Gann's Master Cycle Reviewed

updated $DJIA projection from July 7th 2021 projection

On July 21st I shared my projection on the $DJIA until the end of this year with clear projections at key turning points with a Twitter friend @TheRealDaybyDay. Today I show you how this Gann Master Cycle projection is still on track. See below chart.

The annotations on the turning points are from July 7th 2021. The projection is adjusted on a period by period basis until September 24th 2021. It is still on track, on Friday the turn was 2 days early and the trough a bit lower than expected, but for the rest a pretty accurate projection.

I have learned this technique in 2008 from Daniel T. Ferrera who figured out how W.D. Gann Mass Pressure Forecasting technique really works. In his words “Of all the Gann forecasting techniques known, the Mass Pressure formula has been one of the most closely guarded secrets. In fact, there are very few “Gann Experts” that even know how to create a Mass Pressure Chart or anything about the nature of its construction” ¹

Basically the Mass Pressure Technique is a seasonal indicator that is by many Gann experts constructed from multiple Cycles. I found out that one cycle, Gann’s Master Cycle is the most consistent cycle since 2008 in forecasting the next market turns although this cycle has inverted in the past as well, but not that often. W.D. Gann never revealed which cycle that was and why.

Working with the excel sheets provided by Daniel I started experimenting how to make this technique dynamically so I could overlay the result of the analysis to the current market level without distorting the cycle market turns still ahead of me.

The result was amazing, and I have been working and experimenting with this cycle projection technique since than. I started publishing this cycle on my @Fiorente2 Twitter Account since last December and you can find them there from time to time.

I can not guarantee that the amplitude projection will be accurate though as this is based upon past cycle amplitude. I also can not guarantee that this cycle will not contract, or extend or even invert from time to time. An anomaly can always occur as well. So trade the chart in front of you. Although there are good reasons to believe this cycle from the past will repeat, times have changed, information is shared more quickly across the world, so that could easily lead to a stampede on the stock market, everybody rushing in or out the stock market like in 1929.

In November 1928 W.D. Gann made his 1929 forecast in his Supply and Demand newsletter based upon multiple cycles.

Some believe he used the 10, 20, 30, 40, 60, or 80 years cycles or a combination of them. I reconstructed his approach as suggested by Daniel based on multiple and dominant cycles. See the result in below chart.

This was Gann's forecast based on multiple cycles if he had made it dynamically, which was a lot of work in those times not having access to Excel :-) .

We do not not know which cycles he used other than the major cycles he talked about in general. So it is an approximation. The forecast was actually correct if not Gann's Master cycle dragged on for another 14 days. You can also clearly see the extensions/contractions occurring in the cycles and the amplitude is different than from past cycles (as times are different).

In conclusion: It is an interesting technique that helped me to stay in the market when everybody believed it was over for now but the forecast told me it was not.

Back to the first chart in this first edition of my Newsletter, I will keep a watch on the September 22nd close of 33636.8484 the coming few weeks. If we break that level this Gann’s Master Cycle is likely inverted and than we will have to re-assess the situation at hand. As we are in Mercury Rx the coming weeks you could expect some whipsaws happening in the stock market. So take care.

I am working on multiple projects right now, but I will update my charts on the S&P500, Nasdaq, Crude Oil, Gold, US Dollar Index, Bitcoin, Nifty50 for my Indian friends, Australian Indices and many other leading indices and selected stocks in this newsletter in the coming days and weeks.

I also will certainly update my DJIA Master Cycle forecast on a weekly basis for all my subscribers.

In one of my next posts I will tell you about my journey towards discovering the value of Gann style of analysis somewhere in the next few weeks and what material and books I find interesting to learn from.

Have a lovely Sunday, and stay tuned.

1. W.D. Gann’s Mass Pressure Forecasting Charts, Daniel T. Ferrera, 2004, www.sacredscienceinstitute.com