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some money to open what I called a specimen account and gave myself three months。to succeed。 I had been fighting the tax courts。for about four years。 In the middle of my three months。of test trading； the court ruled against me and I went bankrupt； I lost the house； the cars； the works。 My family and I had to move to rental acmodation。 So much for timing。 Nobody believed that I could trade my way。out of trouble； but at the end of the three…month trial period； I had turned the borrowed 30；000 into more than 100。000； and it was。all systems。go。
A Matter of Time
I succeeded by applying Gann's natural time secrets。 When I was。doing my work。on the Australian Share Price Index （SPI） futuresntract it had been trading for only two years； so I did not feel I had nearly enough history to prove anything。 I decided to research the Australian All Ordinaries。cash； which had been in existence in one form or another since 1875。 I also broadened my research to include the May soybean contract； because that had been one of Gann's。favorites； and plenty of data could be obtained on it。 My。plan was to decipher the soybean contract； then apply what I learned to the Australian markets。 I was。doing all this。tracking manually and had been trading for fewer than twelve months。 I had no one in Australia to whom I could go for advice。 In the long run； that proved to be a good thing because I was。forced to rely on my own work。to survive。 It was。as。simple as。that。 I believe it was。Henry Kissinger who said； 〃The absence of alternatives。clears。the mind marvelously”。
I started out researching the cycles。of price and later came to realize that time also ran in cycles。 There is。a reason for everything。 It all fits。together。 The rub is。that we sometimes。don't work。out how until well after the event。 These time frames。can cover centuries； but I have found that cyclical patterns。work。on wars； they work。on the weather； and they work。amazingly well on the markets。
When I got a grip on price； I saw the current tops； bottoms； and ranges。were only。reflections。of previous。tops； bottoms； and ranges。 It was。like looking down a hall of mirrors； reflecting over and over again。 That's。how I would get my calls。right。 （Of course； there were times when I woke up to what was。going on only well。after the event。） I found that this。approach worked equally well on both time and price。 Sometimes； I found myself working with both。 For example； say the market moved up or down 180 points； I might find there would be a major change in trend in 179 to 182 days from the start of that cycle。 Sometimes； the market might move up exactly 180 points。in 182 days。and I would say time and price were square。 I will give you some examples of how I came to grips。with that phenomenon。
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Although Time by Degrees。was。not a stand…alone indicator at that stage of the game； it backed up my work。on ranges。and time frames。 I started to count everything。 At this。time； all of my charts。were done by hand and many of my calculations。were written on them。 I started the pany called Safety in the Market。 in 1989 because everyone wanted to know how I was。doing my calculations。 Originally； the pany was。no great money…making idea。 But at least I was。getting my。trading organized。 The lessons。I learned from Gann's。work。were based on everything I have put into this。chapter。
If you want to get this。right； the first thing you must accept is。that there is。an order to even thing； wars； weather； politics—the lot。 But there is。no money in wars。or weather and I cannot stand politics； so I stuck to the markets。 I started to see that on one side of the markets everything seemed to revolve around 90°； 180°； and 360°。and time frames。 Everything。 You just have to look。hard enough。 I found the market was。ever expanding。 I hasten to add that I was。not always。in front of it。 But neither was。W。D。 Gann。 I found that a one…hour chart was。like a sixty…year cycle。 One hundred eighty…two days。were like 180 months； which in turn were like 180 years。 All of this。is。very relevant both to the market and to the current war cycle； as。I'll explain later。
Forecasting
The chart shown in Figure 6。1 is。the point at which I started trading in 1985。 The yearly。top came in on October 21。 That was。the day I took my first trade under my own steam。 You can see； as。I did； that a couple of the market turns。figured through Time by Degrees。worked quite well。 From the November 19； 1985； low the market ran up exactly 168 days。to May 6； 1986。 The market then did a 50 percent retracement in time by running down for eighty…three days。to July 28； 1986。 （Eighty…four days。would have been an exact 50 percent retracement； but that would have put the market out of whack。with the important dates）。 That is。when I first came across。the date of July 28； which is。one of my 〃war dates”。 The number of hours in a week。is。168。 It’s said that God made the world in six days。and on the seventh day He rested。 Six days。represent 144 hours。 Fourteen years。equal 168 months。 All of this。has。meaning in terms of minutes； hours； days； and weeks。 In any case； the market got itself back。into balance by running up 169 days till January 13； 1987。 This。was。the first major top that I had both forecast and traded。
The chart in Figure 6。2 shows。equal time frames of eighty…three days。and 201 days working in 2006 and 2007。
The chart in Figure 6。3 shows。us。Time by Degrees。working after the Crash of ‘87； which was。probably the most volatile market well ever see； I actually。raised the money to buy a new house； the first since I had gone broke in 1986； by trading into that low on February 10； 1988。 It was。one of the few times。I found trading easy。 I had picked the top in 1987 and traded it。 A few traders。and my broker were aware of this。 I used to give all of the credit to W。D。 Gann； but I was。using a lot of market smarts。that I had picked up in any。number of places。
A fair proportion was。my own； but I must give thanks。to all of the masters。who； along with Gann； came before me。 Thankfully； they left a path； which I was。able to recognize and follow。 As。can be seen in the chart in Figure 6。4； the technique is。even bit as。relevant in 2005 as。it was。in 1987。
Even after the '87 Crash there were some traders。still knocking Gann—and me； for that matter。 You might think。that people would just rejoice in their good fortune and keep trading the market。 But real life is。not that simple。 People often don't see things。that clearly— especially when things。are not all black。and white and especially when ego and emotions are involved。 But I was。learning by doing。 I had all of the cycles。for the Share Price Index； from the birth of the contract in 1983； marked on my charts； and in most cases。I knew when； where； how； and why they would repeat。 There is。no doubt that the trick。is。to identify the cycle before it happens。 A well…trained monkey on a stick。can do an adequate job of describing something after it has。happened。
A trading sequence isn't always。as。simple as。in 1987…88； but this。was。when everything came together for me。 I had not yet started writing articles。or doing presentations at that time； but traders。were beginning to look。over my shoulder and； in many cases； follow my。even move。 More than a little bit irritating were the phone calls。I’d get when I was。wrong； telling me how dumb I was。and how this。Gann stuff did not work。 When I was。right； there would be no calls。
I was。living more than well from my trading； so I decided to put a Gann article into a financial newsletter； just to prove how all this stuff worked。 I sent off a one…page article titled 〃Safety in the Market〃 to Research Technology； which was。the biggest supplier of market data in Australia at the time。 Plenty of traders。knew that I had picked various。tops。and bottoms。in the markets； but I had no real proof except for my trading statements。 I was。not publicizing my work。for the money。 In the article； which I wrote late in 1988； I decided to go out on a limb and nominate the day of the top for the Australian Share Price Index contract in 1989。 I was。willing to put myself to the test。 In the article； I explained how the yearly。top for 1988 had occurred by squaring time in price。 I have already said dial a well…trained monkey on a stick。can describe events。after they happen。 So we can put my 1988 call in that basket。 But for 1989； I said； 〃So； of course； the next question is。what is。going to happen in 1989。 I see a volatile year ahead； similar to 1988； with a major top due on October 3； with the reversal and panic。in the market。 Short positions。should be covered on about November 16 and December 18”。 This。forecast； along with some notes。on the Dow Jones Index； was published in the United States。in the February edition of the Gann and Elliott Wave magazine。 How did I do？ You can bet I did pretty well； or I would not be writing this。chapter。 The high of the year in Australia came in on October 4； 1989； at a price of exactly 1855； which was。exactly。what I had calculated twelve months。earlier。 That price was。the highest our market traded for a number of years。 It was。followed by what was。called 〃the crash of 1989；〃 not to be confused with the real Crash of 1987。 M