Who was William Delbert Gann?
William Delbert Gann was born on June 6, 1878 in Lufkin, Texas. His father, Samuel Houston Gann, was a teacher, negotiating with cattle and horses and had a billiard room. His mother, Rebeca Gann, spent most of his time raising his son and his young brothers, teaching them to read with the Bible, a book that later inspired Gann in his theories about the nature of the market.
The family of Gann was really poor, his father, his mother and his eight brothers lived in a small house and young William had to walk, for three years, seven miles every day to go to school. Gann couldn’t go to high school. In 1984, at 16 he completed his secondary studies, which allowed him to leave the school, if he placed as “news butcher” (person who sells newspapers, food and similar products), on a train with the route Texarkana-Tyler, in Texas, but also worked In a cotton warehouse.
In 1901, while working in a brokerage office in Texarkana, he married his first wife: Rena May Smith. A year later his first daughter, Nora, was born. This year was also when he made his first operation in Cotton. It was in 1903 when Gann left for new York, was 25 years old. After two years his second daughter, Macie Burnie, was born, in addition on September 15 of that same year, an article appeared in the newspaper “Texarcanian”, which showed the point of view of Gann on the price of cotton.
The first steps of William Gann
In 1907 Gann worked as a broker in Oklahoma City to make a lot of money the following year predicting the fall of raw materials and the selling panic of stocks. With 30 years he separated from his wife Rena, ran the year 1908, when he married for the second time with Sadie Hannify 19 years. Her two daughters left for new York with her father.
That same year Gann discovered the “Master Time Factor” (time factor). He started trading with two accounts, the first opened with $300 and made $25,000 in three months. The second account began with $130 to finish at the turn of 30 days with $12,000. In 1909 Gann and Sadie had their first daughter, Velva. By that time he had already earned a very good reputation as a trader.
Richard Wykoff, editor of “Ticker and Investment Digest” and one of the most respected stock market writers of all time, wrote an article about Gann’s discoveries and abilities. The article was titled: “William D. Gann an operator whose science and skill has positioned him in the first place in the world of the stock market. Its excellent predictions and operational history. “
To verify Gann’s historical operations record, an independent observer monitored his operations during the month of October 1909. In 25 days of market, Mr. Gann in the presence of this observer made 286 operations in several shares, participated in both the long and short side of the market, the total operations were only failed 22, IE won money in 264 operations. The capital with which it operated was doubled in ten times, that is to say it obtained a profitability of 1000%.
“… We have seen him pass in one day 16 consecutive orders in the same action, eight of which turned out to be operations made just in the support or resistance of this wave and we can verify “
Such a record of operations is unprecedented in the history of Wall Street
(Ticker and Investment Digest, Volume 55 Number 2, December, 1909, page 54.)
It is also known that Gann won half a million dollars with its operations for a few previous years. The representative of “Ticker and Investment Digest” was able to verify Gann’s success as a trader. “Once I saw him take $130, and in less than a month he turned them into $12,000. I’ve never met anyone making money so quickly. “
(Ticker and Investment Digest, Volume 5, Number 2, December, 1909, page 54.)
Gann’s contributions to technical analysis
Gann was a real pioneer in the field of technical analysis, being hard work the real key to his success, becoming nine months working day and night in the library of Astor in new York and the British Museum of London. He studied stock market data since the year 1820 and also wheat prices hundreds of years ago, he even went to study in Egypt and India.
Many people claim that Gann’s theories are large series of discoveries that are unrelated, although this is not true. Gann believed that the key variables in the technical analysis (price, fluctuation range and time) could be analyzed at the same time. Its symbol, a circle with a square and a triangle inside, summarizes its analytical techniques.
Gann discovered that the price brackets and resistances could be calculated by taking the market ceiling and divididiendo by four and by three – in other words in its fourth and third parts. The square and the triangle inside the circle illustrates this concept. The resistance points are calculated acting in a similar way with the fluctuation ranges of prices and temporary spaces.
He also made significant discoveries in the field of cycles, including his Master Time Factor. He studied the main cycles of 10, 20, 30, 40, 50, 60, 80, and 100 years, checking his performance in the past and in the future. For example, he called the fifth year of each decade the “year of Ascension”, named for the bullish period that is usually lived during that period, and we can check from 1905 to 1995 in both the Dow Jones and the other indexes.
Gann also discovered that markets regularly make soils and roofs on a seasonal basis throughout the year (on Solstices and equinoxes) as well as on previous roof and floor anniversaries. He taught his students to observe soils and ceilings every 30 days, using the degrees of the angles of his symbol as aid, proving that 90-, 180-, 270-and 360-, which do not allow to be the sum of the angles of a square or 120-, and 240- , that of the triangle, are used as a prognostic tool, expressed in days.
But in reality to the cycles that more importance gave Gann was with the cycles of 144 and 360 days and their respective divisions in a quarter and a third. In what we do want to emphasize is to emphasize the fact that Gann was the first to establish a relationship between time and space, he always wrote, “when the price and the time coincide, the change in the market is imminent”, inventing the well-known “Time table and Pr Ecio “and the square of 52, 90 and 144.
Gann is related to the invention of the “Swing charts”, although in fact he was not his inventor, but rather who popularized them and used them as a basis for their mechanical trading system – a very effective method for very trendy markets. W. D. Gann held other discoveries but, let us say, that more esoteric, like for example the table of the nine and the spiral of the table of the four, the graphic circle of 360 degrees and the drawing of the hexagon which are used all of them as elements of prediction for CA Lcular soils and ceilings with an impressive precision, although they are not the Holy grail, since this, from our modest opinion, does not exist or exist in terms of stock prediction.