Happy Saturday everyone.
I'm not sure how many of you have heard of a fellow by the name of W.D. Gann but he's arguably one of the most successful investors of all time. I'm just reading one of his books called Truth of the Stock Tape. He wrote it in 1923 almost 100 years ago. It's actually a collection of 4 books titled (1) Preparation for Trading, (2) How to Trade, (3) How to Determine the Position of Stocks & (4) Commodities. I'm not quite half way through the book. I insist that everyone here should go and read this book as soon as possible. So much of what Gann writes about mirrors what Will is teaching us. Guess what Gann's most common reference is ? You got it, Supply & Demand ! So far I think I've seen it mentioned at least once on ever page that I have read.
I just read one of his illustrations about Studebaker in 1920-23 and I couldn't wait any longer, I just had to come and make a post about this. Can you believe it, he actually talks about a DBD on Studebaker's Weekly chart from Sept 4, 1920 to Jan 6, 1923. I'll attach the chart. Of course he didn't call it that but that's exactly what it is. His commentary on the stock is about 5 pages long so it's quite in depth. I want to just quote a short bit that he writes about this DBD pattern. Remember back then you only got prices from a ticker tape machine that would sit in your broker's office. Gann used to actually plot all of his own charts by hand. Can you imagine having to do that ?
"During the period from October 9 to November 6, when
prices were fluctuating within the range of two or three
points, and each week getting up around 59, the man watching
the tape would have been fooled many times, because
each time it made 59 it would look like it was going higher,
and how could he tell but that the buying would be great
enough to carry it through. The proper thing to do when
a stock makes a level like this is to sell out and go short with
a stop one to two points above the level; then wait until
supply or demand forces it higher or lower."
Gann was looking at a Weekly Chart where as all the retail traders were only looking at the daily prices coming over the ticker. Gann was getting the bird's eye view. Can you see the similarity to Will talking about using larger time frame charts ? There is so much more. I really do recommend reading it.
Gann learned his craft by getting price data for as far back as records were available, plotting charts manually and then studying the charts to figure out what was happening. In the early 1900's he had studied charts going back several decades. Now we're 100 years later and price is still doing the exact same thing as it did then and it will probably keep doing the same thing for another 100 years.
With Will's permission I would like to post a link to the .pdf for the book so everyone can read it. You can also just Google "W. D. Gann, Truth of the Stock Tape (1923)" and the first result should be a link to the book.
Cheers & happy reading everyone.
Canadian_Paul
I'm not sure how many of you have heard of a fellow by the name of W.D. Gann but he's arguably one of the most successful investors of all time. I'm just reading one of his books called Truth of the Stock Tape. He wrote it in 1923 almost 100 years ago. It's actually a collection of 4 books titled (1) Preparation for Trading, (2) How to Trade, (3) How to Determine the Position of Stocks & (4) Commodities. I'm not quite half way through the book. I insist that everyone here should go and read this book as soon as possible. So much of what Gann writes about mirrors what Will is teaching us. Guess what Gann's most common reference is ? You got it, Supply & Demand ! So far I think I've seen it mentioned at least once on ever page that I have read.
I just read one of his illustrations about Studebaker in 1920-23 and I couldn't wait any longer, I just had to come and make a post about this. Can you believe it, he actually talks about a DBD on Studebaker's Weekly chart from Sept 4, 1920 to Jan 6, 1923. I'll attach the chart. Of course he didn't call it that but that's exactly what it is. His commentary on the stock is about 5 pages long so it's quite in depth. I want to just quote a short bit that he writes about this DBD pattern. Remember back then you only got prices from a ticker tape machine that would sit in your broker's office. Gann used to actually plot all of his own charts by hand. Can you imagine having to do that ?
"During the period from October 9 to November 6, when
prices were fluctuating within the range of two or three
points, and each week getting up around 59, the man watching
the tape would have been fooled many times, because
each time it made 59 it would look like it was going higher,
and how could he tell but that the buying would be great
enough to carry it through. The proper thing to do when
a stock makes a level like this is to sell out and go short with
a stop one to two points above the level; then wait until
supply or demand forces it higher or lower."
Gann was looking at a Weekly Chart where as all the retail traders were only looking at the daily prices coming over the ticker. Gann was getting the bird's eye view. Can you see the similarity to Will talking about using larger time frame charts ? There is so much more. I really do recommend reading it.
Gann learned his craft by getting price data for as far back as records were available, plotting charts manually and then studying the charts to figure out what was happening. In the early 1900's he had studied charts going back several decades. Now we're 100 years later and price is still doing the exact same thing as it did then and it will probably keep doing the same thing for another 100 years.
With Will's permission I would like to post a link to the .pdf for the book so everyone can read it. You can also just Google "W. D. Gann, Truth of the Stock Tape (1923)" and the first result should be a link to the book.
Cheers & happy reading everyone.
Canadian_Paul
Hey Paul,
William Delbert Gann (June 6, 1878 – June 18, 1955)
I see whats happening in the bigger picture now....
dont you see it? WD Gann is Will in a past life and now hes back during the 21st century to fulfill his mission of helping all suffering Traders by creating PFA and the Zonesuite. LOL jk.
Gann writes;
DEDICATED
TO
MY SUBSCRIBERS WHO HAVE ENCOURAGED ME
AND TO THE
THOUGHTFUL STUDENTS OF FINANCIAL ECONOMICS
WHO DESIRE TO FOLLOW PRACTICAL RULES FOR TRADING
INSTEAD OF GUESSWORK AND GAMBLING METHODS
.... Awesome post Paul, Have not read a trading book in quite a while so ill look into it.
Thank you and hope you're having a great weekend as well!
Cheers.
T
William Delbert Gann (June 6, 1878 – June 18, 1955)
I see whats happening in the bigger picture now....
dont you see it? WD Gann is Will in a past life and now hes back during the 21st century to fulfill his mission of helping all suffering Traders by creating PFA and the Zonesuite. LOL jk.
Gann writes;
DEDICATED
TO
MY SUBSCRIBERS WHO HAVE ENCOURAGED ME
AND TO THE
THOUGHTFUL STUDENTS OF FINANCIAL ECONOMICS
WHO DESIRE TO FOLLOW PRACTICAL RULES FOR TRADING
INSTEAD OF GUESSWORK AND GAMBLING METHODS
.... Awesome post Paul, Have not read a trading book in quite a while so ill look into it.
Thank you and hope you're having a great weekend as well!
Cheers.
T
Yes Travis, I was thinking the same thing about Will. Perhaps Will has some of Gann reincarnated in him. :-) They do certainly seem to be cut from the same cloth right down to what he charged for his service. He only charged $100/year to his subscribers and he would look at any stock or holding for one of his subscribers at no additional cost. Sound familiar. I looked it up and $100 in 1923 is equivalent to $1,403.55 purchasing power in 2016. Interesting.
I'm just about done the book. Here's another paragraph I just read that sounds familiar:
"When extremes occur and everybody is radically bearish
and can see no hope for prices ever advancing, or when prices
are abnormally high and everybody believes that conditions
are such that there is no hope for prices ever going down,
that is the time to go against human judgment and follow the
tape and charts, for they will point to the correct course of
prices according to the natural law of supply and demand."
Cheers,
Paul
I'm just about done the book. Here's another paragraph I just read that sounds familiar:
"When extremes occur and everybody is radically bearish
and can see no hope for prices ever advancing, or when prices
are abnormally high and everybody believes that conditions
are such that there is no hope for prices ever going down,
that is the time to go against human judgment and follow the
tape and charts, for they will point to the correct course of
prices according to the natural law of supply and demand."
Cheers,
Paul
Wow, this is an amazing discussion and I sincerely appreciate all of your kind words so very much!!!! You give me far too much credit 
I am aware of Gann, however I've never studied any of his material and I would have to agree, what you're posting here is pretty amazing! I love how relatable it is to what our philosophy is. When I find the time I would love to look into his philosophy more, until then please keep me posted as this is very intriguing.
What is so amazing is how far ahead of the curve he was and thus a true innovator. I couldn't imagine having to manually generate charts to form our analysis. In fact I felt the same way about quantifying supply and demand on the chart that is provided for us which is why I developed the PFAZoneSuite haha!
My hat is off to Gann and he seems to be an incredible innovator and put the work forth and paved the way for us all. Without him we may have never ended up with the technology and understandings we have today!
SIMPLE AND LOGICAL SUPPLY AND DEMAND RULES!
I am aware of Gann, however I've never studied any of his material and I would have to agree, what you're posting here is pretty amazing! I love how relatable it is to what our philosophy is. When I find the time I would love to look into his philosophy more, until then please keep me posted as this is very intriguing.
What is so amazing is how far ahead of the curve he was and thus a true innovator. I couldn't imagine having to manually generate charts to form our analysis. In fact I felt the same way about quantifying supply and demand on the chart that is provided for us which is why I developed the PFAZoneSuite haha!
My hat is off to Gann and he seems to be an incredible innovator and put the work forth and paved the way for us all. Without him we may have never ended up with the technology and understandings we have today!
SIMPLE AND LOGICAL SUPPLY AND DEMAND RULES!
As was requested above, below is the link to the book I mentioned at the start of this discussion. I believe it was Gann's first book of many. I found a lot of parallels to what Will is teaching us, not the least of which is the fact that he really seemed to focus on longer term analysis and charts. He mentions many times that people watching the numbers that came over the ticker during the day would be easily fooled into thinking that the market was doing something that it wasn't. This is one of the main reasons I started the discussion. If my memory is correct I think he mentioned in this book that he looked to only place 8 or 9 trades a year. He did believe in pyramiding though so as to make the most of the trend he was getting in on.
The system may automatically remove the link since it's not allowed, unless Will over rides it and makes an exception. As I mentioned above, you can also just Google "W. D. Gann, Truth of the Stock Tape (1923)" and the first result should be a link to a free pdf for the book. I tried it and it worked.
[EXTERNAL LINK REMOVED]
Link Overwride Allowed, Click here.
Happy reading.
The system may automatically remove the link since it's not allowed, unless Will over rides it and makes an exception. As I mentioned above, you can also just Google "W. D. Gann, Truth of the Stock Tape (1923)" and the first result should be a link to a free pdf for the book. I tried it and it worked.
[EXTERNAL LINK REMOVED]
Link Overwride Allowed, Click here.
Happy reading.
Sometime read about his Wheat Trade of 1909...
Numbers are "alive" and govern the Universe and help create reality, form, and symmetry. Numbers are bots moving in and out of reality alive and thinking, forming, giving thought to, creating events, ideas, and they're always trying to get your attention. They themselves have power, "9" being the most important.
Some interesting patterns looking at Vortex-Based Mathematics:
1
1+1=2
2+2=4
4+4=8
8+8=16; 1+6=7
16+16=32; 3+2=5
---------------------------------------
32+32=64; 6+4=10; 1+0=1
64+64=128; 1+2+8=11; 1+1 = 2
128+128=256; 2+5+6=13; 1+3 = 4
256+256=512; 5+1+2 = 8
512+512=1024; 1+0+2+4 = 7;
2048 = 5
4096 = 1
8192 = 2
16,384 = 4
32,768 = 8
85,536 = 7
131,072 = 5
262,144 = 1
524,288 = 2
1,048,576 = 4
2,097,152 = 8
4,194,304 = 7
8,388,608 = 5
16,777,216 = 1
33,554,432 = 2
67,108,864 = 4
134,217,728 = 8
268,435,456 =7
536,870,912 = 5
1,073,741,824 = 1
2,147,483,648 = 2
4,294,967,296 = 4
8,589,934,592 = 8, etc....with single digit reduction of 1,2,4,8,7,5 repeating indefinitely into infinity......
---------------------------------------------------------------------------------------------------------------------------------------
NOTICE that 3,6, & 9 are absent, and when 3 is doubled, 3 and 6 go back & forth in their own dimension, with "9" absent
3 + 3 = 6
6 + 6 = 12; 1+2 = 3
12 + 12 = 24; 2+4 = 6
24 + 24 = 48; 4+8 = 12; 1+2 = 3
48 + 48 = 96; 9+6 = 15; 1+5 = 6
96 + 96 = 192; 1+9+2 = 12; 1+2 = 3
192 + 192 = 384; 3+8+4 = 15; 1+5 = 6, etc. into infinity
--------------------------------------------------------------------------------------------------------------------------------------
All multiples of "9" = 9:
9x1 = 9
9x2 = 18; 1+8= 9
9x3 = 27; 2+7 = 9
9x4 = 36; 3+6 = 9
9x5 = 45; 4+5 = 9
9x6 = 54; 5+4 = 9
9x7 = 63; 6+3 = 9
9x8 = 72; 7+2 = 9
9x9 = 81; 8+1 = 9
Every angle of a circle always reduces to "9"
360° = 3+6+0=9
180° = 1+8+0=9
90° = 9+0=9
45° = 4+5=9
22.5° = 2+2+5=9
11.25° = 1+1+2+5 = 9
5.625° = 5+6+2+5 = 18; 1+8 = 9
The sum of the angles of a Polygon contained within a circle beginning with a minimum of 3 angles:
3 x 60° = 180° = 1+8+0 = 9
4 x 90° = 360° = 3+6+0 = 9
5 x 108° = 540° = 5+4+0 = 9
6 x 120° = 720° = 7+2+0 = 9, etc.
Sum of all digits: 1+2+3+4+5+6+7+8+9+0 = 45; 4+5 = 9
9 + any digit reduces the number to its' digit...i.e. 9+4 = 13; 1+3 = 4, or 9+8 = 17; 1+7 = 8
In the Fibonacci sequence: 1,1,2,3,5,8,13,21,34,55,89,144 (these are the 1st twelve Fib numbers); 144 is the square of it's location (12x12)... also, 144 = 1+4+4 = 9, and the 1st number with a root of "9" ...144/9 = 16
Reducing the 1st twelve Fib numbers to single digits: 1,1,2,3,5,8, (i.e.13; 1+3 = 4) 4,3,7,1,8,9....the next twelve Fib #s are: 233; 377; 610; 987; 1597; 2584; 4181; 6765; 10,946; 17,711; 28,657; 46,368
the 24th Fibonacci Number of 46,368 = 4+6+3+6+8 = 27; 2+7 = 9....
Now reduce the 2nd group of twelve Fib #s down to single digits like the first group (i.e. 233; 2+3+3 = 8...) you arrive with: 8, 8, 7, 6, 4, 1, 5, 6, 2, 8, 1, 9.... then add to the first twelve fib numbers reduced to single digits (i.e. Fib# 1 single digit (1) added to Fib #13 single digit (8) = 1+8 = 9; or Fib# 4 single digit (3) added to Fib #16 single digit (6) = 3+6 = 9;etc. Paired, they all reduce to 9. This continues into infinity
Minutes in a Day: 1440 minutes: 1+4+4+0 = 9
Seconds in a Day: 86,440 = 8+6+4+4+0 = 9
Minutes in a Week: 10,080 = 1+0+0+8+0 = 9
Minutes in a Year: 525,600 = 5+2+5+6+0+0 = 9
(totally unaffected by "Leap Year" count)
Numbers are "alive" and govern the Universe and help create reality, form, and symmetry. Numbers are bots moving in and out of reality alive and thinking, forming, giving thought to, creating events, ideas, and they're always trying to get your attention. They themselves have power, "9" being the most important.
Some interesting patterns looking at Vortex-Based Mathematics:
1
1+1=2
2+2=4
4+4=8
8+8=16; 1+6=7
16+16=32; 3+2=5
---------------------------------------
32+32=64; 6+4=10; 1+0=1
64+64=128; 1+2+8=11; 1+1 = 2
128+128=256; 2+5+6=13; 1+3 = 4
256+256=512; 5+1+2 = 8
512+512=1024; 1+0+2+4 = 7;
2048 = 5
4096 = 1
8192 = 2
16,384 = 4
32,768 = 8
85,536 = 7
131,072 = 5
262,144 = 1
524,288 = 2
1,048,576 = 4
2,097,152 = 8
4,194,304 = 7
8,388,608 = 5
16,777,216 = 1
33,554,432 = 2
67,108,864 = 4
134,217,728 = 8
268,435,456 =7
536,870,912 = 5
1,073,741,824 = 1
2,147,483,648 = 2
4,294,967,296 = 4
8,589,934,592 = 8, etc....with single digit reduction of 1,2,4,8,7,5 repeating indefinitely into infinity......
---------------------------------------------------------------------------------------------------------------------------------------
NOTICE that 3,6, & 9 are absent, and when 3 is doubled, 3 and 6 go back & forth in their own dimension, with "9" absent
3 + 3 = 6
6 + 6 = 12; 1+2 = 3
12 + 12 = 24; 2+4 = 6
24 + 24 = 48; 4+8 = 12; 1+2 = 3
48 + 48 = 96; 9+6 = 15; 1+5 = 6
96 + 96 = 192; 1+9+2 = 12; 1+2 = 3
192 + 192 = 384; 3+8+4 = 15; 1+5 = 6, etc. into infinity
--------------------------------------------------------------------------------------------------------------------------------------
All multiples of "9" = 9:
9x1 = 9
9x2 = 18; 1+8= 9
9x3 = 27; 2+7 = 9
9x4 = 36; 3+6 = 9
9x5 = 45; 4+5 = 9
9x6 = 54; 5+4 = 9
9x7 = 63; 6+3 = 9
9x8 = 72; 7+2 = 9
9x9 = 81; 8+1 = 9
Every angle of a circle always reduces to "9"
360° = 3+6+0=9
180° = 1+8+0=9
90° = 9+0=9
45° = 4+5=9
22.5° = 2+2+5=9
11.25° = 1+1+2+5 = 9
5.625° = 5+6+2+5 = 18; 1+8 = 9
The sum of the angles of a Polygon contained within a circle beginning with a minimum of 3 angles:
3 x 60° = 180° = 1+8+0 = 9
4 x 90° = 360° = 3+6+0 = 9
5 x 108° = 540° = 5+4+0 = 9
6 x 120° = 720° = 7+2+0 = 9, etc.
Sum of all digits: 1+2+3+4+5+6+7+8+9+0 = 45; 4+5 = 9
9 + any digit reduces the number to its' digit...i.e. 9+4 = 13; 1+3 = 4, or 9+8 = 17; 1+7 = 8
In the Fibonacci sequence: 1,1,2,3,5,8,13,21,34,55,89,144 (these are the 1st twelve Fib numbers); 144 is the square of it's location (12x12)... also, 144 = 1+4+4 = 9, and the 1st number with a root of "9" ...144/9 = 16
Reducing the 1st twelve Fib numbers to single digits: 1,1,2,3,5,8, (i.e.13; 1+3 = 4) 4,3,7,1,8,9....the next twelve Fib #s are: 233; 377; 610; 987; 1597; 2584; 4181; 6765; 10,946; 17,711; 28,657; 46,368
the 24th Fibonacci Number of 46,368 = 4+6+3+6+8 = 27; 2+7 = 9....
Now reduce the 2nd group of twelve Fib #s down to single digits like the first group (i.e. 233; 2+3+3 = 8...) you arrive with: 8, 8, 7, 6, 4, 1, 5, 6, 2, 8, 1, 9.... then add to the first twelve fib numbers reduced to single digits (i.e. Fib# 1 single digit (1) added to Fib #13 single digit (8) = 1+8 = 9; or Fib# 4 single digit (3) added to Fib #16 single digit (6) = 3+6 = 9;etc. Paired, they all reduce to 9. This continues into infinity
Minutes in a Day: 1440 minutes: 1+4+4+0 = 9
Seconds in a Day: 86,440 = 8+6+4+4+0 = 9
Minutes in a Week: 10,080 = 1+0+0+8+0 = 9
Minutes in a Year: 525,600 = 5+2+5+6+0+0 = 9
(totally unaffected by "Leap Year" count)
PS. Pardon in the previous post I incorrectly listed the seconds in a day as 86,440, and the correct# is 86,400; 8+6+4+0+0 = 18; 1+8 = 9... Also, the date of the subprime crisis low on the equity markets was March 6, 2009 or 3-6-9; with the intraday low on the S&P Cash of 666, and 665.75 with the Futures.
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You can also just Google "W. D. Gann, Truth of the Stock Tape (1923)" and the first result should be a link to a free pdf for the book. I tried it and it worked.