part 3.
In making my calculations on the stock market, or any future event, I get the pasthistory and find out what cycle we are in and then predict the curve for the future, whichis a repetition of past market movements. The great law of vibration is based on likeproducing like. Like causes produce like effects. Wireless telegraphy, the phonograph andthe radio are based on this law. The limit of future predictions based on exactmathematical law is only restricted by lack of knowledge of correct data on past history to work from. It is just as easy to figure 100 years or 1000 years in the future as one or two years ahead, if you have the correct starting point and know the cycle which is going tobe repeated."
"In order to test out the efficiency of my idea I have not only put in years of labor in the regular way, but I spent nine months working nightand day in the Astor Library of New York and in the British Museum of London, going over the records of stock transactions as far back as1820. I have incidentally examined the manipulations of Jay Gould.Daniel Drew, Commodore Vanderbilt, and all the other important WallStreet manipulators from that time to the present day. I have examinedevery quotation of Union Pacific prior to and from the time of E. H.Harriman's securing control, and can say that of all the manipulationsin the history of Wall Street, Mr. Harriman's was the most masterly. Thefigures show that, whether unconsciously or not, Mr. Harriman workedstrictly in accordance with natural law.
9
"In going over the history of markets and the great mass of relatedstatistics, it soon becomes apparent that certain laws govern thechanges and variations in the value of stocks and there exists a periodicor cyclic law, which is at the back of all these movements.
10
Observationhas shown that there are regular periods of intense activity on theExchange followed by periods of inactivity. Mr. Henry Hall, in his recentbook devoted much space to 'Cycles of Prosperity and Depression' whichhe found recurring at regular intervals of time.
11
The law which I haveapplied will not only give these long cycles or swings, but the daily andeven hourly movements of stocks. By knowing the exact vibration of each individual stock I am able to determine at what point each willreceive support and at what point the greatest resistance is to be met."Those in close touch with the markets have noticed thephenomena of ebb and flow,
12
or rise and fall in the value of stocks.
What we know in science as the law of periodicity is but another instance of therhythmic sequence of vibrations, another name for the Kabalistic doctrine of numericalsequence. ⦠If Nature observes these cyclic and periodic laws, then assuredly man mustreflect them in his constitution, and, through his dependence on physical conditions, inhis thought also."
Ebb and flow are words associated with the tides. In Gann's day, harmonic analysis (aterm he uses a few sentences later in this interview) was used in predicting tides
certain times a stock will become intensely active, large transactionsbeing made in it; at other times this same stock will become practicallystationary or inactive with a very small volume of sales. I have foundthat the Law of Vibration governs and controls these conditions. I havealso found that certain phases of this law govern the rise in a stock andan entirely different rule operates on the decline."While Union Pacific and other railroad stocks which made theirhigh prices in August were declining, United States Steel common wassteadily advancing. The Law of Vibration was at work, sending aparticular stock on the upward trend, whilst others were trendingdownward."I have found that in the stock itself exists its harmonic orinharmonic relationship to the driving power or force behind it.
13
Thesecret of all its activity is therefore apparent. By my method I candetermine the vibration of each stock and by also taking certain timevalues into consideration I can in the majority of cases tell exactly whatthe stock will do under given conditions.
Harmonic Analysis. â About forty years ago Sir W. Thompson (now Lord Kelvin)suggested that the principle of harmonic analysis might with advantage be applied to thereduction of these tidal constituents and to the simplification of the calculations; and atthe British Association meeting of 1868 he made a report describing his proposed methodof procedure."As harmony in music may be described as the union of sounds which individuallyappear different, but when blended together form a collective chord, or as the flowingtogether of several sounds into one, so the object of the harmonic analysis of the differenttidal constituents is to reduce 'the complicated motions of the tides into a series of simpleharmonic motions or waves in different periods and with different amplitudes, or ranges;and these simple harmonic constituents added together give the aggregate tide.'"Each inequality of any one of the tidal constituents is regarded as a smallersuperimposed tide of period approximately equal, producing with the chief tide acompound effect which corresponds to the discord of two simple harmonic notes in musicapproximately in unison with one another." William Henry Wheeler,
A Practical Manual of Tides and Waves.
In making my calculations on the stock market, or any future event, I get the pasthistory and find out what cycle we are in and then predict the curve for the future, whichis a repetition of past market movements. The great law of vibration is based on likeproducing like. Like causes produce like effects. Wireless telegraphy, the phonograph andthe radio are based on this law. The limit of future predictions based on exactmathematical law is only restricted by lack of knowledge of correct data on past history to work from. It is just as easy to figure 100 years or 1000 years in the future as one or two years ahead, if you have the correct starting point and know the cycle which is going tobe repeated."
"In order to test out the efficiency of my idea I have not only put in years of labor in the regular way, but I spent nine months working nightand day in the Astor Library of New York and in the British Museum of London, going over the records of stock transactions as far back as1820. I have incidentally examined the manipulations of Jay Gould.Daniel Drew, Commodore Vanderbilt, and all the other important WallStreet manipulators from that time to the present day. I have examinedevery quotation of Union Pacific prior to and from the time of E. H.Harriman's securing control, and can say that of all the manipulationsin the history of Wall Street, Mr. Harriman's was the most masterly. Thefigures show that, whether unconsciously or not, Mr. Harriman workedstrictly in accordance with natural law.
9
"In going over the history of markets and the great mass of relatedstatistics, it soon becomes apparent that certain laws govern thechanges and variations in the value of stocks and there exists a periodicor cyclic law, which is at the back of all these movements.
10
Observationhas shown that there are regular periods of intense activity on theExchange followed by periods of inactivity. Mr. Henry Hall, in his recentbook devoted much space to 'Cycles of Prosperity and Depression' whichhe found recurring at regular intervals of time.
11
The law which I haveapplied will not only give these long cycles or swings, but the daily andeven hourly movements of stocks. By knowing the exact vibration of each individual stock I am able to determine at what point each willreceive support and at what point the greatest resistance is to be met."Those in close touch with the markets have noticed thephenomena of ebb and flow,
12
or rise and fall in the value of stocks.
What we know in science as the law of periodicity is but another instance of therhythmic sequence of vibrations, another name for the Kabalistic doctrine of numericalsequence. ⦠If Nature observes these cyclic and periodic laws, then assuredly man mustreflect them in his constitution, and, through his dependence on physical conditions, inhis thought also."
Ebb and flow are words associated with the tides. In Gann's day, harmonic analysis (aterm he uses a few sentences later in this interview) was used in predicting tides
certain times a stock will become intensely active, large transactionsbeing made in it; at other times this same stock will become practicallystationary or inactive with a very small volume of sales. I have foundthat the Law of Vibration governs and controls these conditions. I havealso found that certain phases of this law govern the rise in a stock andan entirely different rule operates on the decline."While Union Pacific and other railroad stocks which made theirhigh prices in August were declining, United States Steel common wassteadily advancing. The Law of Vibration was at work, sending aparticular stock on the upward trend, whilst others were trendingdownward."I have found that in the stock itself exists its harmonic orinharmonic relationship to the driving power or force behind it.
13
Thesecret of all its activity is therefore apparent. By my method I candetermine the vibration of each stock and by also taking certain timevalues into consideration I can in the majority of cases tell exactly whatthe stock will do under given conditions.
Harmonic Analysis. â About forty years ago Sir W. Thompson (now Lord Kelvin)suggested that the principle of harmonic analysis might with advantage be applied to thereduction of these tidal constituents and to the simplification of the calculations; and atthe British Association meeting of 1868 he made a report describing his proposed methodof procedure."As harmony in music may be described as the union of sounds which individuallyappear different, but when blended together form a collective chord, or as the flowingtogether of several sounds into one, so the object of the harmonic analysis of the differenttidal constituents is to reduce 'the complicated motions of the tides into a series of simpleharmonic motions or waves in different periods and with different amplitudes, or ranges;and these simple harmonic constituents added together give the aggregate tide.'"Each inequality of any one of the tidal constituents is regarded as a smallersuperimposed tide of period approximately equal, producing with the chief tide acompound effect which corresponds to the discord of two simple harmonic notes in musicapproximately in unison with one another." William Henry Wheeler,
A Practical Manual of Tides and Waves.
