Gann and Trigonometry: The Science Behind Market Timing

In the chaotic world of financial markets, where algorithms battle high-frequency traders and news cycles whip prices back and forth, the individual trader often feels like a sailor in a storm without a compass. Yet, for over a century, a select group of market technicians has argued that this chaos is merely an illusion. From the legendary W.D. Gann to modern quantitative analysts, there is a prevailing theory that markets do not move randomly; they move in geometric harmony.

If you are a student of Gann or astro-finance, you likely already believe that “Time is the most important factor.” But how do we quantify time? How do we convert the price on a screen into a date on a calendar?

This article explores a specific, mathematically elegant method to predict trend reversals: Trigonometry Time Cycles. By utilizing the natural properties of the Sine wave—specifically the vibrational balance of 45 degrees—we can unlock hidden “turn dates” in the market. We will break down a powerful strategy that converts price into time to forecast major stock moves with surprising precision.

The Philosophy: Price is Time, Time is Price

Before diving into the calculations, we must understand the theoretical bedrock of this strategy. The core principle comes from the work of W.D. Gann, who famously stated that “when price and time are squared, a change in trend is inevitable.”

In standard technical analysis, we look at price and time as separate axes. We use support levels for price and moving averages for trends. However, in Trigonometry Time Cycles, we view Price and Time as interchangeable forms of energy. A stock that rallies to $200 has expended a certain amount of “price energy” that must be balanced by an equivalent amount of “time energy” before a new cycle can begin.

Trigonometry, the study of triangles and waves, provides the bridge between these two dimensions. Markets move in waves—impulse and correction, rally and crash. These movements closely mimic the physics of Sine Waves and Cosine Waves. By applying trigonometric functions to market data, we aren’t just guessing; we are measuring the heartbeat of the market’s cycle.

The Magic Number: Sine 45° (0.7071)

Why do we use the Sine of 45 degrees?

In the geometry of the markets, 45 degrees is the angle of perfect balance. On a chart where 1 unit of price equals 1 unit of time (the 1×1 scale), a 45-degree trendline represents a market in perfect equilibrium. It is the “Life Line” of the trend.

• If price is above the 45-degree line, the trend is strong.

• If price breaks the 45-degree line, the trend is weakening.

Mathematically, the Sine of 45° is approximately 0.7071 (specifically $1/\sqrt{2}$). This number is not arbitrary; it represents the relationship between the side of a square and its diagonal. In trading, it acts as a conversion factor. It allows us to take a static price level (a “side” of our market square) and project it diagonally into the future to find the “time” boundary.

The Strategy: How to Predict Reversals

This strategy works best on stocks priced below 500, though it can be adapted for indices or higher-priced assets. It is particularly effective on sectors with cyclical sales data, such as Auto stocks (e.g., Ashok Leyland, Hero MotoCorp), where monthly sales reports create a natural rhythm.

Step 1: Identify a Significant Swing Point

The first step is to locate a major Swing High or Swing Low. This is your “Anchor Point.”

• You can use a ZigZag indicator (settings 6 to 9) to objectively find these points.

• Alternatively, look for a visual peak or trough that stands out on the Daily chart.

• Crucial: Note the Price of this high/low and the Date it occurred.

Step 2: The Trigonometric Calculation

Once you have your Swing Price, you will apply the Sine 45° factor to convert that price into days.

The Formula:

{Time Cycle (Days)} = {Swing Price} \times \sin(45^\circ)

Step 3: Project the Date

Take the number of days calculated in Step 2 and add them to the date of your Swing Point. The resulting date is your Time Cycle Turn Date. This is when you should expect a significant reaction, reversal, or explosive move.

Note: If the result is a decimal, round to the nearest whole number.

Step 4: Confirmation and Execution

Trigonometry tells you when to look; Price Action tells you what to do. Do not blindly buy or sell on the date. instead, wait for the market to “show its hand.”

1. Watch for Reversal Candles: On or near the predicted date, look for a Doji, Hammer, or Outside Bar. These candles indicate indecision and a potential shift in momentum.

2. The Trigger:

   • Buy (Long): If price breaks above the high of the signal candle (the candle formed on the predicted date).

   • Sell (Short): If price breaks below the low of the signal candle.

3. Stop Loss: Place your stop loss at the opposite end of the signal candle. This ensures a tight risk profile.

Case Study: Ashok Leyland (The Perfect Square)

Let’s look at a real-world example referenced in the strategy analysis to see this mechanics in action.

The Setup:

• Stock: Ashok Leyland.

• Swing Low Date: June 13th.

• Swing Low Price: 230.

  • Note: In the referenced example, the analyst uses the pre-adjustment price of 230. Always ensure you are using the unadjusted data if backtesting old moves, or current data for new moves.

The Calculation:

230 \, (\text{Price}) \times 0.7071 \, (\sin 45^\circ) = 162.6

 

We round this to 162 days.

The Projection:

• Start Date: June 13th.

• Add: 162 Days.

• Result Date: November 22nd, 2025.

The Result:

On November 22nd, Ashok Leyland formed a perfect Doji candle right at a Gann support level of 144. This confluence of a Trigonometric Time Date (Nov 22) and a Gann Price Level (144) created a high-probability setup.

• Action: The high of the Doji was broken shortly after.

• Outcome: The stock rallied significantly (approx 7% move mentioned) in the following days. A trader who entered on the break of the Doji high would have caught the entire swing with minimal risk.

Why This Works: The Vibration of the Market

You might wonder, “Why would a random stock care about the Sine of 45 degrees?”

The answer lies in Cycle Synchronization. Institutional algorithms, option expiration cycles, and natural market rhythms often synchronize around mathematical constants.

• Option Buyers: This method is particularly potent for option buyers because it isolates the time of the move. Buying options is a race against time decay (Theta). If you know a move is due on November 22nd, you can buy contracts closer to that date, avoiding weeks of premium decay.

• Sector Specifics: As noted with Auto stocks, the “Last Week of the Month” is often active due to pre-positioning for monthly sales numbers. The Trigonometry Cycle often aligns with these natural business cycles, acting as a confirmation filter.

Limitations and Risk Management

While powerful, Trigonometry Time Cycles are not a crystal ball.

1. Not Every Signal Works: Sometimes the date will arrive, and the price will drift sideways. This is why Step 4 (Confirmation) is non-negotiable. If no reversal candle forms, or the high/low isn’t broken, no trade is taken.

2. Price Scale: The strategy appears to work best on stocks with prices between 100 and 500. For very high-priced stocks (e.g., MRF at 1,00,000), the “days” calculation might project too far into the future to be useful without modification (like dividing the price by 10 or 100).

3. Trend Direction: This method predicts a change or a move, not necessarily the direction. A “Time Cycle” can result in a reversal (Top/Bottom) or a trend continuation (Explosive Breakout).

Conclusion

Trigonometry is more than just lines on a chalkboard; it is the language of the universe’s vibrations. By applying the Sine 45° factor to stock prices, we convert the static energy of “Price” into the dynamic energy of “Time.”

For the astute technician—especially those interested in Gann and Astro studies—this tool offers a significant edge. It imposes order on the chaos, giving you the patience to wait for the specific dates where probability is in your favor.

Your Action Plan:

1. Open your charting platform (e.g., TradingView).

2. Select 3 stocks you track (preferably in the 100-500 price range).

3. Find the last major swing Low.

4. Multiply that Low by 0.7071.

5. Mark that future date on your calendar.

When that day comes, don’t just watch—observe the geometry of the market unfolding in real-time.

Trigonometry Time Cycle Strategy

This video provides a practical walkthrough of the Trigonometry Time Cycle method, specifically demonstrating the Sine 45-degree formula on the Ashok Leyland chart.