GANN THEORY – SQUARE OF NINE & CALCULATOR:

Gann Square of Nine is Complete Trading System?

  • Out Of Many Geometrical Shapes Used By W D Gann Square Of Nine Is One.
  • Square Of Nine Is Not An Indicator; It Is Merely A Form Of Calculator Developed By W D Gann.
  • There Was No Calculator Available In 1909, So He Created A Mathematical Grid And Called It Gann Square Of Nine, Inspired By The Pyramid Of Egypt.
  • Ideally Gann Square Of 9 Is Just A Square Number Grid With Increment Of 0.25 Against Natural Number That We Studied In School.

 WHO IS WD GANN?

WD GANN
WD GANN
  • The Most Successful Trader.
  • Wrote 10 Fantastic Books on Gann Theory.
  • An Incredible Analyst Who Ruled the Wall Street for 50 Year.
  • Visited India and Egypt to Pursue His Time Cycle Theory.
  • Had A Trading Accuracy Of 92 % In Year 1909, Out Of Total Trades 286, He Had 264 win & 22 losses.
  • Lent Money to Jesse Livermore (Famous Trader Form Most Famous Book reminiscences of Stock Operator).
  • Made 50 Million Dollar Before His Death 1950.
  • Wrote 1st Ever Book in Share Market “The Truth of Stock Tape”.

What Is The Core Of Gann Theory?

Gann Theory Is Used To Predict Future Movement of Market.

The Purpose Of Gann Is To Understand That At Various Times, Different Aspect Will Influence Market. Gann Used Natural Law and Geometric Proportion Like Circle, Square and Triangle In His Analyses. Gann Theory is based on the Relation of Price and Time.

  • Gann Forecasting Method Based In Geometry And Astronomy And Ancient Mathematic.
  • If Time Cycle Exist In Nature Then It Exist In Market Too.

What Is Gann Square Of Nine?

Square Of Nine
Square Of Nine
  1. The Gann Square of 9 is One Of The incredible Discoveries Of WD Gann.
  2. The Essential Gann Square Is The Square Of 9 Also Known As Square Root Calculators.
  3. It Involved Spiral More Often referred to As Wheel.
  4. Gann Don’t Invent The Square Of 9 For Day Trading Purpose.
  5. Gann Discover This Concept While Traveling India And Egypt.

The uniqueness of 9:

  • 9 Is Used To Measure Every Thing.
  • 9 Is the Last Single-digit and Largest Number.
  •  You Can Add Anything To 9; It Will Give You Old Natural Number.

(9+1)=10, 10=(1+0)=1  ( 9+7)=17,(1+7)=8

  • If You Multiply Any Number By 9 The Output Will Be 9.
  •  (9*8)=72=(7+2)=9     (9*2)=18=(1+8)=9
  • Hence Gann Told That 9 Is Inbuilt Number and It Has Everything.

How to Construct Square Of Nine:

Construct Square Of Nine
Construct Square Of Nine
  • The Basic Form Is Square.
  • The Number Are Arranged in increasing order, starting with Number 1 from the Center.
  • Number Can Be Arranged Starting From Middle To Right And Up In A Counter Clock Wise Manner, Or In Clock Wish Manner.
  • When Setting Square Of Nine We Have To Consider Trend Direction If Trend Is Ascending We Will Arranger Number Clock Wise, If It Is Descending We Will Arrange Number Counterclockwise.

Cardinal Cross and Ordinal Cross:

Cardinal Cross and Ordinal Cross
Cardinal Cross and Ordinal Cross
  • The Gann Square Of 9 Gives The Major Vibration Level Across The Cardinal And Ordinal Level.
  • Blue Lines Are Cardinal, Yellow Line Are Ordinal (Has Square Number) Lines.
  • Any Number That Fall On These Are Said To Act As Significant Support And Resistance Level.
  • The Most Important Number As We Know It Occur Every 45 Degree cardinal Cross Numbers

How Does Gann Square Work?

The Gann Square of Nine Helps to Identify Time and Price Alignment in the Order To forecast Prices, Gann Use Cyclic High And Low In the Order To Forecast Price Direction And Its Time Prediction.

How to Calculate Gann Square Of Nine:

How to Calculate Square Of Nine
How to Calculate Square Of Nine

The Number Within The Gann Square Also Follow A Certain Harmonic Pattern, For Example, 51 From The Above Square, The Value To Next Is 26:

  • The Square Root Of Number (56) And Subtract 2 And re-Square The result (2 Because 26 Is -360 Of 51 in Gann Square Of Nine).
  • 51 Original Number
  • The Square Root Of 51=7.15
  • 7.15-2 = 5.15
  • ( 5.15 )^2=26
  • This Is The Next Value Near The Number 51.

Circle Around The Square:

Circle Around The Square
Circle Around The Square
  • Circle Around Square By Drawing Circle Connecting Four Corners Of Square Brings Concept Of Angle.
  • Angle Measured By Degree Can Point To Potential Support And Resistance Level When Price Is Said To Be Moving With In Angle.
  • The Key Importance Are As Follow
  • 0 Or 360 Degree:   2,11,28,53…
  • 45 Degree:   3, 13, 31, 57, 91….
  • 95 Degree:       4, 15,34,61,96…
  • 180 Degree:           6,19,40,69..

Example :

Let Us Take An Example How Gann Use Square Of Nine In The Analysis Of Share:

An Example How Gann Use Square Of Nine In The Analysis Of Share
Created By, Trading Fuel
  • S&P Made High of 1460 In February 2007; Lets Identify Gann Square Of Nine.
  • We Can See, Two Value of Gann Square of Nine, Between The Center Of Square And These Point There Is An Angle Forming, This Angle Is About 250 Degree.
250 Degree
Created By, Trading Fuel

This Is Gann Mathematical Equation:

  • (Square Root Of High) – 1.4= (Low)^2
  • Why 1.4? In Trigonometry 360 Degrees Is Defined As 2, so 250 Degree Is 1.4. We Are Calculation New Cyclic Low, so We Had Subtracted Square Root Of High.
  • If We Were To Find The High Then We Will Add The Degrees To The Square Root Of Low.
  • (Square Root Of 1460) -1.4= 38.2-36.8
    • 36.8*36.8=1354
  • The Exact Low S&P 500 made during This Period Is 1364 which Is Only 10 Point Difference, Form Our Calculated Value.
  • Let’s See Why Indicator Has Fallen By 250 Degree. During This period we Are Referring To the Sky, We Had Two Major Astrological Aspect: Saturn Opposition Uranus (This Mean 180 Agree) And Sun Square Pluto (This Means 90) If We Add Then 180+90=270. This Value Is Very Close To The Value We Got From The Square Of Nine.

Conclusion:

  • This Method Of Prediction Is Incredible Exact And Has A Special Harmony In It, It Offers Us Correct Ways Of Assessing Future Lows And High Form Financial Market.
  • In Today’s Time Gann Square Of Nine Is Published As A Intraday Trading Indicator, But What We Have Discussed So Far Is A Evidence That Gann Square Of Nine Is A Form Of Calculator Used By Gann In His Trading, Along With Square Of Nine He Uses another form such as Geometry, Angle, Astrology.
  • Blindly Accepting It As A Trading System Is Not Advisable, You Must Do You Back Testing, And Must Study How Gann Use To Trade.

By, Your Trading Fuel

Author

Prashant Raut is a successful professional stock market trader. He is an expert in understanding and analyzing technical charts. With his 8 years of experience and expertise, he delivers webinars on stock market concepts. He also bags the ‘Golden Book of World Record’ for having the highest number of people attending his webinar on share trading.