No. 3 MASTER FORECASTING METHOD. & ‘OCK MARKET FORECASTING COURSES. W.D.GANN TON THE ORI No. 3 Master Fi ING Mi ‘ CHAPTER1 LEARN BEFORE YOU LOSE OR WHY YOU LOSE MONEY ON STOCKS & How TO MAKE PROFITS An important marketing brochure discussing the Master Time Factor and adverthing the original release of this most importa course. CHAPTER 2 FoRM READING AND RULES FOR DETERMINING TREND OF STOCKS (CHAPTER 3 RESISTANCE LEVELS CHAPTER 4 VOLUME OF SALES CHAPTER S MASTER TDUE FACTOR & FORECASTING BY MATHEMATICAL RULES. ‘This is one of Gana’ two most important, and previonely unpublished courees covering the following rare sections: Forecasting, Great Cycle - Master Time ‘Factor, Ball & Bear Calendar Years, How To Mike Annual Forecast, Mater 20- ‘Year Forecasting Chur, 1929 & 1936 Yeatly Foreeats, NYSE Permanent Chart CHAPTER ENHANCED MASTER CHARTS Master "12" Chart ~ Square of 9 - Six Squares of 9~2 Hexagon Charts ~ Master (Chart of 360” - Mater 360° Circle Char Squared - Spiral Chart - NYSE Permancot Chart -US Steel Name Chart - US Permanent Chart ~ Price & Time Spiral Chars - 15° Hously Spiral Chart ~ Square of ~ May Soy Bean Master ‘Chart ~ Mater Egg Chant Coffee Rio Conic Chart - May Wheat Geometrie ‘Chart Even Squares ~ Gann Sclentic Forecast- May Soy Beane eeee SECTIO} STo% CHAPTER? METHOD FOR FORECASTING THE STOCK MARKET ‘Arar unpublished stock market course from 1921 covering Gants © CHarrERs How To FORECAST Another rae, unpublished forecasting course focusing on the Dow Jones 4 CHAPTER9 THE BASIS OF MY FORECASTING METHOD ‘This ia previensly published course bats inchaded to complete the forecasting curse, CHAPTER 10 FORECASTING BY TIME CYCLES ‘Au unfamiliar short Gane cycle course ustrating how Gana told vetions of hie comrees (CHAPTER 11 AUBURN MOTORS [As intersting analysis of Aubarn Motors by geometrical angle. CHAPTER 12 Thor AND PRICE RESISTANCE LEVELS + * ‘Another rare and intersting course oa resistance levels, (CHAPTER 13 How To SELL Purs & CALLS short wopublihed work on selling pot and calle— eee ee CHAPTER 1 LEARN BEFORE YOU LOSE OR Wuy You LosE MONEY ON STOCKS & HOw TO MAKE PROFITSLEARN BEFORE YOU LOSE OR WHY YOU LOSE MONEY ON STOCKS AND HOW TO MAKE PROFITSLEARN BEFORE YOU LOSE oR WHY YOU HAVE LOST MONEY IN STOCKS AND HOW TO MAKE IT BACK Why do the great majority of people whe buy and sell stocks lose? ‘Thore are three main reasons: 1. They overcrade or buy and sell too much for their capital 2. They do not place stop loss orders or limit their losses. 3. Lack of Knowledge. This is the most important reason of all, Mott people buy a stock because they hope it will ge up and they will make profits. They buy on fips, or whet someone else thinks, without any Concrete knowledge of their vn that the stock wil advance. "Thus they fntored the market wrong end did not recognise this mistake or atiempl te correct it until too late.” Finally they sell because they fear the stock wil G0 lower and offen they sellout nect low level, getting out at the wean Fime, mating two mistakes, getting ta the martel at the wrong time. and getting ou at the wrong time, One could have. been, prevented hey could have gotten outright affer geting in wrong. They do not re ize that epereting in Stocls and Commodities isa buscess or « profesion Fie seme os engine > medical profesion- Why’ You Should Learn to Determine the Trend of the Market ‘You may have tried fo follow market letters and like many others either fost money or feiled to make profits, becaure the market letters gave a list of too many stocks to buy or sell and you picked the wrong one end lost. ‘A smart man cannot follow another man blindly even though the other man is right, becouse you cannot have confidence and ect on edvice when You do not know what it is based on. You will be able to act with confidence fend meke profits when you can SEE and KNOW for YOURSELF why STOCKS should go UP or DOWN. ‘That is why you should fake a Courso of Instruc- tions end prepare yourself to act independent of the advice of others. Why I Teach My Methods Lois years in practical market trading and experience in teaching others has fought me whet others need for succes in speculation. They must learn a ule and how fo apply it Before they fake wp the second letscn or set of ules, ‘When you fist went to school you had to learn your A, By Ca before You coud rasd. and when you started fo sudy adihmatic you had to learn Mie four fundemental res. ede jon and sublracion ion, diThon you were prepared to take up higher mathematics, algebra and geometry. My Course or Lessons staris you in the same way, leading you step by step ond adding more rules when you are ready and can understand them: | have made e success in Wall Street and have ll the income that | need, this fact can be proven by the records. I find real pleasure in help- ‘there who are trying fo help themselves: Money it rot everything fo life, when | feach @ young man or woman how to protect and preserve theit capital | am giving them valuable knowledge that they canno! lose, end no ‘ene cen stoal if or take it from them. You should never buy method from 2 man whe hes not made money with it W. D. GANN THIRTY-ONE YEARS IN WALL STREET The Founder and president of W. D. Gann & Son, Inc. has devoted 35 years exclusively to the study of stock and commodity markets end hes spent ever $300,000.00 developing « worthwhile, practical methed of Stock Fore- casting. During the past 31 years W. D. Gann has been in business for himself and under his own name in New York City. He is @ member of the Commodity Exchange, Inc. of New York, New Orleans Cotton Exchange and is a Chris. fian and 2 ember of the Masonic fraternity. The Record of Ferecasts— Highlights through the years 1903W. D. Gann's record as a forecaster dates back 30 years. We ‘eprint part of ‘an article written by the late Richard D. Wyckoff end pub- lished in the Ticker Magazine, This article is dated December 1909 and af. ests-to Mr. Gann’s remarkablo ability et a forecaster over 30 yoars ago. WILLIAM D. GANN ‘An Operator Whoto Science and Ability Place Him ia the Front Renk— ie work sf sry eapert whee ined, thet wo a 1d commodities would sell, together well os the pert ‘th prices tle Jo" the thon provailiog trating of thee Figerer which would” act” be fouchod Fer instance, wha Now York Gentel we tale predicted that would ell at 18S beterCorll asta Since the world Eegan, have only in recent ears begn cubjected tothe wil of man, Und added fo the lie of sovcalled medern Tecoverisn We have ailed Me. Gane for an ouline of Kis work and hove scared seme remeth ble evidence at fo the. resale obtained therefrom. Wo submit thie In ful tillon of the. fa i iho oem tho tredtient New the” dowtown distil: sd tock marked move ‘Siting heh inprestve of predicliona he, replied. a “1s ie vory dificult for me to remember all the. predictions and ich may be. elaseed a th, ellewing aes TaN Cautd not touch, 169 before sd" breeke We sold it short all the covering on the weak ing tout the ‘want fi amped bee geen es, “seri "He came to me when “United Stator pointe. We sold it short iif point. "AL another time wheat wat talling at bout fe the May “plion ws ‘We bought it td. made large profi on the vey op. Wschally touched $1.35%2. "What Union Pacific wat 172, he atoll ge fe Ib, ol tn Bigher unit hed tad Tas, Tee fy for" years, Tm grasp of the batie.prieigler which ted esly this veer he Ggured thet the top fy tin geen git alan arn Say’ et and cleat, the pce i eucoy her Docussesp verted oala en’atands "The ne eabigated onthe usct day and within fourtenthe of one por the figures predicted” "You and Mr. Gann niust have cleaned oral we have made a great, deal, of He har taken half “millon do the” pont few yyeers, U once sam him take $139, sd io Teer than ope month run it up fo cover $12,000." He" cam compound money fotet than any man T ever mot” ‘One. of the mort sitonshine call sunt touch That Ggure bo fore the end of the month of Seplembe At tees steloch, Ciieage time, on Sep st dey) the ‘Glan $1.58, and looted’ ce though would not be flags hr id It Wf coer not touch $120"be the lose of the meriat W wil prove. thet There ie something, wrong. with “my whole wnethed. of "eatela oman story thet “September hea} te che sont by sli SM Zo"snd no Wieher ith vy tot cat oF the Wading, Slotng ot That gure, -erererrereFe= — eeSer ww ewe er ewe ew NM wwe o Se much for what Mr. Gann har ssid ond We have reguested Mr done "st evidenced by bina and ofhers, oct for the sesdars of The Wcher ¢ few of Now at to what demonstrations heve tates the mott iting indications which appecr place before our representative In his coleulatons, In presenting there we hh undecstood thal'ne man In er oul Duvinn thy Wh of October, 1909, in Sy Wall Seca i infllihe tventysfive madtel days, Mr. Gann mode, i the. pretence of our representaliva, ive hindled and lghtye framaclons th vere Gann's figures at present indica Mrlyfour ef these transactions resul aoe eceae sie profs fventy-iwe in loses, He calculates thet Mey. wh with which he operated was 96% ‘elling, ot $1.02 should act Hine, 70 tha a the ead oh the month he had’ one thou'end per een. of he evi tall below In our pretence Mr. Gann. sold Stee! ‘short af 907, saying thet it would rol ge fo 95, Hdd mole ‘the spring ot 1910. inthe March or May. option ive which occurred during the sling’ October 28th, Mic “Genn ‘hat Whather thete fguret prove correct or oh, ill em Soa Sel i voeld not sete wer Big tight of which turned out to be cither the cou set be on saree Ye 7 tober ie bron it oP apes Goer tates, and an ape ope viet Reader, Take away Mi scienea and ‘ari, The above we can pastvaly veils. Sesid beat the merlt on hip allt ay rake Endowed at he it with such i have ne Such peso foraging, aw prcbatly am the hisfery ef the Steet. sitation in predicting that within ny ailenpt to seke a towing “lee ie di" got "Tne the esa were 40 6b abled), esteblihes 0 record “sf ont per cont profits rede, Notecsinee, the bore forecast wos sqisee Cotton har cifored the expected ose Ms Gecine, the exrone break ving? been rthid at any price, but fo thote scene 20 ‘pclae The’ lovett on Mag) vhost Ncaly inclined “he! hat cnavestionably thas far" has been SL0195. it’ sddcd te the sock of Wall Seat Woe linge Rate ted oot poutbiter the section he election af every Pretident been ‘publihed ie nexpapart hvevghou! the connie. Wien and hes be ‘Many ef there forecast have correct in 15 of 1918 Mr. Gann forecast the end of the Werld Wate Thit forecast at to newipepers throughout the county, and in January, 1919, the New York sport gave’ Mr. Gann ceedit for forecesiing the end cf the war end the Kateert abdication Im bis 1919 Annual Stock Fore foc i919 and stpecaly velerred 1p fied Inte in 1918, he fecapest « big bull market boom in ell locks, 4His Stock Forecasts for 1920 and 1921 indicated o besr merlet with sharp desis ein Augest 19 "Truth of the Stock Tope” and forecast « big advance io chemical and sirplane stocks, which felloved during’ the Ceclidge bull campeign, Tit book has been reviewed by nevspapers and magazines throughout the country and fever: ably commented on by college. professors, business men, invertors and traders, of that it ig the best beok ever welten em the subieek, sts for 1924 and 1925 culled the bull masket which fo med. Tho Tunnel Thre the Ais, or Looting bach ined many rcrartable forecasts ia regard to secls end com it which Kare been fullled. In this Cock Mr. Genn seid thei soul's history Witting wndor ‘Stock Exchenge, coved the people were paniestricken and asling. stocks a mailer of hitery thet the Now ‘Tote Stock Exchange 3 on October 3 fo 5, Uul decided fo stop short suling. The low of thet ' teached on October # and e rally of 33. points in Induiviel stock Trarages followed to November 9 1931. sHoted inno vneartatn Meuld bo great deluge ‘ 1928, end thet Wha Black Friday. "We quote (rom the. Forecast movers will advance this month and reach final high. will tert decines andthe long ball itis too late fo sell when everyone fs tying fo sell. * ** "SEPTEMBER—One of the sharpest declines of the cf confidence by inves : i ta pale will ty to get out iso wll be, Jeky decline fn so ye mont proflable,” You should tll short Wall Streat Stock Selector: which war pub- vy chepter ended, “Tove ek ‘daring (931, 1932 and 1939. “the coming investor’ panie will bo the grestest in hislory, beceuse there are ot least jneestors"in the Unted Sites who hold ateckr in the leading. 1933. Look up 1905, 1923, 1923, Wo. 4 or tho 4th your, 1s 0 bocr yoor, but onds the boer cyolc and loys tho foundation for a bull market. Compare 1904, 1914. 68ra for the Sth yorr, is the yosr of Acconsion, end ¢ vory ctrong yoor for a Bol markot, S00 1905, 1915, 1925, 1935, As a bull your, in which © bull campaign which started in the 4th your ends in the Fall of the year and a fact decline starts. Seo 1996, 1505, 1ei6, 1926, Wo. 7 4s 9 boar nuaber and the 7th year ie a bear yar, because 84 months or B48? ie 7/8 of 90. Seo 1607, 1907, 1917, but nove 1927 was end of « So-yoar cycle, ao not much decline: Ne, 6 4s a bull yor, Prices start advancing in the 7th your and roach the 80th aonth' in tho 8th year. This is very strong and a big advance usual ly takes place, Reviow 1598, 1908, 1918, 1928, Wo. 8 tho highest digit ond the Sth yoar, is the strongost of all for tell mar- ots. Final bull ecxpaigns culuingto in this yaar after oxtreme advaneos and Prices start to dooline. Boar earkots vsually start in Soptenber to Novonbor ct the ond of tho Sth yoar and a sharp decline tekes plocos Soo 1869, 1879, 1889, 1893, 1903, 1919, and 1929—tho yoor of groatost edvaneos, culminating in tho fall of the yoar, followod by a sharp doclins. Wo. 10 4s « doar yoor, A relly often rms mitil March and April} then a severe decline rins to Novouber end Decouber, when « now oyole begins end encthor rally starts. See 18910, 1820, 1930. Im referring to these numbers and years, we mean the calondar yours. To uderetend this, study 1891 to 1900, 1901 te 1910, 1911 te 1920, 1921 to 1930, 1931 te 1959. Te 10-yeur cycle coutinues to repost cvor and over, but tho grostost ad— wonces and declines occur at tho end of the 20-year and S0-yoar cycles, end again fat the ond of the S0-your and 60-your cycles, which are stronger than the others. GORTNT PONITS TO RMOMBER IN FORECASTING TU is tho most important factor of all ond not util sufficiont time her oxpirel does any big sovo, up or dom, start-Tho Timo factor will ovorbalanco Both Space and Volumo, Whon Tino is up, space movonont will start and big volun will bogin, oithor up or dom. At tho ond of any dig movoncnt—with monthly, mookly or dally—Tino must bo allowed for necumilation or distribution. Considor ouch individual stock und detormine its trend from its position ercording to distmien an tine fron botten or ton. Bach stock works out its 1, 3, 5, 7, 10, 18, 20, 30, 90 and éu-your cyelos from its om baso or bottons and ‘tops, rogardicss of tho evenonts ef othor stecks, oven thogo in tho sano grour. Tnereforo, judgo oach stock individually end Koop up wookly and monthly charts oa thon, Yovor decide that tho main trond has changod ono way or the othur without, consulting tho anglos froa top or botton end without coneldoring tho position of tho market and SyeTs of ouch individual stock,Pe Always concider tho sonvel forocast and whether the big time Limit hos run ovt_or not before judging « Feverse ove, Do not fail to consider the indications on Tine, both from main ope and bettons, also Voluse of Sales and position on Geonetricel Angles. daily chart gives the first short change, which may run for 7 to 10 day: ‘the Woolly Chart giver the noxt important change an trendy and the Monthly the strongest. Reneater, weekly moves rim 3 to 7 weeks, monthly movee 2 to 3 wentht or sore, according to the yoarly oycle, before reversing. ourly bottons end tops: It is important to note whether a stock is making higher of dower bottoms each yeer, For instance, ifs stock has mado a higher Botton each year for five years, then uakes a lower botton than the previous year, it de a sign of reversal and uey mark © loag down cycle, The sexe rule applies when stocks are making lower tops for a munber of years in a bear markets Yhnon extreme advances or declines cccur, the first tine the market r over 1/4 to 1/2 of the distance oovered in the previavs wovenent, you consider — Ghat the trend has changed, et oust temporarily. Te is Amportant to watch space novomente, When Tine 4s running out one way or the other, apane movenents Wit Sheva Feversal by breaking back over 1/4, 1/3 or 1/2 of the distance of the Inst move from extreme low to extrome high, which indlontes thst the main trend hes changed. ‘Stuty 011 the sugtewetions and rules thet T heave given yous rend thes ever several tinot, az cash timo thoy will becoue clearer to you, Study tho charts and work out the rules in ectual practice es woll es on past porformanco. In Shi way you will make progress 4nd will realize end appreciate tho value of oy Method of Forooast ing. HOW TO MAKE UP AWIUAL FORECASTS I have stated before that the futura is but a repetition of the pasts thors fore, to mke up a forecast of the futuro, you must rofor to tho previous eye le The previous 10-year cyclo and 20-your cyclo have the most effect in the future, but in completing a forecast, it is bost te havo SO~yoars past record to check up, as important chenges occur et tho ond of S0-yoar cyclos. In making vn ny 1935 Forecast on tho gmoral markot, I chockod the years 1905, 1915, and 1926 For the 1929 Forceast, I compared 191910 yours beck, 190920 yoars back, 1899-30 yours beck, ed 1669-0 yours back, tho Groot Cynlo. You should cleo watch 5, 7, 15, and SO-yoor poriods to soo if the market reposting ono of thon elesoly. WASTER 20-YEAR FORECASTING CHART esi = 1935 In ordor to wake up en annual forocast, you must refor to my Mastor 20-verr Forecasting Chart and sao how these evsles hevo worked out end repeated in thm pasts 70 eeP-9 As stated before, tho 20-yoor cycle is the most important eyelo for foro- casting futuro market movonmnts, It ie ong-third of tho 60-year syclo and when Ehreo 20-year eyoles run out, inportent Dull and boar campaigns terminates In order for you to see and study how thase cycles repest, I have nade up a chart of 20-year cycles, beginning with the yoar 1831, To ahow all of the cycles from 1831 to date, wo have carried thru on this chart the monthly high and low on railroad end cane] ctocks from 1631 to 1855. Boginning with 1856 wa have used ‘the. D. Cann Averages on railroad stocks until the beginning of the Dox-Jones Averages in 1896, After thet we heve used the Dow-Jones Industrial Stock Averages. Astor the ond of the 20-year eyele in 1860, ‘the next cyele begine st 1861 and rims to 1900, the next eyele begins at 1881 end rune to 1900, tho next cycle begine at 1901 and runs to 1920, y “7, tthe next eyelo begins et 1921 and rms to 180" By placing the monthly high end low prices for each of those 0-year periods above each other, it ¢ essy £0 soe how the eyeles repeat. Tho yoor of the cycles fara marked fron "1" to "20." Study the chart and note what happoned in the 8th and Sth yoar of each cyclo—that oxtrono high prices have clays boon reachod. For oxamplo: 929 FoRBcas?: According tc my discovery of the 60-yoor cyclo, I had figured that 1929 would repeat 1ike 1u6¥, 109, and 1919. Looking back 20 years, wo find thet top was reached in August,’ 1908, and 60 yours before, top wes reached in July, 1859. If you will reod my Annual Forecast for 1928, you will eoe thet T hod figured the top must cone not later then the end of August and stated thet @ "Black Friday” mould como in Septonbor, Following strictly the 1869 top, the top would havo cons in July, 1929, and somo stocks did anke top at that time, Following tho 190! ‘op, we could expect top in August, and the actual high of the avorages and many individual atocks was reached cn September 3, 1929, Going back to 1919, wa find that the Avorages mado first top in July anda big decline followed, ‘but extrone high was uede in the early part of Novenbor. From all of thoso tops—1869, 1909, end 1919—sharp declinos followed in the fell of the yoor, just as they aid in 1929, Thorefore you sos how easy it wes +6 follow this grant advance and determine wion {t would culminate. There ‘= 79 other way, outside of using the 20 end 60-yoar cyclo thet wo cauld hava formen-t ‘this grout bull eompaim and ite culmination eo closoly in 1929. 2869-73 Vs. 1929-33: Aster the 1869 top, atecks continued to daclino and reashad low in Novenber, 1873. See how aeny other bottons were reached around this time in other oycles. Astor the Big decline from 1929, notice that in Ostober, 1933 the Inst low wns roeched on the Dow-Jones Avoragecy thonfollowed en advance to new high levels, crossing the top of July, 1933. 2935 Forecast: Figuring out tha Fersoast for 1935, wo soe on this 20-year Chart that wo ora romning against 1855, 1675, 1895, 1915 therafere, we look to eco whet haproned im those yours, We find that in “1855 tho high wad reached in Septeubor, in 1918n ‘the high of the yosr was reached in December. Shen, lock beck et 1865, 1895, 1905, and 1925, the years in the Sth zone or the 10-year cycles. Wo find’ that in 1665 the high'was reached in October in 1995 the high was in Octobory in 1825 the high was in Wevenber Then, wo would have a good guide in making up the Forecast for 1935 md ‘would know whst months to watch for top and a chango in trend. My Annual Forecast for 1935, which Was made up in Octobor, 1934, indicated top for October 20 and a secondary top for November 18-16, 1935, There aro other ways of using this Chart to alvantage. One mathod of dotar- mining the trend 1s to compare the yours of previous cycles in tho ame zoo. For oxaaple: Aftor the Dow-Jones 30 Industriel Avoragos crossed 108 in Moy, 1935 yr0 above the overage high price of all the provious yours in tho 1Sth-vaar Thorofore, tho market indicated highor pricos end showod that thero woul: ‘bell campaifn. 1986 FORECAST: If wo wish to miko up a forecast for tho your 1936, we comparo tho yours in the 16th-yoar zone, viz. 1856, 1876, 1896, and 1916. Az 60 yoors back is 0 very Important cycle, wo look at 1876 first, then 1696, and 1916. 1875 — Mo find thet tho averages rum up end roach high in March? thon decline to tho ond of the yoar. 1896 ~ Woxt, wo look at 1698, which is 40 yoars bask, or two 20-yoor cyclos, a Yory inportant prosidontial oloction your, just as 1856 will be. We find that there wac a moderate rally into February, @ decline to March, then « small rally to May, from which « panicky decline followed, culminating on Adgust G, 1896, with tho averages at the lowest levels in years. From that point « bull campaign started, with prices working higher to Deceaber. 1916 - Tho noxt important cycle is 20 yoars later, or 1916, Wo fin ‘that prices declined in January, rallied acderately in February, thon deolined sharply to April, rallied to June, then declined and mate bottom in July, from which a big bull campaign started, aking top in Novenber, 1916, in awar market. A panicky de— elino followed from tho lettor part of Noveaber into Decombor . ‘This completes our comperison of the 60, 40, and 20-year cycles back from 1936. Woxt, we look up tho cycles on the other sido of tho Chart, in the 6th yoar of tho'20-yoar cyclo, or the 6th zon, or tho 10-year eyolos. Those yours fre 1866, 1686, 1906, and’1926. 1965 —We find thet in 1855 thoro was a sharp decline, roaching bottom in Fobrusrys thon an advanco, with top of tho yoar in October. 1886 = Wo find a sharp deoline and bottom in Jaquery, a moderato relly into Morch, thon a sharp docline to nov lows in May} a sharp edvanco, rocching high in Novorber, end a sharp doclino in Dovenber 1906 = The noxt “important eyelo to consider is 1908. In that yoor tho grout Uckinloy boom, which bogan im 1895, culminated, Tho railrosd evoragos roschod tho highest prico in history up to ‘that timo, Fron the high of January, a eherp decline followod cer r rere eet ee eee ee ee oe