William Delbert Gann: Legendary Trader’s Legacy
I never realized that William Delbert Gann was 52 years older than George Soros. This shows how his trading methods have lasted for generations. Gann mixed technical analysis with, wait for it, astrology and ancient math! Sounds a bit crazy, but his thoughts are still affecting traders today.
Gann was born in Texas and from humble beginnings became a key figure in trading. His tools, like Gann Angles and the Square of 9, changed how traders spot market trends. These tools helped traders make better decisions and still work today.
I was pretty skeptical when I read about his use of things like astrology, and like many others questioned his methods, but Gann’s impact on technical analysis is beyond dispute. He predicted big market events, like the 1907 financial crisis, showing his foresight. Now, traders all over the world still use Gann’s methods, or at least derivations of his methods with some modern twists, to improve their trading skills.
TLDR Quick Takeaways
- Gann developed unique technical analysis methods for financial markets
- His techniques blend geometry, astrology, and ancient mathematics
- Gann’s tools include Gann Angles and the Square of 9
- He predicted major market events like the 1907 financial crisis
- Gann’s methods remain influential in modern stock and commodity trading
The Early Life of William Delbert Gann
William Delbert Gann was born in 1878 in Lufkin, Texas. He was one of 11 children, living on a cotton farm. Despite not even finishing school, his early life set him on a path to fame through financial forecasting and market prediction.
Humble Beginnings in Texas
Gann’s childhood was tough, with lots of work and few chances. Being the oldest, he had to help his family and still learn. This was no pampered upbringing with access to elite schools. His early work in the cotton industry later influenced his trading career.
Self-Taught Education and Early Work Experience
Without any formal education, Gann taught himself. He began by using the Bible to improve his reading and writing skills, and his job in cotton warehouses gave him the hands-on experience that helped in trading commodities later in his career.
| Year | Event |
|---|---|
| 1878 | Born in Lufkin, Texas |
| 1902 | Started trading at age 24 |
| 1903 | Began career at a Texarkana brokerage firm |
| 1904 | Moved to New York City to work on Wall Street |
Introduction to the World of Trading
Gann started trading in 1902 at 24. His early work in cotton warehouses sparked his interest in trading. In 1903, he joined a brokerage firm in Texarkana to improve his trading skills.
“The key to trading success is understanding market cycles and human behavior.”
His move to New York City in 1904 was a turning point. There, his unique trading methods changed the trading world forever.
Rise to Prominence on Wall Street
William Delbert Gann began his Wall Street journey in 1902 trading cotton futures, this was the beginning a successful career in stock and commodity trading.
Gann’s trading approach was unique to say the least. He used geometry, astrology, and ancient math. This method helped him predict market cycles with great success.
In 1909, Gann’s trading brought in a 1000% return in just one month. That year, he made 286 trades with a 92.3% profit rate. His accurate market forecasts and outstanding results made others take notice of him and he quickly became a respected trader and analyst.
| Year | Achievement |
|---|---|
| 1902 | First trade in cotton futures |
| 1909 | 1000% return on trading capital in one month |
| 1923 | Published “Truth of the Stock Tape” |
| 1928 | Predicted the 1929 stock market crash |
Gann’s market success led him to start his own brokerage firm and later two research companies, employing 35 people. His seminars were highly priced, charging the equivalent to $25,000 to $50,000 today.
“The 360 degrees of a circle and numbers from 1 to 9 were foundational in my mathematical principles for market analysis.” – William Delbert Gann
William Delbert Gann a Legendary Trader: Key Achievements
William Delbert Gann became famous in the trading world for his amazing achievements in terms of accurate predictions and outstanding ROI. He stood out with his unique way of analyzing the market and predicting trends.
Predicting the 1907 Financial Crisis
Gann famously showed his skills by accurately predicting the 1907 financial crisis. This was likely what made him famous and proved to everyone he was a top market forecaster that deserved their attention. He could predict big market events coming, which was key to his fame and trading success.
Establishing W.D. Gann & Company
In 1908, Gann was 30 years old Texan and established W.D. Gann & Company at 18 Broadway, New York City. His newly minted company wasn’t just another brokerage – it was Gann’s personal laboratory for cooking up wild new trading recipes and put him on the fast track to becoming a Wall Street legend.
Impressive Trading Record and Accuracy
Gann’s trading chops were off the charts. Get this: In just 25 days back in October 1909, he executed 286 trades and a mind-blowing 264 of them were winners. We’re talking a 92.3% hit rate giving an ROI of almost 1000% proving Gann wasn’t just lucky – he was a risk management maestro. Over his 53-year trading run, Gann raked in a cool $50 million in profits (back when $50 million was a lot of money!). He kept a third for himself and spread the rest among his happy clients. Soon, he had 35 people cranking out charts, digging up data, and crunching numbers.
“The Master Time Factor,” a key discovery by Gann, highlighted his skill in predicting stock and commodity trends.
Gann’s work in technical analysis and forecasting still impacts traders like me today. His legacy as a trading legend remains strong.
Gann’s secret weapon? “The Master Time Factor” – this was his breakthrough for sniffing out trends in stocks and commodities before anyone else. Even today, traders are still scratching their heads over the success of Gann’s methods. His legacy as a trading savant lives on, inspiring a new generation of market mavericks.
Gann’s Unique Approach to Technical Analysis
William Delbert Gann changed technical analysis with his new methods. He certainly wasn’t your average stock market guru. This Texas-born maverick shook up the world of technical analysis with his offbeat approach. Imagine a genius hunched over charts, wielding a protractor and consulting star maps – that was Gann in action. Gann’s secret sauce? A wild cocktail of geometry, astronomy, and ancient mathematical principles. He mixed these extremely unlikely ingredients to cook up a whole new way of predicting market moves. His methods dug deep into the hidden connections between price swings, time cycles, and market patterns.
I was initially a bit dubious about including Gann in this “Lessons from Wall Streets Biggest losers and Winners” section. But despite some of his esoteric ideas, Gann created many technical indicators that are still important today. These include Gann Angles, Square of 9, Hexagon, and Circle of 360. These tools help traders spot when prices might change or reverse in different time frames. But most important of all, Gann’s crazy ideas actually worked.
Price patterns were key in Gann’s methods. He believed certain time periods, like three days, weeks, or months, were important for trading decisions. Gann also used psychological factors and geometric shapes like circles, squares, and triangles to find resistance points.
Gann’s uncanny ability to spot trends and patterns before anyone else helped him build a fortune that would make most Wall Street big hitters green with envy. His unconventional methods might have raised eyebrows, but it’s hard to argue with his results. Gann proved the value of thinking outside the box.
| Time Cycle | Significance |
|---|---|
| 3rd/4th day | Important tops/bottoms |
| 14th and 21st day | Potential trend changes |
| 42-day cycle | Major market shifts |
| 90, 60, 30-year cycles | Long-term market trends |
Gann’s way of looking at technical analysis still affects traders today. His focus on time cycles, geometric patterns, and combining different fields gives a special view on market behavior and predicting prices.
The Law of Vibration: Gann’s Groundbreaking Theory
William Delbert Gann’s theory, the Law of Vibration, changed trading forever. It showed how market cycles and price changes are linked. This idea made traders see the market in a new way.
Gann wasn’t just another trader – he was a mad scientist of the markets. He cooked up a bunch of indicators that still make traders’ heads spin today. For example, his bag of tricks included:
- Gann Angles: Imagine drawing lines on a chart like you’re playing connect-the-dots with market trends. That’s Gann Angles in a nutshell.
- Square of 9: Picture a spiral of numbers that somehow predicts price moves. Sounds crazy, right? But traders swear by it.
- Hexagon and Circle of 360: Gann thought market patterns were as predictable as geometry class.
Gann’s tools turn price charts into something out of a Da Vinci painting. Gann’s secret sauce? He believed the market danced to a hidden rhythm. Three days, three weeks, three months – these weren’t just random numbers to him, but cosmic keys to unlocking profit!
Gann didn’t stop at numbers. He threw in a dash of psychology and a sprinkle of shapes for good measure. Circles, squares, triangles – in Gann’s world, these weren’t just boring geometry, but crystal balls showing where trends might reverse. Love him or hate him, Gann’s methods still have traders scratching their heads and reaching for their protractor
Controversial Reception Among Traders
Some traders love Gann’s ideas, but others doubt them (I certainly did at first). The debate is ongoing. Critics say his methods aren’t scientific. Yet, his legendary success lends credence to his ideas.
| Gann’s Achievement | Details |
|---|---|
| Trading Success Rate | 92% (262 out of 284 trades) |
| Return in One Month | 1000% |
| Prediction of 1929 Crash | Warned of “Black Friday” in September |
| Cotton Top Prediction | Exact top at 24.40 on September 8, 1927 |
Gann Angles and Other Technical Indicators
William Delbert Gann created gann angles and gann fan, which are still used today. These tools help traders predict market moves and spot important levels.
Gann angles are lines that show how price and time change together. The gann fan has nine lines that predict market changes. Traders use these to know when to buy or sell and how strong a trend is.
Gann also looked at time cycles in his work. He thought markets follow patterns that can be predicted. He studied past data and used technical analysis to confirm trends.
| Gann Indicator | Purpose | Key Feature |
|---|---|---|
| Gann Angles | Measure trend strength | Various lines (1×1, 2×1, 1×2, etc.) |
| Gann Fan | Identify support/resistance | Nine diagonal lines |
| Time Cycles | Forecast market movements | 60-year and 90-year cycles |
These tools are very useful but have some limits. How traders use them can vary, leading to different views. It’s important to learn these tools well and use them with other methods for the best results.
Astrology and Ancient Mathematics in Gann’s Methods
Gann’s trading has been described as Cosmic Market Voodoo. His Law of Vibration theory turned trading on its head. Gann figured everything in the universe, even stock charts, vibrates in funky rhythms. But he didn’t just theorize, he created some nifty tools like Gann angles and Master Charts. His ideas are about as divisive as pineapple on pizza. But some traders swear by his methods, while others think it’s all smoke and mirrors. The skeptics denounce as “Pseudoscience!” but Gann’s fans point to his jaw-dropping success rates that keeps the Gann flame burning bright, even as the debate rages on
Geometric Patterns and Market Cycles
Market geometry
| Tool | Purpose | Influence |
|---|---|---|
| Square of 9 | Price and Time Analysis | Market Prediction |
| Geometric Angles | Trend Identification | Trading Decisions |
| Celestial Events | Market Cycle Timing | Entry/Exit Points |
William Gann’s Literary Contributions
William Gann made a big mark in trading, not just with his market trading wins. His books still guide traders all over the world. They mix technical analysis, market forecasts, and trading views.
“The tunnel thru the air” is one of Gann’s key books, from 1927. It mixes stories with trading insights, showing his unique view on market cycles and future trends. This book still grabs readers today.
Then, in 1949, Gann came out with “45 years in wall street”. This book shares his long trading journey with lessons for new traders. It talks about market trends, cycles, and his own trading methods.
For those into commodity trading, “how to make profits in commodities” is essential. Released in 1941, it gives insights into commodity trading that are still useful now.
| Book Title | Year Published | Key Focus |
|---|---|---|
| The Tunnel Thru the Air | 1927 | Market cycles, future predictions |
| 45 Years in Wall Street | 1949 | Trading experience, market trends |
| How to Make Profits in Commodities | 1941 | Commodity trading strategies |
Gann’s books were more than just lessons; they were treasures. His “Great Master Course” was priced at $5,000 in 1954, as much as a home back then. This shows how much traders valued Gann’s trading wisdom.
Criticisms and Controversies Surrounding Gann’s Legacy
William Delbert Gann’s trading methods have sparked debates in the financial world that still rage on today. His approach is unique to say the least, combining astrology and mathematics to predict market movements. Critics doubt the effectiveness of these methods but at the same time it’s hard to argue with his results.
Skepticism from Traditional Analysts
Many analysts question Gann’s use of astrology and ancient mathematics. They believe these methods don’t have any scientific foundation. But apparently around 15% of technical analysts still use Gann Angles in their work.
Debate Over Actual Trading Success
There is ongoing debate about Gann’s trading success. Some say his main earnings came from selling courses, not trading. Others highlight his impressive trading results.
| Aspect | Supporters’ View | Critics’ View |
|---|---|---|
| Trading Success | Proven track record | Income mainly from courses |
| Analysis Techniques | Innovative and effective | Lack scientific basis |
| Market Predictions | Accurate forecasts | Coincidental successes |
Conclusion: The Enduring Impact of William Delbert Gann
William Delbert Gann changed the way financial markets work. His mix of technical analysis, math, and astrology changed market forecasting forever.
Gann predicted big events like the 1929 stock market crash and the Great Depression. This made him a legend in trading.
His methods, like the 45-degree angle and Gann squares, still shape trading today. These tools help traders spot trends and important prices. Gann also used astrology in trading, showing his creative approach but also fueling his critics.
Some people doubted Gann, but his work still matters a lot. He taught traders about timing, geometric patterns, and cycles. His ideas continue to influence many traders today.
Even if many question his methods, Gann is still seen as a trailblazer that encouraged traders to think differently about the markets.
Critics doubted Gann’s use of astrology and math in trading. There are debates about his trading suc
