ALTERNATING CYCLES

Scroll down for examples of past alternating Gann cycles in the SP 500 lower on the page. 

W. D. Gann used several types of cycles in his trading and analysis. First, he used ‘magic,’ or static cycles, that repeated in measured moves of time, volume, and price. Next, there were the ‘trend machine,’ cycles, or cycles in trend from Gann’s ‘Arcana.’ Finally, W. D. Gann’s “up & down” alternating cycles from “The Tunnel Thru The Air” get the most following as the “unicorns” or Holy Grails of cycles. This page was created to explain and showcase our technique for projecting these alternating cycles in advance using Gann’s Law Of Vibration. Follow links below for examples of all OTHER types of cycles taught in our “W. D. GANN: MAGIC IN THE MARKETS” Training…

Lunar cycles of WD Gann

 

Gann’s ‘Arcana’ Trend Cycles.                         

Gann’s Period Cycle on the SP 500 intraday

 

 

Breaking down types of cycles further, within alternating cycles there are two distinct types: Cycles of Repetition (COR), and Cycles of Progression. Cycles of Progression stem from the Law of Vibration. These are the ones we prefer. Their method is harder to discover, but their application is more consistent and precise. 

Alternating cycles alternate in legs that go up-down-up-down, etc. Up always follows down and down always follows up. The green cycle lengths in the examples below are ‘up’ cycle legs, and the red denote ‘down’ legs. After the cycle turns up, there should be higher-highs and higher-lows after the cycle turn, as well as a significant up move in price past the price at the time the cycle began. After the cycle turns down, the opposite should be true. The cycle turns do not promise to mark the exact high or low of the period, and are less than a guarantee that the price will not make a move against the trend direction during that cycle period.

We have a very, if not overly, strict test for these cycle lengths. For instance, in the case of an “up” cycle length, we demand that the price at the very end of the cycle leg should be higher than price at the very beginning. And the opposite for down-cycle lengths. The yellow cycle lengths marked in the examples below denote cycle lengths where that test failed. Even though these failures are few and far between, during these legs the price often makes a significant move in the desired direction in the majority of these cases. In other instances, the price remains close to flat at the end.

When you have an accurate alternating cycle of progression, the sequence of the alternation does not change when the market fails (frequently referred to as an inversion.) The market failure does not change the alternation of the cycle. As Luther Jensen pointed out in his ACSM book, unforeseen news has the power to cause market action to fail a cyclical move. So true “up/down” alternating market cycles should fail between 8 and 15% of the time. In the monthly lunar cycles, at least a third of those occurrences are predicted failures and in reality a trader would have profited off another third of the legs where the market moved significantly in the predicted direction before failing at the end of the cycle.

The bottom line on these cycles is that Gann used them as a tool for confirmation and confluence. Gann used alternating cycles as places to enter and exit when trading with the Arcana and other techniques, instead of buying and holding until each cycle leg ended. Gann devoted a smaller amount of written material to these cycles than other techniques. Those trying to trade this technique as a stand-alone system will see frustration.

All the examples of alternating cycles below are taught in entirety in our “W.D. GANN: MAGIC IN THE MARKETS” Training. They are drawn out in advance. Included below are monthly lunar cycles, W. D. Gann’s annual cycle, and the most recent occurrence of the “Robert Gordon’s 7 Days” cycle from one of the last chapters in ‘The Tunnel Thru The Air.’ Not every lunar cycle for each year is shown. Source of charts: Wave59.

 

‘ROBERT GORDON’S 7 DAYS’ CYCLE FROM ‘TUNNEL THRU THE AIR’ (2015 – PRESENT)
2017, 2018, 2019, 2020 ANNUAL ALTERNATING CYCLES

See the gallery below for W. D. Gann’s Annual Cycles on a daily chart for the last 4 years. Of note was the “message to the Fed” pattern that began October 3rd of 2018. This was the same “fall for no apparent reason” that we ran into in August 2015. Same environment- the FED threatening to raise and the market yelling at them, “Don’t you dare or we’ll do this!” Suring this pattern the annual cycles saw the failure of two legs in a row. Very rare, but it denotes market manipulation against natural law. Not bad, 89% of the cycle legs succeeded in predicting direction.

1st LUNAR CYCLE 2018
2nd LUNAR CYCLE 2018
3rd LUNAR CYCLE 2018
 

 

1st LUNAR CYCLE 2017
2nd LUNAR CYCLE 2017
3rd LUNAR CYCLE 2017
4th LUNAR CYCLE 2017
5th LUNAR CYCLE 2017
6th LUNAR CYCLE 2017
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