The invention of Square of nine is attributed to William Delbert Gann, a famous trader of the first half of the twentieth century, whose biography is shrouded in secrets no less than his theoretical heritage. Forex scammers love to tell naive simpletons of fiction about how William Gunn earned $ 50 million on the exchange from scratch, and the profitability of his trades at times reached 4000 percent per annum! “Mysterious trader,” “unsurpassed trader,” “singer of speculation,” “keeper of sacred secrets” – every self-respecting exchange evangelist spells such epithets about this patriarch Paul of Miracles.
Basic view of Gann’s figure “Square 9.”
The “Gann Square 9” figure itself is like a pyramid (if you look at the square from above). The reference point is a small central square, consisting of one cell at number 1 – so to speak, the top of the pyramid. Further, from this top, there is a spiral of cells with increasing numbers by one unit.
Square 9 got its name because the first turn (full revolution) of the cycle at the top ends at 9.
What is the practical significance of Square Nine, according to William Gann?
The original idea, of course, obeys the same sacred geometry that the trader derived from the structure of the biblical text and applied in his famous “corners”: the so-called 1×1 angle, corresponding to 45 degrees, acts as a watershed of entities: good and evil, growth and fall, sunrise and sunset, etc.
In trading, the main Gann angle (1×1) corresponds to a full-fledged uptrend, that is, healthy market growth. The remaining angles (1×2, 1×4, 1×8, etc.) serve as support and resistance levels similar to what we observed in cases with Fibonacci levels.
method Gann square of nine
Cycles in Gann Square 9
When working with Gann Square Nine, we will need to calculate degrees of angles. We will calculate these degrees based on different methods for determining the cycle of Square 9.
There are so-called small cycles of Square 9. In the book, this square is called Figure 9. The meaning in it is such that the distance between the diagonal squares of odd numbers and the diagonal squares of even numbers is 1. And this path contains 1/4, ½, and 3/4 parts (see the figure below).
If we draw a diagonal through the squares of even and odd numbers (of which we spoke above), we get the following: taking the reference point of the beginning of the cycle on the diagonal of the odd number (in the figure below it is the lower-left corner), and the end of the reference on the diagonal of even numbers (in the figure this is the upper right corner), then we can represent the passed path clockwise from the start to the endpoint as a whole cycle (since we will go through exactly one unit – first ¼ of the path, then ½ of the path, then ¾ and in the end, at the end 1).