
5 minute read
Gann's Square of Nine
by Desi Trader
TRADING MATHEMATICS MS. WENDY WRITER
GANN’S SQUARE OF NINE
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INTRODUCTION
In Square of Nine, We can say 19 is 90 degrees from 15.
That only makes sense if you imagine a 360-degree circle (or set of circles) encircling this rectangular table of numbers.
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The number 19 is a quarter of the way around the circle from the number 15, or 90 degrees in diameter.
The number 34 is immediately above the number 15 which is one diameter or ring beyond the circle in which the number 15 is contained.
In the same way as 19 is 90 degrees away from 15, we can assume that 34 is 360 degrees away from 15, or one full circle rotation away from 15.
That explains the origins of squaring the circle.
WHAT IS THE BEST WAY TO MOVE AROUND THE GANN WHEEL?
This is when things start to get interesting. 3.87 is the square root of 15. We get 5.87 by multiplying two by the square root of 15.
We get 34.49 when we square 5.87, which rounds to 34. We now realise that adding two to the square root of a number and squaring the result is the same as turning the Gann Wheel 360 degrees.
If "2" indicates a 360-degree rotation, "1" indicates a 180-degree rotation, "0.5" indicates a 90-degree rotation, and so on. According to W.D. Gann, 90 degrees is crucial in the financial market.
What Gann is actually saying is that adding and subtracting .5 (and precise multiples or proportions of .5) from the square root of a stock price, and squaring the effect, is crucial!
We agree that there is a school of Gann thinking that claims Gann's relation to 90 degrees has everything to do with celestial bodies moving.
We looked into it, and although they might be right, we have discovered that these schools of thought may coexist comfortably without being contradictory for our purposes.
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WHAT MAKES THE SQUARE OF NINE SO UNIQUE?
The Square of Nine is unusual in that it does not care if the input element is a price, a set of values, or a number of trading days or calendar days, unlike any other form of technical analysis.
They're both the same and can be used interchangeably.
What do you mean? After years of studying chart patterns, moving averages, and oscillators, that can be difficult to comprehend.
That's what makes it so appealing. By translating price and time to degrees of a circle, they become interchangeable. The method includes squares and square roots.
We don't worry about the scale of price and time once they're conceptualised in degrees of concentric circles.
We just think about their orbital relationship at that stage. Is there an opposition, a conjunction, or a square between them?
HOW TO USE A CALCULATOR AND A PENCIL TO TRADE THE SQUARE OF NINE
'Legendary dealer' is normally mentioned before or after the mention of WD Gann.
I guess that's fitting because, with the exception of R.N. Elliott, no other stock or commodity broker has attained anything close to cult status.
The most significant distinction between Gann and Elliott is that Elliott publicised his thesis and publicly shared his "secrets." Despite the $5,000 lessons, Gann never did.
When asked about the cause of his remarkably precise time factor in a 1922 interview, WD Gann said, " "It is my trade secret, and it is much too important to be transmitted. Furthermore, the general public is not yet prepared for it."
Furthermore, the general public is not yet prepared for it."
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WD Gann was a multifaceted character. He was a prolific scholar and journalist, above all.
Unfortunately, most of what Gann wrote, as well as most of what has been published about him, is so perplexing, complicated, and cryptic that most Gann students leave frustrated and broke.
I spent more money on one Gann book than I did on my first car, and the car was much more useful!
The Square of Nine, like the majority of what's available on the Gann Wheel, is no exception.
WD Gann is said to have entered the stock and commodity trading floor with two pieces of paper.
A 9x9 table with the numerals 1-81, as well as a table of numerals known as the Gann Wheel.
He had his computer set up specifically for the day's events. For more than 50 years, WD Gann sold a series of trading lessons, but none of them ever discussed in depth what he did with that 9x9 table, or the other table of numerals, or something else connected to the Square of Nine, as far as we know.
Maybe he didn't think anyone would trust him.
We took the usual hyper-expensive Gann book route and came away disappointed in spirit and lighter in wallet, but captivated by Gann's comments like "When price and time square change is inevitable" - captivated enough to collect all the fragments of information we could find in WD Gann's work and those who had written about the Square of Nine and the Gann Wheel and how it could be used to solve problems.
I don't remember having a Eureka Moment, but it all came together at some stage after we were exposed to a simple formula that turned price and time into circle degrees.
It's a tough concept to grasp, but price and time are not only linked, but they're both synonymous.
Through our ebook, you can find out precisely when a price, a range, the number of tradingdays, or the number of calendar days will square at some point in the future.
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The formulae for translating price and time to degrees of a circle, as well as the procedure for building the Square of Nine, and the formulae for finding all future values and periods that a pivot high or pivot low would square on it. Without ever touching a paper Gann Wheel, you can create your own Square of Nine using roadmap charts created from a simple price chart.
Reference :
1.
W.D.Gann's Square of Nine. By Patrick
2.
Investopedia
3.
Gann Calculator