The Gann Square of 9 strategy is a popular technical analysis tool developed by the legendary trader and mathematician, W.D. Gann. This strategy is based on the principles of geometry and numerology, which Gann believed were closely tied to the movements of financial markets.
How to use Gann Square of 9 in trading
One of the main premises behind this strategy AMF Signal Arrows is that price movements tend to follow specific geometric patterns, known as squares or angles.
These angles form when two significant price points are connected on the chart, forming diagonal lines that act as support or resistance zones.
Who was W.D. Gann?
W.D. Gann, also known as William Delbert Gann, was a renowned trader and financial analyst who lived from 1878 to 1955. He was born in Lufkin, Texas and spent most of his childhood in poverty.
However, he showed an early interest Momentum Indicator in mathematics and finance, which led him to pursue a career in the stock market. Gann’s trading career began at the age of 24 when he started working as a broker for several firms in New York City.
During this time, he observed the patterns and movements of the market and developed his own unique approach to trading.
How to Use the Gann Square of 9 for Trading
The Gann Square of 9 is based on the idea that each number has a unique vibration or energy, and by understanding these vibrations, traders can accurately forecast market trends.
1: Understanding the Basics
Before we dive into how to use the Gann Square of 9 for trading, it’s essential to have a basic understanding of its structure and principles. The square consists of nine equal-sized squares arranged supply and demand in a grid-like pattern with numbers ranging from one to nine.
2: Identifying Key Levels
The next step is to identify key levels on the Gann Square of 9. These levels are referred to as “squares” or “angles,” and they represent potential support and resistance levels in the market.
To determine these levels, you need to start at the center (number five) and move outward in a spiral pattern until you reach your target level.
3: Calculating Time Cycles
The Gann Square of 9 also incorporates time cycles into its analysis.
These cycles are based on Fibonacci ratios, which can help predict when significant price changes may occur. To calculate time cycles using this strategy, simply multiply your target price Tom Demark Sequential level by two then divide it by three.
4: Using Price Projections w.d. gann time cycles pdf
Another useful application of the Gann Square of 9 is projecting future price targets based on previous market trends. This involves drawing diagonal lines from key support or resistance levels on the grid towards future dates.
These lines can give traders an idea of potential price targets Zero Lag Exponential and when they may occur.
5: Combining with Other Technical Indicators
The Gann Square of 9 works best when used in conjunction with other technical indicators such as support and resistance levels, trend lines, and moving average