Friday, September 8, 2023

The Gann 707 Fractal | Allen Reminick

W.D. Gann understood the nature of how markets expand, how they contract, the differences between time frames and the similarities between them. Nowadays we call this fractal geometry. Fractal geometry is extremely important to understand how markets develop and has been used by various market technicians. 
 
How do we use the 707 fractal to forecast the next few months in the S&P 500? In our most recent forecasts we've talked about a continued rally into the 20th or 25th of September 2023, and probably another high around October 3rd. After that we're looking for a decline that may be somewhat severe:


 
The number 707 shows up here on several different time frames. In the chart below the blue line is the 240 minute bar chart of the S&P 500 Futures shifted forwards by 707 units, and the red bars above are the actual current market: 
 

What is really interesting is that 707 weeks (707 weeks ≈ 12.9 years) and 707 months (≈ 58.916 years) are also repeating. This is where the concept of fractals comes in. Different time frames are having the same form or pattern. Look at this chart of the weekly S&P 500:
 
The major low of 2009 and the major low of October 2022 are 707 weeks apart.
 
The low in 2009 lines up to the week with the low in October 2022 - the major low that kicked off the whole bull market since 2009. This is lining up exactly with the low in October 2022, and the pattern in the decline between 2008 matches the decline in 2022. Even though the price action was much more severe back then, the form was the same. And we are talking about the form and now the rally that was taking place since October is also repeating very nicely 2009 into 2010 and 2011. 
 
 
So we saw two examples of 707, the first on the 240 minute bar chart and the second on the weekly chart. From this we take it one step further and look at 707 months (58.916 years). 707 months turns out to be two times the exact length of the cycle of Saturn. 25.457 years is the exact number of years of Saturn's revolution times two which equals 707 months to the day = 10,759 days.

 
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