Many people have asked me about the Square of Nine and its applications .
Gann used many price calculators and different Squares that were specific to the particular type of Commodity or market he was trading. Most people have little understanding of The Square of Nine and its correct functions yet they try and apply this tool without developing the correct foundations . The most important factor in the market is Time and once Time is up both space and volume will increase and the trend will reverse either to the up or downside . It is the same with Tunnel through the Air , most people begin with this book without developing the correct prerequisite knowledge in order to decode the book or are just to lazy to work through the examples they are effectively putting the cart before the horse so to speak . Gann deliberately encoded or hid a lot of important information in plain sight as he knew the masses were lazy and not prepared to do the work in order to develop a comprehensive understanding of how all of the elements are pieced together . If you are unable to determine the direction of trend with a bar chart and what Cycle you are running up against and what Time periods are in play you have not adequately grasped the foundation principles that are clearly outlined in Ganns books and the Square of Nine will be of little use to you if you cant read the underlying pattern of the market .These are core principles that must be studied and understood and are generally overlooked by the majority who are looking for the keys without doing the work . Gann knew this and that is why his works are designed in that manner . Chart paper is still available for purchase and by constructing Charts by hand you will develop a trained eye to read the market the amplitude of the price swings and what Cycle you are currently repeating but the majority cant be bothered replicating and decoding Ganns work which is why they are always guessing what the market will do next . So in response I am going to provide a brief outline on the foundation of The Square of Nine and some of its applications .
There are four Cardinal points on The Square of Nine . The first point is at 0 Deg or the 21st March which marks the Vernal Equinox in the Northern Hemisphere and Autumn in the Southern Hemisphere . This is the point where the Sun crosses the Celestial Equator moving from South to North Latitude . The numbers that fall on this angle beginning with 1 are 6 19 40 69 106 151 etc .
90 Deg in longitude from this date is the 21st June Solstice which is the moment the Sun reaches maximum North latitude or directly above the tropic of Cancer in the Northern Hemisphere . The numbers on this angle beginning with 1 are 4 15 34 61 96 etc which are square or 90 deg in longitude to 0 Aries or the 21st March .
180 Deg in longitude from the 21st March and 90 Deg in longitude from the 21st June is the 23rd September Equinox which is the moment the Sun crosses the Celestial Equator moving South , Beginning with 1 the numbers on this angle are 11 28 53 96 127 etc . All of these numbers on the four Cardinal points can be used to measure both time and price periods and often mark significant Tops and Bottoms in the market .
270 Deg in longitude or 3/4 of a year is December 21st which marks the first day of winter . At this point the Sun reaches its Southernmost latitude and begins to move North again up to the 21st March to complete the Cycle again . Beginning with number 1 on this angle we progress to 8 23 46 77 116 etc .
The Square of Nine contains the square with its four cardinal points and the triangle with its 1/3 and 2/3 points contained within the wheel of 360 Deg . The three points on the triangle beginning from 0 Deg Aries are 23rd July or 120 Deg in longitude November 22nd or 240 Deg in longitude and then back to 360 Deg or the 21st March .
Each quarter on the Square is divided into six sections of 15 Deg which mark important Seasonal Time periods . In the first 1/4 of the Circle we have the 6th April or 15 Deg in longitude from the Vernal Equinox - April 20th = 45 Deg - May 21st = 60 Deg - June 6th = 75 Deg and June 21st = 90 Deg . Each quarter of the wheel contains six 15 Deg segments or 24 periods of 15 Deg which completes the wheel of 360 .
The Square of Nine is also a square root calculator and when certain numbers fall on the important degrees it can signal an important point for change in trend . If we take the square root of 6 which is on the 0 Deg angle and add 2 it equals 19 3/4 or very close to 20 which is on the same angle with price completing one full revolution around the wheel .
We can also use the 90 180 and 270 Deg dates to calculate support and resistance levels for both price and time periods .
Example 204 is located at 0 Deg
+ 1/2 Square = 218 or 90 Deg in longitude + 1.5 Square = 249 or 270 Deg + 2 Square = 265 a full 360 Deg revolution in price .
Seasonal Time periods are important areas to watch especially when minor or major Time Cycles coincide with these dates . Gann said that in figuring Seasonal Time periods we do not start to calculate Time from the 1st January but calculate the time periods from the date when the Spring season starts on March 21st , this is the date when the Sun moves North across the Celestial Equator in the Northern Hemisphere which marks the beginning of Spring . These dates are as follows :
May 5th ends 1/8th or 6 1/2 weeks from March 21st and is on the 45 Deg Angle
June 21st ends 1/4 or 13 weeks from March 21st and is on the 90 Deg angle
July 23rd ends 1/3rd or 17 weeks from March 21st and is on the 120 Deg angle which is important for change of trend as it is 1/3rd of the circle and important Tops and Bottoms can culminate around this date .
August 5th ends 3/8 or 19 1/2 weeks from March 21st which is on the angle of 135 Deg or 135 Deg in longitude from the Vernal Equinox .
The most important date is the 23rd September which is 180 Deg in longitude or opposite the 21st March which marks the beginning of the Autumnal Equinox when the Sun is crossing the Celestial Equator going South . Important changes in trend occur around these midseason dates but all of the above dates should also be watched for changes in trend .
10th January 1955 WD Gann
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