Seeking Alpha

Patrick MontesD...'s  Instablog

Patrick MontesDeOca
Send Message
Published Technical Analyst, Author, Commodity Trader, Systems Developer, Algorithmic Intelligence, Computer Modeling of Processes. I custom build Proprietary Artificial Intelligence for each individual client's portfolio needs. After more 30 years in the business, Patrick MontesDeOca has... More
My company:
Equity Management Academy
My blog:
Trading Talk
My book:
Vedic Codes of the Stock Market Volume 3 – ETFS
  • WILLIAM GANN AND VEDIC MARKET CYCLES 0 comments
    Feb 22, 2012 5:42 PM

    THE ONLY MAN TO EVER HAVE MADE ENORMOUS AND QUICK PROFITS IN THE STOCK MARKET HISTORY USING CYCLES

    Posted on February 18, 2012 by pmontesdeoca

    William D. Gann was a trader of the early 20th century. His abilities for profiting from the stock and commodity markets remain unchallenged. Gann's methods of technical analysis for projecting both price and time targets are unique. Even today, his methods have yet to be fully duplicated.

    Known as "The Master Trader", W.D. Gann was born in 1878, in Lufkin, Texas. Gann netted over 50 million $ from the markets during his trading career, averaging a success rate for trades of more than 90%. It has been said that Gann could very well have been right ALL the time. Any losses incurred by him were only there by his own design and not because of any faults with his methods.

    His successes are legendary. Gann literally converted small accounts into fortunes, increasing their net balances by several hundred percent. There are numerous examples of his trading successes, among which are these:

    1908 - a $130 account increased to $12.000 in 30 days.
    1923 - a $973 account increased to $30.000 in 60 days.
    1933 - 479 trades were made with 422 being profitable. This is an accuracy of 88% and 4000% profit.
    1946 - A 3-month net profit of $13.000 from starting capital of $4500 - a 400% profit.

    The following paragraph appeared in the December 1909 issue of "Ticket" Magazine. It was written by R.D. Wyckoff, the former owner and editor of the "Ticket", and describes Gann's proficiency for projecting price targets forward in time:

    "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 bellow $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 calculations. I do not care what the price is now, it must go there'. It is common history that September Wheat surprised the whole country but selling at $1.20 and no high in the very last hour of trading, closing at that figure". Gann's trading methods are based on personal beliefs of a natural order existing for everything in the universe.

    Gann was part of a family with strong religious beliefs. As a result, Gann would often use Biblical passages as a basis for not only his life, but his trading methods. A passage often quoted by Gann was this from Ecclesiastes 1:9 - 10: "What has been, that will be; what has been done, that will be done. Nothing is new under the sun. Even the thing of which we say, 'See, this is new!' has already existed in the ages that preceded us."

    This universal order of nature also existed, Gann determined, and we have the same opinion now, in the stock and commodity markets. Price movements occurred, not in a random manner, but in a manner that can be pre-determined. The predictable movements of prices result from the influence of mathematical points of forces found in nature… And what is the cause for all this points of forces? Right… cosmos…universe… all planets around us. This Gann could say at that time.

    These points of force were felt to cause prices to not only move, but move in a manner that can be anticipated. Future targets for both price and time can be confidently projected by reducing these mathematical points of forces to terms of mathematical equations and relationships.

    The mathematical equations of Gann are not complex. They result in lines of support and resistance which prices invariably will follow. Gann held that time is the most important element of trading. Time is the factor that determines the length of a commodity's price trend. When time dictates that trending prices should react, prices may stabilize for a short period, or they may fluctuate within a tight range, but eventually they will react by reversing direction.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Back To Patrick MontesDeOca's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

  • agq
    Mar 31, 2013
More »

Latest Comments


Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.