One of the most astonishing calculations made by Mr. Gann was during last summer [1909], when he predicted that September Wheat would sell at $1.20. This meant that it must touch that figure before the end of the month of September. At twelve o’clock, Chicago time, on September 30th (the last day) the option was selling below $1.08, and it looked as though his prediction would not be fulfilled. Mr. Gann said, If it does not touch $1.20 by the close of the market it will prove that there is something wrong with my whole method of calculation. I do not care what the price is now, it must go there. It is common history that September Wheat surprised the whole country by selling at $1.20 and no higher in the very last hour of trading, closing at that figure.
PRICE = y AXIS
TIME = x AXIS
1902 1912 1922 1932 1942 1952 1962 1972 1982 1992 2002 2012
200
2000
20000
The philosophy behind price and time Gann observed that price cannot exist outside of time. He was able to quantify that whilst the price of any stock, bond, commodity or currency stops trading as the market closes, time continues forward and is indifferent to price.
Most of you would be familiar with how a stock chart plots the price of a stock or commodity displaying its historical price action as a function of time.
Price is depicted on the vertical y-axis of a chart, whilst time is recorded on the horizontal x-axis. Gann identified that there is a total regularity to time. Each of the hours, minutes and seconds of a day can be scientifically measured with precision and measured against a predictable time line on a chart. At the time, this was a revolutionary concept.
So much for what W D Gann has said and done as evidenced by himself & others. Now as to what demonstrations have taken place before our representative. During the month of October, 1909, in twenty-five market days, W D Gann made, in the presence of our representative, two hundred and eighty-six transactions in various stocks, on both the long and short side of the market. Two hundred and sixty-four of these transactions resulted in profit; twenty-two in losses. In other words, in a period which covered less than a month, Gann made 286 trades with an extraordinary win to loss ratio of over 92%. That trading resulted in a return of over 1000% of his original capital. And just in case you thought that was a typo, it was 1000%. In my view, this is a trading record that I have never seen repeated by anyone…ever! If somebody has, then they certainly aren’t telling anyone about it.