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 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.
How to make Gann Square of 9 ? You all must be interested in knowing how to generate Gann Square of Nine. So lets begin.... To generate the square you need a reference point. For intraday, this reference will be the LTP of stock/index. How to take LTP?? (Explanation in next few pages). Lets say I get LTP as 5100. Now I need to generate square based on this. I will follow below steps to do this. Step 1: Take SQRT(LTP) = SQRT(5100) = 71.41 Step 2: Take the 2 integers below SQRT(LTP) and 2 integers above SQRT(LTP). 2 integers below are 71 and 70. 2 integers above are 72 and 73. Step 3: Now take SQR(70) = 70 * 70 = 4900. Place this in the center. Step 4: Now increase the 70 by 0.125 (45 degrees) (as told in previous post 1 represents 360 degrees.) So 45 degrees = 0.125. Step 5: Take the square of 70.125. SQR(70.125) = 4917.51. Place this in left block adjacent to center block where u placed 4900. Step 6: Increase the value further by 0.125. You get 70.25. Square it. SR(70.25) = 4935.06.
Step 7: Place this on the top block of the block where u placed 4917.51. Step 8: After generating 8 values, you will be complete one level of square. Step 9: Repeat the steps with values SQR(71.125), SQR(71.25),....
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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 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.
How to make Gann Square of 9 ?
You all must be interested in knowing how to generate Gann Square of Nine.
So lets begin....
To generate the square you need a reference point.
For intraday, this reference will be the LTP of stock/index.
How to take LTP?? (Explanation in next few pages).
Lets say I get LTP as 5100.
Now I need to generate square based on this.
I will follow below steps to do this.
Step 1: Take SQRT(LTP) = SQRT(5100) = 71.41
Step 2: Take the 2 integers below SQRT(LTP) and 2 integers above
SQRT(LTP). 2 integers below are 71 and 70. 2 integers above are 72
and 73.
Step 3: Now take SQR(70) = 70 * 70 = 4900. Place this in the center.
Step 4: Now increase the 70 by 0.125 (45 degrees) (as told in
previous post 1 represents 360 degrees.)
So 45 degrees = 0.125.
Step 5: Take the square of 70.125. SQR(70.125) = 4917.51. Place this
in left block adjacent to center block where u placed 4900.
Step 6: Increase the value further by 0.125. You get 70.25. Square
it. SR(70.25) = 4935.06.
Step 7: Place this on the top block of the block where u placed
4917.51.
Step 8: After generating 8 values, you will be complete one level of
square.
Step 9: Repeat the steps with values SQR(71.125), SQR(71.25),....
You can use the gann calculator available at
http://www.pivottrading.co.in/pages/gannSquareof9.php
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