| Vol. 1, No. 11 |
September 5, 2002
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Practical Application of an
Authentic Gann 'Square of Nine'
Part One
Introduction
One of W. D. Gann's most important trading tools was The 'Square of Nine' or 'Pythagorean Cube' or 'Odd Squares Calculator'. There is no doubt that he used it extensively.
There has been a shortage of clear and understandable material written about the 'Square of Nine' and its uses. Most Gann students are aware that Mr. Gann used these extensively in his trading and research. Until now, it has been almost impossible to apply the principles of the 'Square of Nine' to actual market conditions and trading situations.
This article is the result of the exciting ongoing research by the Lambert-Gann Educators Inc. team into the W. D. Gann archives owned by Nikki Jones and Lambert-Gann Publishing. It clearly shows that given the right tool to work with (the Natural Squares Calculator™), and the right instructions, one can understand how Mr. Gann was able to trade and call market turns so accurately. More importantly, it also shows that the information that can be gained from the 'Natural Squares Calculator', correctly aligned with current markets, is invaluable in making trading decisions.
Lambert-Gann Educators, Inc. seminars teach practical application of the 'Square of Nine' to trading as well as advanced Natural Squares Calculator lessons. In addition, the forecasting lessons taught in that seminar have never been taught anywhere in the world. This seminar truly teaches the trading and forecasting techniques of W. D. Gann in a logical, precise, understandable methodology that is breathtaking.
This article appeared in the Spring 2002 issue of the Traders World Magazine. It is reprinted with their permission.
Practical Application of an Authentic 'Square of Nine'
Part One
Ken Gerber
The 'Square of Nine' or 'Pythagorean Cube' or 'Odd Squares Calculator' has been talked about as one of W. D. Gann's most important trading tools. There is no doubt that he used it extensively.
One of the most important discoveries made by Lambert-Gann Educators Inc. in the Lambert-Gann Publishing Co. archives is a 'Square of Nine' with a date ring on top revolving around a center pin. This revolving ring allowed the date to be moved over the top of the price of a major top or bottom.
We created the 'Natural Squares Calculator' to bring to the public a trading tool that teaches the basic principles that Mr. Gann used in trading with the 'Square of Nine'. Without a movable date ring, a 'Square of Nine' calculator cannot be synchronized with current market vibration. This visual synchronization clearly demonstrates how accurate this tool can be. It also shows that learning the basics of using a 'Square of Nine' in this manner is not difficult.
Part One of this article will deal with the price aspect of a synchronized 'Calculator'. Part Two will use the 'shifted time' to show how the synchronized 'Calculator' repeatedly creates changes in trend as harmonized time and price square.
The following chart is of continuous December Corn. According to Mr. Gann's writings, we should link together December Corn contracts forming one continuous contract of corn containing only the December contract. The major high shown in this chart is at the price of $2.62 on the date of December 28, 2000.
Mr. Gann repeatedly described the Cardinal Cross (90, 180, 270, and 360-degree angles) as the most important points of support and resistance. The second most important was the Ordinal Cross (45, 135, 225, and 315 degree angles).
By timing the calculator to the major high price of 262, we have shifted the Cardinal Cross and Ordinal Cross prices so they are in harmony with the market vibration. To do this on a 'Natural Squares Calculator' move the center ring (Square of the Circle) so that the Zero Degrees line is over the price of 262.
You have now created a new Cardinal Cross and Ordinal Cross. The Cardinal numbers have shifted from 249 to 245 1/2, from 233 to 229 ½, from 218 to 215, and from 204 to 201 ½. The Ordinal Cross numbers have shifted from 257 to 253, from 241 to 237, from 225 to 221, and from 211 to 207. From now on, any reference to the Cardinal and Ordinal Cross numbers will be to the 'shifted' numbers.
From the major high at 262 the market made the first move down to No. 2 at 243, holding within 2 ½ cents of the 90-degree Cardinal Cross support. It then made 2 more attempts at the same level, finally rallying from the 3rd bottom to the high marked No. 3. The price at No. 3 is 252 which is exactly one-half way back and also back to the 45 degree Ordinal Cross.
The next leg down goes to No. 4 at the price of 229 which is at the 180 degree Cardinal Cross. . Mr. Gann said the strongest angle was the 180-degree angle, making this a place for a potential rally. The rally to No. 5 stops at 241 ¼ which is at an unshifted Ordinal Cross providing resistance.
The next move down to No. 6 stops at 220 which is one cent from the 225 degree Ordinal Cross. From there the rally back up to No. 7 is to the old bottom of 230 which again is the 180 degree Cardinal Cross.
Again the market starts down through the old bottom of 220 and the 270 degree Cardinal Cross to the 315 Ordinal Cross support price of 206 ½ at No. 8. The rally back up to No. 9 is back again to the old bottom and the 225-degree Ordinal Cross.
The final move to the bottom at No. 10 goes to the price of 202 ½ which is within one cent of the 360 degree Cardinal Cross and next to the beginning at 262.
Of the 5 waves down 3 were almost exactly 135 degrees on the calculator. They were from No. 3 to No. 4 (45 degrees to 180 degrees), No. 7 to No 8 (180 degrees to 315 degrees) and No. 9 to No. 10 (225 degrees to 360 degrees).
The 'shifted' Cardinal and Ordinal Crosses provided the resistance or support for 8 of the 9 changes in trend during this down move. The 9th resistance point came from the 'unshifted' Ordinal Cross.
There is no doubt that a synchronized 'Calculator' will provide superior harmony for a market. In Part Two, I will show how Mr. Gann would have known when the squaring of time and price is occurring simply by checking his 'Calculator' daily.
Ken Gerber writes and teaches for Lambert-Gann Educators Inc. The company creates practical trading tools and courses and gives seminars regularly to teach W. D. Gann's trading and forecasting methods. The source of all products is the original charts, writings, and calculators owned by Lambert-Gann Publishing Co. of Pomeroy, WA. Nikki Jones and her late husband, Billy, bought Lambert-Gann Publishing Co from Ed Lambert in 1976.
ACKNOWLEDGEMENT:
The charts reproduced in this article were produced by Market Analyst II software.
DISCLAIMER:
Every effort has been made to ensure that the content and conclusions presented in The New W. D. Gann Technical Review are complete and accurate.
No part of The New W. D. Gann Technical Review contains trading advice - stated or implied, nor is an invitation to trade. The directors and associates of Lambert-Gann Educators, Inc. are NOT licensed trading or investment advisors. Lambert-Gann Educators, Inc. is an organization designed to assist traders and investors to become more knowledgeable and independent.
The giving of advice is therefore contrary to the very objectives of Lambert-Gann Educators, Inc.
Traders requiring trading or investment advice should contact a licensed advisor.
Stockbrokers and futures brokers are licensed advisors.
Neither Lambert-Gann Educators, Inc., nor anyone else involved in the production of The New W. D. Gann Technical Review, will be liable for any liability, loss or damage directly or indirectly caused, or believed to be caused, by The New W. D. Gann Technical Review.
Traders, to be successful, must take full responsibility for their own actions.
With respect to trading results, past performance is not necessarily an indication of future performance.
By maintaining your subscription to The New W. D. Gann Technical Review, you acknowledge that you understand and accept the contents of this disclaimer.
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Copyright © 2002, by Lambert-Gann Educators, Inc. All rights reserved.
All of Mr. Gann's books and courses are available from the Lambert-Gann Publishing, Inc.
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