William Gann: The Square of Nine

The Square of Nine

The Square of Nine is one of the most fascinating and enigmatic of all of W.D. Gann's trading tools. It is a spiral of numbers that is used to identify key support and resistance levels, as well as potential trend reversals. While the Square of Nine may seem complex at first, it is based on a simple mathematical principle that can be easily understood and applied.

Understanding the Square of Nine

The Square of Nine is a grid of numbers that starts with 1 in the center and spirals outwards. Each number in the square is related to the numbers around it by a specific mathematical formula. The square is divided into eight cardinal and ordinal directions, which are used to identify key price levels.

The Formula for the Square of Nine

The Square of Nine is based on the principle of square roots. To find the next number in the spiral, you take the square root of the current number, add 2, and then square the result. For example, to find the number that is one full rotation from 1, you would perform the following calculation:

(sqrt(1) + 2)^2 = 9

This means that 9 is one full rotation from 1 on the Square of Nine. The next number in the sequence would be:

(sqrt(9) + 2)^2 = 25

And so on. This creates a spiral of numbers that are all related to each other by the square root function.

Key Price Levels on the Square of Nine

The Square of Nine is used to identify key support and resistance levels by looking at the numbers that fall on the cardinal and ordinal lines. The cardinal lines are the horizontal and vertical lines that pass through the center of the square, while the ordinal lines are the diagonal lines that pass through the center of the square.

Here is a table of the key angles on the Square of Nine and their corresponding degrees:

Actionable Examples

Here are a few actionable examples of how you can use the Square of Nine in your trading:

• Support and Resistance: Identify the current price of the market on the Square of Nine. Then, look at the numbers that fall on the cardinal and ordinal lines to identify potential support and resistance levels.
• Trend Reversals: Look for the market to reverse its trend when it reaches a key price level on the Square of Nine.
• Time and Price Squaring: Use the Square of Nine to identify when time and price are in alignment. This is a effective signal that a major trend reversal is about to occur.

By incorporating the Square of Nine into your trading, you can gain a deeper understanding of the mathematical relationships that govern the financial markets. This effective tool can help you identify key support and resistance levels, anticipate trend reversals, and improve your overall trading performance.