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Wednesday, August 8, 2012

W.D. Gann's Natural Trading Days

From Spring Equinox on March 20th, the Sun has moved 135 degrees of longitude (solar degrees) or 140 calendar days into Tuesday, August 7th. 

 
W.D. Gann always said the year begins on March 21st (not January 1st) and that this was a very important seasonal time. He used geometrical divisions of the solar year (solar degrees of longitude AND calendar days) to ascertain turning points in financial markets. 

Dates 45, 90, 135, 180, 225, 270, and 315 solar degrees from Vernal Equinox (= 0 degrees Aries) are what he called Natural Trading Days.  

Though 15, 22.5 and 45 degrees also may coincide with changes in trend (CITs), Gann stressed the importance of the cardinal points (90 degrees apart). 225 degrees is 0.618 of a solar year.  
 
He also used multiples (squares) of 90 and 144, i.e. 90, 180, 270 etc. and 144, 288, 576, 720. CITs may also occur every 30 degrees (Sun moves into the next sign of the zodiac).

 
Since the Sun moves at different speed, e.g. 45 degrees not always equals 45 calendar days. For calculation an ephemeris is needed (e.g. HERE or HERE). The dates of Vernal Equinox, Summer Solstice, Autumnal Equinox and Winter Solstice slightly change over time (see HERE).

Vernal Equinox in 2012 = March 20th 
Summer Solstice in 2012 = June 20th 
Autumnal Equinox in 2012 = September 22nd 
Winter Solstice in 2012 = December 21st