In Gann’s course “Forecasting by Time Cycles,” on Page 1, he wrote:
“The ancient hunters had a rule that when they were searching to locate an animal in his den, they always followed his tracks backwards, figuring that it was the shortest route to his lair.”
What is the shortest route to Mr. Gann’s lair?
“Get the idea of prices out of your head.” W. D. Gann, Truth of the Stock Tape, p. 126 (italics in the original)
“TIME is the most important factor of all, and not until sufficient time has expired does any big move up or down, start. The Time factor will overbalance both Space and Volume. When Time is up, space movement will start and big volume will begin, either up or down. At the end of any big movement — monthly, weekly, or daily — Time, must be allowed for accumulation or distribution.” W. D. Gann, “Forecasting,” p. F-7; cf. How to Make Profits in Commodities, p. 56.
“Remember that at the end of any big movement, either monthly, weekly, or daily move, some time must be consumed for accumulation or distribution. So, you must allow for this. … With the daily, weekly and monthly high and low chart, the important angles cannot be crossed at extremely low levels, until proper time has elapsed, neither can important angles be broken at high levels until sufficient time has elapsed.” W. D. Gann, “Method for Forecasting the Market,” pp. 6, 18, emphasis added
What allowed Gann to make forecasts is the fact that time is cyclical and therefore Gann students want to find out everything that they can about cycles as they pertain to the financial markets. This is of paramount importance.
Gann says: “…by a proper study of the repetition of cycles we can determine the time when important events will take place in the future. …
“My calculations are based on the cycle theory and on mathematical sequences. History repeats itself. That is what I have always contended, — that in order to know and predict the future of anything you only have to look up what has happened in the past and get a correct base or starting point. My authority for stating that the future is but a repetition of the past is found in the Bible.
“Read Eccl. 1: 9:’ The thing that hath been, it is that which shall be; and that which is done, is that which shall be done: and there is no new thing under the sun.’ Again ‘That which has been is now and that which is to be hath already been.’ This makes it plain that everything works according to past cycles, and that history repeats itself in the lives of men, nations and the stock market. …
“In making my calculations on the stock market, or any future event, I get the past history and find out what cycle we are in and then predict the curve for the future, which is a repetition of past market movements. The great law of vibration is based on like producing like. Like causes produce like effects. Wireless telegraphy, the phonograph and the radio are based on this law. The limit of future predictions based on exact mathematical law is only restricted by lack of knowledge of correct data on past history to work from. It is just as easy to figure 100 years or 1000 years in the future as one or two years ahead, if you have the correct starting point and know the cycle which is going to be repeated.
“A few years ago even scientific men, not alone the public, would have laughed at such a thing and refused to believe it. But mathematical science, which is the only real science that the entire civilized world has agreed upon, furnishes unmistakable proof of history repeating itself and shows that the cycle theory, or harmonic analysis, is the only thing that we can rely upon to ascertain the future. …
“‘How do I forecast future cycles?’ you may ask. In order to forecast future cycles, the most important thing is to begin right, for if we have the right beginning, we will get the right ending. If we know the cause of the effect, then there can be no doubt about predicting the future event or effect. I have always looked for causes and when once I determine a cause I can always be sure of the effect or future event which I predict.” W. D. Gann, The Tunnel Thru the Air, pp. 74-78
Cycles that W. D. Gann used are hidden within The Tunnel Thru the Air.