**Gann’s
Master Mathematical Formula For Market Predictions**

** ****In
1954, at the age of nearly 76, W.D. Gann released a course based upon mathematical
rules for making market predictions. In the advertisement for this method
the author of the add writes: “We will not sell the course of instructions
or teach the mathematical formula for market predictions just to get money,
which we do not need or have to have; we will only sell the courses to people
wh meet our requirements, and if we feel after a thorough investigation that
a man or woman cannot make a success investing or trading we will refuse to
teach them the courses”. “The Master
Calculator can only be used with the Master Courses. It is not sold separate
from the other courses”. The price
shown for Gann’s Master Course in this ad is $5,000.00, it does not list the
additional cost of the Master Mathematical Calculator. The ad describes the
calculator as a plastic overlay that accurately measures Time, Price and Trend.
Many Gann experts and students have tried to use these overlays, which require
the chart to be hand drawn to a proper scale on graph paper that has 8 squares
to one inch. This creates a lot of extra tedious work. This has caused one
of Gann’s greatest discoveries to have been overlooked for many years. I know
that some software programs have the ability to make these overlays on price
charts but that is still not going to help most people because it turns out
that there are also very precise mathematical rules regarding the horizontal
axis or Time! In fact, these same mathematical rules apply to price as well
but we will leave this topic for latter. The advertisement itself contains
clues about the calculator, such as “W.D. Gann’s Record for 52 years”, “After
fifty-two years of experience and research going back hundreds of years, I
have proved to my entire satisfaction that history repeats and that when we
know the past, we can determine the future of prices”. The calculator that
Gann is talking about in this ad is his square of 52 overlay, which is based
upon the 52 weeks in a year. The basic overlay looks like this:**

**This
is also the same geometric form that Gann used for the Square of 90 and Square
of 144 plastic overlays. This basic structure or overlay appears in many books
on Sacred Geometry and is also the secret to George Bayer’s “Trend Determination”
course. Getting back to Gann and the square of 52 course we find that this
is the course where Gann made the confusing statement: “ Within the circle
forms the square, there is an inner circle and an inner square, as well as
an outer square and an outer circle which prove the Fourth Dimension in working
out price movements”. This quote is describing a fractal nature or structural
pattern existing in the markets that is the same on smaller levels as it is
at larger levels. **

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**Jumping
over to Gann’s Angle course, on the last page, GA-32, Gann says: “Figuring
$100, or par, as a basis for stock prices and changing these prices to degrees,
12½ = 45-degrees, 25 = 90-degrees, 37½= 135-degrees, 50 = 180-degrees, 62½
= 225-degrees, 75 = 270-degrees, 82½ = 315-degrees, and 100 = 360”. This tiny
little paragraph is the basis of the entire Murrey Math Trading Course, which
readers of Traders World should be very familiar with since, T.H. Murrey has
written numerous articles for the magazine. These numbers are all natural
8 ^{th} numbers off of the base of 10, 100, 1000, 10000, 100000, etc. The part that is most confusing is balancing this with the time
element, but based on the information given by Gann himself it should be obvious
that he has already shown us part of the relationship. For example: If shares
of XYZ stock moved up 12½ dollars in 45 days, weeks or 45 months then the
stock is on the price degree of it’s time angle, that is to say that price
and time are equal or balanced. Gann’s example: “When a stock sells at 50
on the 180^{th} day, week or month, it is on the degree of its time
angle”. “On February 1, 1915, U.S. Steel made a low at $38, which is closest
to a price of $37½, which is 3/8^{th} of 100 and equals 135-degree
angle. Steel was 14 years or 168 months old on February 25, 1915, and hit
the angle of 135-degrees, which showed that the price of Steel was behind
time, but was in a strong position, holding at $38 above the 135-degree angle
or the price $37½”. Just to make sure that you understand this information,
U.S. Steel would have been balanced or “on the degree of its time angle”
at a price of $46 5/8^{th} because $100/ 360-degrees = 0.27777cents
per degree and 168 months multiplied by 0.27777 = $46.67 which is closest
to $46 or 5/8^{th} in price. Therefore, Steel is $8 5/8^{th}
behind time. T.H. Murrey has his time rules based off the “Harvest Moon” but
I would stick to W.D. Gann’s time definitions when using this natural 8^{th}
system and his plastic overlays as his method has a clear degree relationship
to both price and time and also to the fractal structure, which he described
in the quote mentioned above. I will
discuss how to set up these charts properly in terms of time latter in the
article with specific examples. Gann goes on to say: “When Steel reached $200,
it equaled 2 circles of 360-degrees (two complete cycles of $100). When it
advanced to $261¾, it was closest to $62½ (5/8^{th}) in the third
cycle of $100 or nearest the 225-degree angle or 5/8^{th} point, which
is the strongest angle after it crossed the half-way point at $250 or the
180-degree angle”. Note that Gann rejects the two circles or cycles of $100
price to convert the time angle. These instructions are also very different
than what Murrey Math instructs students to do but I do not want to get into
that subject.**

** **

**Moving
on to the subject of time we know that Gann placed great emphasis on the cardinal
points of the solar year. These are the Vernal Equinox, Summer Solstice, Autumnal
Equinox and Winter Solstice or March 21 ^{st}, June 21^{st},
September 21^{st}, and December 21^{st} respectively.
Gann always said that the year begins at March 21^{st} (not
January 1^{st}) and that this was a very important seasonal time. Now this is where Gann’s “within the circle
forms the square” quote gets real interesting! If we treat each natural year
(March 21^{st} to March 21^{st}) as a complete circle, which
it is because the earth has gone 360-degrees around the Sun, and take W.D.
Gann at his word that there is a square within this orbit then we come up
with some very unique geometrical information about time and squares, i.e.
Gann’s plastic overlays. Lets build a hypothetical square running from Vernal
Equinox to Vernal Equinox as our horizontal axis and we will use 0 to 100
as our vertical. If we draw in the two 45-degree Angles corner to corner we
have a shape that looks like a box with an x in it. The two 45’s will meet
at the exact center of both price and time at $50 on the Autumnal Equinox
or September 21^{st}. If we bisect this square again with a horizontal
line going left to right at $50, and a vertical line going straight up from
the Autumn Equinox we can create four smaller squares with half of the x already
completed. If we complete these smaller boxes with the missing 45-degree line
we will find that these points come out at $25 and $75 in price and also 25%
and 75% in time or Sumer Solstice to Winter Solstice (June 21^{st}
to December 21^{st}). If we take these 4 points, which are $25 on
June 21^{st}, $75 on June 21^{st}, $25 on December 21^{st}
and $75 on Decembers 21^{st} and make a new square, we find that our
new square is exactly half the size of our former square set within the ¼
points in terms of both price and time. Our new square also maintains the
exact center of our old square at $50. This new square is now an exact musical
octave of the old square because it’s based upon powers of 2 or is exactly
½ our old square. This tells us that if we want to find a square that is within
our old square that we will only find it between the two Solstice points in
the year! If we wanted to enlarge the original square (to find an outer square)
we would again follow the natural law of the musical octave, i.e. powers of
2. The first part of the problem is easy because we know that the next square
is going to be twice as large as our old square. So this means that we are
moving up from a one-year square to a two-year square in terms of time but
this does not answer where in time this new square begins and ends. To calculate
where this larger square begins and ends we have to use the rule “as above
so below”. In other words, when we made the smaller square, we found that
it existed within the larger square at the 25% and 75% points in time, therefore
March 21^{st} to March 21^{st} is within the ¼ points of the
larger square above it. In our one-year square, a ¼ of time is 90-degrees
or 91.3125 solar days. This means that a ¼ of time in the next larger square
is 180-degrees or 182.625 solar days, i.e. twice as big. If we add and subtract
180-degrees/days from our smaller square running March to March, we will find
that our two-year square begins and ends at the Autumnal Equinox. The same
is true for a 4-year, 8-year, 16-year square, etc. Getting back to the inner
squares, a 90-degree square (1/2 of our 180-degree Summer Solstice to Winter
Solstice and winter back to summer circle) would begin and end 45-degrees
after the Sumer Solstice and 45-degrees before the Winter Solstice because
45 is ¼ of 180. This would be 45.65 days or ¼ of 182.625. So this means we
would have another (90-degree) square running inside the (180-degree) Solstice
squares beginning on August 5^{th} and ending November 5^{th}.
Then just as we have two 180-degree Solstice squares running from Summer to
Winter, then Winter back to Summer, we also have four 90-degree squares running
from August 5^{th} to November 5^{th}, November 5^{th}
to February 5^{th}, February 5^{th} to May 5^{th }and
May 5^{th }back to August
5^{th}. These are all exact mathematical points to look for squares
based upon Gann’s plastic overlay pattern. I am providing two charts of the
Dow Jones Industrial Average (closing price only) so that you can visually
see what Gann was describing in his Square of 52 course. Anyone interested
in studying Gann, should purchase their materials from Brad Stewart at Sacred
Science Institute (www.Sacredscience.com), as I have found them to
contain many unique sections of information that is not provided by others
selling Gann related material. I have made many of my best discoveries, including
the information presented in this article, from the course materials provided
by the Sacred Science Institute! **

**“
Within the circle forms the square, there is an inner circle and an inner
square, as well as an outer square and an outer circle which prove the Fourth
Dimension in working out price movements”. **

**Please
note that the inner square is an exact musical octave of the larger outer
square. **

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**Wishing
you a Success,**

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**Daniel
T. Ferrera**

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