howe mans Pnoriven Couueunee Ww. D. GANN NEW YORK 5, N.Y. THE BASIS OF MY FORECASTING METHOD Mathemotico ia the only oxact scionce. All power under hoaven end on eorth is given unto the man who masters the simple science cf mathematics. Emerson said: "God does indeed geometrize." Another.wise nan said: “There is nothing in the universe but nathematicel points." Pythagoras, one of the greatest matho— maticians that ever lived, after experimenting vith numbers and finding the proofs of dil natural lavs, said: "Before God vas numbers," He believed that the vibration of numbere crected Ged and the Diety, It hes been said, 'Pigures don't lie." Men have basa convinced that numbors tell the truth and that oll probleme can be solved by them, ‘Thp chemist, engineer, astronomer would be lost without the science of mathenetics. It ts 80 simple and ecsy to solve problens and get correct answers ond re— sults with figures that it'seons strongo so few people rely on then to forecost tho futuro of business, stocks and commodity siarkets, The basic principies ere easy to learn and understand. Ne matter whether you-Use geonetry, trigonometry, or caicuive, You uso the simple ruloe of arithmetic. You do only two things: You increcse or decrease ‘There aro: two kisids of numbers, odd and evon. We cad numbers together, which io incrgosing, We multiply, which Is a shorter way to increase. We sub= tract, shich decreases, and we divide, which clso decreases! With the use of higher mathenatics, ve fing ¢ quicker ond eazier way to divide, subtrect, odd and meltiply, yet very simple wnen you understend if, Everything in neture is male and female, white and black, harnony oF Amhormony, Tight and left. The market nove only twe ways, up and down. There are three dimensioas which we know hév to prove-vidth, length and hoight. Ve use three figures in geonetry—-the ‘circle, the square, and the triangle. Ve get the square and triangle points of a circle to deternine points of time, prics and space resistance, We use the circle of 360 degrees to measure Time ond Price. Thore ané three kinds of angies——the vertical, the horizontal, ané the diagonal, which we use for measuring tine ahd price movements. We use the square of edd and oven aunbers to get not only the proof of market movements, but the HOW TO MAKE CHARTS Gharts ard records of pest market novements. ‘Tho futur? ie but o repetition of the past. There Le nothing aov. As the Biblo saye-—"Tho thing that hath bean, 1t ts thot whlch shell bo.” iistory repeats and with charts and rules we determine vhen and how it is going te repeat. Therefore, the first ene most important point to learn is how to nake charts correctly because if you make on error in the chert, you will mate an error in applying the rulea to your trading:XWARLY CHARE: You should Koop a yoarly high and law chart, that is, recording tho oxtrono low and the extrene high price nade during the ealondar year on one line, Tho spacing for the prise can be used one point to each 1/8 inch or two points or mora, according to the activity end range of the stock. MONTHLY CHART: You must elways Koop up ¢ monthly high and ow chart, which is tho most importent chart of ali in determining tho main trend, This chart resords the extreme high and extrono low price fer the culondar month on one Line, end sach epaco or 1/6 inch on the cross-section chert papor shovld represent one point or $2 per chara WEEKLY CHAR: The noxt and ono of tho very importent charts to Koop is a woekly high ond low chart. ‘hero stocks are solling bolow 60, it usually peys to make this chart up using cach 1/6 inch to reprosont one-half poiut, or wo epeces to represent one full point, or four points for each cno-inch spoco. When stocks booome vory active, ospecially when thoy are solling above $100 por sharo, thon you can make up tho wookly chart using ooch spaco or 1/8 inch on tho chart poper ta ropresont cno point or $1 por share. SEMI-WEEKLY OR S-DAY CHART; ‘Tho next chart of importance to the Wookly Chart is a Sealy chart, thet is, taking tho oxtroma nigh ond extreme low price made from tho oponing of tho market ox Monday merning until tho close on Wotnosday wight, closing the chart oa Woduesday aight~ thon fron the opening on Thursday to the close on Saturdey, teking the oxtromo high and low end closing tho chart on Saturday. This gives you a time period showing one-half of the voek. This chart is ory importent as will bo oxplained later on in tho instructions. The spacing for this chart can to the same as for tho wookly high and low chart, NSSKLY MOVING-AVERAGE OR WEAN POINT. To got_a Wookly Moving-Avorugo, wo take tho oxtromo low for the weok ad tho ox- trone high for the woek end divide by 2, getting the half-way or neon point for the wocks This cam be recorded on the weekly high end low chart or on @ soparete chert, recording the Woekly Moving-Averago with a dot and using on line oa the chart for onch vock, Importence of this Wookly Moen Point will Ye explained late DAILY CHART: Whon you are trading in a stock that ds active, you should always ~~~" Koop up a deily high uiq low chat, but for study purpocos it is enough to keep up the Weekly ond Monthly Charts, which give you the main trond, ‘The Daily Chant-shows tho minor troné and shows a ohengs in trovd mich oftonsr ‘thon ony ef the other charts, but tho indication doos not lest es long or rm ¢o fer. This chart sholé be kopt up tho samo os tho othors, oxcopt whon stocks are solling below §0 or whan thoy aro in aa inectivo trading range- thon tho spacing should bo 1/2-point to each 1/3-inch pn tho chert papor, allowing two spacos to Topresont ono full point er $1 por sharo, Whon stooks aro active ond advancing vory fost, making © wide. rango ach day, thon you can mako tho Daily Chart the sono aa the Wookly er Monthly, that is, using eno point for oack 1/é~inoh on the chart popor, Thie epacing outs cho chart dows and koups it in a rongo whore it is oasy to soo ané rocd whon fluctuations ere wido+ No spaces are skippod oa tho Daily Cheré for holidays or Sundays, therefore the time poriod 46 for cotual markot days ond not calendar days, However, you should cerry the calender days along at loast overy two wooks, as letor, tnder rulos for Tmo Poricds for change in trend, you will find that it is nocessary to check up and know when tho stock is $0,'60, 80, 120, 155, ote. days fron a topor a bottom, which moma calonder days, tho exact moceurenont of Pino for tho daily chart. Often tho Daily Chart on actual daily movements comes out on ca oxast mathonaticn] ungle of tino moacuronont at tho samo time the ealondar days como out on ozact timo monsuronent:, making it x doubly important point for chango in trond. GEOMETRICAL ANGLES After long yours of practical oxpertence, I heve discovered thet Geometrical Angler measure tocurately Space, Mimo, Volune end Price. Uathometios is the only exact ecienco, as I have eaia before. Byory nation on the face of the earth ngreos thet 2 and 2 moke 4, no mattor what Language is speaks. Yet ell thor sciences are not in acccrd ac mathomatioal science. “Wo find different mon in 4ifforent professions along sofentifio lines. di sugrooing on problons, but there can bo no disagrocment in methematioal ealewlotion. There ere S60 degreos Jn a circle, no wetter horlarge or how snail the circle may bo. Cortein numbors of theso dogroos and angles aro of vast importance and Andioate when important tops and bottons occur on stocks, as well as denote Amportunt Kesistanoo Levels, Whon once you havo thoroughly mastoreé tho Goonctri- eal Anglos, you wil} bo ublo te solve any problem ond detornino tho trond of any atook, After 26 yonrs of roscarch, tests and practicel applicetions, 1 have per- fected end proved tho most importast axgies to bo vsod in determining the trond of tho stock market, Therefore, concontrate on those aigles until you thorough Uy méorstand thom.” Study ond oxpordnont with ooh rule T gio you, and you Wii) malo € success. Me use geonetrisel angles to measure Spooe and Time periods becmise it is a shorter and quicker method than addition or multiplication, provided you folloiz the rules and drew the gles or lines accurctely fron tops aud bottoms or ox- ‘rone highs and lows, You may meke e mistake in addition or multiplication, but the geometrical angles sccuretely crew: will conreot this uistake, Por exemple: Is you should cout across the botton of your chart 120 spaces, which represents 120 eye, weeks, or noxtas, then you begin at "" and nunbor vertically on your chart up to 120- thon from this top point et 120 draw a 45-dogreo angle moving dows, thie will cone ont at "O” on 120 poimts over from the beginning. If you have modo a mistake in nonboring, tits will correct it. Angles drawn on 0 chart alwaye koop bofore you the position of the stook and its trond whorens if you hed a resistance peint on time written dows, you might mislay it or forgot ib but these angles are always on tho chart in front of yous These angles or moving-avercge trend linos correctly dram will keep you from meking mistakes or misjudging tho trond. If you wait and follow your rules, these orgies will show you whon the trond changes. The moving-average as commonly used is obtaiaed by taking tho extrene low price end the extreme high price of tho calonder day, week or month, ona dividing At by two to got the moan cr average price for the day, wesk or month, and oon— ‘timuing thie af the ond of ccch-time porSod, This is ea irroguiar novement in spaces or points por weak tecavse at ono sine At may nove up 2 points por weok