Hope you’re all staying safe – world sure is a hot bed of activity at present right across the globe

You know with the markets NOTHING is 100% certain – the markets can be really complicated and also really simply

I would thoroughly recommend that you read as much of WD Gann as you can – WD Gann wrote many trading courses – you have to read, reread and then reread them for them to simplify – I will be honest Gann hid true meanings in simple words, so if you are reading his courses hoping for mysteries to be told, you’re mistaken, he forces YOU to do this yourself! Which due to the avenues and work involved will demand a huge amount of time of you, which most people don’t have – then you have people trying to charge you £1,000’s for trading courses to “reveal” the truth!

In all respect, you can do it yourself with a little application and hard work – nothings free in this world!

I still use a lot of Gann’s simple trading methods to this day – used properly they make very attractive returns and I mean much better than the Industry standard 1:3 risk:Reward returns – these are ALL contained in his works with no hidden mystery, you just have to test them and use a bit of common sense around

Now the below is COMPLICATED beyond belief, but you can do it on a calculator!

What I’m about to show you is just ONE aspect, you can use the calculator below to do many other things on Price and Time

Gann in his courses writes about the Squares (9 & 12) no-one knows where Gann learnt or developed this but he did spend time in London, India and Egypt – I would bet this came from Egypt

Take a look at the image below – this is Ganns square of 9 in basic form – notice the angles!

TIP: Pull the 1 towards you in your mind and it will form a pyramid shape (hence why i think Gann got this from Egypt)

Now take a look at this Square of 9 is more in-depth and detailed – do the same imagine it as a pyramid shape

I’m not going into exactness here, you’ll just have to believe me, but all those numbers are perfectly formulated, notice the circles perfectly intersect some of the numbers and also perfectly hit the apex of some of the squares too – this is not by accident!

Now you are probably looking at this (if this is your first time seeing it) thinking “WTF?”

Simply – the Square of Nine splits the circle up into various angles, through 360 degrees, those lines land on numbers and it can be used a yearly calendar, with the angles hitting Spring, Summer, Autumn and Winter etc

this post I want to focus as simply on the numbers as possible:

Basically all the numbers you see (which can be both TIME or PRICE levels) are SQUARE ROOTS – If you know maths then you should see a lot of coincidences in that square of 9

Look at the “blocks” if you follow price around the square from 1 it spirals – look north from 1 until you come to the number 316, just before the circle moves into another circle. The next number on that north line is 391 (the north line is in fact the 90 degree line, if you read Gann he refers to things as 90 degrees, days, weeks, months, years) here its the 90 degree line

(0 degrees is at the 9 o’clock point, 90 degrees is 12 o’clock etc)

Now back to the numbers – there is a point to all this!

Take that number in block 9 (316), sq root 316 = 17.776

to get to the 391 number in block 10 all we do is add 2 to the sq root number of 316 = 2+17.776 = 19.776

Then we re-square the number 19.776 x 19.776 = 391

so to move upwards number wise from block to block we add 2 to the square root and then re-square

Stick with the 391 number if we deduct 1 from the sq root number it shoves us southwards to the bottom part of the square of 9

391 sq root = 19.773 – 1 = 18.773 x 18.773 = 352

Now to move in other directions all you have to do is add or subtract by different ratios to get the other angles on the chart – so sq root + 0.25 – try it

use 391 (19.773+0.25 = 20.023 x 20.023 = 401

Find 401 on the chart

what you have done is by adding 0.25 = 45 degree line, so by re-squaring 391 with 0.25 you find the number associated with that number on the 45* angle of the square of nine! Pretty jazzy eh!

Now to be accurate 45* added to 90* = 135* angle of the Square of Nine (see coloured chart above)

Now in Ganns courses he constantly mentions angles, degrees etc – you simple alter the addition or minus ratio according to what angle you wish to locate/find (remember adding 2 to the sq root moves you a full 360* on the square of nine)

This IS what Gann WAS using 100 years ago! 100 years ago!

Now, here comes the relevance:

The chart below is the SP500 Index

I’ve had the following BLACK line on this chart for weeks

Take the LOW PRICE of March 2020 = 2191.86

Now we’ll apply the Square of Nine to that number – As we’re looking for a possible RESISTANCE LEVEL we need to be adding 2’s to the sq root figures to move up in numbers and up the block on the sqr of 9

2191.86 sq root = 46.817

46.817+10 = 56.817 x 56.817 = **3228.18**

This is the 10th block on from our 2191.86 low price level

Now look at the chart below – here’s a caveat – I have to manually draw these lines on – the 3226.57 black line on the chart was the nearest I could get to placing the 3228.18 line on my charting software due to the limitations of tiny movements on the mouse

Now Look at the chart and the HIGH price of **3233.13** is ONLY 4.95 points over – How amazing is that?

You could have done some time forecasts using time on the Square of Nine and or Gann Angles to see if Time on the 10th block balanced (I’ll leave that for you to do)

Note – It is impossible to know which block will provide support/resistance – you have to test test and test as price moves along

Just wanted to give an illustrated explanation for the most recent decline in prices

Now using more traditional methods – Notice the 2 period RSI at the high – divergence @ a key resistance level

I am pretty sure that more intellectual minds have dissected and written books or courses on Gann’s Square of Nine – As I’ve not read any I can’t help you in which sources to refer to or not to use – All I’ve done is stripped Gann down bit by bit and tested when I could, I’m sure there’s some bits I’m sketchy and not knowledgeable on, that’s for me to look into or leave alone

Stay Safe

**THT**