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GANN SQUARE OF 9 History, Theory and how to use it today!
Topics
History Gann Square of 9
Use in Price Static Dynamic
Use in Time Putting it Together
Golden Rules
Further Information MTA Member only
offer.
Presenter
Mathew Verdouw
Designing Technical Analysis Solutions for 16 years.
Input from a variety of experts. Continually studying the works of Gann
and contemporaries.
Disclaimer NO FINANCIAL ADVICE - The Information in this presentation is provided for education and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any particular purpose. The Information contained in or provided from or through this material is not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice. The Information in this material is general in nature and is not specific to you the viewer or anyone else. YOU SHOULD NOT MAKE ANY DECISION, FINANCIAL, INVESTMENTS, TRADING OR OTHERWISE, BASED ON ANY OF THE INFORMATION PRESENTED ON THIS MATERIAL WITHOUT UNDERTAKING INDEPENDENT DUE DILIGENCE AND CONSULTATION WITH A PROFESSIONAL BROKER OR COMPETENT FINANCIAL ADVISOR. You understand that you are using any and all Information available on or through this material AT YOUR OWN RISK.
RISK STATEMENT - The trading of stocks, futures, commodities, index futures or any other securities has potential rewards, and it also has potential risks involved. Trading may not be suitable for all readers of this material. Anyone wishing to invest should seek his or her own independent financial or professional advice.
History He was a mathematician. He believed in an inter-
connected world. Gann went to India and
Egypt in early 1900s. The Square of 9 is one of
his discoveries.
History
All through the Ancient World are examples of Squares, Triangles and Circles.
He even used the three in his company logo.
Semantics
Actually called “Spiral Chart” by Gann.
Square of 9 was a 9x9 grid.
Semantics
This is what Gann would have used for “Square of Nine”.
We’ll still call it the Square of 9.
Square of 9
Imagine a Pyramid.
Squares and Square Roots
Used as a calculator Blue Squares
2,4,6,8,10,12
Red Squares 3,5,7,9,11,13
Simple to use
Angles
Angles are very important.
Calculations are in degrees.
Cardinal Cross 90, 180, 270, 360
In the Markets?
Static Number Series How can it effect a
dynamic market? Let’s look at some
examples.
I am using software (Market Analyst) but these techniques can be done with a pencil and a calculator.
Square of 9 Examples
Angles that Gann would look for. 45, 90, 120, 180, 240, 270, 315
We apply a factor of 0.1
Time Factor Digression
Critical to all Gann Gann will never work
if the price units are wrong.
Rotation
Key is rotation. Gann often spoke of
the importance of cycles. “The Circle of 360° is most important for time cycles and price resistance” W.D. Gann
USD EUR Cross
Characteristics
Angles are Important Expansion as prices
move higher – like Logarithmic
AAPL 180 and 360
Characteristics
Angles are Important Expansion as prices
move higher – like Logarithmic
AAPL 180 and 360
Formula
Counting Squares is Slow – even for a computer.
We have a handy formula that we can use.
𝑌 = ( 𝑋 + 𝛼180
)2 X is Starting Price
Y is the new Price
𝛼 is the angle in degrees
𝑌 = ( 9 + 360180
)2
= 3 + 2 2 = 25
Taking it to the next level!
Dynamic Square of 9
Dynamic Square of 9
Having the formula gives us the ability to start at any price.
S&P500 from 666 low
From Tops
Starting at the March 2012 High.
Added 135˚
Dow Valued in Gold
Dow/Gold Top in 1999 Sq9 works
Dow from 2007
Live Charts too
EUR/USD 11th Sep 2012
Cluster of Multiple
3 Square of 9 tools.
Areas of Cluster are very important.
So far we have been finding our tops and bottoms on a large square.
We can also “center” the top or bottom in the middle of the Square of 9.
Center the Starting Value
Euro Centered
Factor of 0.01 Start at 1.2755 On the Square:
1,275
Euro Centered
Useful in Intra-day as it shows the price expansions from an Intra-day turn.
Center the Starting Value
Around the Circle. Changing the Numbers.
Square of 9 in Time
Date Rings
Find the significant date around the ring.
Date Rings
First 90˚ date. Jan 8th
Date Rings
Date Rings
XOM - Dates
Just like we did with Price.
Center the Time
IBM
Top in IBM in April 3rd Manual Calculations for
this. Notice the Time Control
IBM in Days
Stand out is that the April 23 Low is picked by both Methods.
Date Square
Centered April 3rd April 23rd is 270˚ in
the next revolution.
Goog Dates
The Golden Rules!
Putting it all together
Putting it all together
The Golden Rules.
Never adopt a new technique without testing.
Never neglect what has been working for you in the past.
These do not work all the time.
Putting it all together
The Golden Rules.
Build a case. Start with major turns. Add in minors. Do you see confluence? Watch that price.
Always wait for confirmation of a change in trend.
There are two people who can teach more than I on the Square of 9
• Constance Brown, CMT www.AeroInvest.com • Alan Oliver, www.TradingWithGods.com
Further Information
Market Analyst 7
Market Analyst 7 Not just Gann – although we do that like no one else. Standard Technical Analysis including Back-Testing. Three Dimensional work. Modern easy to use interface including Multi-touch. Simple Report Publishing – Word, Powerpoint, PDF, Blog. Supported from USA and Australia. Continually developed by a dynamic company.
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GANN SQUARE OF 9 Thanks for Listening. www.mav7.com/MTA
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