Gann a big believer in market cycles


In WD Gann's writings on market behavior he said that markets continue to repeat themselves over and over again.

He said that this 'cycle pattern' was in line with the laws of nature whereby most things have a cycle or pattern.

These cycles occur on large time frame such as the ninety or sixty year cycle down to yearly or hourly time frames.

He mentions for example to be observant to the last digit of the year. For example the year ending with "9" would indicate a bullish year whereby stocks would move upwards during those time periods. So looking far into the future 2019 has a high probability of being a 'bullish year'.

Back testing WD Gann's theory on market cycles is very easy as we can see that the past ten year cycles have played out as follows since 1909;

2009 bullish
1999 bullish
1989 bullish
1979 bullish

1969 bearish
1959 bullish
1949 bullish

1939 bearish
1929 bearish

1919 bullish
1909 bullish

This shows a accuracy of of 73%. (8 bullish years out of 11).
[Check out the table below]

For readers interested in exploring this method of forecasting to improve their market analysis technique a software program has been developed which enables users to quickly filter this type of information. For further information visit www.trademiner.com

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Read more about WD Gann's background here.

DJIA annual returns table since 1901

Data for this chart was kindly provided by Forecastchart.com


Return home from market cycles

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