The Golden Methods of W.D.Gann
Expert: David Burton, CEO & Founder of School of Gann
Start: February 14, 2006 - 07:30GMT
End: approx. 08:30GMT
Topics that will be covered for above session are:
- The long term cycles in Gold
- Gold in a bull market?
- The British Pound
- Debt clock
Who is David Burton?
DAVID BURTON has been studying and trading the methods of the most famous trader of all time, W.D.Gann.Gann was a financial astrology up until his death in 1955. David has been studying astrology since 1980, not modern day astrology, the astrology of the ancients. David uses both helio-centric and geo-centric in his studies. In June 2002 on Gann’s birthday David ran the first four day workshop teaching the methods of Gann. Only running a few workshops a year to a limited number, he discovered that the basis, chart reading, money management,seasonal patterns etc were not under stood even by people that have been trading for a number of years,this lead to the home study course for the beginner completed in march 2005. To understand the methods of Gann you have to have a strong foundation otherwise you will never keep your money. David hasjust set up a new website THE SCHOOL OF GANN to keep Gann’s methods alive, hoping that people will study Gann and enjoy the journey and success David has had with Gann. David publicly forecasted in advance the 130 high in cotton in 1995, the 737 high in wheat in 1996, the major low in cotton in 2001as well as many others which are on his website www.schoolofgann.com
The Golden Methods of W.D.Gann
The method of W.D.Gann is always to study history to forecast the future outcome. “The future is just a repetition of the past” W.D.Gann. Gann is the only person that when so far back in history to study cycles on different markets. People’s life structure is not even close to Gann’s to put in the amount of study he did. He had commitment and passion to study cycles. This is what you need to success in anything in life.
The long term cycles in Gold
The Bank of England was incorporated on 27th July 1694 and began to exert a steadying influence on the price of gold for the next 234 years.
The Gold standard was first established in 1717, but didn’t become official until the Peels Act of 1819.
The highest price Gold hit was $19,390-00 on 31st May 1781 when the continental currencies collapsed. This is where the saying comes from “I don’t give a continental”.
Other high prices were on 1st July, 1864 at $59-12, 24th September 1869 at $33-49.
The US abandoned the gold standard on 15th August, 1971 and Gold rose for 9 years to $850-00 an ounce on 21st January, 1980.
Gold fell to an extreme low on 15th July, 1999 of $253-30 and a slightly higher low on 2nd April, 2001 at $255-90 an ounce.
We will now look at some of these dates astrologically to have a road map for the future, which is what Gann would have done.
The Bank of England has a sun conjunct Jupiter in Leo. Leo represents the Sun and Gold. Mercury is in the Leo trine Saturn. Primary interest would have been trading in Gold. Pluto is in Leo, Pluto, is anything underground, again looking at Gold as prime interest of the bank. Based on this chart we have Saturn (restrictions) conjunct Jupiter (Expansions) Sun (Gold) in February and March 2006.
This is likely to keep a lid on Gold after a period gold is likely to keep going higher until 2009 when Uranus conjuncts Neptune in this chart. This fits in with the $U.S getting weaker. Also fits in with the story on u.s debt and bonds in the last issue of “Your trading edge”
Major structure changes to this Bank in 2022 and 2024 when Neptune returns to its own place and Pluto is opposite its place of birth. This fits in with the end of the depression which should be more than a decade long. Companies and people always go broke at a bottom. Again Australia will have no debt by June 2006 and this would be the safest place to have your cash.
Gold in a bull market?
Gann said “Your monthly chart is your trend indicator”, its has been making higher tops and higher bottoms since the low in August 1999. (Bullish). Since the second higher bottom it has only corrected two months on the way up. Therefore unless it corrects more than two months the trend is still up.
Gann divided the market into eights and thirds. Eights are very important both time and price. Why? because all the eights of a circle reduce to the number nine. Nine being the highest digit. This is why Gann used the square of nine, the old Hindu tea calculator. If you add all the numbers from 1 to 9 they equal 45, Gann’s death number. Getting back to gold, it needs to break the 50% level at $475.00 Per/once to be really bullish. 50% equals 180 degrees and 1+8+0 = 9.
The 2 x 1 Gann angle crosses around the $475 level as well giving a doubly strong level to get through. Once above the level it could go anywhere $1600 or higher?
The all time high in Gold 31st May 1781
In this chart Jupiter is in Scorpio, Scorpio being death, debt and taxes, which occurs at the same place again in October 2006 this happens ever twelve years so it’s only a small cycle, transiting Pluto squares Neptune in 2009 indicating higher prices, this happens approx every 130 years.
The most recent high made on 21st January 1980 at $850
Saturn will return to its same position in 2009 and Uranus in 2022, both look at high price years for Gold.
Should you buy currencies or Gold? Over the last 10 years central banks have been selling all their Gold. The main reason would be that there’s a holding cost to physical gold (storage and insurance) , where if you had currencies other than the $US you have been receiving interest providing the interest rates have been higher than the US interest rates, which in most currencies they have.
Also the currencies have appreciated against the US since 2001.
People in the US who switched their money to the pound, New Zealand and Australian Dollars made a fortune. I heard Bill Gates was buying property in New Zealand when the $N.Z was below 40 cents, it now over 70 cents and property has doubled and tripled. This is exactly the sort of thing Gann would be doing if he was alive today. Those who bought property in these countries and sold at the top of the property boom (Saturn in Cancer) a few years ago even made more money.
The British Pound
The pound top in 1864 at 12-97 pounds and fell to an all time low of 1-034 pounds in 1985, a hundred and 121 year bear market (Gann’s 1/3 of circle). See chart 4 Yearly British Pound 1864 – 2005.
The Pound has turned Bullish breaking the 2 x 1 Gann angle coming down from the high of 7-00 pounds in 1914, this broke this angle to the topside giving a buy in 2002 at 1-50 pounds.
The 4 x 1 Gann angle from the same high, and 2 x 1 Gann angle from 1864 high cross a 4-50 in 2009/2010. The 1 x 1 Gann angle from the 1985 low also hits that area.
If someone was wanting to buy gold you would get more leverage by buying futures than buying physical gold. With currencies you now can trade spot currencies, something you could do ten years ago.
You now have a very small insight to why Gann went so far back in history. This is the correct way to look at Gann, not what everyone else is teaching.
FXstreet Moderator (Feb 14, 2006 2:27:55 AM)
Thank you for joining today’s Live Q&A Session. We will begin with the pre-registered users’ Questions in approximately 5 minutes. Meanwhile please read the text speech that you will find on the left of this chat window
FXstreet Moderator (Feb 14, 2006 2:28:09 AM)
Thank you for your participation.
FXstreet Moderator (Feb 14, 2006 2:28:21 AM)
Please find the whole speech of our guest in the left box of the chat. Be sure to read the whole speech at once without any interruption, making its reading and comprehension easy. You won’t miss a single thing from our guest host.
FXstreet Moderator (Feb 14, 2006 2:28:40 AM)
Our guest host will first start answering a selection of the pre-registered user’s questions
FXstreet Moderator (Feb 14, 2006 2:30:20 AM)
For those who are unfamiliar with chat sessions like this, please feel free to ask questions at anytime to the moderator.
FXstreet Moderator (Feb 14, 2006 2:30:47 AM)
Today I am delighted to welcome our brand new guest speaker David Burton, CEO & Founder of School of Gann
FXstreet Moderator (Feb 14, 2006 2:31:18 AM)
DAVID BURTON has been studying and trading the methods of the most famous trader of all time, W.D.Gann.Gann was a financial astrology up until his death in 1955. David has been studying astrology since 1980, not modern day astrology, the astrology of the ancients. David uses both helio-centric and geo-centric in his studies. In June 2002 on Gann’s birthday David ran the first four day workshop teaching the methods of Gann.
David Burton (Feb 14, 2006 2:32:46 AM)
Hello, well i started study gann in 1983 and nearly gave up a few times as many of you would know he was a very complex man
David Burton (Feb 14, 2006 2:33:30 AM)
It took me over ten years of full time study to put the pieces together
David Burton (Feb 14, 2006 2:36:02 AM)
I dont trade short term as its very difficuilt in australia as the market starts about mid-night here and i like my sleep. I do as gann suggest which is to trade 3 to 4 times a year per commodity
David Burton (Feb 14, 2006 2:37:30 AM)
The most important think about making money is keeping it.Theres no point trading if you arent going to save.You must have good money management.
FXstreet Moderator (Feb 14, 2006 2:38:25 AM)
Thank you David for that intro..
FXstreet Moderator (Feb 14, 2006 2:38:49 AM)
Some questions came in during the week lets get right to them
FXstreet Moderator (Feb 14, 2006 2:39:00 AM)
Meanwhile please start posting your questions Live for David
FXstreet Moderator (Feb 14, 2006 2:39:36 AM)
Q1: I draw trend line in 1day and when i go to chart 4 hour or less i found my trend line is changed why? sorry for may bad language arashgh76
FXstreet Moderator (Feb 14, 2006 2:39:50 AM)
A: Because you have a different scale.
FXstreet Moderator (Feb 14, 2006 2:40:25 AM)
Q2: How do you know when to pull- the- trigger A :This comes from the lack of knowledge.dont trade you have to much fear
FXstreet Moderator (Feb 14, 2006 2:40:49 AM)
Q3: Which planets are "responsible" for the long and short term cycle(s) in Gold? A : All planets rule the markets at different times tlinssen
FXstreet Moderator (Feb 14, 2006 2:41:30 AM)
Q4: what is the future of gold ? is it in a super bullish mode? is it going to touch $1000 in 2007.?
FXstreet Moderator (Feb 14, 2006 2:41:40 AM)
Look for gold to go up to well past 2010, but lows this year could be around the $480 mark
FXstreet Moderator (Feb 14, 2006 2:42:07 AM)
Q5 : Hi David, l noticed the the recent top was 10 years to the day from ´96 high, 29.5 years from the ´76 low, would you consider these periods as significant to this trend?
FXstreet Moderator (Feb 14, 2006 2:42:16 AM)
Yes , but I prefer to use the long term cycles for the trend rather than the 10 year
FXstreet Moderator (Feb 14, 2006 2:43:02 AM)
Q6:Where do you go to find out what planets are affecting us at any given time?
FXstreet Moderator (Feb 14, 2006 2:43:17 AM)
Everyone is different, you need to have your chart done by a good astrologer
FXstreet Moderator (Feb 14, 2006 2:43:38 AM)
Q7 : I am a short term trader (not day trader) also holding long term investments. 10) Is it correct to always enter a trade using Gann´s swing chart. Gann didn’t use them , there were for the beginners in trading.But if you have done any study of gann then there are good.
FXstreet Moderator (Feb 14, 2006 2:44:09 AM)
Q8 :How should I use Time to complement price and confirm an appropriate entry point ? You need to hand draw gann charts and run all his cycles
FXstreet Moderator (Feb 14, 2006 2:44:37 AM)
Q8: I feel comfortable using the square of a range and accept the validity of the various pressure points so formed but I cannot get any value from time cycles / squares (except perhaps the first square). Can you help me please ? With Gann you have to use the right parts in the right order, you are asking me to explain a weeks work here.
FXstreet Moderator (Feb 14, 2006 2:44:55 AM)
Q9: are the gold cycles influenced by heliocentric in terms of astrology? Gann use both helio and geo.He also had his own system of astrology which he coded in tunnel thru the air.The answers yes.
FXstreet Moderator (Feb 14, 2006 2:45:27 AM)
Q10: in your opinion do you think the US debt level will worsen over the next 5 years? Much worse, the us will become like a third world country by 2016, I would be looking to sell up and move out.
FXstreet Moderator (Feb 14, 2006 2:46:23 AM)
Om Thank you David for those answers let begin on Live questions Please start posting your questions now..
Kal (Feb 14, 2006 2:47:11 AM)
Do you need a natal chart for trading, or can you use current transit to transit charts?
David Burton (Feb 14, 2006 2:48:35 AM)
No because makets moved up and down before man natal charts were around.Cash wheat has been trading since 1259 and gann charted it
Fred (Feb 14, 2006 2:49:55 AM)
How much more retracement are we likely to see in the next couple of weeks?
David Burton (Feb 14, 2006 2:50:42 AM)
i guess you mean gold. Gann said always go with the trend. The next number is 520
David Burton (Feb 14, 2006 2:51:07 AM)
520 , gann square of 52
Mike (Feb 14, 2006 2:51:48 AM)
I am 70 years of age, should I give pu now?
David Burton (Feb 14, 2006 2:52:31 AM)
No never give up. you will live to 100 and you will be sorry.Only losers give up
jjensen (Feb 14, 2006 2:53:01 AM)
so it sounds like Gann charted historical data as far back as he could, then looked at what was happening astrolocially to determine what influences affected price. Is this correct?
David Burton (Feb 14, 2006 2:53:49 AM)
Yes, gann wont work unless you have long term data.I do not trade any thing under 30 years of data.
Kal (Feb 14, 2006 2:54:12 AM)
Can you explain a little more about the type of astrology that you used?
David Burton (Feb 14, 2006 2:55:28 AM)
He used hebrew in a lot of his work. You can tell this by the coding in "tunnel thru the air" The last date in the book is the 30th August 1932, and eclipse cycle
Fred (Feb 14, 2006 2:56:22 AM)
Thanks. And how far would the next leg up would be from 520.
David Burton (Feb 14, 2006 2:57:21 AM)
Not far, because i think we have to see $480 before we go to new highs.I would own us $ after june
jjensen (Feb 14, 2006 2:57:55 AM)
it looks like Gann charted historical data as far back as he could, then looked at astrological data to see how it affects the market. Is this correct?
David Burton (Feb 14, 2006 2:58:19 AM)
yes, way back in history
joe77199 (Feb 14, 2006 2:58:43 AM)
what kind of charting software can one use to apply this strategy?
David Burton (Feb 14, 2006 3:00:39 AM)
You have to be careful with software programs as they dont do gann correctly.I use hand charts.I use software only to look at daily, but dont trade off it. There a software link on my site
jjensen (Feb 14, 2006 3:01:15 AM)
>From a currency trading standpoint, the Swiss franc is tied closely to gold. it should make sense that US$ and Swiss franc echange rates would follow gold prices. or is this reading to much in?
David Burton (Feb 14, 2006 3:02:31 AM)
Best is to do spread charts between gold and the swiss franc and apply all the gann rules. I think the more work you do on something the better feel you get for it
niels (Feb 14, 2006 3:04:26 AM)
I just want to check if I am reading your speech correctly: was the price of gold $19,390 per oz on 31st May 1781?
David Burton (Feb 14, 2006 3:05:57 AM)
yes thats correct. The way the us is going it going to go broke.Gann didnt believe in debt.The us debt clock has an interest bill of 1.4 million a minute and climbing.
Fred (Feb 14, 2006 3:06:24 AM)
Dear David, was it that you would not own $US after june becuase GOLD goign up and $us going down?
David Burton (Feb 14, 2006 3:08:04 AM)
I would own gold, or another currency, the $A or country has zero debt after june this year as the government has paid all debt off.My answer are short as im a slow typer.I would rather talk
David Burton (Feb 14, 2006 3:10:37 AM)
You can download gann articles from my website i have written for free.just register and go to free articles. www.schoolofgann.com
FXstreet Moderator (Feb 14, 2006 3:11:53 AM)
Well that all we have time for Today
FXstreet Moderator (Feb 14, 2006 3:12:07 AM)
Thank you for attending and posting your questions
FXstreet Moderator (Feb 14, 2006 3:12:17 AM)
Thank you David for hosting Todays session
FXstreet Moderator (Feb 14, 2006 3:12:40 AM)
If your question was not answered during the course of this chat, please contact David Burton
FXstreet Moderator (Feb 14, 2006 3:13:34 AM)
Some good new I am pleased to announce that the full transcripts are back for all who would like to enjoy their contents. Please check out our new web blog and post comments and make it a interesting educational place for traders to meet.
FXstreet Moderator (Feb 14, 2006 3:14:02 AM)
Transcripts : http://www.fxstreet.com/chat/transcriptlist.asp (In 1 hour approx)
David Burton (Feb 14, 2006 3:14:35 AM)
Thankyou for being here today. A good book to buy is "How to make profits in commodities" by W.D.Gann.You can contact me through my web site
FXstreet Moderator (Feb 14, 2006 3:15:44 AM)
Join us later Today at 15GMT for another Q&A Session: Technical Viewpoint of the EUR/USD Expert: Justin Strausbaugh, Currency Analyst of CMC Markets Start: February 14, 2006 - 15:00GMT 10EST
FXstreet Moderator (Feb 14, 2006 3:16:39 AM)
You can register here at this link : http://www.fxstreet.com/chat/chatsession.asp?id=261
FXstreet Moderator (Feb 14, 2006 3:16:55 AM)
FEEDBACK: I cannot stress how important feedback is for the continued success of our Live Q&A sessions. PLease email me any suggestions you may have topics for speakers anything that can make these sessions better and more enjoyable for all who attend. In order for us to continue providing informative and educational Q&A Sessions, feedback is vital. Please feel free to post feedback about today's session, topic ideas, & suggestions. We would appreciate this very much. I will be logged on for a while. firstname.lastname@example.org