Gann, a remarkable Analyst & Trader, who with his precise prediction of Time & Price analysis has been able to put the analysts of today to research his veiled coded secrets to predict markets. Gann has always been a mystery known as for his high accuracy rate & incredible market predictions with 85%+ success rate.
The proof of his ability to call the precise time for the market turns have been found in Ticker & Investment Digest, volume 5, number 2, December 1909, which shows that W.D. Gann took a total of 286 trades in the presence of William E. Gilley of which, 264 trades were profitable winning trades. His success rate during this 25 days trading period was amazingly 92%. In this 25-day period, on which the article covers in Ticker & Investment Digest, Gann was able to double his initial capital ten times for a gain of 1000% on his margin money.
During these trade recording period, it has been reported that W.D. Gann carried a miniature version of Square of Nine with him into the trading pits. The source of this information is Mr. Renato Alghini an associate of Gann’s for nearly six years. Gann believed that every top & bottom in the market has a mathematical correlation in both Time & Price. He quoted Faraday saying “there is no chance in nature, because mathematical principles of the highest order lie at the foundation of all things. There is nothing in the Universe but mathematical points of force”.
Since Gann was famous for using veiled language so that nobody could judge what his exact method of Trading/Analysis are, he would often call the same thing in different words; Square of Nine was also referred as “Pyramid” or “Old Square”.
What is Gann’s Square of Nine
The Square of Nine is similar to a wheel or a circle, it starts with the number one in the centre of the circle and then radiates out to the first square of nine. Starting with the number two to the left of the centre or the number one. It then spirals clockwise to the number nine, to form its first rotation
around the Square of Nine. This rotation then continues by shifting one unit to the left of nine and will
commence the next rotation at the number ten and then around to the number twenty. This spiralling
expansion of numbers just continues out until you end up with a grid of numbers, relevant in price to the market your trading. 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 E.g. a significant high or low point in a market. If you were to look at the numbers on the grid running down to the bottom left hand
corner on the Square of Nine, you will find they are the square root of odd numbers E.g. 5x5 = 25. If you were to look at the numbers running up to the top right hand corner on the Square of Nine you will find
they are the square root of even numbers e.g. 4x4 = 16. If you then look at the numbers running down to the bottom right hand corner on the Square of Nine you would find the midpoint between the square
s of odd and even numbers. Using the numbers 16 and 25 as an example of our odd and even numbers you will find the number 21 representing their midpoint.
The Source of Gann’s Square of 9
Gann’s Square of Nine is one of the more exotic tools he incorporated in his trading, and while this is a relatively daunting tool that requires a fare amount of practice to master, it can certainly add a whole new dimension to your analysis. Gann never claimed to be the inventor of this tool; however he certainly developed it and refined it to be used in conjunction with financial markets. The Square of Nine has origins that date back to early Egyptian days, and when looking at it onegets the impression your actually viewing a pyramid looking down from its very top or apex and then looking down further to its actual base. It is said Gann actually discovered the Square of Nine during his travels in India, which
he saw being used as a calculator by traders in the region selling their goods.
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