Hi folks,
..... very busy right now, but while dinner is cooking, let's
look at the contruction of Gann's Sq09, so that everybody
is starting on the same page .....
Firstly, Sq09 is simply a primitive square root calculator, if
we start with 1 in the centre and use a 9 x 9 = 81 square
Yes, we can use significant highs or lows, like 13032003 low,
but in that way, we should be using it a little differently, as
we must also consider some longer time cycles, in the
equation.
Most of the commercial Gann Wheels (Sq09) are not really
complete, in the sense that he used many different overlays
to align price, time and geometry.
Technically, many Sq09 charts are inverted in their
construction, but it does not matter, until it comes time
to marry price and time together, with the planetary
overlays.
From 1, the count should be to the left for 2, then in
anti-clockwise mode for the rest of the count to 81.
Now, if you look at the chart, there should be a vertical
and horizontal lines across the centre, this is the Cardinal
Cross and represents one season of solar movement or
90 degrees on a 360 degree dial.
That is, Gann's trading year started on March equinox,
represented by the horizontal axis and marked on the
left-hand side of your square ..... from there, every
90 degrees of solar movement finds a solstice or an
equinox, on the Cardinal Cross.
Next, we have another cross shown across the diagonals
of the square chart, known as the Fixed Cross.
Both crosses serve as support and resistance for the price
as it approaches each level, targetted by the crosses.
This also divides the circle into 8 x 45 degree segments,
just as Gann divided the RANGE of market moves by 8
to establish common support and resistance levels, as
used in Murrey Maths, etc.
=====
So, the daily increment commonly used is a step of 1 ... that
represents markets that move about one cent or dollar per
day, like corn and oats (1 cent) or gold (1 dollar),for example.
For markets that move more than 1 unit/day, we adjust the
step-up to the appropriate value ..... you can find a list of
these for many commodity markets, in some Gann-related
books.
So, all that is fine, if we simply want to use a 360 degree
dial to represent a trading year and measure the time by
movement of the Sun.
=====
Two more overlays, that are important for the wheel,
feature a square and a triangle, pointing to the degrees
on the outer edge of the wheel ..... these are used to
determine 60/120 degree moves (trine), with the triangle
and 45/90 degrees moves (square), with the square overlay.
So, by having the overlays pivot around a common centre,
we can adjust each one to align with the planets marked
on the outer degree wheel, according to their current positions, daily.
On some wheels, an additional overlay will show the
calendar for an entire year.
-----
When planets reach critical points on the dial, on the same
day as price hits support or resistance on the square, then a
market reversal may be imminent.
-----
Another use for the wheel is to gauge the price, as it
approaches "natural squares", within the number count,
on the wheel. ie 8 x 8 = 64.
-----
Most markets will be easy to read on the wheel, if the
correct "run-rate" is used ... ie x units/ day.
-----
Truth is, Gann tried a similar approach, using many different
geometric shapes, like hexagon and decagon charts as well.
-----
For more reading about Magic Squares, just google it or
refer to Abra Mehlin's works, along with several others,
like Granville Cooley, W.S. Andrews, Hyerczyck, etc .....
.....there's hundreds of different configurations, really.
-----
If you wish to delve further into the ancient history, then
read up on the Pythagorean Numbers and the Tetractys .....
..... absolutely fascinating stuff from the ancient world
of Socrates, Plato and the esoteric schools of Pythagoras.
-----
Suffice to say, most traders only use Sq09 as a mechanical
method of determining price against solar time of one
degree per day (roughly speaking).
However, by using different overlays for the inner and outer
planets, we can easily appreciate how price movements of a
particular stock, align with one particular planet, on Gann's Sq09 Wheel.
For example:
TIM = Saturn's movements.
AZZ = Neptune's movements
There's lots more too, but that's enough before dinner ... lol
happy days
yogi