The square of 9 real technique ...(this is just beginning) by Sri. VijaySinhh Solanki The natural square method is a good method to use square of 9 method of WD GANN. How : Start with 0 than take the nearest odd numbers ...0,3,5,7,9,11.......etc Find the squares: 0, 9, 25,49,81, 121 and so on. Significance : These square numbers are natural Support and Resistance values. Eg: If a stock is priced between 25 and 49 this square numbers are natural resistance ... 25 (square of 5 ) will be the natural support and 49 (square of 7) will be the solid resistance.. Concept of Gann's circle theory : Gann divided the circle into 8 parts. Gann divided circle into eight parts. Circle is 360 Degrees. So the 8 parts are 45 degree, 90 degree,135 degree,180 degree,225 degree,270 degree,315 degree and 360 degree.
The important thing is it's real interpretation and actual usage in trading which most of the websites do not clearly mention. ... I prefer a simple technique which can give solid results. Explained with an example: Let us take the example of Reliance Capital : Current price is 402.90
Find the square root of 402.90 using a calculator. The answer is 20.072. Now find the nearest odd numbers to it : 21 will be the Higher odd no and 19 will be the lower odd no .
Next get the square of these numbers : square of 19 is 361 square of 21 is 441 So Reliance capital at present is within these two price bands and this forms the Gann range or Circle range.... Further divide this range into 8 parts. And draw the corresponding lines on the chart(Shown in the chart below)
Observe GANN TREND : What is GANN trend? If the last swing low is higher than prior swing low trend is up If the last swing high is lower than prior swing high than trend is down...
Entry : Buy if the price crosses the nearest Gann level and the Gann trend is up. ...buy if the stock price cross the nearest gann levels ..and enter in to small circle level small first level above ....and the gann trend is up ... .
In the above chart I have divided the range between 401.10 – 411.20 and 411.31 - 421.12 into 8 parts. From this you can infer that if the price crosses 412.53 it moves above the previous swing high and also enters a new Gann circle between 411.31 - 421.12 . It confirms the entry conditions. The target shall be the last value of the Gann circle ie 421.12 and further 431.076 with Gann trend is up.. StopLoss : In this case it is 409 (nearest to 409.93)– one level below the top of previous Gann circle. Conclusion : It is a good trade with 1:4...1:5 ratio.. Majority of people are wrongly using the sq9 method (with wrong concept.). If you want to trade intraday, than also you have to think about big picture because intraday move is also small part of big move. So if you dont know big picture than your intraday small trade will also fail. In India people use sq9 levels using first 15 minutes or 30 minutes or hourly high low...it is wrong method with totally wrong concept..it 100% ignores the big picture. that is why it's success ratio is not good enough.. (more to follow….) Thank you.
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