Chapter 6 | 3 min read
Anniversary Dates
Introduction
Gann noticed that stocks often make important tops and bottoms around the same dates in later years. These are called anniversary dates. He believed the market has a memory of time, just as it has a memory of price.
What is an Anniversary Date?
An anniversary date is exactly one year (or multiple years) after a major top or bottom. For example, if a stock made a major low on 15 March, Gann would watch 15 March of the next year and following years for a possible change in trend.
Why Anniversary Dates Matter
- Many businesses follow yearly patterns: budgets, results, dividends, and festive demand.
- Institutional investors often rebalance at similar times each year.
- Gann saw the year as a 360-degree circle. One full year returns to the same point.
Quarter and Half-Year Anniversaries
Gann also watched divisions of the year from any major top or bottom:
- 1/8 of a year: about 45 days
- 1/4 of a year: about 90 days (13 weeks)
- 1/3 of a year: about 120 days
- 1/2 of a year: about 180 days (26 weeks)
- 2/3 of a year: about 240 days
- 3/4 of a year: about 270 days (39 weeks)
- 1 year: 365 days (52 weeks)
Example: Anniversary of a Nifty Bottom (Illustrative)
Suppose Nifty made a major bottom on 4 June one year. A Gann analyst would watch:
- 3 September (about 90 days)
- 1 December (about 180 days)
- 1 March the next year (about 270 days)
- 4 June the next year (1 year anniversary)
If Nifty is falling into 4 June of the next year and reaches a key support level, a bottom is more likely around that date.
Example: Stock Anniversary (Illustrative)
Tata Motors made a major top in late July one year. In July the following year, it rallies to near the same price and forms a double top with a bearish engulfing candle. The anniversary date and the double top together give a strong warning to exit longs.
How to Build an Anniversary Calendar
- List all major tops and bottoms of Nifty, Bank Nifty and your stocks with dates.
- For each, add 90, 180, 270 and 365 days.
- Mark these on a yearly calendar.
- Dates where two or more anniversaries fall close together are the most important.
Use GoPocket with Your Calendar
Keep your anniversary calendar next to your GoPocket watchlist. When an anniversary date is near, study the stock's chart on the GoPocket app for double tops, double bottoms or reversal candles at Gann price levels, and plan your trade with a stop-loss.
Frequently Asked Questions
Do anniversary dates work every year?
Not always. They are more reliable when they match other Gann signals.
How much time window should I allow?
A few days on either side for daily trading, and a week or two for weekly charts.
Key Takeaways
- Markets often turn near the anniversaries of major tops and bottoms.
- Also watch 1/8, 1/4, 1/3 and 1/2 divisions of the year.
- Combine anniversaries with price levels and formations.
Disclaimer: Illustrative examples for education only.