Gann Chart Square Of 9
Teena Ruiter
He is primarily known for his market forecasting abilities, such as the Gann square of nine which combine a mix of geometry, astrology, and ancient math techniques. Gann started trading at the age of 24 and was a religious man.
The other challenge is that there are few clear Gann trading strategy experts to learn from. The only one we are really aware of who offers a public service is Jeff Cooper from T3Live.com. You can find Jeff on Twitter at @JeffCooperLive. He offers his own instruction on the Gann Square.
The square of nine or Gann Square is a method which squares price and time. The Gann square of nine gets its name because if you look at the above chart again, the number 9 represents the completion of the first square.
The numbers within the Gann square of nine also follow a certain harmonic pattern. For example, when you take a number, such as 54 from the above square, the value to the next of it (to the right), 29, is derived as follows:
Also, drawing a circle connecting the four corners of the squares brings the concept of angles into perspective. The angles, measured by degrees can point to potential support and resistance levels when the price is said to be moving within an angle.
To use the Gann chart, simply replace the starting number 1 with a number of your choice and the desired step value. In the above example, the increment is 1, but you could use larger or smaller values.
To go deeper on Gann trading strategy, check out this awesome interview covering Gann and swing trading. The video is close to an hour and provides additional insights you can use to help develop a Gann trading plan.[2]
Lastly, if you are looking for original Gann teachings, please visit This is the site for WD Gann, Inc. which according to their site, purchased the original Gann writings from his business partner Ed Lambert in the 1970s. [3]
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Now, I aim at marking the price levels in the daily chart according to the Square of 9. Once I find them out, at their meetings with the key dates, I will see the points, which will feature the reversal, a possible start of a new wave or a strong momentum.
If the ticker is lower than one in case with the bearish trend, it suggests the market is strongly oversold and should be soon back at 1/1. In case with the bullish trend, it is the same. If the ticker goes higher than 1/1, it is likely to return to the trading zone soon.
In the above chart, you can see an example of how the price movement inside the cells is indicated. You see that the trend is developing in the zone between the angles of 1/1 and 2/1. All cells, where the price was going down, are marked with downward arrows. The price growth inside a cell is marked with an upward arrow.
If the price hypothetically goes into square 3, the zone of the fan will change. Based on this assumption, the further movement will feature weaker bears, but still in the bearish trend. If the ticker closes the cell in the next zone, the will be a chance for the corrective movement towards 5700 USD.
The trading community is relentless in its pursuit to find out how and why the market turns. Bull and bear markets surge relentlessly along their path until one day they reverse course and set sail in an entirely new direction, never looking back. Markets march to their own drummer with a language all their own.
Certainly, fundamental valuations play their part in determining where we might be in the cycle. A price/earnings ratio can tell us whether the market, or particular stock, is cheap or expensive at a specific point in time, but it has zero capability of telling us when the turn will come.
Another progression in the study of price and time work is the square root. In the case of the BTK, the first important pullback in the bull move off the Nov. 25 low came at 1,427.26. On the surface, that means absolutely nothing. However, when we take the square root of that figure, we get 37.77, which Fibonacci enthusiasts will recognize as the derivative of 377.
Before attempting trade entry, you need an edge that gives you confidence that you are on the right side of the market. Once that is established, you can use your own rules and discipline to find good entries. Gann will help and square roots certainly are an important piece of the puzzle.
Take the same Dow bottom at 6469, and we get a square root of 80.43. The retest of the Great Depression low is recognized by market historians as the second most important low of the 20th century on April 28, 1942. That pivot is 802.3 months removed from the 2009 bottom, which is close enough to consider.
As you perform your due diligence, you might find something else, such as a specific date matching up with the range. Opportunities are out there. There might be something vitally important sitting just below the surface of your price charts. Gann time and price analysis and square roots can get you there.
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Gann chart analysis for gann angles is a very popular and advantageous method of analyzing a commodity or stock direction. It was invented by William Delbert Gann in 1908 and has been used by traders ever since.
The basic construction of the Gann angles remains unchanged. Simultaneously, some changes have been required to adjust some critical components related to price levels and volatility. Gann analysis can get complicated if the basic concepts of Gann angles are not clear. Gann chart and Gann angles measure pattern, price, and time frame.
A diagonal line that moves at a steady speed is nothing but a Gann Angle. In contrast, a trend line is created by connecting bottoms to bottoms to form an uptrend and tops to tops to form a downtrend.
Price study: With Gann angles, you can follow the price movement of a stock. You can use the pivot levels to identify the future price of a stock. The stock price can be determined using the resistance level and support levels.
Pattern Study: Using patterns can help determine the movement of stocks and the activity of an investor. The pattern study includes the trend and the patterns showing the reversal of the stock movement.
Workings of stock market can be confusing. Understanding the stock market is essential for trading. If you are a beginner and want to gain knowledge of investment start with a proven strategy for investment by learning from the stalwart of W.D. Gann And Elliott Waves Theory in India with MR. Feroz Khan for Stock market courses in India
The Gann Square of 9 a trading strategy that can be used to calculate future market prices and movements. The strategy has been used since the early 20th century. Its creator was a successful stock investor named William D. Gann.
William D. Gann was a successful stock investor who earned over US$2 million in the American stock exchange using his Gann Square of Nine investing strategy. He never taught anyone his strategy, wrote a book about it, or had adherents to teach others how to use it. Currently, traders only use a few aspects of it and no one fully understands it.
Despite the lack of instructional material on the Gann Square of Nine, traders have been able to successfully use it to make profitable trades and predict market behavior. It is rumored that Gann developed the strategy while traveling overseas and implemented it when he returned to the USA. The strategy is the result of integrating his knowledge of biology, mathematics, astrology, physics, and other areas of study into an investment strategy.
According to its adherents, Gann theory works because it integrates a certain harmonic pattern found in nature into forecasting securities prices. Since all these are bound by natural law, reliable stock predictions can also be made using the applicable elements of natural law.
The Gann square has Nine rows and 9 columns. The market price that you want to extrapolate from is placed in the center of the square, that cell is called the base. From the base, the numbers increase by one with every additional square. The squares are assigned a numerical value by moving away from the base in a spiral. Overall, there are 81 numbers in the Gann square.
The Gann square can be used to predict the price at which there will be future resistance and support levels. These prices are located in the cells that are at 45 degree angles on the chart. Gann calculated that numbers along the 45 degree angle were the strongest and had the greatest influence over market behavior.
To use the Gann theory to trade is not easy or quick. It takes concentrated effort, lots of time, and a great deal of experimentation. Moreover, the Gann square of nine calculator is not an intraday calculator. It was never intended for intraday trading. It was intended for long-term trading (e.g., weeks, months, years). Still, there are intraday traders who use it to predict resistance and support levels during the trading day.
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