Notes on the Techniques of W.D. Gann

1. Special Number Sequences

1.1 The Full Circle 360

To some, there seems to be something magical about the circle in the way it stands for completeness and repeatability. But putting all mysticism aside, a circle has 360 degrees. Mathematically, there are many consequences that follow from the completeness and repeatability of a circle. Any high school student would have seen how a sine wave is traced out by a circle.

Sequence 1: Circle-16ths

A circle can have its angles equally divided into 4, 8 and 16 as

Degrees         0.0   22.5   45.0   67.5   90.0   112.5   135.0   157.5   180.0   202.5   225.0   247.5   270.0   292.5   315.0   337.5   360.0

Percentages   0.0   6.25   12.5   18.75  25.0   31.25    37.5   43.75    50.0    56.25   62.5    68.75    75.0    81.25   87.5     93.75   100.0

Sequence 2: Circle-12ths

A circle can have its angles equally divided into 3, 6, 12 as

Degrees         0.00   30.0   60.00   90.00   120.0   150.0   180.0   210.0   240.0   270.0   300.0   330.0   360.00

Percentages   0.00   8.33   16.67   25.00   33.33   41.67   50.00   58.33   66.67   75.00   83.33   91.67   100.00

Gann used the Circle-16ths sequence quite often. Why should the numbers in Circle-16ths be so special in the squaring of Price and Time? The reason is that the US dollar is divided into quarters, and not too long ago it had 1/8ths. The stocks in US are also denominated in fractions of 1/4, 1/8 etc. Hence it is natural to use this division. In angles terms, they are represented by 22.5, 45.0, 67.5, 90.0 degrees and so on.

1.2 Seasonal Time Periods

The year starts on March 21 which is the start of Spring Season. The important intervals are:

    May 5  ends   1/8   or 6 1/2 weeks from   March 21 

    Jun 21  ends   1/4   or 13    weeks from   March 21

    Jul  23  ends   1/3   or 17    weeks from   March 21

    Aug 5   ends   3/8   or 19 1/2 weeks from   March 21

    Sep 22 ends   1/2   or 26      weeks from   March 21

    Nov 8   ends   5/8   or 32 1/2 weeks from   March 21

    Nov 22  ends   2/3   or 35     weeks from   March 21

    Dec 21  ends   3/4   or 39     weeks from   March 21

    Feb 4    ends   7/8   or 45 1/2 weeks from   March 21 

    Mar 20  ends   1 year or 52     weeks from   March 21