Poseidon - Adventure or Disaster? - Alan Oliver
I recieved this story in a email from Alan’s Australian Stocks review list which I thought was great and wanted to share it with you even though it is about a stock and not forex, it is a great story of the relevancy of Gann, enjoy and thanks Alan
Hello everyone, I wanted to share something with you that I found demonstrates the absolute conviction I hold that the work of W.D.Gann is not only relevant today, but also essential for anyone who wants to make serious money from trading liquid volatile markets.
You may have heard the story about an Australian stock called Poseidon, legendary in trading circles because of the most volatile trading spell Australia has ever seen.
I was reading a book recently, The Bell Does Ring, written by Pauline Novak-Reich, who recounts the story of this amazing time in trading mining stocks in Australia . On page 18 she explains the story of a mining company called Poseidon who reports that a concentrate of 3.65% nickel to ore samples has been located ( note the reference to 365, the number of days in a solar year, is this just a coincidence?).
This unexpected discovery led to an almost panic like state to acquire stock in Poseidon, which rose from a low price of 80 cents on September 25, 1969 to a record high price of $280 on February 5, 1970. Imagine buying this stock at 80 cents? Or perhaps even $1 or $2 as it started to rise? The howls of joy and euphoria would have been deafening??¦In those days you could even buy stock and pay for it when the bill arrived 2 weeks later!
Rumour had the stock being valued as high as $370, it never reached that level because the truth of the situation, namely lack of water for mining operations and the concentrate value being much lower than recorded, caused the stock to decline and eventually the price went as low as zero!
So how does W.D.Gann fit into this story? In fact, by this stage he had been dead for nearly 20 years, but as with all great legacies his work has stood the test of time. Gann worked heavily on astrology in his early learning days, and he devised and developed a timing factor, unique in its concept but based upon human reactions to regular seasonal events. Part of this work is what we call today the Gann wheel.
Cick Image To Enlarge
Lets now review the above Poseidon story with the Gann wheel picture I attached to this email. I have placed two of Gann seasonal dates on the wheel; these dates have been legendary in calling market tops and bottoms for centuries, as Gann himself proved beyond doubt.
Notice the seasonal date of September 23 is only 2 days from the low of Poseidon, and the other seasonal date of February 4 is only 1 day from the all time high of the stock.Once again, the Gann wheel has clearly indicated pressure dates for an Australian stock years after the wheel was invented. Gann devotees use the wheel dates to confirm or look for reversal signals in markets, the combination of a date with other signals like chart patterns, volume irregularities, price resistance and support are all part of a major players trading arsenal.
The Trading DNA manual that I wrote two years ago explains the Gann wheel in detail, clearly and simply showing the use of the wheel and the subsequent off shoots of the timing numbers and pressure dates. If you want the same results as the millionaires trading markets today, I firmly believe you must understand the timing factor that Gann created and apply this to your decision process.
After all, no one can deny there is a time to reap and a time to sow??¦are you planting crops just before winter starts? Or are you buying stocks just before the top comes in and the market falls?
The Trading DNA manual is exactly what I wish I had when I started. All of the advanced Gann timing factors, the Gann fan, squaring Time and price and much more are in it, and by showing examples on our current market charts just helps to reinforce the learning. Backed up with regular weekly articles by me and with lifetime support at no extra cost you will be in the winning seat in no time at all.
I know because other traders with the manual have expressed their sincere gratitude at the clarity and simplicity of the lessons.As a special bonus for the next two weeks, if you do not own the book ???Trading with the Gods???, I will include my book free with the Trading DNA manual.The purchase price for the DNA manual is $1495 and includes all GST and government charges, freight to any address anywhere in the world, lifetime support for the owner and free access to a web forum where other owners discuss trading tools and tactics.If you have any interest in making big money in trading markets, or perhaps becoming a professional trader, I would be delighted to discuss the Trading DNA manual with you.
Or you can read more about it on my website at http://www.tradingwithgods.com/DNA.htm My very best wishes for your trading success, Alan Oliver.
Alan Oliver
Trading with Gods
www.tradingwithgods.com
www.metatradertools.com