Through the autumn and winter of 1948, W. Gann hand charted the May 1949 Soybean futures contract traded on the Chicago Board of Trade. Unlike much of Gann’s work, this chart survived and is publicly available from numerous sources. Many analysts have commented on this chart and a number of them have cited Gann’s use of planetary longitude. I have reproduced it here with certain planetary lines highlighted, as defined by the color key below, showing exactly what each of these lines represents.
Aug 13, 2018 - Let's see, here, why we had to expect a pullback considering the work of Jeanne Long. Read the article here. Posted by Daniele Prandelli at.
Gann’s 1949 May Soybean Chart –Planetary Lines Colored • Red Line = Mars Longitude – Blue Line = Jupiter Longitude • Green Line Jupiter 255° Horizontal – Dashed Blue = Jupiter 270° Horizontal We can see here that Gann is drawing trendlines and price level lines based upon planetary longitude on this famous chart, and these lines perfectly define the trend as well as the top in the Soybean market. Gann never spoke or wrote in any detail about this technique, and the few references we have to it appear only on some of his most complex and messy charts, having to be deciphered and reverse engineered by the astute Gann analyst in order to determine what he was actually doing.
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Many people have experimented with using this technique, and Market Analyst 6 Astro Edition includes a function to produce variations of these planetary lines used by W. However, often after years of experimentation, researchers are still unable to discover the true potential of this powerful tool, because there is just too much variation in planets, harmonics, settings, and markets to easily make sense of this phenomenon. It turns out that it is not only due to the range of factors that leave most people incapable of applying this technique effectively, but also due to a price and scaling issue. When Gann drew his May Beans chart, Soybeans was trading below 360 on the price scale, so his planetary longitudes could easily be drawn right on his chart using their exact longitudinal values. But in many of our modern markets, prices have gone through many multiples of a $360 price scale, and when trying to apply planetary lines to these new scales, the lines skew and do not provide the effective insight that they did for Gann above. This has been the issue that has led so many analysts to fail in finding a real use for this tool.
What is needed is a calibration factor which realigns these Key natural planetary forces to different markets with different price scales, so that the planetary lines can be usefully plotted on modern day markets. I have come across only one person who has resolved this problem, Daniele Prandelli, who in his new trading course, The Law of Cause and Effect, solves the puzzle of Gann’s Planetary Price Line technique, by developing a mathematical offset factor, or calibration rate, through which powerful and effective planetary lines can be laid out on any chart, in any market, showing important price and time trigger points and support/resistance levels, which the market moves between as if it were pushed and pulled by some kind of magnetic force.
Without the use of this conversion factor one can put planetary lines on charts all day long, but they do not give accurate or consistent results that one can count on. The endless variations between the aspect harmonics can overload a trader with so much information that it all becomes essentially useless, unless one understands how to mathematically calibrate these lines with each particular market. When this is properly done, the planetary lines serve as a kind of lattice or grid work through which the market moves in a predictable and tradable manner.