave deposits for the use of all the olive presses in

Chios and Miletus, which he hired at a low price because no one

bid against him. When the harvest time came, and many wanted

them all at once and of a sudden, he let them out at any rate

which he pleased, and made a quantity of money. Thus he

showed the world that philosophers can easily be rich if they

like” (Aristotle’s “Politics”, book one, chapter eleven).

It therefore appears that the investment paradigm and methodology

that Gann discovered approximately 100 years ago had in fact

already been discovered and was in use some 2,500 years earlier.

Biographical note:

James Smithson (smithsonjames@hotmail.com) is an investor,

trader and student of Gann based in London, England.
















 

By the Law of Periodical Repetition, everything which has happened once must happen again and again and again-and not capriciously, but at regular periods, and each thing in its own period, not another’s, and each obeying its own law…the same Nature which delights in periodical repetition in the skies is the Nature which orders the affairs of the earth. Let us not underrate the value of that hint.”---Mark Twain

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