The 22.5 degree lines are the 60 year cycle, etc. On this chart, the 45 degree lines represent a 30 year cycle of 360 points. Draw the patterns:The direction would be either downward and to the right from a high point, or upward and to the right from a low point. Gann realized that these lines represented the speed of a natural cycle, and that multiple cycles would harmonize near key turning points.Next, there were the ‘trend machine,’ cycles, or cycles in trend. First, he used ‘magic,’ or static cycles that repeated in measured moves of time, volume, and price. The numbers simply refer to the number of units. Gann used several types of ‘natural’ cycles in his trading and analysis. For example, the 1x2 is half the slope of the 1x1. These are simply variations in the slope of the line. Determine which pattern to use: The two most common patterns are the 1x1 (left figure above), the 1x2 (right figure above) and the 2x1.Gann made annual forecasts of financial markets consistently with a success. These trades were all audited and are a matter of financial record. Steel will not go to 95.' he sold it at 94 7/8 and it never touched 95.
Gann predicted exact prices in advance saying 'U.S. The cycle also endured the bounce from the most volatile time in US Index history. Of these trades 264 were profitable, making his success rate 92. Gann himself, however, used what he called "vibrations" or "price swings." He determined these by analyzing charts using mathematical theories like Fibonacci. 92 of the cycle legs succeeded in predicting direction and duration ahead of the market.