Who Was W.D. Gann?

W.D. Gann is remembered for using geometry, astrology, and ancient mathematics to predict events in the financial markets. He developed the technical analysis methods of Gann angles, indicators, and master charts.

Gann is the author of How to Make Profits Trading in Commodities and 45 Years in Wall Street. W.D. Gann died on June 18, 1955.

Early Life and Education

W.D. Gann was born on June 6, 1878, in Lufkin, Texas. With limited education, Gann was a self-taught investor who began trading in the early 1900s. In 1908 he moved to New York City to open his brokerage firm, W.D. Gann & Company. 

Publications

In 1919, W.D. Gann began publishing the daily market letter, The Supply and Demand Newsletter, which reported on stocks and commodities and made yearly forecasts. Gann's second publication in 1923, The Busy Man’s Service, provided detailed trading recommendations.

Throughout his career, W.D. Gann developed and sold trading courses including The W. D. Gann Master Commodity Course: Original Commodity Market Trading Course.

Gann Angles 

Gann angles are one of Gann's indicators and are trading tools used to measure key elements, such as pattern, price, and time. Gann described the use of angles in The Basis of My Forecasting Method, in 1935. By superimposing nine angles over a price chart, Gann shows potential support and resistance levels where each of the nine Gann angles represents a price movement.

Based on the 45-degree angle on a price chart, known as the 1:1 angle, Gann marked trends above it as strong and trends below it as weaker, with any change in angle representing a price change.

Cycles and Numbers

W.D. Gann argued that all market activity has historical reference points. By studying ancient geometry and astrology, he found that market events and specific numbers repeated across time cycles, and Gann's indicators are based on his findings.

By counting days and trending specific calendar dates, Gann argued that the majority of trends occur in periods of three days, three weeks, or three months.

Gann also saw the calendar year of 365 days as an important cycle, one which creates a circle of 360 degrees. The circle on a price chart creates angles of 45, 90, 120, 135, 180, 225, 240, 270, 315, and 360 on which to plot and predict trends.

He also followed trends in a 60-year cycle and a 90-year cycle. He noted that the war period in 1869 created panic and was followed 60 years later by the greatest bull market and another panic in 1929. In November 1928, Gann reportedly issued an "Annual Forecast for 1929" which predicted the end of the great bull market of the 1920s on September 3, 1929.

Gann predicted a potential financial crisis occurring in 2019, 90 years after the financial crisis of 1929.

The Bottom Line

While the scope of W.D. Gann’s trading achievements remain unclear, Gann's legacy and trading strategies and Gann indicators, using geometry, astrology, and ancient mathematics, continue to influence investors.