GANN MASTER COMMODITIES COURSE Proudly presented for the educational benefit of the members of Wheels In The Sky. A forum where one can learn about Gann and other famous market forecasters.com/group/wheelsinthesky THE W. GANN MASTER COMMODITIES COURSE (www.com/group/wheelsinthesky) TABLE OF CONTENTS Page A Note About This Master Course .iii Grains Lessons Chapter 1: Speculation A Profitable Profession: A Course Of Instructions On Grains.1 Chapter 2: Mechanical Method And Trend Indicator For Trading In Grains.37 Chapter 3: 2-Day Chart Moves Time Turns .64 Chapter 4A: Rules for Trading In Soy Beans, Corn, Wheat, Oats And Rye (Sept.67 Chapter 4B: Rules for Trading In Soy Beans, Corn, Wheat, Oats And Rye (Oct.76 Chapter 5A: The Basis Of My Forecasting Method For Grains - Geometric Angles (c.98 Chapter 5B: The Basis Of My Forecasting Method For Grains - Geometric Angles (1951) .109 Chapter 6: Squaring The Price Of Grains With Time.149 Chapter 7: Forecasting Grains By Time Cycles.156 Chapter 8: Soy Beans Price Resistance Levels.165 Cotton Lessons Chapter 9: Mechanical Cotton Method And New Trend Indicator.172 Chapter 10: Cotton Forecasting Instructions .195 Eggs Lessons Chapter 11: Master Egg Course.240 Master Calculators And Related Lessons Chapter 12: The Master Mathematical Price Time And Trend Calculator.284 Chapter 13A: How To Use The Master Calculator - May Soy Beans (1953) .294 Chapter 13B: How To Use The Master Calculator - May Soy Beans (1955) .299 Chapter 14: Master Calculator For Weekly Time Periods To Determine The Trend Of Stocks And Commodities .305 Chapter 15: Cash And May Soy Bean Futures .312 Chapter 16: May Soy Beans Square Of 67 - Time Periods For Days, Weeks, Months.324 Master Charts Chapter 17A: Master Charts .329 Chapter 17B: The Hexagon Chart .359 Chapter 18: Master Price And Time Chart - Squares 1 to 33 Inclusive, Price And Time 1 to 1089 .365 Chapter 19: Price And Time Chart - Cycle of 0° to 360. Time Periods 15 Days Equals Degrees - 24 cycles 24 Price For Daily Time Charts .369 Other Writings Chapter 20: May Coffee Santos D .374 Chapter 21: Supply & Demand Letters.
GANN MASTER COMMODITIES COURSE (www.com/group/wheelsinthesky) A NOTE ABOUT THIS MASTER COURSE This Master Commodities Course is a transcribed collection of most, if not all, of W. Gann’s publicly available commodities lessons. It represents hundreds of hours of lesson sourcing, typing, meticulous proofing and compiling by a relatively small number of dedicated individuals. An overriding objective in developing this resource was to create an electronic searchable reference document to assist students of Gann.
In order to preserve the authenticity of Gann’s original work, every effort has been made to precisely transcribe the lessons contained within this Master Course. The lessons have been formatted and paginated to match the source documents as closely as practicable – even to the point of replicating letterheads. The general approach for dealing with spelling and grammar mistakes was to replicate the original text. However, there were some exceptions: Corrections were made when the source document appeared to be a previous transcript and the spelling mistakes were blatant.
Note that these corrections were minor in nature and great care was taken to ensure that they did not alter the underlying message of the text. In other instances, suggested corrections were inserted beside apparently erroneous original text. This was only done when the suggested correction could be corroborated by the surrounding context and where it was felt that it would provide greater clarity. All suggestions were contained within square brackets [like this], as is conventional when making editorial comment.
Whilst all suggestions were made in good faith, the reader must ultimately decide whether to accept them. I would like to extend my warmest thanks to those who gave generously of their time, or resources during this project. This document simply would not exist without your help! I hope that students of Gann will find this resource useful. Damian Gillman Compiler/Editor June 2, 2004 iii THE W.
GANN MASTER COMMODITIES COURSE (www.com/group/wheelsinthesky) CHAPTER 1 SPECULATION A PROFITABLE PROFESSION: A COURSE OF INSTRUCTIONS ON GRAINS Page 1 THE W. GANN MASTER COMMODITIES COURSE (www.com/group/wheelsinthesky) SPECULATION A PROFITABLE PROFESSION A Course of Instructions With Time Tested Practical Rules of Trading in Grains. In 1911 after I had made a great success trading in stocks and commodities, there was a public demand for a book with my rules for trading successfully. This demand was answered by my first small book, “Speculation A Profitable Profession”.
As the years went by I learned more about the market and realized that others needed the help that I could give them and I wrote more books to help others who were trying to help themselves. In May 1954 I am nearing my 76th Birthday and am writing this new course of instructions not to make money for I have more income than I can spend but realizing the demand and the need for more knowledge about future trading by so many people I now give the benefit of my 52 years experience to help those who need it. The price of this course is made reasonable in order that men and women with a small account of money can get a market education and start with a small capital and make a success provided they follow the rules after they learn them. My experience has proved that it is more profitable to trade in commodities than stocks and you can make larger profits on the same amount of capital with smaller risk.
When you trade in commodities you are trading in the necessities of life. Commodity prices obey the law of supply and demand and follow a seasonal trend most of the time. When you learn the rules and follow them you eliminate trading on Hope, Fear, and Guesswork which is nothing but gamble and you cannot afford to risk your money gambling. You must follow mathematical rules which I have proved to be realistic guide in trading.
You must prove to yourself that the rules have always worked in the past and they will work in the future. When you have the proof follow the rules and you will make speculation a profitable profession. HOW TO MAKE SPECULATION A PROFITABLE PROFESSION Speculation or investment is the best business in the world if you make a business of it. But in order to make a success of it you must study and be prepared and not guess, follow inside information, or depend on hope or fear.
If you do you will fail. Your success depends on knowing the right kind of rules and following them. GANN MASTER COMMODITIES COURSE (www.com/group/wheelsinthesky) 2. FUNDAMENTAL RULES Keep this well in mind.
For commodities to show up trend and continue to advance they must make higher bottoms and higher tops. When the trend is down they must make lower tops and lower bottoms and continue on down to lower levels. But remember prices can move in a narrower trading range for weeks or months or even years and not make a new high or a new low. But after a long period of time when commodities break into new lows they indicate lower prices and after a long period of time when they advance above old highs or old tops they are in a stronger position and indicate higher prices.
This is the reason why you must have a chart long ways back in order to see just what position a commodity is in and at what stage it is between extreme high and extreme low. THE KIND OF CHARTS TO KEEP UP Remember the old Chinese proverb “One good picture is worth 10,000 words”. You should make up charts and study the picture of a commodity before you make a trade. You should have a weekly high and low chart, a monthly high and low chart and a yearly high and low chart.
A yearly high and low chart should run back 5, 10 or 20 years if you can get records that far. Monthly high and low chart should go back for at least 10 years and the weekly high and low should go back for 2 or 3 years. When commodities are very active you should have a daily high and low chart. This need not go back more than a few months.
Start the daily chart after the commodity breaks into great activity. FOLLOW THE MAIN TREND You will always make money by following the main trend of commodities up or down. Remember that commodities are never too high to buy as long as the trend is up and they are never too low to sell as long as the trend is down. Never sell short just because the commodity is high or because you think it is too high.
Never sell out and take profits just because the price is high. Buy and sell according to definite rules and not on hope, fear or guesswork. Never buy a commodity just because the commodity is low. There is usually a good reason why it is low and it can go lower.
RULES FOR BUYING AND SELLING The first thing to remember before you start to apply any rules is that you must always use a STOP-LOSS order to protect your capital. When making a trade remember that you can be wrong or that the market may change its trend and the STOP-LOSS order will protect you and limit your loss. A small loss or several small losses can easily be made back with one large profit, but when you let large losses run against you it is hard to make them back. GANN MASTER COMMODITIES COURSE (www.com/group/wheelsinthesky) 3.
PROVE ALL THINGS AND HOLD FAST TO THAT WHICH IS GOOD The Bible tells us this and it is well worth remembering. Many people believe that it is wrong to buy at new high levels or to sell at new low levels but it is most profitable and you must prove this to yourself because when you do buy at new high levels or sell at new low levels you are going with the trend of the market and your chances for making profits are much better than guesswork or buying or selling on hope or fear. PROLONGED ADVANCES After commodities have had a prolonged advance and wind up with a fast, active, runaway market in most cases they come down very quickly and much faster or in a shorter period of time than when they go up. That is why you must keep up some daily charts at the end of a fast move and keep up the weekly charts to determine the first change in trend and be able to go with it.
SHARP DECLINE IN A SHORT PERIOD OF TIME This usually follows a rapid advance and the first sharp declines which may last from one month to as much as seven weeks usually corrects an overbought position and leaves the market in position for a secondary advance. When you are able to catch the extremes at the end of any great time cycle you can make a large amount of money in one year’s time trading in fast active markets, and some very large profits in one month’s time. It makes no difference whether you catch the extreme low or the extreme high – the opportunities are great for making money providing you select the commodity that will lead. LARGE PROFITS ON SMALL RISKS You can make large profits on small risks provided you use a STOP LOSS order, and apply all the rules and wait for a definite indication of a change in trend up or down before you make a trade.
FIXED IDEAS AND FIXED PRICES Never get a fixed idea of just how high any price is going to go or just how low they are going.