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Winter begins on November 7, which is 225° from the Vernal Equinox (0° Aries).
This is what W.D. Gann referred to as a Natural Trading Day. 225° represents 0.618 of the solar year.
A solar term ( 節氣 ) is one of twenty-four periods in the traditional Chinese lunisolar calendar, each corresponding to a specific astronomical event or natural phenomenon. Starting from the spring equinox, these points are spaced 15 degrees, or roughly 15 days, apart along the ecliptic and are used by lunisolar calendars to remain synchronized with the seasons.
Changes in trend often occur every 30° as the Sun moves into the next sign of the zodiac.
30° roughly equals one month, 30 calendar days or 21 trading days.
W.D. Gann knew that the astronomical year begins on March 21st and that this was also a very important seasonal time for financial markets. He used geometrical divisions of the solar year (degrees of solar longitude as well as calendar days) to ascertain turning points. Changes in trend often occur every 30° as the Sun moves into the next sign of the zodiac.
Dates at 45°, 90°, 135°, 180°, 225°, 270°, and 315° solar degrees from the Vernal Equinox (0° Aries) are what Gann called Natural Trading Days, with 225° representing 0.618 of the solar year (November 7). Though
15°, 22.5° and 45° also may coincide with changes in trend, Gann
stressed the importance of the cardinal points (90° apart). He also used multiples of 90° and 144°, i.e., 90°, 180°, 270°, etc., and 144°, 288°, 432°, 576°, 720°, etc.
Combining the Chinese Solar Terms and Gann astro-methods for market timing with the following concepts may further increase the probability of accurately pinpointing market turns:
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