Gann Yearly Cycles

Introduction

Gann studied decades of market history and found that bull and bear campaigns follow yearly cycles. In his Master Course, he gave clear time rules for forecasting major trends. This lesson explains Gann's yearly cycle rules in simple words.

Gann's Time Rules for Yearly Cycles

Rule 1: Campaigns Rarely Last Beyond 3 to 3.5 Years

Bull or bear campaigns usually do not run more than 3 to 3.5 years up or down without a move of several months or more in the opposite direction.

Rule 2: The 5-Year Bull Campaign

A bull campaign often runs 5 years: 2 years up, 1 year down, and 2 years up.

Rule 3: The 5-Year Bear Cycle

A bear cycle often runs 5 years down: 2 years down, 1 year up, and 2 years down.

Rule 4: The 10-Year Cycle for Tops

Add 10 years to any major top to find the likely year of another top.

Rule 5: The 10-Year Cycle for Bottoms

Add 10 years to any major bottom to find the likely year of another bottom.

Rule 6: The 7-Year Cycle

Bear campaigns often run out in 7-year cycles, or 3 years and 4 years from any complete top.

Rule 7: The 3-Year Cycle

From any major top, add 3 years to find the next top.

Rule 8: The 5-Year Cycle from Tops

Add 5 years to any top to find the likely next bottom.

The Great Cycles

Gann also watched the 20-year and 30-year cycles, and a 60-year great cycle, made up of three 20-year cycles. He believed history repeats in these long cycles.

Example: Applying Yearly Cycles to Nifty (Illustrative)

Nifty made a major bottom in March 2020 during the Covid crash (around 7,500). Using Gann's yearly rules as a study exercise:

• +3 years: 2023. Watch for an important turning point.
• +5 years: 2025.
• +7 years: 2027.
• +10 years: 2030. A possible important bottom year.

These are not predictions, but years when a Gann analyst would watch the market more closely for signs of a major change.

How to Use Cycles Practically

• List all major yearly tops and bottoms of Nifty and your stocks.
• Add 3, 5, 7, 10, 20 and 30 years to each.
• Years where several cycles overlap are the most important.
• Combine with price levels and formations before acting.

Study on GoPocket

Open the monthly and yearly view of Nifty on the GoPocket app. Mark every major yearly top and bottom. Build a simple table of future cycle years and keep it with your trading plan.

Frequently Asked Questions

Do yearly cycles work exactly?

No. They often vary by a few months. Treat them as zones, not exact dates.

Are these cycles useful for swing trading?

They help you understand the bigger picture. For swing trades, weekly and daily cycles are more useful.

Key Takeaways

• Bull and bear campaigns often run in 3, 5, 7 and 10-year cycles.
• Add 10 years to tops and bottoms for repeating cycles.
• Overlapping cycles give the strongest signals.

Disclaimer: Cycle years are for study only, not forecasts or recommendations.