Intraday Trading Using GANN SQUARE OF NINE

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Hi All,

In the next 10 post, i will be explaining how to use Gann Calculator and how to trade intraday based on this calculator.

I browsed through this forum for Gann Calculator and found many articles wrote on it. As a normal individual, i was not able to understand any of them.

After browsing through more than 25 websites (where no one is sharing their way of trading with this method, they just give GANN formula/square/angles/etc/etc), i found the simple way to trade using Gann Square of 9.

I will update this thread slowly day by day.

I am reserving the next 10 post for detailed explaination on Gann Calculator.

I will mention here all the formulaes, and logic behind the calculation, so tha if someone wants to develop excel or if someone wants to develop AFL, they can.

All suggestions are welcome.

SENIORS TO ADVICE MORE. LEG PULLERS PLEASE STAY AWAY.

For Quick reference, this is how the Gann Calculator looks


Gann Square of 9 - Introduction


Gann relied heavily on geometrical and numerical relationships and created several tools to help with his work. Among these tools are the Square of Nine, Square of 144, and the Hexagon. The Square of Nine, or Square as we will refer to here, can be constructed in at least two ways. The static Square has the number 1 at the center and the dynamic Square has the historic low of the time series in the center.

The Square of 9 is basically a spiral of numbers. The initial value can be found in the center of the spiral. This value is then increased by moving in a spiral form. Normally the center value is 1 and the step is one creating the spiral shown below.

The numbers that represent a complete turn (0 or 360 degrees) are 2,11,28,53.....
The numbers that represent 1/8 of a turn (45 degrees) are 3,13,31.....
The numbers that represent 1 quarter of a turn (90 degrees) are 4,15,34.....
The numbers that represent a half turn (180 degrees) are 6,19,40.....

The Square of Nine is essentially a time and price calculator, and calculates the square
root of numbers, both odd and even numbers as well as their midpoints. It also looks
for both time and price alignments from a specific starting point or price level.
We will however not work on the time alignment as we are trading for intraday only.

Some Interesting Facts about Gann Square

If you were to look at the numbers on the grid running down to the bottom left hand corner on the Square of Nine, you will find they are the square root of odd numbers E.g. 5x5 = 25.

If you were to look at the numbers running up to the top right hand corner on the Square of Nine you will find they are the square root of even numbers e.g. 4x4 = 16.

If you then look at the numbers running down to the bottom right hand corner on the Square of Nine you would find the midpoint between the squares of odd and even numbers. Using the numbers 16 and 25 as an example of our odd and even numbers you will find the number 21 representing their midpoint.


Cardinal Cross and Ordinal Cross


The numbers that fall on the blue lines form what’s known as the “Cardinal Cross”
and the numbers that fall on the red lines running into the corners of the square, form what’s known as the “Ordinal Cross”.

Any numbers that fall on these lines are said to act as significant support and resistance levels.

So the Square of nine is an interesting arrangement of numbers that have a specific order and can be used in many different ways.

The red and blue lines intersect with other and divide the square in 8 equal parts.

The angle between each line is 45 degrees.
More Interesting Facts

THE GANN WHEEL IS A SQUARE ROOT CALCULATOR

The Gann Wheel, what most people probably think of as the Square of Nine, is sometimes called a "Square Root Calculator" or a device that "Squares the Circle." This simple illustration may explain how and why these terms came about. You probably recognize that the illustration is just the first few rings of a Gann Wheel with the numeral "1" at the center.

In Square of Nine parlance we say things like 19 is 90 degrees from 15. That makes sense only if you can visualize that this rectangular table of numbers is enclosed in a circle (or series of circles) of 360 degrees. In this case, the number 19 is 1/4 the way around the circle from the number 15, or 90 degrees in circumference from 15. The number 34 is directly above the number 15 and positioned one circumference or one ring outside the circle that contains the number 15. In the same sense that we can say that 19 is 90 degrees from 15, we can say that 34 is 360 degrees from 15, or one complete rotation of the circle from 15. That explains where squaring the circle comes from. A more accurate expression would be that we're circling the square but that never did catch on.

HOW TO ROTATE AROUND THE GANN WHEEL

Here's where it gets fun. The square root of 15 is 3.87. Add two to the square root of 15 and we get 5.87. Square 5.87 and we get 34.49 which rounds to 34. Now we know that adding two to the square root of a number and squaring that sum is the same thing as a 360 degree rotation up on the Gann Wheel. If "2" represents a 360 degree rotation then "1" represents a 180 degree rotation, "0.5" a 90 degree rotation, and so on. W.D. Gann tells us that 90 degrees in very important in the stock market. What Gann is really saying is that adding and subtracting .5 (and exact multiples or proportions of .5) to the square root of a stock price and then squaring the result is very important! We acknowledge that there is is another school of Gann thought that will say that Gann's reference to 90 degrees relates to the movement of celestial bodies. We've looked into that and they may be right, but for our purposes we've also learned that these schools of thought can peacefully exist alongside each other without contradiction.

But Note: For our Calculation we would consider 1 as 360 because we are trading intraday.