W.D. Gann lived in the first half of the 20th century, and was one of the first people to recognize that freely traded markets are not the result of random activity but exhibit repeating behavior. He also discovered this repeating behavior was synchronized with the motions of the universe as seen in the planets. The following is a great example.

Soybeans made a major low on 7-31-03. The market then rallied for 247 days until the top of 4-5-04 was reached. Although this is a study of time, it should be noticed that nearby beans doubled in PRICE ($5.32 to $10.64).

7 years later, soybeans (along with all the grains) made a major low on 6-8-10. Many contracts made a double low on 6-29-10. The bull topped out on 2-10-11. This is 246 days from 6-8-10 to 2-10-11. The same length of time the rally up to the 2004 top lasted. The planets Jupiter and Uranus take 7 years to return to their same angle. There also happens to be 360 weeks in 7 years. If you will take the time to measure, you will notice 360 weeks separate the July 2003 low and the June 2010 low. Likewise, the two tops measure 360 weeks apart. The market action repeated 360 weeks apart.

W.D. Gann was not "spooky". He simply recognized that the motions of the planets repeat along the number of 360, whether measured in days (earth's orbit) weeks, or months. Just as the earth returns to its same location every 365 days, the markets exhibit similar behavior on the circle of 360 degrees. You simply have to know what to use to measure 360 degrees of time, and the planets are the answer. To show how the smaller planets fit inside the larger ones, notice that from 6-29-10 venus moves exactly 360 degrees to the 2-10-11 final top. Also, the earth moved almost exactly 360 degrees from the 2-4-10 major low (which was forecast in advance on this site)! This is what Gann meant by "wheels with wheels"!

It takes much experience to learn what to measure and from where, but examples like this should make the trader a little more curious about what actually causes market behavior.

Roger