It was during the 1980's, in the course of my career as Treasury Analyst with the Australian ANZ Bank, that I first came across the writings of W.D. Gann and the spiral he discovered and coined ‘The Square of 9’. He created a remarkable ‘timetable’ which traced equity price changes over time, and which subsequently netted him fifty million dollars during the Great Depression years.
Gann deciphered the method Babylonian astronomers in 3000BCE used for forecasting of the behaviour of the Tigris and Euphrates Rivers’ annual flood. Following years of ravaging floods, they stumbled upon nature’s ‘Black Box’ wherein they discovered a spiral encoded with orderly numbers and the 0.618 and 0.382 proportions of the Golden Mean (Phi).
Much like the Babylonians, Gann too referred to the heavens from which the scientists of 3000BCE formulated the zodiac, the 365-day calendar and units of time. The tangible evidence of his discovery lies hidden within Babylon’s ziggurats and pyramids of Egypt where the block-layout of thousands of gigantic square-spirals, meticulously placed one upon the other, mimics the spiralling shape of the Milky Way.
It fascinated and intrigued me that the tiers of five thousand year-old structures left in plain view in the middle of two deserts contain the world’s most hidden secret. The Nile inundation data, from 622AD to present, is testament to the importance the ancients placed upon these records. Using the American S&P500 Index, this article demonstrates how, with no data processing technology (or so we think), those two peoples survived ravaging floods and Gann the catastrophe of the financial crisis that ravaged the world between 1929 -1932.