Square of 9

This is a Gann tool that in my opinion is over rated, nevertheless a lot of people follow it so it is important to observe how it comes out when you identify a strong high or low using my more conventional methods.

Sometimes like in this example of the 1163 high it couldn’t have been better as it was another psychological sign that fitted in with a bunch of other things.

Point is the market declined and didn’t go higher so we have to give it some respect.

The SQ9 display is in the TIME & PRICE routine.

The Sq9 is a price measuring tool developed by W.D GANN. He claimed price encountered support or resistance when it moved through the degrees of the circle. A circle contains 360 degrees and he claimed price would reach support or resistance at the 90 degree  movements from the starting price.  For a market price to move 360 degrees from a level of 576 (root of 576 is 24 and this was Gann’s death number) it would have to move 2 Squares – so 24+2= 26 (676)  or 24-2= 22 (484) and that would be 360 degrees. Gann’s system adjusts as price levels increase or decrease on a logrithmic basis. I have observed this technique for measuring price moves in markets over many years and it has instances were it looks like it is working and so many times where it is of no use.

Nevertheless I know there are more than enough believers out there who will be calculating price support or resistance in advance using Gann’s method. Therefore it is useful to know the method and at least monitor it from a technical viewpoint.

To activate the Sq9 tool in WaveTrader2004 you must activate the TIME & PRICE Window.

SQ9 levels can be inserted from the [C] marker level in the Time & Price tables.  To activate the display you just Click on the SQ9 button.  To run Sq9 levels from any high or low just position the C marker and activate SQ9.

To move the [C] marker just click on the C in the table and it will highlight in bright BLUE, then move your cursor to a swing point on your chart and click again. If you want to move C to a point that does not coincide with a swing level you will have to switch off the Magnet button first then follow the same procedure and click on the high or low of any chart bar. Once the C marker has taken its new location the blue background on the C button will extinguish.

I have a couple of examples to show you from the Gold market where there are a lot of Gann oriented traders.

 

 

The Sq9 tool is probably more useful in the gold and grain markets but moves of 90 & 180 degrees in all markets over shorter time periods will attract attention from the Gann oriented fraternity.  

I have another example below from the S&P of a 3×360 instance.

 

Personally I wouldn’t trade off Sq9 signals unless they tied in with some logical market geometry at the same time. Nevertheless Sq9 is an interesting concept and it does have a dedicated group of followers.

I have explained all of Gann’s methodologies in my Dynamic Time & Price Manual [C] 2002 – some are very good and others are fairly average when it comes to reliability.