William D. Gann -
Operator Whose Science and Ability Place Him in the Front Rank
His Remarkable Predictions and Trading Records
(Reprinted From an Article of The Ticker and Investment
Digest Featuring W.D. Gann dated December, 1909)
Sometime ago the attention of this magazine
was attracted by certain long pull Stock Market predictions
which were being made by William D. Gann. In a large number of
cases Mr. Gann gave us, in advance, the exact points at which
certain stocks and commodities would sell, together with
prices close to the then prevailing figures which would not be
For instance, when the New York Central was
131 he predicted that it would sell at 145 before 129. So
repeatedly did his figures prove to be accurate, and so
different did his work appear from that of any expert whose
methods we had examined, that we set about to investigate Mr.
Gann and his way of figuring out these predictions, as well as
the particular use which he was making of them in the market.
The results of this investigation are
remarkable in many ways.
It appears to be a fact Mr. W, D. Gann has
developed an entirely new idea as to the principles governing
stock market movements. He bases his operations upon certain
natural laws which, though existing since the world began,
have only in recent years been subjected to the will of man
and added to the list of so-called modern discoveries. We have
asked Mr. Gann for an outline of his work, and have secured
some remarkable evidence as to the results obtained therefrom.
We submit this in full recognition of the
fact that in Wall Street a man with a new idea, an idea which
violates the traditions and encourages a scientific view of
the Proposition, is not usually welcomed by the majority, for
the reason that he stimulates thought and research. These
activities the said majority abhors.
W. D. Gann's description of his experience
and methods is given herewith. It should be read with
recognition of the established fact that Mr. Gann's
predictions have proved correct in a large majority of
"For the past ten years I have devoted my
entire time and attention to the speculative markets. Like
many others, I lost thousands of dollars and experienced the
usual ups and downs incidental to the novice who enters the
market without preparatory knowledge of the subject."
"I soon began to realize that all
successful men, whether Lawyers, Doctors or Scientists,
devoted years of time to the study and investigation of their
particular pursuit or profession before attempting to make any
money out of it."
"Being in the Brokerage business myself and
handling large accounts, I had opportunities seldom afforded
the ordinary man for studying the cause of success and failure
in the speculations of others. I found that over ninety
percent of the traders who go into the market without
knowledge or study usually lose in the end."
"I soon began to note the periodical
recurrence of the rise and fall in stocks and commodities.
This led me to conclude that natural law was the basis of
market movements. I then decided to devote ten years of my
life to the study of natural law as applicable to the
speculative markets and to devote my best energies toward
making speculation a profitable profession. After exhaustive
researches and investigations of the known sciences, I
discovered that the law of vibration enabled me to accurately
determine the exact points at which stocks or commodities
should rise and fall within a given time."
The working out of this law determines the
cause and predicts the effect long before the street is aware
of either. Most speculators can testify to the fact that it is
looking at the effect and ignoring the cause that has produced
"It is impossible here to give an adequate
idea of the law of vibrations as I apply it to the markets.
However, the layman may be able to grasp some of the
principles when I state that the law of vibration is the
fundamental law upon which wireless telegraphy, wireless
telephone and phonographs are based. Without the existence of
this law the above inventions would have been impossible."
"In order to test the efficiency of my idea
I have not only put in years of labour in the regular way, but
I spent nine months working night and day in the Astor Library
in New York and in the British Museum of London, going over
the records of stock transactions as far back as 1820. I have
incidentally examined the manipulations of Jay Gould, Daniel
Drew, Commodore Vanderbilt & all other important manipulators
from that time to the present day. I have examined every
quotation of Union Pacific prior to & from the time of E. H.
Harriman, Mr. Harriman's was the most masterly. The figures
show that, whether unconsciously or not, Mr. Harriman worked
strictly in accordance with natural law."
"In going over the history of markets and
the great mass of related statistics, it soon becomes apparent
that certain laws govern the changes and variations in the
value of stocks, and that there exists a periodic or cyclic
law which is at the back of all these movements. Observation
has shown that there are regular periods of intense activity
on the Exchange followed by periods of inactivity."
Mr. Henry Hall in his recent book devoted
much space to "Cycles of Prosperity and Depression," which he
found recurring at regular intervals of time. The law which I
have applied will not only give these long cycles or swings,
but the daily and even hourly movements of stocks. By knowing
the exact vibration of each individual stock I am able to
determine at what point each will receive support and at what
point the greatest resistance is to be met.
"Those in close touch with the market have
noticed the phenomena of ebb and flow, or rise and fall, in
the value of stocks. At certain times a stock will become
intensely active, large transactions being made in it; at
other times this same stock will become practically stationary
or inactive with a very small volume of sales. I have found
that the law of vibration governs and controls these
conditions. I have also found that certain phases of this law
govern the rise in a stock and an entirely different rule
operates on the decline."
"While Union Pacific and other railroad
stocks which made their high prices in August were declining,
United States Steel Common was steadily advancing. The law of
vibration was at work, sending a particular stock on the
upward trend whilst others were trending downward."
"I have found that in the stock itself
exists its harmonic or inharmonious relationship to the
driving power or force behind it. The secret of all its
activity is therefore apparent. By my method I can determine
the vibration of each stock and also, by taking certain time
values into consideration, I can, in the majority of cases,
tell exactly what the stock will do under given conditions."
"The power to determine the trend of the
market is due to my knowledge of the characteristics of each
individual stock and a certain grouping of different stocks
under their proper rates of vibration. Stocks are like
electrons, atoms and molecules, which hold persistently to
their own individuality in response to the fundamental law of
vibration. Science teaches that 'an original impulse of any
kind finally resolves itself into a periodic or rhythmical
motion; also, just as the pendulum returns again in its swing,
just as the moon returns in its orbit, just as the advancing
year over brings the rose of spring, so do the properties of
the elements periodically recur as the weight of the atoms
"From my extensive investigations, studies
and applied tests, I find that not only do the various stocks
vibrate, but that the driving forces controlling the stocks
are also in a state of vibration. These vibratory forces can
only be known by the movements they generate on the stocks and
their values in the market. Since all great swings or
movements of the market are cyclic, they act in accordance
with periodic law."
"Science has laid down the principle that
the properties of an element are a periodic function of its
atomic weight. A famous scientist has stated that 'we are
brought to the conviction that diversity in phenomenal nature
in its different kingdoms is most intimately associated with
numerical relationship. The numbers are not intermixed
accidentally but are subject to regular periodicity. The
changes and developments are seen to be in many cases as
Thus, I affirm every class of phenomena,
whether in nature or on the stock market, must be subject to
the universal law of causation and harmony. Every effect must
have an adequate cause.
"If we wish to avert failure in speculation
we must deal with causes. Everything in existence is based on
exact proportion and perfect relationship. There is no chance
in nature, because mathematical principles of the highest
order lie at the foundation of all things. Faraday said,
"There is nothing in the universe but mathematical points of
"Vibration is fundamental: nothing is
exempt from this law. It is universal, therefore applicable to
every class of phenomena on the globe."
Through the law of vibration every stock in
the market moves in its own distinctive sphere of activities,
as to intensity, volume and direction; all the essential
qualities of its evolution are characterized in its own rate
of vibration. Stocks, like atoms, are really centres of
energy; therefore, they are controlled mathematically. Stocks
create their own field of action and power: power to attract
and repel, which principle explains why certain stocks at
times lead the market and 'turn dead' at other times. Thus, to
speculate scientifically it is absolutely necessary to follow
"After years of patient study I have proven
to my entire satisfaction, as well as demonstrated to others,
that vibration explains every possible phase and condition of
In order to substantiate Mr. W. D. Gann's
claims as to what he has been able to do under his method, we
called upon Mr. William E. Gilley, an Inspector of Imports, 16
Beaver Street, New York. Mr. Gilley is well known in the
downtown district. He himself has studied stock market
movements for twenty-five years, during which time he has
examined every piece of market literature that has been issued
& procurable in Wall Street. It was he who encouraged Mr. Gann
to study the scientific and mathematical possibilities of the
subject. When asked what had been the most impressive of Mr.
Gann's work and predictions, he replied as follows :
"It is very difficult for me to remember
all the predictions and operations of W. D. Gann which may be
classed as phenomenal, but the following are a few. "In 1908
when the Union Pacific was 168-1/8, he told me it would not
touch 169 before it had a good break. We sold it short all the
way down to 152-5/8, covering on the weak spots and putting it
out again on the rallies, securing twenty-three points profit
out of an eighteen-point market wave."
"He came to me when United States Steel was
selling around 50, and said, "This steel will run up to 58 but
it will not sell at 59. From there it should break 16 points."
We sold it short around 58 with a stop at 59. The highest it
went was 58. From there it declined to 41-17 points."
"At another time, wheat was selling at
about 89¢. Gann predicted that the May option would sell at
$1.35. We bought it and made large profits on the way up. It
actually touched $1.35."
"When Union Pacific was 172, he said it
would go to 184-7/8 but not an eighth higher until it had a
good break. It went to 184-7/8 and came back from there eight
or nine times. We sold it short repeatedly, with a stop at
185, and were never caught. It eventually came back to 17."
"Mr. Gann's calculations are based on
natural law. I have followed Gann and his work closely for
years. I know that he has a firm grasp of the basic principles
which govern stock market movements, and I do not believe any
other man can duplicate the idea or his method at the present
"Early this year, he figured that the top
of the advance would fall on a certain day in August and
calculated the prices at which the Dow Jones Averages would
then stand. The market culminated on the exact day and within
four-tenths of one percent of the figures predicted."
"You and W D Gann must have cleaned up
considerable money on all these operations," was suggested.
"Yes, we have made a great deal of money.
Gann has taken half-million dollars out of the market in the
past few years. I once saw him take $130, and in less than one
month run it up to over $12,000. Gann can compound money
faster than any man I have ever met."
"One of the most astonishing calculations
made by Mr. Gann was during last summer  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 below $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 calculation. I do not care what the price is
now, it must go there.' It is common history that September
Wheat surprised the whole country by selling at $1.20 and no
higher in the very last hour of trading, closing at that
So much for what W D Gann has said and done
as evidenced by himself & others. Now as to what
demonstrations have taken place before our representative :
During the month of October, 1909, in
twenty-five market days, W D Gann made, in the presence of our
representative, two hundred and eighty-six transactions in
various stocks, on both the long and short side of the market.
Two hundred and sixty-four of these transactions resulted in
profits ; twenty-two in losses.
The capital with which he operated was
doubled ten times, so that at the end of the month he had one
thousand percent of his original margin.
In our presence Mr. William D. Gann sold
Steel common short at 94-7/8, saying that it would not go to
95. It did not.
On a drive which occurred during the week
ending October 29, Mr. Gann bought U.S. Steel common stock at
86-1/4, saying that it would not go to 86. The lowest it sold
We have seen gann give in one day sixteen
successive orders in the same stock, eight of which turned out
to be at either the top or the bottom eighth of that
particular swing. The above we can positively verify.
Such performances as these, coupled with
the foregoing, are probably unparalleled in the history of the
James R. Koene has said, "The man who is
right six times out of ten will make a fortune." Gann is a
trader who, without any attempt to make a showing, for he did
not know the results were to be published, established a
record of over ninety-two percent profitable trades.
Mr. W. D. Gann has refused to disclose his
method at any price, but to those scientifically inclined he
has unquestionably added to the stock of Wall Street knowledge
and pointed out infinite possibilities.
We have requested Mr. Gann to figure out
for the readers of the Ticker a few of the most striking
indications which appear in his calculations. In presenting
these we wish it understood that no man, in or out of Wall
Street, is infallible.
William D Gann's figures at present
indicate that the trend of the stock market should, barring
the usual rallies, be toward the lower prices until March or
He calculates that May Wheat, which is now
selling at $1.02, should not sell below 99 and should sell at
$1.45 next spring.
On Cotton, which is now at about 15¢ level,
he estimates that after a good reaction from these prices the
commodity should reach 18 in the spring of 1910. He looks for
a corner in the March or May option.
Whether these figures prove correct or not
will in no way detract from the record which W. D. Gann has
William Delbert Gann was born in Lufkin,
Texas, and is thirty-one years of age. He is a gifted
mathematician, has an extraordinary memory for figures, and is
an expert Tape Reader. Take away his science and he would beat
the market on his intuitive tape reading alone.
Endowed as he is with such qualities, we
have no hesitation in predicting that, within a comparatively
few years, William D. Gann will receive recognition as one of
Wall Street's leading operators.
Note: Since the market forecast was made,
Coffee has suffered the expected decline, the extreme break
having been 120 points. The lowest on the May wheat thus far
has been $1.01-5/8. It is now selling at $1.06-1/4.