W.D.Gann – Master Charts
WD Gann’s Master Charts
- D. Gann developed several MASTER CHARTS which had amazing forecasting ability.
These include the MASTER 12 CHART, THE NEW YORK STOCK EXCHANGE PERMANENT CHART, THE MASTER 9 CHART, SIX SQUARES OF NINE, THE MASTER 360 and THE SQUARE OF THE CIRCLE.
THE MASTER 12 CHART is the one we will use in this example since it is one of the most universal. It is used on several commodities and stocks.
We will use Wheat as it has been trading for a long time and will provide a good example of how the chart is used.
First notice that there are 12 columns on the chart with 12 numbers in each column. We start with 1 at the bottom of the first column and number up to 12. The 2nd column starts with 13 and goes up to 24 and so on all the way to the 12th column which has 144 at the top. These numbers signify TIME.
The numbers along the top are of great importance. These are 12-24-36-48-60-72-84-96-108-120-132 and finally 144.
The other numbers of significance are those at the center or half way point running horizontally across the square.
The Wheat market began trading in 1841. This is the beginning. At the bottom of the first column we will put the year 1842 in the same space with the number 1. This signifies that this is one year from the beginning. The next year, 1843, is placed in the space with the number 2 and so on up to the top of the column, where we see 12 and the year 1853.
This is done all the way across. At 144 we see the year 1985. This completes the first MASTER 12 SQUARE.
The years across the top of the MASTER CHART denote market tops and the years across at the centre will be associated with the Wheat market bottoms.
Those of you who are familiar with the Wheat market know that this chart forecast the long term tops and bottoms with amazing accuracy.
Wheat swings were as follows: Top 1841, bottom 1848, top 1853-54, bottom 1860, top 1865-66, bottom 1871-72, top 1877, bottom 1884, top 1888-89, bottom 1895-96, top 1899-1900, bottom 1907, top 1913-1918 (WAR YEARS), bottom 1920, top 1925, bottom 1932 (ALL TIME LOW), top 1937, bottom 1943-44, top 1950, bottom 1956-57, top 1961, bottom 1967-68, top 1973-74 (ALL TIME HIGH), bottom 1979 and we can look for a top in 1985 and especially 1986 when we enter the new square of THE MASTER 12 CHART.
You can see that the market highs are associated with the years at the top of the square and the bottoms are associated with those at the center or ½-way point.
As the Wheat market finished the first half of the MASTER 12 CHART in time, or went from the 6th column into the 7th, the market went to extreme highs. This will probably occur again as we go from the first square into the second square.
The extreme highs of the Wheat market were in 1867 at $3.00, 1919 at $3.44 and 1974 at $6.46. This follows the cycle of extreme highs which occur 50 to 52 years apart. (Some say this is the 54 year cycle.)