Gann's Financial Timetable
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W.D. Gann's Financial Timetable is a long-term forecasting tool that is based on the 90-year cycle. Gann believed that this cycle was the most important of all the time cycles, and that it could be used to predict major economic and social changes. The Financial Timetable is a table of years that are expected to be significant turning points in the market.
The 90-Year Cycle
The 90-year cycle is the cornerstone of Gann's Financial Timetable. It is based on the idea that history repeats itself, and that major economic and social trends tend to recur every 90 years. Gann divided the 90-year cycle into three 30-year periods, each of which has its own distinct characteristics.
The Financial Timetable
The Financial Timetable is a table of years that are expected to be significant turning points in the market. The table is based on the 90-year cycle, and it is used to forecast long-term trends. The table is divided into three columns: the year, the expected trend, and the historical precedent.
The Formula for the Financial Timetable
The Financial Timetable is not based on a specific mathematical formula, but rather on the observation of historical cycles. Gann spent many years studying historical market data, and he identified a recurring pattern of booms and busts that he believed was based on the 90-year cycle.
Historical Precedents
Here is a table of some of the key years in the Financial Timetable and their historical precedents:
| Year | Expected Trend | Historical Precedent |
|---|---|---|
| 1929 | Major Top | Panic of 1837 |
| 1932 | Major Bottom | Depression of 1842 |
| 1949 | Major Bottom | Post-Civil War Bottom |
| 1966 | Major Top | Post-WWI Top |
| 1982 | Major Bottom | Start of the great bull market |
| 2000 | Major Top | Dot-com bubble |
| 2009 | Major Bottom | Global financial crisis |
| 2020 | Major Bottom | COVID-19 pandemic |
Actionable Examples
Here are a few actionable examples of how you can use the Financial Timetable in your trading:
- Long-Term Investing: Use the Financial Timetable to identify long-term trends in the market. If the timetable suggests that a major bull market is underway, you may want to consider a buy-and-hold strategy.
- Swing Trading: Use the Financial Timetable to identify potential swing trading opportunities. If the timetable suggests that a major top is approaching, you may want to consider taking profits on your long positions.
- Risk Management: Use the Financial Timetable to manage your risk. If the timetable suggests that a major bear market is on the horizon, you may want to reduce your exposure to the market.
By understanding the principles behind Gann's Financial Timetable, you can gain a valuable long-term perspective on the market. This effective tool can help you identify major trends, anticipate turning points, and make more informed investment decisions.