The Celestial Foundation of Market Cycles
Gann’s use of planetary cycles was his most radical departure from conventional analysis. The core insight is that the movement of planets around the sun creates measurable influences on human psychology — and that markets, as aggregates of human behaviour, reflect these influences in measurable, consistent ways.
The Most Important Planetary Cycles
The Jupiter-Saturn cycle of approximately 20 years correlates strongly with major economic expansions and contractions. The Mars cycle of 687 days often marks intermediate trend changes. Venus cycles of 225 days are particularly relevant to commodity markets. The Saturn cycle of 29.5 years marks generational market extremes.
Heliocentric Versus Geocentric Analysis
Gann used both heliocentric (sun-centred) and geocentric (earth-centred) planetary positions. Heliocentric positions are used for longer-term cycle analysis. Geocentric positions are used for shorter-term timing and identifying specific entry and exit windows within a larger trend.
Planetary Degrees and Price Levels
One of the most powerful techniques is converting planetary degrees into price levels. Each zodiac sign spans 30 degrees and the full circle is 360 degrees. By mapping these degrees onto a price scale for a specific market, the analyst can identify price levels that carry planetary significance.
Gann wrote in his Master Course: ‘The planets have a great influence on the rise and fall of prices of commodities and stocks.’ Few took him seriously then. The documented evidence accumulated since leaves little room for doubt.