To get a potential price target W. D. Gann would find a planets longitude
somewhere in the 360 degrees of sky that we can see from earth. It was his
belief that the planets controlled both time and price. He would locate the
planets position in an ephemeris, which is an astrological almanac that lists
the planets positions on any day and he would say that one degree of the
zodiac is equal to 1 cent or 1 dollar of price.
So any planet sitting at one degree of the zodiac is also at 1 cent or 1 dollar
of price. Two degrees would be 2 cents or 2 dollars until you reach 360
degrees. What then happens is that if you have a price higher than 360 cents
or dollars you go to the next level of the circle until you get a price match.
One degree is the same as 1 cent, 361 cents, 721 cents (360x2+1) or 1081
cents or dollars (360x3+1). Two degrees is the same as 362 cents, 722 cents
(360x2+2) or 1082 cents or dollars (360x3+2).
W. D. Gann also took the average of the planets and converted them to a
single degree.
For example we have two planets one of them is at 90 degrees and the other
is at 180. So 90+180=270 divided by 2 equals 135 degrees, cents or dollars.
Gann would do this with various planet combinations.
One of them using five planets he called MOVE which stands for Mean of
Five and COE, which stands for, Circle of eight when using eight planets The
MOF is the longitude of Jupiter+Saturn+Uranus+Neptune+Pluto divided by 5.
The COE is Mercury+Venus+Mars+Jupiter+Saturn+Uranus+ Neptune+Pluto
divided by 8 Gann used also the Average of 6 planets both Heliocentric &
Geocentric Mars to Pluto and he used the Heliocentric Average of
Jupiter+Saturn+Uranus+Neptune.
In the following example Gann is using actual price and making that a degree
of the zodiac. Gann writes, Using a scale of 1 point to 1 degree a price of
8729 = 29 degrees Gemini.
To get that number divide 8729 by 360 (because 360 is one complete circle
and you are trying to reduce the price so that it can fit on to a circle) 8729 can
be divided by 360 24.2472 times. So we are not worried about the 24 times
only what's left over and will fit on to a circle, 360 x 24 = 8640. 8729 - 8640 =
89. So this is 89 degrees of a circle, which is 29 degrees Gemini on the
zodiac wheel.
The question of whether the positions and geometries of the planets of our
solar system affect market action has been a long and hotly debated issue.
My methodology involves a constant survey of price vs. harmonic positions of
the planets in the system. I do this simply by converting planetary positions
into price, and noting the points in price where planetary geometries occur.
As these geometries approach, the plotted positions of the planets involved
approach one another in price (plotted in line format), thus creating an
energetic price level. Oftentimes, a market will approach the position of the
planetary geometry and respond to that price level with precision, creating a
reversal. As I have become more and more familiar with the price patterns
associated with market reactions to planetary harmonics, I have learned that
the market is in a constant state of action and reaction to these price levels as
they form and dissipate. The patterns can be related to those found in fractal
geometry, which resembles a random walk until closely inspected. Indeed,
the market is constantly expanding and contracting within the confines of the
price-energy created by the planets, and this occurs on all time frames
simultaneously, from a one-minute to a yearly basis.
In order to understand the concept of planetary harmonics, one must first
understand the basic concept of the conversion of planetary position to price.
This is a simple concept, and when plotted in price creates a system of
"planetary lines".
Planetary Lines is the term we use to describe the method we use to convert
planetary energy into price. A planetary line is basically the position of a
planet (in longitude) converted into price. The conversion is really quite
simple. If a planet, for example, is at a longitude of 187 degrees on the wheel
of 360 degrees (using 0 degrees Aries as the starting point), that would be
equal to 1.87, 18.7, 187, 1870, 18700, etc., depending on the price of the
market you are looking at. For stocks trading in the 10-100 dollar range, I
assign a conversion value of 1 degree = .10 dollars, or 10 cents. For stocks
trading above $100, I switch to a conversion value of 1 degree = $1.00. For a
market trading in the 1000's, the value would switch to 1 degree = 10.00.
Sometimes, a stock may be oscillating back and forth across 100 dollars, or
an index oscillating across the 1000, or even 10000 level. When this occurs, I
use the latest closing price to define the conversion value. In actuality, there
is a condition I refer to as a "beta-shift" that occurs around these levels,
where price will temporarily respond to the conversion factors of the two
different calculations, and it is usually not until the price moves above the
150-180 area (or 1.50-1.80, 1500-1800, 15000-18000 etc.) that price begins
to respond specifically to the new conversion value. This is a more advanced
concept, and we will not dwell on it here.
I use the positions of all of the planets, and the Sun, and also the position of
the Moon's Node (the point where the Moon crosses the plane of the ecliptic).
I use the position on the Moon's Node simply because it is a very powerful
point in space, and we do indeed find many major reversal which are
associated with aspects of the planets to the position of the Moon's Node,
one of which will be used as an example in this article.
A conjunction occurs when two elements are located visually at the same
point in the sky (i.e. the same longitude). We are all familiar with a Solar
Eclipse, which occurs when the Moon and the Sun are in conjunction, and
have the same declination (declination is latitude position, or distance above
or below the plane of the ecliptic). In short, a conjunction between two
planets, or a planet and the Moon's Node, is the most powerful geometric
relationship that can be produced. It can be said that conjunctions are
responsible for a majority of major market reversals.
Now, you might ask, if the planet's positions are plotted from 0 to 360
degrees, and 1 degree = 10 cents, then how can a planet's position be
plotted above $36.00? We simply add 360 degrees to the position to get to
the higher levels. This is just simple math. As an analogy, you might
remember the chess board that Captain Kirk and Spock used in Star Trek. It
had many transparent levels of play. This is much the same concept, the
planets play on many different wheels simultaneously, each representing a
higher multiple of 360.
It would be easier if all stocks and other markets traded constantly between 0
and 36 dollars, but they don't, so we had to formulate this simple translation.
Like many simple ideas, the proof is in the pudding, and in this case, the
simple answer works. In this way, position can be translated to price at any
level. Here's another example. If we have an aspect that occurs at 187
degrees on the wheel, that would equal 18.70. You would find higher aspect
points in price at 18.70 + 36.00 = 54.70, and the next at 18.70 + 36.00 +
36.00 = 90.70, and the next at 18.70 + 36.00 + 36.00 + 36.00 = 126.70.
The next convention that we need to explain is the concept of "Mirror Lines".
We were musing about the fact that markets in uptrend usually follow the
trajectory of a particular planetary line. But what about markets in downtrend.
How could we define these trends when all planetary lines move upward?
The answer, again, was simple. We simply inverted the positions of the
planets across the 0 line to create downward moving lines. Here's how it
works:
If a planet is at 187 degrees on the wheel, it's Mirror is at 360 – 187 = 173.
A planet at 98 degrees would have a mirror position of 360 – 98 = 262.
In this way, as a planet moves forward one degree of longitude, its mirror
moves backward 1 degree, and the plotted line "mirrors" the actual plotted
position of the planet.
ASPECTS AND HARMONICS
A geometric relationship between two planets is called an "aspect", and when
we refer to Harmonics, we are talking about aspects. The concept of
planetary lines will allow you to see not only conjunctions, but any aspect
between two or more planetary elements converted to price. We do this by
looking at harmonic divisions of a planet's position, and plotting those
harmonic divisions in price. We have already explained how to convert a
planet's position to price, and this allows you to plot the positions of one or
more planets on a price chart, and to visually see the points where those
planet's paths intersect. These points of intersection are the points where the
planets you are viewing are in conjunction with one another. This is an aspect
on the first harmonic. The first harmonic is simply 360 / 1, which is equal to
360. When you view a planet with the setting of 360, you are viewing it's
ACTUAL position on the wheel from 0 to 360 degrees. Moving inward through
the divisions of the wheel:
The second harmonic is 360 / 2 = 180.
The third harmonic is 360 / 3 = 120.
The fourth harmonic is 360 / 4 = 90.
Most major reversals can be attributed to one of the first four harmonics.
Planets make conjunctions to one another only seldomly. However, they also
make other important aspects to one another on a more regular basis. The
most important of these aspects are:
The opposition: This is where two planets are directly opposite to one another
on the wheel. If two planets are in opposition geocentrically, they are located
on either side of the earth out in space. This is a second harmonic aspect.
The trine: This is where two planets are located 120 degrees from one
another on the wheel, creating a triangle pattern. This is a third harmonic
aspect.
The square: This is where two planets are located 90 degrees from one
another on the wheel, creating a square pattern. This is a fourth harmonic 
aspect.
Once you understand the correlation between aspects and harmonics, you
can jump to the next step of harmonic price analysis, which is finding the
price points that relate to aspects other than conjunctions. I will explain
briefly. If we want to find the second harmonic position of a planet in price, we
can simply divide the distance between the planetary price lines by 2. In
effect, we are adding 180 degrees to the planet's position to get the position
of that planet on the opposite side of the wheel.
Price often expands harmonically, and by understanding the nature of the
geometry of the system and applying that knowledge to price action, we are
able to glean some very useful information from price action. This knowledge
creates many opportunities for profitable trades. For my own trading system, I
use an advanced system of analysis that includes overlaying many harmonic
planetary systems onto each price chart to determine the trend. I also use the
analysis of the birth (incorporation) charts of different companies to project
whether a particular company has positive or negative influence. I then
combine all of these tools with tested technical systems to monitor my trades.
This rigorous approach to the market has paid off with steady returns over the
years, and my methods continue to be fine-tuned through practice. To this
date, I have not found a more precise method of price analysis than planetary
price harmonics. Further, I believe that this type of analysis will ultimately be
accepted by the entire trading community as a valid measure of price action.