The New W. D. Gann Technical Review

Vol. 1, No. 7	May 8, 2002
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W.D. Gann's Square of Nine
- Part One

The last three issues of The New W. D. Gann Technical Review have dealt with seasonal time and 180-degree time. These articles introduced the concept of circular time that was so much a part of Mr. Gann's analysis. They also are the foundation of this series of articles relating to the mystical 'Square of Nine'.

Mr. Gann's combining of circular time and number progression charts was very evident in the many types of calculators that were in the Lambert-Gann Publishing Company materials Billy and Nikki Jones purchased in 1976.

The following is reprinted from an article Billy Jones wrote in Vol. 4, No. 1, of The W. D. Gann Technical Review dated January 1985 titled '0 to 360 degrees - March 21 to March 20 - A Cycle.' It shows clearly the importance Mr. Gann attached to the 'Square of Nine Calculator':

The Square of Nine and the Square of Four are two of the most interesting charts in the W. D. Gann course of study. I have spent a lot of time with these charts. I was first introduced to the Square of Nine in 1972 when Ed Lambert sent me one. It was the smaller one that covers squares 1 to 33 inclusive.

At the time I was just getting started in commodities and I did all kinds of crazy things with the chart in relation to my trading of wheat and cattle. Some of them worked and some of them didn't. I gradually moved away from the Square of Nine into other techniques that I had learned from the Gann course.

In 1976 I went to Miami, Florida to close the deal I had made with Mr. Lambert on the purchase of Lambert-Gann and Gann's research, library, etc. While there, my interest was rekindled in the Square of Nine.

While there, I saw a picture of Mr. Gann sitting at his desk and upon his desk was a model of a pyramid with the numbers, exactly like those on the Square of Nine, painted on the model. I remembered that the first thing that came to me was that I was looking down at a pyramid with the number 1 on the top and spiraling outward to the end. This picture really stuck in my mind.

Gann also had a large Square of Nine printed upon a very old papyrus substance that was framed and hanging on the wall. Many of you that have been in my office have seen this large original chart.

When I got all the Gann charts home in Pomeroy and started going through them, I found that Gann had actually used the chart consistently. There was one for just about every commodity and stock that he traded. They were in all sizes and were constructed for many different reasons, it appears…

…The fact that there were so many different ones tells me that he was able to forecast with them.

The other important fact that I have learned from the ongoing study of them is that actual market movements coincide with the layout of the charts' TIME and DEGREE cycle of 360…

We will now take a look at the degree movement of price of one of Mr. Gann's most important calculators, the Square of Nine.

Under the section titled 'Time and Price Resistance Points According to Squares of Numbers' in the W. D. Gann Commodity Course, Mr. Gann wrote that:

Stocks [and commodities] work out to the square of different numbers, triangle points of different numbers, the squares of their bottoms, the squares of their tops, or to a halfway point of the different squares according to the time period.

Therefore it is important for you to study the resistance levels according to these numbers. The squares of each number and the halfway point between the squares of one number and the next point are very important. For example:

• The square of 2 is 4; the square of 3 is 9. The halfway point between 4 and 9 is 6.5.
• The square of 4 is 16; the square of 5 is 25. The halfway point between 16 and 25 is 20.5.
• The square of 6 is 36; the square of 7 is 49. The halfway point between 36 and 49 is 42.5.
• The square of 8 is 64; the square of 9 is 81. The halfway point between 64 and 81 is 72.5.
• The square of 10 is 100; the square of 11 is 121. The halfway point between 100 and 121 is 110.5.
• The square of 12 is 144; the square of 13 is169. The halfway point between 144 and 169 is 132.5.

If you examine closely the numbers of the 'square of nine' or the 'odds and evens chart' (see below), you find that these natural squares are aligned on the same angle from the center. The odd squares of 1, 9, 25, 49, 81, and so on, go from the center down to the lower left-hand corner. The even squares of 4, 16, 36, 64, 100, and so on, go from the center up to the top right-hand corner.

Since the distance from 16 (the square or four) to 25 (the square of five) is 180 degrees around the chart, it becomes clear why Mr. Gann expected changes in the trend of a market price at 180 degrees or 'on an angle of 180'. Similarly, he would expect changes at 90 degrees (one-half of one square) and 360 degrees (two squares).

The square progression seems to work better with three significant digits. If you are studying a market with four digits in a price, try dropping the last number to get to a number you can use on the chart. Similarly, if you are studying a low price stock, try adding a zero or move the decimal to get three significant digits.

The square of nine is without a doubt one of Mr. Gann's most powerful trading and analysis tools. It also can be a little complex. Re-read this article and we will examine this powerful tool further in the next issue of The New W. D. Gann Technical Review.

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