iCharts Discussions

[DH1988]

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.

[DH1988]

example''
This is tarde for HDFC on 26th Mar 2010.

During 9:05-9:15 am, the WAP (Weighetd Average Price) of HDFC in NSE was 2607

By entering this value in Gann Calculator, you get the Gann square levels.
As per levels we should buy above 2613 and short below 2601.

If you look, the price didnt went below 2601 after 9:15 am.

But price went above 2613. So we enetered in long at 2613.

Our Target 1 2625 got achieved soon.
The price was not able to sustain above 2625 for more than 5 min.
Infact the HDFC touched 2625 and started moving in rang 2618-2623. So there is possiblity for HDFC to move in downward direction.
So we square off at CMP ( 2620 )(approx price).
We ended up in profit of 2620 - 2613 = 7rs.

Now we take 2620 as our reference price. and put it in Gann Calculator.
We get the below recommendations

Recommendation:
Buy at / above: 2626.56 Targets: 2638.07 - 2650.92 - 2663.8 - 2676.72

Sell at / below: 2613.76 Targets: 2602.3 - 2589.55 - 2576.85 - 2564.17

So we buy only if price moves above 2627.

After 1-2 hrs, HDFC started moving up and it confirmed its uptrend by crossing the price 2627.

So we eneterd long again at 2627.

Our target 2638 just got touched and again price started falling indicating pressure at 2638.

So try to square off at price near to 2638.



so practice it

[DH1988]

exmple for nifty
The WAP price of Nifty Futures around 9:15 - 9:25 am was 5377.

After entering this value in Gann Calculator we get the following calls

Recommendation:
Buy at / above: 5383.89 Targets: 5399.54 - 5417.93 - 5436.34 - 5454.78
Stoploss : 5365.56
Sell at / below: 5365.56 Targets: 5349.93 - 5331.66 - 5313.42 - 5295.2
Stoploss : 5383.89

Buy Triggered at 5383. Target 1 was 5399. High was 5398.

Since the target 5399 could not maintain its presence for more than 5 min, we square off our trade.
and calculate the square again.

We enter 5390(approx) at this time.

So we get below calls
Recommendation:
Buy at / above: 5402.25 Targets: 5417.93 - 5436.34 - 5454.78 - 5473.26
Stoploss : 5383.89
Sell at / below: 5383.89 Targets: 5368.24 - 5349.93 - 5331.66 - 5313.42
Stoploss : 5402.25

Sell triggered at 5383.
Target 1 and Target 2 achieved.

So profit in second trade is 5383 - 5349 = 34 points.
Profit in first trade = 5390 - 5383 = 7 point.

Total profit = 34 + 7 = 41 points.

[doctorshah]

How do we get WAP Price?

[DH1988]