I still remember the day someone asked me, in genuine astonishment and confusion about the title of my book, Gann Trading Methods in Financial Markets and Stock Exchanges, saying: "What do you mean by the word 'Gann'? Do you mean jinn, spirits, and summoning ghosts, or is there something in analysis called Gann that we do not know about?!"
At that moment, he believed I was summoning spirits to predict future price movements! Although it was an amusing situation that drew a smile, it revealed to me the profound gap and ignorance surrounding this man's name in Arab trading circles. At the same time, it served as a powerful motivation for me to become the first Arab researcher to address the methods of William Delbert Gann using a rigorous scientific, mathematical, and geometric approach far removed from myths and superficiality.
In this comprehensive guide, I bring together a summary of my research, practical experience, books, and articles written over many years on William Delbert Gann. My goal is to set the record straight, separate fact from fiction, explore the authentic geometric and time tools he used, show how I developed the theory of Price and Time Relativity (PTR) from them, and outline practical trading and risk management steps for any price chart.
1. My Journey into Investigating William Delbert Gann: How the Story Began
My journey with Gann's philosophy began in 2007 when I suffered deep frustration from trading in the foreign exchange market. The source of my frustration was that the price moved in only two scenarios: first, when I was completely outside the market watching as a spectator, and second, when I entered a trade and waited, only for the price to move immediately against my position, strike my stop loss, and, the moment I exited, launch powerfully in the exact direction I had initially predicted!
That was when I realized a decisive truth: the problem was not in identifying the direction, but in the element of timing. I was entering the market at the wrong time. I began asking myself: when does the right time arrive? Is there a mathematical relationship that connects price movement with elapsed time?
I searched extensively and found only scattered surface-level concepts and superficial Western writings. I discovered that the most prominent name globally in this field was William Delbert Gann. However, I faced another obstacle: most of what was written about Gann was either commercial promotional material or a bizarre mix of astrology and sorcery.
At that point, I decided to follow a fundamental rule of criminal investigation: "There is no perfect crime that leaves no trace, and human nature forces the owner of any secret to reveal it or leave behind evidence that exposes it." If we accept this premise, then Gann, who traded from 1902 until he died in 1955, must have left behind material that reveals his methods.
I collected copies of every book Gann owned in his private bookshelf, which his son, John Gann, cataloged and offered for public auction after his passing. I gathered all of Gann's own publications, articles, and hand-drawn charts. I lived among his papers, immersed myself in his persona and way of thinking, until I reached my first remarkable breakthroughs: mathematical equations to determine the timing of the next peak and trough alongside the magnitude of the move in points. I presented live public trials in forums in 2008 titled W.D. Gann Recommendations by Tamer Hamed, which played out successfully before everyone, down to the day, hour, and minute.
2. William Delbert Gann Between Fact and Defamation: Was He a Fraud?
In May 2018, a friend sent me a concerned message containing a link to a post on Twitter discussing a book that described William Gann as a fraud and liar who died broke, making his money from selling courses and books rather than trading!
My explicit and clear response, which I maintain to this day, was:
"If Gann was a liar, his lies are his own burden, and if he was truthful, his honesty benefits him; his personal morality and life story are of no concern to us. The only real question that matters to us as traders and investors is: are Gann's mathematical and geometric methods successful and viable for trading in financial markets?"
The definitive answer is yes, and we possess undeniable evidence:
- Historical Trades: Gann's documented trading records during the famous demonstration overseen by Richard Wyckoff in the Ticker and Investment Digest in October 1909 proved that he executed 286 trades within 25 trading days in front of the journal editor, yielding 264 winning trades and 22 losing trades, achieving a return exceeding 1000%.
- Scientific Legacy: The presence of his authentic hahand-drawnharts, his mathematical squares, and his original writings clearly demonstrates a profound understanding of market mechanics and geometry that cannot be dismissed as luck or fabrication.
Always remember: every method proven mathematically and scientifically is a successful method, but every trader has a distinct personality and style that suits them. If a method does not work for you, it does not mean it is a failure; rather, you might not have understood it correctly o,r it may not align with your psychological discipline and risk management.
3. Time Analysis on the Scientific Scale: The Reality of Astrology and Time Series
A question frequently arises: "Does something called time analysis exist in academic and financial circles? What is the accredited certification for it?"
Global classification of methods used to analyze securities and economic entities is confined to established schools:
- Fundamental Analysis: Evaluates financial statements, economic indicators, and qualitative factors.
- Technical Analysis: Studies price and volume action on charts, as certified by organizations like the MTA (CMT).
In mathematics and applied statistics, there is an established field called Time Series Analysis. It is a mathematical statistical science that studies the sequence of data over time to extract cyclical patterns.
Time is the sole medium expressing continuous change in this universe. Just as the moon's movement influences the phenomenon of tides in ocean waters, human behavior changes periodically over time. Price behavior is simply a direct reflection of human behavior driven by fear, greed, optimism, and pessimism.
What about "astrological analysis" that some associate with Gann?
Everyone who has followed my research knows that I completely reject linking trading to sorcery or fortune-telling, and I hold a strict scientific stance on this matter derived from Gann himself!
William Gann explicitly stated in one of his original analytical papers:
"Yes, we have proven it through astronomical methods, but anything that has not been proven first through geometric and mathematical methods cannot be trusted!"
Gann used purely mathematical astronomical cycles (such as Earth cycles and solar years used to calculate calendars) merely as confirmation and documentation for what he had already derived from mathematical and geometric laws. He was neither a magician nor a fortune teller. For that reason, in the third edition of my book, I isolated any astronomical references into a dedicated appendix, focusing the main text entirely on pure mathematics, plane geometry, and solid geometry.
4. The Complete Arsenal: What Are Gann's Authentic Methods?
What William Delbert Gann left in his original papers after his death, and what I reviewed in detail across the six sections of my book, is confined to the following system:
- Price and Time Angles (Gann Angles): Angles based on fixed mathematical ratios of price movement relative to time units, such as the famous 1x1 angle.
- Master Charts and Squares: Mathematical matrices used to convert price into time and time into price, most notably the Square of 9, the Square of 144, the Square of 52, and the Circle of 24.
- Time Cycles: Fixed and variable cycles, such as the 10-year cycle, the 20-year cycle, the 60-year cycle, and major planetary alignment cycles viewed from a purely mathematical perspective.
- Price Vibration Laws: Converting price levels into harmonic vibration frequencies to identify future support and resistance levels.
Any other tools you hear attributed to Gann outside of what I have mentioned are additions invented by others for commercial promotion.
5. Price and Time Relativity Theory (PTR)
When I delved deep into Gann's tools, I confronted a major obstacle that most Western researchers (such as the American Eric Penfold and his colleague Michael) also encountered: the sheer abundance and conflict of tools!
When you possess the Square of 9, the angles, the Square of 144, and various time cycles, the most pressing question becomes:
"Which of these applications is the most suitable and effective in this specific scenario? When do I use one tool over another? What is the hierarchical priority for arranging these tools to build a decisive trading strategy?"
This gave birth to the theory of Price and Time Relativity (PTR) that I formulated. This theory is built on studying three states of price movement relative to time:
- Positive Equilibrium (At the 1x1 Angle): Where price growth equals time progression, indicating a healthy, sustainable trend.
- Positive Relativity (Price Outpaces Time): Where the price moves faster than time, signaling strong momentum that requires using specialized rapid projection equations.
- Negative Relativity (Time Outpaces Price): Where time elapses without significant price movement, signaling an impending explosive breakout once the time cycle completes.
The PTR theory does not merely identify when the price will rise or fall; it precisely defines "which of the 22 equations must be activated right now," complnating confusion and giving the trader a clear mechanical vision.
6. Scientific Comparison: Gann's Methods Versus J.M. Hurst's Cycles
Many students confuse William Gann's research with the cycle theory of the American engineer J.M. Hurst, creator of the famous cycle principles (harmonicity, superposition, and proportionality).
The fundamental difference between them lies in the following:
- Hurst's Cycles: Depend primarily on centered moving averages and frequency analysis to identify time turns. Hurst focuses on time alone to expecpredict a peak or trough will form, without giving an exact price target for that turn.
- Gann's Methods: Integrate price and time into a single unit through the principle of "Squaring Price and Time." Gann's methods provide you with the time of the turn alongside the exact price level where that turn will occur.
For this reason, Gann's methods are more comprehensive and robust in practical application because they offer a specific price target at a specific time, whereas Hurst generally contents himself with expecting the timing of a peak or trough without defining its price level.
7. Practical Application: How to Start Properly on Any Price Chart
The most common question readers of my book ask is: "How do I start correctly on any chart? Where do I select my starting point?"
A proper start for any analysis summarizes into two essential steps detailed in section six of my book:
First: Preparing the Financial Instrument Record
Before drawing a single line on the chart, you must record the historical data of the security in a dedicated log:
- The historical absolute high and low of the asset since its inception.
- The historical price range (the difference between the highest peak and lowest trough).
- Major historical time cycles measured in days, weeks, and months from major turning points.
Second: The Six Steps for Multi-Timeframe Analysis
Analysis is conducted in a strict top-down sequence across timeframes:
- Annual and Monthly Charts: Identify the major structural trend and major master cycles.
- Weekly Charts: Calculate intermediate time cycles and locate primary geometric angles.
- Daily Charts: Determine precise entry points, calculate immediate price targets, and set stop losses using daily price and time equations.
8. Risk Management: The True Secret to William Gann's Survival and Success
Gann was not merely a researcher sitting in an ivory tower; he was an active speculator managing his own funds and client portfolios in commodity and equity markets. For this reason, he established ironclad capital management rules, emphasizing that failure in the markets comes not from weak analysis, but from poor account management:
- Capital Division: Never risk more than 10% of your total trading capital on a single trade.
- Mandatory Stop Loss Orders: Always place a stop loss order at a calculated geometric level the moment you enter a trade, and never move it against your position.
- Overtrading Prevention: Avoid entering trades out of impatience or overtrading after a winning or losing streak.
- Protecting Profits: Once a trade moves significantly in your favor, adjust your stop loss to break even or lock in a portion of the accumulated profits.
9. Accredited Software and Time Cycle Confluence Applications
For those wishing to apply Gann's methods accurately and professionally without distortion, key software programs stand at the top of this field:
- Market Analyst (Optuma): The premier global program for Gann tools, offering advanced capabilities for drawing true geometric angles and historical cycle squares.
- Timing Solution: An advanced software program specializing in analyzing mathematical time series and cycle confluence to locate high-probability turning points.
Practical Application: Cycle Confluence on the Saudi Stock Market Index (TASI)
During an advanced training course, we applied Gann's 10 ye10-yeare rules to the Saudi Stock Market Index (TASI), starting from its historic primary low in 1999 at the 2000 point level:
- The First 10 Year Cycle (1999 to 2009): Witnessed the historical peak in 2006 (at the midpoint of the cycle) followed by the major correction that ended near the 2009 low, precisely matching Gann's 10-year structural cycle.
- The Second 10 Year Cycle (2009 to 2019): Produced an intermediate peak in 2014 followed by an accumulation phase that completed its time cycle in 2019, paving the way for the subsequent upward wave.
The results demonstrated that the Saudi market serves as an ideal model for Gann time confluences when analyzed from major historical lows.
10. Conclusion and Roadmap for the Serious Trader
Trading using William Delbert Gann's methods is not an easy journey, nor is it a magical key to instant wealth without effort. It is a scientific, mathematical discipline that demands patience, deep study, and continuous practice.
If you wish to master this art:
- Free your mind from superstitions and focus entirely on pure mathematics and plane geometry.
- Build a strong foundation in risk management before searching for entry points.
- Study historical chart data thoroughly, for history repeats itself through time cycles.
I hope this guide serves as a clear beacon for every seeker of truth in financial markets, and a first step toward knowledge-based trading grounded in science, awareness, and discipline.