Lesson VI - Explains the "Law of Vibration." W. D. Gann stated,
"I have proven to my entire satisfaction as well as demonstrated to others, that the
Law of Vibration explains every possible phase and condition of the market." This is
a simple scientific principle which few people have realized also applies to financial
markets. However, financial markets are not exempt from any natural law.
Lesson VII - Titled, "Cycles," this lesson describes what a
cycle really is, how varying energy levels define the duration and magnitude of these
cycles, and solves the two age-old problems of: (1) varying periodicity of cycle tops and
bottoms; (2) why cycles "disappear" then reappear with phase shifts. This is NOT
caused by the phenomenon of "beats," i.e., cycles interfering destructively.
The subject of financial market cycles is little understood by most analysts.
The traditional methods of Fourier Transforms and percent deviations from moving averages
originated with scientists and engineers. While these techniques are effective in
isolating individual cyclic components of such things as radio waves or compound sound
waves, they are little help when the complex topic of repetitive human behavior is
studied. The cyclic component of mass human psychology becomes evident as men repeat the
same mistakes committed by their parents and grandparents. When measured in mass, man not
only seems incapable of learning from the mistakes of history, but also inclined to repeat
the errors committed as recently as the previous generation.
Lesson VIII - Applies the scientific phenomenon known as
"sympathetic resonance" to demonstrate the cause of every stock market cycle
greater than six weeks. Legendary traders such as W. D. Gann and George Bayer used the
motions of the planets as a timing tool. However, until now, no one has discovered the
methods these traders were actually using. This lesson identifies the synchronicity that
exists between planetary cycles and stock market cycles, with complete historical analysis
for each cycle. The analysis of the longer cycles extends back to 1790 for the stock
Lesson IX - Uses all information previously presented to create models
projecting price-time action. One example of the results obtained is the five-year stock
market model shown on the preceding page. For traders interested in defining the
price-time swings smaller than those shown on this figure the necessary tools and
techniques are provided.
Lesson X - Titled "Dimensional Aspects of Time," this lesson
provides the theoretical basis for the four-dimensional effects seen in financial markets.
Traditional price-time charts misrepresent time by treating it as a single linear
dimension along the bottom of the chart. Time is neither one-dimensional nor linear.