Gann’s Vibration Tables
About this book
Another easy, yet very powerful application of a Gann principle is what I call the “Vibration” Table. In the Financial Times 1909 Gann article (which I’m certain you’ve read), Mr. Gann described each commodity and stock as having it’s own unique vibration”. The table is a series of ﬁxed prices at increasingly higher levels that are not only strong support and resistance but often turn out to produce THE major top (or bottom) price that ends bull and bear markets.
The construction of a Vibration Table is grade school simplicity.
The all-time lowest price of a commodity contract or stock is divided into eighths and thirds beginning at “0” and added TO ITSELF, creating higher and higher “cycles” of price; all prices in the series derived from the same historic starting number.
That’s all there is to it.
But the underlying Gann principle, that there is an unchanging mathematical relationship between historic lows and subsequent highs that is continuous through time, is as powerful a market concept as you will encounter.
In order to appreciate how dynamic this principle is, let’s examine a Vibration Table based on the lowest price ever made by a November soybean contract. Futures trading in soybeans began in 1936; on February 9, 1950, the November contract made its historic low at price 191 1 4. According to Gann principle, subsequent major highs in November soybean contracts will be mathematically related to the price 191.2. This is true regardless of the number of intervening years between the original lowest low and subsequent highs. This is also one of the key reasons that Gann weekly and monthly charts must be the same contract month year after year — to preserve the mathematical purity for price forecasting.
Referring now to the Vibration Table in ﬁgure 1, notice that the original low has been divided into eighths and thirds. The column marked “I” begins at “0” and ends at the lowest low, 191.2.
Column “2” is 191.2 ADDED to 191.2 and also divided into eighths and thirds. Column 3 is 191.2 times three or as I shall refer to it — “3 Cycles of the Low.” As in all cases with either Price or Time, Gann ranked the divisions into eighths and thirds in importance from the most important — End of Cycle — the next, midpoint or 50%, then 1/3, 2/3 and ﬁnally the 1/4’s and 1/8’s.
Author: Phyllis Kahn
Phyllis Lorberblatt Kahn (born March 23, 1937) is a Minnesota politician and former member of the Minnesota House of Representatives. A member of the Minnesota Democratic–Farmer–Labor Party (DFL), she represented portions of the city of Minneapolis for 44 years. On August 9, 2016, Ilhan Omar defeated Kahn in the DFL primary for District 60B.
There are no reviews yet.