Price-zodiac conversion
One of the most controversial techniques that Gann used is that he converted the price directly to zodiac degrees. For example, if a commodity is trading at $120 per share, he would convert it to 120° of the zodiac, which is 0° Leo. If the price makes a major aspect (e.g. conjunction, trine, square, etc.), then it is believed that the price will reach a short-term top or bottom.
When a price, after converting into a degree in the longitude, is in aspect with the planets, the trend is likely to change. For example, in Mechanical Method and Trend Indicator, Gann drew attention to the price level (¢103) on 16 April 1925, "Apr 16 low 103, down 791⁄2 cents from 1821⁄2 and nearing $1.00 per bushel, a natural support level—Time to watch for change in trend." Coincidentally, 103° (or 13° Cancer) was where the heliocentric Mars and Pluto were in conjunction on that day.
Gann also used scales other than 1 dollar or point per 1 degree. Two notable scales are $12 and $30 to one degree, because the two largest planets in the solar system, Jupiter and Saturn, take approximately 12 and 30 years to orbit the Sun respectively. Using $120 as an example again, it would become 10° and 4°, which are 10° and 4° Aries in terms of zodiac. Gann also uses a scale of $0.07 ($1/15) to 1 degree, which is based on the Earth's rotation in 24 hours (for 24 times 15° is 360°). Using $120 as an example, $120 times 15 will be 1800°, and when it is divided by 360°, the remainder is 0. Therefore, it will become 0° Aries in the zodiac.
Here is an example from a private letter to a client on the coffee market:
- The high in the May Coffee Santos D on 19 March 1954 was 8729.
- Using a scale of one point to one degree, 8729° = 360° × 24 + 89°, and 89° is 29° Gemini.
- Using a scale of 30 points to one degree, 8729°/30 = 291°, and 291° is 21° Capricorn.
- Using a scale of 12 points to one degree, 8729°/12 = 727.5° = 360° × 2 + 7.5°, and 7.5° is 7°30' Aries.
- Using a scale of one cent (100 points) to one degree, 8729°/100 = 87.29°, and 87.29° is 27°17' Gemini
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