Methods and Applications of Gann Wheel

History always repeats itself, yet the relationship between the past and the future has never been revealed before W. D. Gann. Gann stipulated that in financial market market tops and bottoms are related by numbers and angles.

Gann wheel is an esoteric market analysis technique, which W. D. Gann sometimes called it the Wheel within Wheel..

Gann Wheel is a circular numerical chart, which starts with 1 from the centre and completes one cycle by filling up 24 divisions of the circle with 24 incremental numbers in an anticlockwise fashion. With expanding the process up to 15 circles, the number goes up to 360.

This chart is used to predict market support and resistance levels as well as market reversal days. The Gann Wheel is constructed as follows:

Example of Application of Gann Wheel

As all we know, the major market crash occurred in October 1987, the market fell from the all time high 337.89 on August 25, 87 to 216.47 on October 20, 87. Another major market crash occurred in July 20, 1998, the market fell from the all-time high 1,199.40 to below 1,000. See the S&P 500 futures monthly chart below:
 

Yet, most of the contemporary financial analysts do not realized that the two major market crashes of their decades are actually related by the mathematical relationship carried in Gann Wheel.

The market top of 1987 at 337 ( after conversion ) located at 0 degree of Gann Wheel. According to Gann's theory, this 0 degree became the market resistance level in future. On July 20, 1998, S&P 500 futures reached the all-time high 1199.40, after conversion, the number on the Gann Wheel should be 120. Actually, the number 120 located at 360 degree of the Gann Wheel. That is, the two market tops coincide almost at the same angle on the Gann Wheel. Previous market top projected future market top at the same angular relationship.

See the Gann Wheel below:

Straight enough, the "angle" of the reversal date July 20, 1998 was 120 degree (what W. D. Gann called "trine") to the "angle" of the reversal price 1199.40 (120 after conversion).

Looking at the market crash of 1987, the crash week in October 1987 was exactly 180 degrees out of phase to the all-time high 337.89 of 1987.

From the above market events, we know that market reversals are related to each other both in terms of price and time. The key is how we interpret the master piece of W. D. Gann.