Intraday Trading with Gann Calculator

Gann Square of 9 - Introduction


Gann relied heavily on geometrical and numerical relationships and created several tools to help with his work. Among these tools are the Square of Nine, Square of 144, and the Hexagon. The Square of Nine, or Square as we will refer to here, can be constructed in at least two ways. The static Square has the number 1 at the center and the dynamic Square has the historic low of the time series in the center.

The Square of 9 is basically a spiral of numbers. The initial value can be found in the center of the spiral. This value is then increased by moving in a spiral form. Normally the center value is 1 and the step is one creating the spiral shown below.



The numbers that represent a complete turn (0 or 360 degrees) are 2,11,28,53.....
The numbers that represent 1/8 of a turn (45 degrees) are 3,13,31.....
The numbers that represent 1 quarter of a turn (90 degrees) are 4,15,34.....
The numbers that represent a half turn (180 degrees) are 6,19,40.....

The Square of Nine is essentially a time and price calculator, and calculates the square
root of numbers, both odd and even numbers as well as their midpoints. It also looks
for both time and price alignments from a specific starting point or price level.
We will however not work on the time alignment as we are trading for intraday only.

Some Interesting Facts about Gann Square

If you were to look at the numbers on the grid running down to the bottom left hand corner on the Square of Nine, you will find they are the square root of odd numbers E.g. 5x5 = 25.

If you were to look at the numbers running up to the top right hand corner on the Square of Nine you will find they are the square root of even numbers e.g. 4x4 = 16.

If you then look at the numbers running down to the bottom right hand corner on the Square of Nine you would find the midpoint between the squares of odd and even numbers. Using the numbers 16 and 25 as an example of our odd and even numbers you will find the number 21 representing their midpoint.



Cardinal Cross and Ordinal Cross



The numbers that fall on the blue lines form what’s known as the “Cardinal Cross”
and the numbers that fall on the red lines running into the corners of the square, form what’s known as the “Ordinal Cross”.

Any numbers that fall on these lines are said to act as significant support and resistance levels.

So the Square of nine is an interesting arrangement of numbers that have a specific order and can be used in many different ways.

The red and blue lines intersect with other and divide the square in 8 equal parts.

The angle between each line is 45 degrees.

More Interesting Facts

THE GANN WHEEL IS A SQUARE ROOT CALCULATOR

The Gann Wheel, what most people probably think of as the Square of Nine, is sometimes called a "Square Root Calculator" or a device that "Squares the Circle." This simple illustration may explain how and why these terms came about. You probably recognize that the illustration is just the first few rings of a Gann Wheel with the numeral "1" at the center.



In Square of Nine parlance we say things like 19 is 90 degrees from 15. That makes sense only if you can visualize that this rectangular table of numbers is enclosed in a circle (or series of circles) of 360 degrees. In this case, the number 19 is 1/4 the way around the circle from the number 15, or 90 degrees in circumference from 15. The number 34 is directly above the number 15 and positioned one circumference or one ring outside the circle that contains the number 15. In the same sense that we can say that 19 is 90 degrees from 15, we can say that 34 is 360 degrees from 15, or one complete rotation of the circle from 15. That explains where squaring the circle comes from. A more accurate expression would be that we're circling the square but that never did catch on.

HOW TO ROTATE AROUND THE GANN WHEEL

Here's where it gets fun. The square root of 15 is 3.87. Add two to the square root of 15 and we get 5.87. Square 5.87 and we get 34.49 which rounds to 34. Now we know that adding two to the square root of a number and squaring that sum is the same thing as a 360 degree rotation up on the Gann Wheel. If "2" represents a 360 degree rotation then "1" represents a 180 degree rotation, "0.5" a 90 degree rotation, and so on. W.D. Gann tells us that 90 degrees in very important in the stock market. What Gann is really saying is that adding and subtracting .5 (and exact multiples or proportions of .5) to the square root of a stock price and then squaring the result is very important! We acknowledge that there is is another school of Gann thought that will say that Gann's reference to 90 degrees relates to the movement of celestial bodies. We've looked into that and they may be right, but for our purposes we've also learned that these schools of thought can peacefully exist alongside each other without contradiction.

But Note: For our Calculation we would consider 1 as 360 because we are trading intraday.

How to make Gann Square of 9 ?

You all probably might be interested to know, how to generate this square.

So lets begin....

To generate the square you need a reference point.
For intraday, this reference will be the LTP of stock/index.

How to take LTP?? (will describe in next post).

Lets say i get LTP as 5100.

Now i need to generate square based on this.

I will follow below steps to do this.
Step 1: Take SQRT(LTP) = SQRT(5100) = 71.41
Step 2: Take the 2 integers below SQRT(LTP) and 2 integers above SQRT(LTP). 2 integers below are 70 and 71. 2 integers above are 72 and 73.
Step 3: Now take SQR(70) = 4900. Place this in the center.
Step 4: Now increase the 70 by 0.125 ( 45 degrees ) ( as told in previous post 1 represents 360 degrees. )
Step 5: Take the square of 70.125. SQR(70.125) = 4917.51. Place this in left block adjacent to center block where u placed 4900.
Step 6: Increase the value further by 0.125. You get 70.25. Square it. SR(70.25) = 4935.06.
Step 7: Place this on the top block of the block where u placed 4917.51.
Step 8: After generating 8 values, you will be complete one level of square.
Step 9: Repeat the steps with values SQR(71.125), SQR(71.25),....

So finally you get square similar to the one shown below.

SQRT -> Square Root | SQR -> Square



Gann Calculator

More details in next posts.

How to execute trade based on this system.

To trade using this system in intraday you need to take the LTP of index or stock after 9:05 am in morning.

Ideally you should take the Weighted Average Price of any stock or scrip between 9:05 am - 9:15 am.

However, after 9:30 am, you should only take LTP of stock or index.

Idea is in early few minutes there is lot of volatility in market, so to decide fair price we should take Weighted Average.

Many times it is not possible for many to start trading from 9:00 am. In that case, those who start trading after 9:30 am, can take LTP.

Now lets say you get the price as 5152.

You enter the price in Gann Calculator

You will get the square that looks like below



5152 falls between 5166 and 5148.

So we should buy above 5166 and sell below 5148.

Targets are next levels in the calculator.

Hope this is clear.

Now lets say 1st target is achieved.(5181)
Then we we watch whether price is able to sustain above 5181 for more than 5 min.

If it sustains, we continue our long position. If not, we square off.

Lets Do some practical trade based on Gann Calculator.

This is tarde for HDFC on 26th Mar 2010.

During 9:05-9:15 am, the WAP (Weighetd Average Price) of HDFC in NSE was 2607

By entering this value in Gann Calculator, you get the Gann square similar to below one.

.

As per this we should buy above 2613 and short below 2601.

If you look, the price didnt went below 2601 after 9:15 am.

But price went above 2613. So we enetered in long at 2613.

Our Target 1 2625 got achieved soon.
The price was not able to sustain above 2625 for more than 5 min.
Infact the HDFC touched 2625 and started moving in rang 2618-2623. So there is possiblity for HDFC to move in downward direction.
So we square off at CMP ( 2620 )(approx price).
We ended up in profit of 2620 - 2613 = 7rs.

Now we take 2620 as our reference price. and put it in Gann Calculator.
We get the below recommendations

Recommendation:
Buy at / above: 2626.56 Targets: 2638.07 - 2650.92 - 2663.8 - 2676.72

Sell at / below: 2613.76 Targets: 2602.3 - 2589.55 - 2576.85 - 2564.17

So we buy only if price moves above 2627.

After 1-2 hrs, HDFC started moving up and it confirmed its uptrend by crossing the price 2627.

So we eneterd long again at 2627.

Our target 2638 just got touched and again price started falling indicating pressure at 2638.

So try to square off at price near to 2638.

And if look at the intraday graph of HDFC we see the HDFC was seeing resistance at 2625 and then at 2638. (see the image below)

How to find Targets for Buy and Sell.

Once, we are done making our Gann Square, we know our buy and sell levels.

But how to find the targets.

For finding the targets for Buy, we go in clock wise direction.
For finding the targets for Sell, we go in anticlockwise direction.

Have a look at image below.



Yellow lines are resistances for Buy.
Blue lines are support for Sell.

Targets are 99.95% of resistance and 100.05% of support.

So Target for Buy = Res * 0.9995.
Target for Sell = Supp * 1.0005.

Nifty Futures Profit for 5th Apr 2010.

Gann Calculator

WAP for Nifty Futures was 5325 at 9:15 - 9:25 am.

After entering this price in the Gann Calculator

we get the following calls.

Buy at / above: 5329 Targets: 5344.59 - 5362.87 - 5381.19 - 5399.54
Stoploss : 5310.76
Sell at / below: 5310.76 Targets: 5295.2 - 5277.02 - 5258.87 - 5240.75
Stoploss : 5329

Buy Triggered above 5329.

Targets 5344, 5362 are achieved. High was 5371.

Total Profit = 5362 - 5329 = 33 points.

Profit of 1500+ with one lot Nifty.

Madam clearly you are trying to advertise some sort of service here with this Gann ********, unlike other forums this one isn't noob hunting ground

Profit for Dow Jones for 6th Apr 2010.

In morning (initial 30 min), the price of Dow Jones was around 10935.

After entering this value in Gann Calculator, we get the following calls

Recommendation:
Buy at / above: 10946.39 Targets: 10967.07 - 10993.26 - 11019.48 - 11045.73
Stoploss : 10920.25
Sell at / below: 10920.25 Targets: 10899.58 - 10873.49 - 10847.43 - 10821.4
Stoploss : 10946.39

Buy Triggered at 10946. Our 1st target 10967 got achieved at 11:30 am.
Our second target 10993 was misses by 10 points.

So total profit for today = 10967 - 10946 = 21 points.

Nifty Futures Profit for 7th Apr 2010 based on Gann Calculator

The WAP price of Nifty Futures around 9:15 - 9:25 am was 5377.

After entering this value in Gann Calculator we get the following calls

Recommendation:
Buy at / above: 5383.89 Targets: 5399.54 - 5417.93 - 5436.34 - 5454.78
Stoploss : 5365.56
Sell at / below: 5365.56 Targets: 5349.93 - 5331.66 - 5313.42 - 5295.2
Stoploss : 5383.89

Buy Triggered at 5383. Target 1 was 5399. High was 5398.

Since the target 5399 could not maintain its presence for more than 5 min, we square off our trade.
and calculate the square again.

We enter 5390(approx) at this time.

So we get below calls
Recommendation:
Buy at / above: 5402.25 Targets: 5417.93 - 5436.34 - 5454.78 - 5473.26
Stoploss : 5383.89
Sell at / below: 5383.89 Targets: 5368.24 - 5349.93 - 5331.66 - 5313.42
Stoploss : 5402.25

Sell triggered at 5383.
Target 1 and Target 2 achieved.

So profit in second trade is 5383 - 5349 = 34 points.
Profit in first trade = 5390 - 5383 = 7 point.

Total profit = 34 + 7 = 41 points.

Profit of 2000+ with one lot of Nifty

radha55 said:

Nifty Futures Profit for 7th Apr 2010 based on Gann Calculator

The WAP price of Nifty Futures around 9:15 - 9:25 am was 5377.

After entering this value in Gann Calculator we get the following calls

Recommendation:
Buy at / above: 5383.89 Targets: 5399.54 - 5417.93 - 5436.34 - 5454.78
Stoploss : 5365.56
Sell at / below: 5365.56 Targets: 5349.93 - 5331.66 - 5313.42 - 5295.2
Stoploss : 5383.89

Buy Triggered at 5383. Target 1 was 5399. High was 5398.

Since the target 5399 could not maintain its presence for more than 5 min, we square off our trade.
and calculate the square again.

We enter 5390(approx) at this time.

So we get below calls
Recommendation:
Buy at / above: 5402.25 Targets: 5417.93 - 5436.34 - 5454.78 - 5473.26
Stoploss : 5383.89
Sell at / below: 5383.89 Targets: 5368.24 - 5349.93 - 5331.66 - 5313.42
Stoploss : 5402.25

Sell triggered at 5383.
Target 1 and Target 2 achieved.

So profit in second trade is 5383 - 5349 = 34 points.
Profit in first trade = 5390 - 5383 = 7 point.

Total profit = 34 + 7 = 41 points.

Profit of 2000+ with one lot of Nifty

Click to expand...

Can this be used for short & medium term trading (1 week - 3 months)?

Radha excelleng post by the way. I know I am a bit late to the party. I used a similar approach on a small scale with the Euro. My buy and sell points were based of square of nine grid. Discipline was what let me down

Hi Radha55,
Why start the center with 2 integers below (SQRT(LTP)) than take SQR of it?
Will it be better to start the center from recent pivot High or Low?

Quote:
Step 2: Take the 2 integers below SQRT(LTP) and 2 integers above SQRT(LTP). 2 integers below are 70 and 71. 2 integers above are 72 and 73.
Step 3: Now take SQR(70) = 4900. Place this in the center.

Is there software out there that have Gann indicators like Gann Square? What does it cost? Does any1 trade Gann stuff profitably on intraday basis.

vsaliner said:

Is there software out there that have Gann indicators like Gann Square? What does it cost? Does any1 trade Gann stuff profitably on intraday basis.

Click to expand...

Check out Bonnie's site:

W. D. Gann

Also:

Gannalyst - Gann Analysis and Charting Software
http://www.michaeljenkinstradingresources.com/Stock Calculators and Cyclic Programs.htm
http://gannzilla.livejournal.com/

Know what you want to achieve with these tools before jumping down an endless rabbit hole. After 2 years of research I am returning to traditional Gann indicators like his swing charts etc. sq of nine is pretty cool though numerology makes me doubt myself..

Dear members:

I apologize for writing so late.To speak honestly, I am not familiar with internet browsing . This is a new subject for me .I have not used computer before and not familiar with the abbreviation or terms used in computer.Today i have called a friend to show me how to write/send email . As per his advise , i am writing this message and sending to you.I am not sure whether it will reach to you.Again my English is also poor.I may not be able to write clearly about what i want to say.So if any thing goes wrong please do not mind or take it otherwise.

Very recently i have entered in the stock market.I am yet to be conversant with the market , its terminology and its behavior. While browsing haphazardly i came across to your web site(Is it called web site ?) .I do like your paper/writing on Gann calculator and decided to become a member of your forum.For the last few days i am trying to understand the Gann calculation but find it complex. I give below the points which I could not follow. Shall appreciate if you members can help me :-
a> In( fig. 1)step 1, square root of 5100 comes to 71.41and this has been rounded to 71.This is ok

b>In step 2 you said to take 2 integers above of sqrt(LTP) which comes to 72 and 73 but in 2 integers below it is` being shown as 71 and 70.This is not clear. In my opinion 2 integers below should be 70 and 69 . Request clarify

c> In the example LTP 5100 has been put in the right side block , why not in the left side block? Again result of square i.e. 4900( 70 x 70 ) has been placed in the center block ? why not in other place ?

d> It appears that numbers are rotating in clock wise.But why not anti-clockwise ?

e> How the other numbers of the block( i.e. 5220.06 , 5256.25 , 4952.64 , 5023.26 and so on )are derived ?
f> In fig.2 (LTP 5152 ) in the recommendation you said :-
Quote Buy at / above 5166.01.Target 51814.4 - 5199.4 - 5217.45 - 5235.52

Sale at / below 5148.06 . Target 5132.7 - 5114.8 - 5096.93 - 5079.1 Unquote.
This is not clear and confusing.Buy at high price and sale at low price . This figures are also not found in the block/table.Request clarify position. Sorry for the long message.

With thanks and wishing good health/ days for every one.

Thanks God there are still people that can appreciate Gann techniques )

Unfortunately Ganzilla needs to be feeded by commercial datas they suggest to buy from them :/

Is there any other way for free data feed then 343usd / y ?

GramTrader said:

Check out Bonnie's site:

Gannalyst - Gann Analysis and Charting Software
http://www.michaeljenkinstradingresources.com/Stock Calculators and Cyclic Programs.htm
Gannzilla

Click to expand...

Hello everyone !

I am new to this forum and new to intraday trading also.
I find gann trading method explaineed by Radha55 amazing, but it seems that no one is usuing it for long time.
Please share your thoghts on daily basis.

Drbhushan61