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.

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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

FaceBook

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.

FaceBook

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

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