Law of Vibration by W.D. Gann (Part 3)
Faith or Mystery? The Law of Vibration is not a science but a concept that Gann discovered that is applicable to anything moves. In this piece, final part of the Law
This article is part of a series that you can read within the Evergreen section. This is the third and final part and is one of the most important and fascinating accounts of W.D. Gann's techniques and discoveries. Enjoy your reading!
As the examples from Ticker interview show, around 1909 Gann was employing his Law of Vibration to precisely forecast stock and commodity prices up to several months forward. However starting around 1915, Gann produced and sold annual forecasts of the stock and commodity markets. Although Gann produced these annual forecasts up to his death in 1955, relatively few survive. Nevertheless, from the surviving annual forecasts, it appears that Gann produced them in exactly the same way as he had produced his earlier shorter-term forecasts; namely based on the Law of Vibration.
Gann’s Annual Forecasts
One particularly accurate annual forecast was Gann’s 1929 stock market forecast. In summary, the forecast was completed and distributed on November 23, 1928, and included a description of the general outlook for 1929. This year occurs in a cycle that shows the ending of the bull market and beginning of a prolonged bear campaign. Fact that it has run longer and prices have advanced to such abnormal heights means when the decline sets in it must be in proportion to the advance. The year 1929 will witness some sharp, severe panicky declines in many high-priced stocks. A projected graph or chart of the Dow Jones Industrial Average forecasts this index would peak on August 7, 1929, and then starts a major downtrend for the rest of the year.
A projected graph or chart of the Dow Jones Railroad Average forecasts this index would peak on August 8 or 9, 1929, and then start a major downtrend for the rest of the year. Although it should be noted that Dow Jones Industrial Average and Dow Jones Railroad Average both peaked on September 3, 1929, overall Gann’s annual stock market forecast for 1929 was highly accurate. Moreover, from a careful examination of Gann’s 1929 stock market forecast, it is possible to discern further principles of the Law of Vibration. These principles are as follows.