Johannes Sundberg - The Secret Science of Squaring - Contents
W. D. Gann’s Lost System of Astro-Geometric Market Forecasting
...revealing Gann's best hidden secrets on how to Square Price and Time
By Johannes Sundberg
TABLE OF CONTENTS
Publisher’s Preface
Descriptive Contents
Biography
Introduction
Foreword – My Background and Journey
1 Important Geometrical Angles
2 How Our Truths Are Formed
3 Forecasting by Time Cycles
4 The Origin of Cycles – The Birth Chart
5 The Origin of Religion
6 Astrology or Natural Law?
7 Square the High, Low, Range and Time
8 Support and Resistance
9 Currencies
10 Masonic Mathematics
11 What Did He Mean with Squares Anyway?
12 Squaring Angles into Price
13 Geometrical Angles
14 Putting It All Together
15 Follow His Tracks Backwards
16 The Square of Nine
17 Triangles
18 The Circle
19 The Means
20 The Tunnel Thru the Air
21 Adjustments to Make It Even More Precise
22 Time Tells the Price
23 Getting Organized
24 Postlude and Final Words
Appendix 1: The Ticker and Investment Digest
Volume 5, Number 2, December 1909
Appendix 2: The Basis of My Forecasting Method
Geometric Angles by W. D. Gann
DESCRIPTIVE CONTENTS
Foreword – My Background and Journey
This is an introduction to Gann analysis as viewed from my horizon. You will follow my journey from my first high school attempts with technical analysis to where I am today. I go through the fallacies of modern academic finance theory which claims that the markets are a random walk. As you shall soon discover, they are certainly not.
1 – Important Geometrical Angles
This is very basic stuff. If you are not previously familiar with Gann and his methods this is a must-read chapter which lays the foundation of the whole book.
2 – How Our Truths Are Formed
Learning Gann is not overly complicated, quite the opposite, it is quite easy once you understand it. The challenge we have is to return to the perspective of an innocent child and view the world with novel eyes. In order to fully understand Gann, you will have to get rid of any preconceptions you may have.
If you have read finance at a university level, this might be even harder, since the students are told that it is impossible to forecast the market. This concept of “random walk” also supports the investment bank and mutual fund industry quite well, which has created a strong “thoughtform” in society. The challenge is to get rid of past convictions that stand in the way and prevent you from seeing clearly.
In order to better understand Gann, we will take help from one of the other great minds of that time: Carl Gustaf Jung. C.G. Jung introduced a couple of concepts that will be extremely useful and helpful when we try to decipher the mysteries of W.D. Gann: “The Collective Unconscious mind” and “Synchronicity”.
It is impossible to explain why Gann’s methods actually work through traditional scientific reasoning. No matter if we try to explain it with “energy waves” in the “ether” or something else, we will be stuck with the feeling of a weak understanding which is not beneficial for us.
C.G. Jung, however, gives us the right tools to build a solid and understandable model. With this foundation in place, it is so much easier for your subconscious mind to start to accept the truths that will be presented and not just reject them.
3 - Forecasting by Time Cycles
In this chapter we will go through how the heavenly bodies correlate with the movement of the markets. I will show you evidence of the influence of the heavenly bodies but will also prove why these methods could not have been the real cutting-edge tools of W.D. Gann since they produce quite inconsistent results. These kind of theories and teachings are quite common in the Gann and astrofinance community. I want to show you where the weaknesses are in order to get you back on the right path.
4 - The Origin of Cycles– The Birth Chart
Where do cycles come from? Where do they start? Here I will show you how to find the starting points of cycles and how they set the tone for a lifetime for the financial assets you are following. I will once again show you that this could not have been the real method of W.D. Gann even if some practitioners claim so.
5 - The Origin of Religion
In this odd chapter I will show you how the teachings of time cycles were incorporated into the holy texts of the ancients. W.D. Gann often claimed that he found his secrets in the Holy Bible. While this may be perfectly true, it is not the only source of this knowledge. Even the “primitive Vikings” of Iceland incorporated cycles into their sagas and myths.
6 – Astrology or Natural Law?
Did Gann use astrology? It is difficult to give a straight answer to that question. It is beyond doubt clear that he used the planets for timing purposes, but not in the way that a traditional astrologer does. Gann found another connection between price levels and the position of the stars.
7 - Square the High, Low, Range and Time
Now it is time roll up our sleeves and start to get to the core of Gann. In this chapter I present some of his simpler but very powerful and robust methods. Many Gann followers have heard about “square the top, low and range” but now you will finally see how it was really done and the difference between this and the usual hit or miss approach is incredible!
8 - Support and Resistance
At first glance this might not look like the most exciting chapter, but I urge you to study it and contemplate it carefully. It will help you a lot with integrating the ideas presented in this book. There is a very good reason why certain price levels will act as support and resistance levels, and these are predetermined since the start of time. I will show you how to create a “Permanent Support and Resistance Chart” that can be used for both trading purposes but also for fine tuning your analysis. It is not Fibonacci or the Square of Nine.
9 - Currencies
Currencies can be a bit special since their prices can be something like 1.1026. How do we treat these decimal numbers? There are some very simple and elegant solutions to this, and I will show you how to do it.
10 - Masonic Mathematics
Gann was a Freemason. I will walk you through some of the symbolism found in the Masonic Lodge and you will be surprised to see how many of Gann’s secrets can be found in this room. I do not think many, if any, of today’s Masonic brothers are aware of this and reading this chapter would certainly enrich their journey as a Mason. It is, of course, impossible to tell to what extent Gann derived his insights from Freemasonry, but the symbolism must certainly have inspired him and strengthened his conviction.
11 - What Did He Mean with Squares Anyway?
This is probably the chapter you have been searching for your whole life in the hunt for Gann’s secrets. This was the idea that came to me out of “heavenly inspiration” many years ago and that I have guarded carefully until now.
When you read this chapter, the missing pieces will finally fall into place, and you will feel a great relief. Finally, you will understand how cleverly Gann was able to code his real secrets into his texts in a way that no one could find.
The next time you read a text written by W.D. Gann, everything will be much clearer. This chapter alone is worth many times the price of this book!
12 - Squaring Angles into Price
In this chapter we expand the concept of the “Permanent Support and Resistance Chart” with our latest findings. The text is not so “fancy,” but extremely important in order to give you an understanding about how time and price align with each other in various ways.
13 - Geometrical Angles
So called “Gann Angles” are quite popular but mostly misunderstood. There is no need to “square your chart” if you learn the proper way to draw them. I will show you how this principle is the origin of all technical trend lines. Instead of connecting tops and bottoms with a straight line these geometrical trend lines can be projected years into the future even before the second top or bottom is formed. I will show you how you can choose the right set of angles from just looking at the date and price of a major high or low. No need for guesswork anymore.
14 - Putting it All Together
The insights presented in this chapter are some of the most powerful in the book. For some of you this will give you the “Eureka moment” you have long searched for. Most Gann analysts focus on the time component since W.D. Gann stated that time is more important than price. Others focus on price, like divisions of 8 or different master grids. The truth is they are both interdependent and need each other.
The real power lies in combining these two, and we will walk through how that is done. This is how we can sort out the good trades from the mediocre ones. This is how we can get rid of the “orb of influence”, or any other guess work needed. This is the method that gives us the opportunity to enter trades with extremely tight stops which will vastly improve our win/loss ratios.
This where you will learn how Gann could make such bold calls as: “I am sure xxx will not reach zzz before it has a good break”.This is the chapter that will let you take high-reward low-risk trades that will pay you back many times the cost of this book.
15 - Follow His Track Backwards
One of Gann’s most famous quotes is,“The ancient hunters had a rule when they were searching to locate an animal in his den, they always followed it tracks backward, figuring that it was the shortest route to his lair. The quickest way for you to learn how to determine future market movements is to study the past”.
In this chapter I will show you how to follow the track of an animal back to its den. It will also clarify the use of Gann angles and sort out some things that could otherwise become a trap for you.
16 - The Square of Nine
There are many books written about the Square of Nine and although it is not my “Go to-method” I will show you some applications that I have found useful.
17 - Triangles
So far in the book I have shown that “squares” are extremely powerful, and it is now time to expand the concept to other geometrical figures like the triangle. The good thing about triangles is that they follow certain laws like “if you know two pieces you can calculate the third”. Since we always have a time and a price, we can use them to calculate a third product.I bet you have never read anything like this before!No, it is not what people know as a price-time vector.
18 - The Circle
Since we are now diving into geometrical shapes, we can’t ignore the circle that will be shown to be very powerful when it comes to forecasting the markets too.
19 – The Means
Means are another fundamental part of geometry, and I will show you how the markets obey these too.
20 – The Tunnel thru the Air
In this chapter we will touch upon Gann’s famous bookThe Tunnel thru the Airand analyze Robert Gordon’s campaign in “Major Motors” with the methods we have learned so far in this book. When we apply the methods we have learned so far, we are able to “decode” the swings of Major Motors and Mr. Gordon’s campaign.
21 - Fine Tuning to Make It Even More Precise
This chapter might seem a bit unnecessary since the methods you have learned so far are probably the most accurate you have ever seen. However, since I have always strived for perfection when it comes to Gann, I could not stop the quest until every fine little detail was in place. I have refused to believe in “orbs of influence” or any other excuses. Gann was able to pinpoint the highs and lows with astonishing accuracy, so must we if we claim to have uncovered his secrets.
I finally found a way to fine tune things even further to ultimate perfection. If you have wondered what we should do with the permanent support and resistance charts, it is now time to wipe off the dust and put them to use. Gann stressed the importance of finding “the right starting point” and in this chapter I will show you how that is done.
22 - Time Tells the Price
This chapter presents some mind-blowing ideas. Even the novice Gann analyst pretty soon discovers that price creates time cycles. Now we will flip that concept around and I will show you how time cycles project support and resistance points. This kind of flip flopping between time and price is a major Key to really understanding Gann, and when you think about the connection to the work of C.G. Jung, you will understand why this actually works.
23 - Getting Organized
There is a lot of information to take in from this book. In order to put it into practical use and not just enjoy the feeling of being an armchair trader, I strongly encourage you to start to work in a well-organized and prepared way. I want to show you a few helpful tips about how to accomplish this.
24 -Postlude and Final Words
Some final words and conclusion from this exciting and wonderful journey that I am glad you wanted to share with me.
Appendix 1 - Ticker and Investment Digest, Volume 5, Number 2, December 1909
Appendix 2 - The Basis of My Forecasting Method – Geometric Angles by W. D. Gann
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When I was able to get an early copy of Alex’s 3rd book ‘Music of the Spheres’ I was stunned by the amount and quality of the information he provides. Alex ties together astronomy, music, and correct scaling to provide a glimpse inside the market’s true structure. He clarifies the work W D Gann did a hundred years ago and then brings that work into the modern world where we can adjust scales and track planets with a click of a mouse button.
Mr. Straker is also a gifted and willing mentor if someone wishes to accelerate their learning curve with some one to one work with him.
I have read many books in 30 years of market study and was fortunate to be able to spend hours looking over the W. D. Gann archives in Nikki Jones' possession. I believe Alexander Straker has written material that will go down in history as the truly definitive work on understanding W D Gann. He also has shown how the original Gann methods can be expressed in greater detail with the use of computer chart programs.
Ken Gerber Lambert-Gann Educators, Creator of Natural Squares Calculator
Lorrie has a profound gift of seeing patterns and of perceiving the underlying order within whatever subject she directs her attention towards. Additionally, she has the gift of perceiving not only what is truly being said, but more importantly, what is not. She has taken on the works of W. D. Gann and Dr. Jerome Baumring in a total immersion. Her tenacity, will, and energy have been the sails, the current, and the wind of her voyage through the illusory and sometimes rocky waters of W. D. Gann.
Kenneth Macht
Alex has shared a tremendous amount of knowledge invaluable to Gann students and traders. It is apparent that Alex has studied market behaviour with a great deal of enthusiasm for many years, and given considerable thought to distilling the essence of past and current masters to come up with his own unique theory about how it all fits together around the golden mean. His generosity in sharing his insights is only matched by the number of pages in this insightful volume!
I've covered a lot of material in many years of research, but never have I come across insights which more clearly point to an underlying mathematical structure to price markets which become discernible through proper scaling. Alex's scaling methods and insights are the best I've come across, particularly his angle-based approach. I'm sure that any serious student of Gann would be impressed with the unique insights generously shared by Alex and would find return for their investment in the scaling methodology alone.