Gann Square of 9 Calculator
The Gann Square of Nine is a powerful forecasting tool used in technical analysis and trading. Here’s a comprehensive overview of this intriguing concept:
What is the Gann Square of Nine?
The Gann Square of Nine is a numerical and geometrical framework developed by legendary trader W.D. Gann to identify key price levels, support and resistance lines, and optimal trade timing. It’s based on the principles of harmony and proportion, linking natural order to market movements.
Construction and Structure
The Square of Nine is constructed as follows:
- Start with the number 1 in the center
- Numbers increase in a clockwise spiral outward
- Each “ring” forms a square around the center
- The first complete square contains numbers 1-9, hence the name
Here’s a simplified representation of the Gann Square of Nine:
| 37 | 36 | 35 | 34 | 33 | 32 | 31 |
|---|---|---|---|---|---|---|
| 38 | 17 | 16 | 15 | 14 | 13 | 30 |
| 39 | 18 | 5 | 4 | 3 | 12 | 29 |
| 40 | 19 | 6 | 1 | 2 | 11 | 28 |
| 41 | 20 | 7 | 8 | 9 | 10 | 27 |
| 42 | 21 | 22 | 23 | 24 | 25 | 26 |
| 43 | 44 | 45 | 46 | 47 | 48 | 49 |
Key Concepts
- Cardinal Cross: The horizontal and vertical lines passing through the center
- Ordinal Cross: The diagonal lines passing through the center
- 45-degree angles: Considered crucial for market equilibrium
How to Use the Gann Square of Nine
- Identify a significant high or low point on a price chart
- Locate this price on the Gann Square
- Trace diagonals within the square to find potential future resistance or support levels
- Monitor price action as it approaches these levels for trading opportunities
Important Numbers
The most significant numbers in the Gann Square of Nine are:
- Numbers on the Cardinal Cross (vertical and horizontal lines)
- Numbers on the Ordinal Cross (diagonal lines)
- Numbers occurring every 45 degrees on the chart
Calculating Values
To find the next value to the right of a number:
- Take the square root of the original number
- Subtract 2
- Square the result
For example, to find the number to the right of 54:
To find the value to the left, add 2 instead of subtracting.
Applications in Trading
Traders use the Gann Square of Nine to:
- Identify potential support and resistance levels
- Forecast price movements
- Determine optimal entry and exit points
- Analyze time cycles in the market
Considerations
- The Gann Square of Nine is complex and requires dedicated study
- It’s often used in conjunction with other technical analysis tools
- While some traders swear by its effectiveness, others remain skeptical
- It’s generally more suited for short to medium-term trading rather than long-term investing
By understanding and applying the principles of the Gann Square of Nine, traders can gain unique insights into market behavior and potentially improve their trading strategies.