Time Is the Master Factor
Gann wrote that time is the most important factor in market forecasting, exceeding price in its predictive power. Price can move in any direction from any point, but time advances only forward at a constant rate. By determining when a market is due to change direction — based on elapsed time from major pivots — the analyst positions in advance of the move rather than reacting to it.
Natural Time Cycles
Markets do not move randomly through time. They repeat at specific, measurable intervals derived from natural cycles found throughout the universe. The key cycles Gann identified include the annual cycle (365 days), the decennial pattern (10 years), the 20-year cycle, and the master 60-year cycle. When multiple cycles converge on the same point in time, the probability of a significant market turn increases dramatically.
The 90-Day and 180-Day Windows
The 90-calendar-day (one quarter) and 180-day (half-year) marks from significant highs and lows are among the most powerful timing windows in Gann analysis. A market that has been advancing for 90 days from a major low enters a zone of vulnerability. These quarterly and semi-annual turning points are the market’s internal rhythm.
Resistance Levels in Time
Just as price has support and resistance, time has its own resistance levels. The 1/8, 1/4, 3/8, 1/2, 5/8, 3/4, 7/8, and full cycles from any significant date are all potential reversal zones, with the halfway mark and the full cycle being the strongest.
If you know when to expect a change in trend — based on time alone — you need only watch price to confirm it. Time gives you the question; price gives you the answer.