Nov 16, 2016 In this post, we would understand in detail how to use Gann square of 9 Calculator for intraday trading. There is an excel sheet attached with the post which would help you to calculate support and resistance levels based on Gann theory. The New Gann Square of 9 Calculator, Automatic. This new tool calculates the Square of 9 Gann Value for all FNO stocks, The Nifty and Bank Nifty Index and displays it on one screen. The FataFat Gann calculator supports calculation based on Yesterday’s closing price and Today’s opening price.
Square of 9 from WD Gann is an unconventional method in Technical analysis which uses angular and geometric relationships among numbers to predict the stock moves. This is a very popular method among intraday traders owing to its accuracy in equities as well as commodities. The square of 9 is actually a spiral or wheel of numbers.
The center of the square contains the initial value which is increased clockwise in spiral form. Each number in the square represents an angle relative to the center. In this post, we would understand in detail how to use Gann square of 9 Calculator for intraday trading. There is an excel sheet attached with the post which would help you to calculate support and resistance levels based on Gann theory. At one point in his trading career, W.D.Gann took three year’s leave to go to the U.K to study the past history of selling prices of Wheat. During his meticulous studies, he developed some very powerful and innovative techniques, none more so than his use of the tool we call the Square of 9. Gann closely guarded his secrets whilst he was alive, but almost certainly the Square of 9 calculations was pivotal in his trading methods.
The Square of 9 was not created by Gann. He actually found it inscribed in a temple in India and on the walls of the Great pyramid in Egypt, but he was certainly the first trader to recognize its importance and relevance in market trading.
Gann square of 9 calculator is used to generate support and resistance levels for intraday trading. Breakouts of thee levels would be used to enter trade. The support/resistance levels are generated using the values in Gann square. In order to generate these levels, we need to input the latest trade price or weighed average price in Gann calculator (attached with the post). LTP should be taken after at least half an hour of trade for better results, as there is lot of volatility in market during the first 30 minutes.
Once you input this price the Gann levels would be automatically generated. Every value in the Gann square is related to the center value. Below are the steps used to calculate these values:. Calculate the square root of LTP. Let’s suppose LTP=8400, then SQRT(8400)=91.65.
Take two integers below and above the square root calculated. In this case they would be 90,91,92 and 93. Square the lowest values out of the 4 calculated above. Put this value at the center of Gann square. Now, increase 90 by 45 degrees.
In numeric terms 45 degrees is equal to 0.125 (360 degree=1). So our required value is 90.125. Calculate square of 90.125, and place it in adjacent block left of center block.
SQR(90.125)=8122.52. Increase the value further by 45 degrees. Find out square of this value and place it at the top of where you placed 8122.52. SQR(90.25)=8145.06.
Continue this process by increasing the value by 0.125 for each iteration. Once you complete one level of square, start with the next level with values 91.125,91.25.
DirectionThe square root table in the calculator is always constructed in a clockwise manner. When using the calculator to analyze a market trending upward, the Bull setting is selected in the Circle Direction Control command.The dates on the Seasonal Time Circle will turn green and be arranged in a clockwise direction.When the Bear setting is selected, the dates are listed in a counter-clockwise direction and the circle is colored red:This change in direction allows the downward market to be correctly analyzed. Data Display ControlsThe data displayed in the Square of Nine Table represents the price levels at which swing reversals occurred on the swing chart for the symbol being analyzed.The range and display of the price data is set in the Square of 9 Calculator Settings dialog box:The first settings determine which Points groups will display, if any.The next two settings determine how the swing calculations are performed. The color selectors on the right control the display of the swing data turning points on the Table. PeriodsThis setting is central to the swing chart calculation.A setting of 1 will look for a reversal in price based on the data for one previous compression setting.
A Weekly compression with one (1) period will look to the previous week to determine whether a price reversal has occurred. A Weekly setting with three (3) periods will look to the previous three weeks for a point to calculate the swing.The higher the setting, the less swings will be detected and displayed.Note - If the Table does not have enough data to perform a worthwhile Square of Nine analysis, check how much local price data is available for the symbol.
Open a price chart for the symbol and select Monthly intervals. If there is insufficient data to properly populate the Square of Nine Table, perform a for the chart and then restart the Square of Nine calculator. Square Dimension ControlIn order to effectively view the Square of Nine Table the Dimension, Zoom and Decimal controls must be used in a coordinated manner.The dimension of the Square of Nine Table is important in order to effectively display the range of data to be analyzed.In order to view all possible data, the size of the table should be set to slightly more than the highest price recorded for the symbol.For example, IBM's highest price was $139.19 on 13 July 1999.
In order to see all possible swings, the Square should be set slightly higher than the highest high. For IBM the Square Dimension Control should be set to around 145 or 150. If the dimension is set to 169 (a square number: 13 x 13) the table will be square with its corners touching the circle.Note - The start price will always be 1. It is not possible to create a 'customized' Square of Nine for a particular market or security.Obviously, for some securities or markets the table will begin to extend beyond the visible margins of the work page. When this occurs, use the Font Size control to reduce the size of the calculator so that it is entirely visible on the work page, see next item.This will also occur when the Decimal display is increased, see discussion below.
Zoom OutAs the minimum dimension of the Square of Nine Table is determined by the highest high of the market or security, for some symbols (for example an index such as Dow Jones) a very large table will be required.In order to view the data squares and interpret them using full Square of Nine functionality, the size of the display will have to be reduced so that the entire tool can be viewed on the work page.This is accomplished by reducing the font size of the data displayed in the table. As the font size becomes smaller, the table will shrink and more of it will become visible within the margins of the work page.The Font Sizes range from 1 to 15. Decimal Size/Position ControlsThe third important component in displaying the data results is the Adjust Decimal size setting.In order to properly display the required number of decimal places, the Dimension and Font Size controls must be used in conjunction with the Adjust Decimal command.In the following example, we will analyze the top swing of Starbucks Corporation ( SBUX on NASD). Its top occurred on 30 November, 2006 at $40.01.The default decimal setting is zero (0).In the first example below, the Square of Nine Table's Dimensions are set to 49, slightly above the highest swing top so that it is included in the display when the Calculator is open, the default decimal setting (0) is applied:Dimension: 49 boxesDimension: 500 boxesFont Size: 15Font Size: 8Decimal Places: 0Decimal Places: 1In the first example the value of 40 is included in the table, but SBUX is quoted in dollars and cents.To view the cents, increase the Decimal setting. In order to continue viewing our target of $40.01 the Dimension of the table must also be increased, and in order to continue viewing the calculator on the work page the Font Size must be decreased. NewsAs with most work pages in Your SOFTWARE, the News headline display will appear in the far right section of the function bar.Each time you open a new screen, or refresh the data, the most recent news headline will be retrieved and displayed.Single left-mouse click on the Headline to view it in the News Article window of the News work page.The work page also includes a list of other Breaking News and a Search News facility containing search and news filter tools.For more information, go to the help topic. Positioning the Square of Nine CalculatorWhen large dimensioned tables are used they will often expand beyond the boundaries of the work page unless the Font Size is reduced.In order to read the table's data, increase the Font Size and then drag the data back on to the work page using the mouse.Hold down the left mouse button (the primary button) and drag the calculator around on the work space until the required part of the calculator is visible.Locating the spot in the table to be viewed may take a series of zooms in and out.
If available, the mouse wheel can be used to zoom in and out once a Font Size change has been initiated.The combination of zooming in and out and dragging the display into the visible section of the work page can quickly display any point on the calculator. Dynamically Aligning Time and PriceThe Gann Emblem in the calculator rotates while the Square of Nine Table and the Seasonal Time Circle remain fixed.
This allowing the time represented by the Key Seasonal Dates to be aligned with the price data that is displayed in the Square of Nine Table.To rotate the emblem, hold down the right mouse-button (the secondary button) and drag the corner of the emblem to the spot on the Seasonal Time Circle that you want to analyze or compare.The Square, Triangle and both Ordinal and Cardinal Crosses rotate together.The order of the Seasonal Time Circle is clockwise when analyzing an upwardly trending price movement, and counter-clockwise for downward price formations. The direction is changed using the Circle Direction command in the calculator's function bar, see above.Each can be rotated and aligned with various times to determine their relationship with the symbol's swing chart turning prices.Using the Square of Nine Calculator to forecast and confirm alignments of time and price is a powerful but complex exercise. While the Square of Nine Calculator is a vast improvement on manual overlays of printed tables and charts, much study is still required to master the technique.Comprehensive training in the Square of Nine Calculator's use and interpretation is available in David Bowden's Master Forecasting Course.Refer to the Safety in the Market website for more information.