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105

When looking at price and time together on the Hexagon Chart, the distance between the major degree lines becomes greater as prices increase showing the importance of

FIGURE 14-20 The Hexagon Chart

volatility Using the price of November 77 soybeans, the chart shows that between 90 and 1800, or June 21 to September 23,1977, the price of soybeans should have support at 567 and then move its major support level to 507 and its major resistance to 588 with next higher and lower support and resistance at 432 and 675, respectively As it tumed out, this was a verj accurate prediction.

On many of Ganns charts there is notation showing planetarj movement, not related to the cycles of seasonality, but what is believed to be the Jupiter-Satum cycle, discussed in the next section. These techniques make Ganns work more difficult to reproduce than most methotk his tools are less conventional than others. If Gann were adied for a word of advice, there is no doubt that he would caution to patience, stating: When price meets time, a change is imminent "

FINANCIAL ASTROLOGY

Astrologj seeks a common bond in human behavior, similar to the work in biological rhjthms and cycles. The impact of astrologj on civilization has been great; observations of the periodicity of the moon is traced bad; 32,000 years. Star charts were known to have been inEgjpt about 4200 B.C., and the earliest written ephemerides were in the seventh century B.c.l The pj-ramids at Giza are said to have sloping corridors leading from the faces to the interior thai were used as sighting tubes for Egjptian astrologers for making accurate forecasts The 1 of asfrologj throughout history is widespread, including virtually all civilizations.

Even sophiaticated analjsis have been found to confuse astrologj with the daily horoscope found in a local newspsper. Astrologj, the interpretation of the effects of planets and stars on human affairs, is an art followed by a large portion of the world population and should not simply be discarded as mjstical or occult. Interpretation of these effects can be complex and involves special ddlls. Most forecasts begin with a birth chart, which describes the position



of the stars at the time of inception, then loolc at the current positions to identify the transitions. Over time, planets have taken on an association with specific raw goods, and constellations are associated with certain tjpes of business; these relationships can now be verified using computer programs that check the intricate position of the planets with the financial statiatics of companies to find a correlation. However, that ta will be left for the more ambitious.

We must all agree that the positions of the planets and sun-those bodies with the laiest gravitational pull on the Earth and each other-have clear phjsical effects. In the study of phjsics, this relationship is given as

- Gravitational constant x Mass

Force of attraction =-;-

Distance between centers

where the gravitational constant is 6.67 x 10, the mass is found in Table I4-I, and the distance between the centers can also be calculated from Table I4-I.

Of these phjsical effects, the seasons and the tides are undeniable; and there is much more when you study astronomy, the science of motion of the stars and planets. In this section we will concentrate our attention on the phjsical phenomenon of plandarj motion which can be identified and tested with the same confidence, and perhsps more, as other trading sjstems. Among these phenomena, eclipses and the lunar cycles are the most obvious, but there is one other combination that is important, the Jupiter-Satum cycle.

11 Ciiiputer eolhi-are ie available for calnilaliuo and pl-ttiu" mud, ol Gjuus - .- See "Gauutra.ler L Tecuiiical aualyeie tSI k.- & CiiimoditieE anuar/ZFebruar/ IWi, or contact Gai,u FtPubli 11 Bent.„ . LeavenK-rt,. "> ., orLambert-iauu. PO 0, P.js.er..-/. "WA 99147

16DerekPa.k erandjuliaParicor.TheOji,r.leatArtr..lcrf- r3raw-Hill wYork.l971p IJ.

The Jupiter-Satum Cjcle

Jupiter and Satum combine to represent the overwhelmingly largest mass, other than the Sun, in our solar sjstem (see Table 14-5). The two planets amount to about 95>oof the total mass of all the planets and are about .7°oof the mass of the Sun. Because they are in adjacent orbits, they have a very large gravitational pull on other planets when they are near one another, and very different effects when they move spart. They are so laie that they cause the Sun to shift periodically based on their positions around the frue center of mass of the solar sjstem, called the barycenter When Jupiter and Saturn are on opposite sides of the Sun, the center of mass is near the center of the Sun, but when the two laie planets are together, the Sun is pulled away from this center. This positioning also has significant effects on the Earths climate, which in tum affects agricultural production, supply and demand, and finally the economy. The Greeks called the Jupiter-Satum cycle-The Great Maker of Time," and it is said that every significant cycle in stocks, commodities, and interest rates is either a multiple or a harmonic or the Jupiter-Satum cycle. The most wellknown, the 59-year Kondratieff, is three times the Jupiter-Satum cycle (3 x 19.859 = 59.577). Gann, who used a combination of time and price, based time expectations on seasonality and cycles. His work referred to a "Master Time Factor" that was never defined, but experts believe that the Jupiter-Satum cycle satisfies his technique.

Charting the Satum Line

Having decided that the movement of the laiest planets affects the way markets move, you can create a planetarj envelope based on Satums path with respect to ttie Dow Jones Industrials and find frequent concurrence This requires converting the position of the planets into price .31 When completed, this envelope is freated as support and resistance lines in a manner similar to the standard charting interpretation, in which penefration of a resistance line will become support: however, in sppearance. the Satum lines are curved to represent its cycle (see Figure 14-21

For a cniplete fliie topic, Eee Heury Weiusarten, InveEtiusby tile 1 cjraw-HW, 1 ji A Eection ktitten by RicLarl ey, "L OycleE and tbe l*JMter Time Fact. ie tile basie for tile : Eection

3B JeaiiueL„s, "Haneta-y cupp.t and EeEiEtaiice on tbe DJIA," A Tra.lerE A.-lrological Almanac 19-4 iPT.feeeional A.-tr.Josy Service, 757 SE 17fl, S,Ft Lau.ler.lale,FL

TABLE 14.5 Size and Position of ttie Planets and Earths Moon



Equaarial

Dfitonce

DunKkn

Diameter

from Sun

ofOAir

(kmf

(Birth yean)

I.392.OO0

Mercury

4

. 10"

57.9

0.24

Venus

12,102

4 7 0"

108.0

0.62

Earth

I2,7S6

598x10"

149.6

Mars

6794

7.35x10"

227.9

Jupiter

142,800

8.39 xro"

7783

11 6

Saturn

120000

1.427

Uranus

52.000

377 0»

2,870

Neptune

47.5

3.29x10»

4.497

165.

Pute

2.500

5.98 xlO«

5 93

248.

Earths moon

3,476

7.34x10"

384,400 km

0.075

ix . for einti and ewearthi n

m, demiv of «4 iihneb on onlr be eslinmil

FIGURE 14-21 Saturn lines drawn on the Dow Industrial.

ATra.le .-A. *t": l

ac(lS»l) EefniitedwitLpeiBiiEE

ijiPAT.Inc E-1J.b1 . *

Converting Planet Position to Price

Long transforms planetarj position to price using two separate wheels, combined to form a Universal Clodc in a manner similar to WD. Gann. Eadi wheel refers to a specific maiket. To create the Universal Clock for the DJIA, you begin above the right horizontal (at 3 oclock) with the number 1 and move counterclockwise, placing 6 numbers per quarter and 24 for an entire cycle. You then move to the next outer circle and continue with the number 25 just outside the original number 1; therefore, each concentric circle contains the next 24 values, ending at 360 (a full cycle). The D A Clock is shown in Figure 14-22.

in the outer wheel of the clock, the DJIA is shown in increments of 10 points beginning at 1930 and continuing in circles of 24 values. Long does not explain the choice of the beginning price, but Gann uses a significant low, and ash-ologers tend to use the price at a key starting time, such as the beginning of a new Dow calculation, birth of an exchange, or transforming event.

To locate the planet on the time wheel, begin with the planets position on a specific date. For exanple, on October 1, 1993, Sahim was at 24 (with respect to Aquarius) 14. Aquarius falls between 300 and 330. therefore, the position of Saturn is 3000 + 240 + 14 = approximately 324. By locating 324 on the inner part of the wheel, you can refer to the prices on the outer part of the wfieel and find the two prices (each in adjacent circles) that



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