W.D. Gann and the Square of Nine

In your readings and research on the markets you may have come across reference to Gann Lines. These are named after the famed market trader W.D. Gann who lived and prospered in the early part of last century. But there is far more to the man than just a few simple lines on a chart.He is also noted for his magical, almost mystical Square of Nine.

William Delbert Gann was born in Lufkin, Texas on June 6, 1878. He started trading stocks and commodities in 1902 and by 1908 had relocated to New York City where he opened his own brokerage firm. Success did not come easy at first but after much study he soon improved his trading success when he came upon the concept of time and cycles. Gann reportedly made tens of millions in profits over his 5 decade long trading career. He eventually retired to Florida where
he died in 1955 at the age of 77.

There are many who continue to doubt the stories of Mr. Gann. But, I for one have had a long
fascination with Gann and his reported success. One thing Mr. Gann had a particular fascination with was the number 9. In fact, the number 9 has some unique qualities as follows:

1 + 9 = 10 = 1 + 0 = 1
2 + 9 = 11 = 1 + 1 = 2
(note the sum of the digits that make up 11, the digit 1 and the digit 1, add to equal 2)
…and so on…

2 x 9 = 18 = 1 + 8 = 9
3 x 9 = 27 = 2 + 7 = 9 ( note the digits 2 and 7 sum to equal 9)
…and so on…

1/9 = 0.111111
2/9 = 0.222222
3/9 = 0.333333
…and so on….

Mr. Gann took his study of 9 one step further and devised what he called the Square of Nine. The
construction of the Square is very simple. Starting at the center point of a matrix, one simply
works outwards in a clockwise fashion adding one each time.

Look at the follwing matrix carefuuly, spot the number 1 in the middle and then follow the numbers clockwise and see how I have added 1 each time. An ideal Square of Nine will extend nine numbers in each direction.

57 58 59 60 61 62 63 64 65
56 31 32 33 34 35 36 37 66
55 30 13 14 15 16 17 38 67
54 29 12 3 4 5 18 39 68
53 28 11 2 1 6 19 40 69
52 27 10 9 8 7 20 41 70
51 26 25 24 23 22 21 42 71
50 49 48 47 46 45 44 43 72
81 80 79 78 77 76 75 74 73

In this particular square I have used "1" as my starting point. In fact you can use any starting number. You can even use a starting date and complete the square by adding 1 day increments in a clockwise fashion. Whatever number or date you use should correspond to a major high or low on a stock chart or commodity chart. If you are using a significant high as the starting point for your Square of Nine, you will then be using it to identify points where price action turns lower. If you are using a date or number that is a major low, you will be using the Square to spot points where price action starts to work its way higher. When I use the Square of Nine, I tend to use dates so that I can spot times out into the future when price action will exhibit significant turns.

Although I cannot show it here due to text editing constraints, what you next do is highlight in Yellow the horizontal column and a vertical row that run through the "1" centerpoint of the matrix. This is what Mr. Gann referred to as the Sacred Cross. Numbers or dates appearing in or near this row and column were of particular significance to him.

I have been working with the Square of Nine for some time now. In a special report I recently crafted for subscribers to my newsletter, I show how recent turning points on the Toronto Stock Exchange correspond very well to
dates that appear near the vertical and horizontal axes of the Square of Nine.

I have also now applied the Square of Nine to the Gold market. Recent dates on which Gold prices started to correct to the downside fall onto (or very near)the horizontal axis of the Square of Nine with alarming accuracy.

In my report to subscribers, I also show that on the Toronto Stock Exchange the date of August 1, 2008 figures prominently. Turns out, August 1, 2008 was a major solar eclipse across Asia and parts of Russia. No wonder the markets were so erratic then!!

If the Square of Nine fascinates you, I invite you to contact us here at the Market Traders and we
will send you the Excel spreadsheet file(s) we use to make a Square of Nine. We can be reached at supercyclereport@gmail.com.

You will be fascinated with how the Square of Nine works.