William Delbert Gann (1878–1955) was a famous American financial trader andanalyst known for his innovative and often controversial methods of predicting price movements in financial markets. Gann’s approach to trading blended mathematics, geometry, astrology, and ancient principles, creating techniques that became influential, yet also met with skepticism.
Here’s an overview of some key aspects of W.D. Gann’s life and methods:
1. Background and Early Life
- Gann was born in Texas and began working in the financial markets around 1902. His early experiences with market trends, combined with his curiosity about mathematics, set him on a path of developing unique market analysis techniques.
- By the 1920s and 1930s, Gann had gained a reputation on Wall Street as a successful trader, earning enough to continue experimenting and refining his methods.
2. Gann’s Methods
- Gann Angles: Gann is famous for his “angles,” or geometric techniques where he plotted price and time on a chart at specific angles. The most well-known is the 45° angle, where a 1×1 angle suggests price moves up at a steady rate over time.
- Square of Nine: This tool, also known as the Gann Wheel, is a numerical grid often used to predict price levels, turning points, and market reversals. It aligns prices in such a way that specific mathematical relationships are revealed.
- Astrological Influence: Gann believed that planetary cycles and positions could impact financial markets. He studied astrology and incorporated these insights into his forecasting methods.
- Time Cycles: Gann believed that time was as critical as price in market analysis. He used cycles based on natural phenomena, like lunar cycles or historical patterns, to predict future price movements.
3. Gann’s Books and Courses
- Gann published several books, including Truth of the Stock Tape and 45 Years in Wall Street. These provided insights into his theories and principles for market analysis.
- He also developed courses where he outlined his trading rules, methods for chart reading, and techniques for recognizing trends and cycles. These have since become widely studied.
4. Legacy and Influence
- Gann’s techniques are still used by some traders today, particularly those interested in technical analysis and those who see value in combining market data with geometric and cyclical approaches.
- However, his work is controversial, and opinions vary on its effectiveness. Some traders and analysts regard Gann’s methods as esoteric and complex, while others believe they hold valuable insights.
5. Controversy and Mystery
- While some swear by Gann’s methods, others dismiss them as overly complex or even pseudoscientific. The lack of solid evidence to fully explain Gann’s success adds an air of mystery, and his emphasis on astrology has left some of his work open to criticism.
- Gann’s legacy is largely seen as an intriguing mix of technical analysis, mysticism, and mathematics.