History Repeats: Date Top/Bottom Price Price Move

HISTORY REPEATS
In this lesson we are going to look at the ups and down of market moves. As markets regularly exhibit
pullbacks, it is good to know when a move is likely to come to an end. This will allow you to cash in on
your profits and wait for another favourable pullback to jump on board again.
Gann believed that history repeats. He did more than believe. He made sizeable profits based on his
ability to find repeating cycles. He says in How to Make Profits on Commodities (page 31). Because
history does repeat, the price of Wheat or other Commodities tells the story of the future. Gann traders
initially are sceptical about the repeating cycles in the markets, rightly so. There are simple and easy
techniques that you can employ to investigate and profit from these repeating cycles.
Cycles come in two flavours: price and time. We will cover time cycles on another one of these lessons.
Lets start with price cycles. What you are measuring is the price move from a bottom to a top and then
from that top to the next bottom and so on. If the market always moved the same price it would be so
predictable, markets would not exist. In other words if the market went up $10 then down $5, then up
$10, then down $5... , it would be so predictable the markets would not exist. You are looking at price
moves that look random but have a hidden rhythm. You are looking for price moves that repeat on a
regular basis.
The table below is taken from continuous Wheat chart (three day swing chart). The whole table and chart
goes back to 1959 and we included 2006 onwards to keep the exercise brief. Have a look on where
182.00, 182.00 and 183.00 have repeated. We have highlighted these numbers to make it easy for you.
The price move has repeated exactly as 182.00. In addition, the timing is almost perfect (one year
anniversary) June 2007 and June 2008.
Have a good look at this table and see if you are able to find other repeating ranges.
Hint: Fractions and multiple of certain numbers are worth paying attention to.
Date
Top/Bottom
29/12/2005
Top
Price
347.00
Price Move
45.75
18/01/2006
Bottom
321.50
-25.50
9/02/2006
Top
365.00
43.50
14/02/2006
Bottom
342.75
-22.25
28/02/2006
Top
390.50
47.75
28/03/2006
Bottom
338.50
-52.00
23/05/2006
Top
433.00
94.50
16/06/2006
Bottom
358.00
-75.00
21/06/2006
Top
393.50
35.50
26/06/2006
Bottom
379.00
-14.50
11/07/2006
Top
417.00
38.00
26/07/2006
Bottom
380.00
-37.00
3/08/2006
Top
405.50
25.50
14/08/2006
Bottom
369.75
-35.75
5/09/2006
Top
429.00
59.25
15/09/2006
Bottom
387.50
-41.50
17/10/2006
Top
557.00
169.50
23/10/2006
Bottom
499.00
-58.00
25/10/2006
Top
541.00
42.00
14/11/2006
Bottom
470.00
-71.00
27/11/2006
Top
528.00
58.00
13/12/2006
Bottom
478.50
-49.50
26/12/2006
Top
521.50
43.00
10/01/2007
Bottom
447.50
-74.00
26/02/2007
Top
509.00
61.50
2/04/2007
Bottom
412.00
-97.00
26/04/2007
Top
530.00
118.00
22/05/2007
Bottom
468.00
-62.00
29/06/2007
Top
650.00
182.00
3/07/2007
Bottom
574.00
-76.00
26/07/2007
Top
664.00
90.00
1/08/2007
Bottom
620.00
-44.00
28/09/2007
Top
961.75
341.75
16/10/2007
Bottom
810.00
-151.75
23/10/2007
Top
875.00
65.00
5/11/2007
Bottom
770.50
-104.50
7/11/2007
Top
808.00
37.50
14/11/2007
Bottom
744.00
-64.00
17/12/2007
Top
1009.50
265.50
10/01/2008
Bottom
879.00
-130.50
11/02/2008
Top
1153.00
274.00
13/02/2008
Bottom
983.00
-170.00
27/02/2008
Top
1349.50
366.50
11/04/2008
Bottom
885.00
-464.50
17/04/2008
Top
960.00
75.00
1/05/2008
Bottom
777.00
-183.00
8/05/2008
Top
844.00
67.00
15/05/2008
Bottom
749.00
-95.00
20/05/2008
Top
809.50
60.50
29/05/2008
Bottom
731.00
-78.50
18/06/2008
Top
913.00
182.00
23/06/2008
Bottom
843.00
-70.00
27/06/2008
Top
956.00
113.00
5/08/2008
Bottom
749.00
-207.00
21/08/2008
Top
959.50
210.50
24/10/2008
Bottom
503.00
-456.50
4/11/2008
Top
586.00
83.00
21/11/2008
Bottom
497.50
-88.50
28/11/2008
Top
565.00
67.50
5/12/2008
Bottom
471.00
-94.00
6/01/2009
Top
645.00
174.00
4/02/2009
Bottom
539.00
-106.00
9/02/2009
Top
577.00
38.00
3/03/2009
Bottom
499.00
-78.00
23/03/2009
Top
561.00
62.00
30/03/2009
Bottom
501.00
-60.00
6/04/2009
Top
567.00
66.00
20/04/2009
Bottom
502.00
-65.00
13/05/2009
Top
598.00
96.00
18/05/2009
Bottom
573.00
-25.00
1/06/2009
Top
676.00
103.00
30/06/2009
Bottom
498.00
-178.00
We will give you the answers in the next lesson.

What we discussed in this lesson is the repetitive nature of markets from the price perspective. When you
get to notice these repetitions, you can (and will) time your entry and exit based on these repeating cycles.
It is a bit like getting to know someone very well and being able to determine what they will do next.
In closing lets finish with an inspirational quote from the master himself, W.D Gann, from the
introduction of How to Make Profits on Commodities: If I were not thoroughly convinced by actual
experience, that money can be made trading commodity futures, I would not write this book. I have made
a success in the business, and I know that anyone else can make a success, if they follow the rules.
See you at the next lesson...

History Repeats: Date Top/Bottom Price Price Move

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History Repeats: Date Top/Bottom Price Price Move

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HISTORY REPEATS

We will give you the answers in the next lesson.

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