GANN CYCLE 45 Degree

A Gann cycle is a time-based forecasting method created by legendary trader W.D. Gann. It operates on the core theory that historical market movements, trends, and reversals repeat themselves over fixed mathematical and natural time intervals

Gann cycles attempt to predict future market turns using various fixed time intervals and rules. The methodology relies on several key frameworks and rules:

Major Cycles

Gann studied natural laws, planetary orbits, and numerical proportions to isolate key intervals of time. His major cycles include:

The 60-Year Cycle: Considered the "Great Cycle," mapping long-term macro trends and generational market echoes.

The 20-Year Cycle: Often tied to long-term commodities and historical extreme highs and lows.

The 10-Year Cycle: Represents a complete decennial cycle where historical prices and events often mirror the previous decade.

The 7-Year Cycle: Viewed as a critical turning point and interval of panic or recovery

The Monthly & Daily Rules

For shorter-term trading, Gann posited that reversals occur after specific numbers of days or months from a major high or low. The most critical intervals (measured in both trading and calendar days) are:Days:

Changes in trend frequently occur at 30, 60, 90, 120, 135, and 180 days. The 180-day cycle marks exactly half a year (a half-circle in degrees).Months: The third and fourth months are crucial for trend changes, followed by the sixth, ninth, and twelvth months

The Square of Nine to identify specific dates and angles, Gann utilized a mathematical tool known as the Square of Nine. It is a spiral of numbers starting at the center (number 1) that expands outward. By overlaying time on this geometric grid, traders pinpoint specific degree intervals (e.g., 90°, 180°, 360°) where price and time vibrate or intersect, signaling a probable reversal.