# Gann Square of 9 Method

August 2, 2017 | Author: Prasanta Debnath | Category: Forecasting, Algorithms, Wheat, Prices, Processes

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Stock and commodity market trading method through gann square of 9 technique....

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W.D. GANN'S SECRET OF THE

SQUARE OF NINE is hidden in the 1909 Ticker Interview THIS DISCOVERY WILL CHANGE THE WAY THE SQUARE OF NINE IS USED

W.D. Gann used ONLY ONE algorithm from the Square of Nine to make all his price forecasts in the 1909 Ticker & Investment Digest article. Just one. There are ELEVEN examples of this one algorithm in that article plus two future forecasts. It is the same method in every forecast, with only slight variations. The method I am referring to indicates price points, but does not project the trend. I first came in contact with the 1909 Ticker article ages ago. It took me about four years after obtaining a Square of Nine to discover the method; then another year and half figuring out the slight variations to use and a set of rules to follow. I know of at least one person (he doesn't know me) who has used a similar method, in my opinion, for a long time.

Everything I have seen to date by others on how Gann arrived at the price points in the 1909 article with the Square of Nine is incorrect and I can irrefutably prove it to you. When one sees the same method used over and over in each forecast, one will understand his true method immediately. It will also become clear that Gann was using the Square of Nine early in his career. The true method he used in these forecasts is NOT about setting the 0 line on a price and watching prices at every single angle that originates off the 0 line. It is not about hoping one angle out of a multitude of choices (45d, 60d, 90d, etc.) will be the one that works. When floating the decimal on the Square of Nine, more possible prices become available. Without a repetitive, price pointing model to clarify which price could be support or resistance; one is left with too many potential price alternatives. The method Gann used pinpoints a specific price at different junctures in a trend. The Gann method is NOT about square roots, an area where the majority of traders have concentrated their time in working with the Square of Nine (I certainly did). Square root harmonics have a role all their own in price fluctuations. However, that isn’t what Gann used in every one of the 1909 trades. Rather, one angle of the Square of Nine targets the price and the other angle eliminates a lot of the copious price possibilities presented on the maze of numbers spiraling outward sequentially. That is the secret that Gann would never share with his book and course buying public, or his partner Lambert. All eleven forecasts he gave can be identified down to 1/8 of a point with these two angles. The method is unmistakably the one he used to arrive at the price equation of his forecasts. The technique is simple yet complicated by the fractal nature of the markets. It is hidden in the maze of numbers due to the required floating of the decimal, yet available when the rule upon which it operates is learned. Mostly though, the method is the one Gann undeniably used to target all the price points he gave in the 1909 article.

THE CATCH-22 The CATCH-22 to Gann's clandestine method is that I think it can only be used effectively as a trading edge the next day as opposed to forecasting ONE FINAL HIGH or LOW price into the future as implied in the 1909 article. More than one outcome is generated by the method, but we are given only the final turning point in these movements by the writer in the 1909 article. Did Gann really make those long term forecasts? If he didn't, why is there a single algorithm used (with multiple indications) from the Square of Nine to identify every one of the price points in those eleven forecasts? Conversely, are we to believe he had some magical astrological technique to pick the terminal price point out of the many possible outcomes the method indicates? There is some evidence to support the questioning of whether Gann made the forecasts exactly as they were presented in the Ticker article. His two forecasts into the future at the end of the article failed to occur. Those results are disconcerting after one reads about eleven phenomenal trades in which both the trend and

points have to work collectively in order for a forecast to work. If Gann made those forecasts, he had to have used some sort of trend determination. His two forecasts in the future were wrong on the trend, but I can see why he selected the 1.45 price target in May 1910 Wheat based on a previous low in price and time. Gann used astrology, cycles, and arcane methods to devise his trends. I think he then combined his algorithm from the Square of Nine with his trend calculations to arrive at a price point that would coincide with the change in trend. Without the correct trend, the multitude of possible numerical outcomes on the Square of Nine is overwhelming. It is a lot easier to use the points offered that are close to the prevailing price rather than forecasting a price reversal way out into the future. This is why I definitely see how all three of his intra-day trades were probably done exactly as they were defined in the 1909 article. Using what I call the Prime Start Price, I could give some reversal points off a known SP500 low or high with an assumed trend that would have a strong likelihood of being some sort of reversal in price days or weeks ahead, but how much of a reaction is unknown and whether the points get touched is unknown. Which sensitive price point would be the final one that completely reverses the trend would also be uncertain. The Prime Start price is the price recorded by the stock exchanges. There is no floating of the decimal. If the SP500 made a low or high at 1180 and a new trend commenced, the Prime Start Price is 1180; not 80 or 180 according to the floating of the decimal on the Square of Nine. On a stock low or high at 52, 52 is the Prime Start price; not 152, 1152, 1052, 520, or 1520. The other five numbers do represent 52 on the Square of Nine as Start Prices. They are just not the Prime Start Price. In order to use the Square correctly, one has to use all the different Start Prices with the Gann method. There are six or seven ways to represent each Start Price on the Square of Nine. There are three ways to represent a date or time. One can conclude this from observing Gann’s trades in the 1909 article. I should mention that even with the correct method, the same as used by Gann in all the 1909 forecasts doesn’t always work. Other times, it identifies terrific reversal points. Support and Resistance levels can get broken when the force behind them is powerful. One interesting rule in using the method is that I found the failed support points to be excellent resistance levels when price bounces back to them. One uses the broken support point to enter a short trade with the down trend with tight stops just above the old failed support point.

PROBLEM SOLUTION: ONE DAY AT A TIME Three of Gann's trades in the 1909 article were day trades. Other forecasted trades did not hit the price point he projected for weeks, sometimes months. In one of the Wheat trades, the actual price did not hit the targeted price he is alleged to have given until a year later. In the US Steel trade, he gave a top price to reverse at and gave the next low price before the top was even made. In another trade, he supposedly told a man by the name of Gilley that Wheat, while trading under 1.10 around noon, must hit 1.20 by the end of the day.