Gann Square Of 9 Excel

One of our goals at Optuma is to make advanced Gann analysis as simple as possible for our clients. As such, we have created a number of tools that can save you hours of research and painstaking manual calculations in your chart analyses. Not only have we taken the old wooden Square of Nine and made it fully interactive and customisable, but we have also developed a number of tools derived from it, such as the Static and Dynamic Square of 9.

The Static Square of 9 tool calculates price levels according to degree levels – or aspects – of the Square of 9 wheel, starting with 1 in the center. When the Static Square of 9 tool is applied to the chart (with a Price Unit of 1 – more about that later) the first 360 degree level will be 11, the second will be 28, the third 53, etc. Looking at the classic Square of 9 wheel you will see where these numbers appear: all are on the horizontal line to the left of the center value of 1. As each number is one complete revolution around the Square of 9 from the previous number they are said to be 360 degrees apart. Similarly, the 180 degree levels are half way around from the center starting point and directly opposite the 360 degree levels, i.e. 6, 19, 40, etc. Whilst they are 360 degrees apart from each other they are 180 degrees from the center. You will see the relationship between the classic Square of 9 wheel and the levels in the tool in this image:

The GANN square of 9 is a 9×9 grid. There is a “start number” and defined increments from this “start number” ultimately create the spiral square. This theory is mainly used in an intraday calculator and is very easy to use. Use our GANN calculator below.
By now, you may have heard a lot about Gann. Seemingly, he could predict the tops and bottoms of the markets with great amounts of accuracy. He believed in a natural order and synchronicity; despite having nominal school education, he could amass a lot of wealth trading the stock markets because of his dexterity over ancient mathematics.
Gann Square includes two sets of numbers. The first set is also called a wheel. In it, numbers are arranged in a spiral form, with their values increasing clockwise. Each number stands for an angle relative to the center. In the second set, numbers are arranged on a.

The Square of 9 chart is also known as a square root calculator: pick a number on the chart, take the square root, add two, and re-square. You will see the value will be the next number around the wheel.

Square Of Nine; Gann Square Of 9 Excel; In GANN SQUARE OF 9 angles are very important and all calculations are made in degrees. There are four cardinal crosses 90, 180, 270, 360. But the Calculator forms a static number series. Gann square of nine desktop calculator for using in day trading and positional trading as well.

Example:
square root of 79 = 8.888
8.888 + 2 = 10.888
10.888 x 10.888 = 118.548

[Note: to calculate 180 degrees around the wheel add 1 to the square root before re-squaring, 90 degrees add 0.5, etc.]

This is why the distance between each successive level is never the same: each subsequent rotation around the wheel is further to travel, so for example, the distance between the 360 degree levels grows wider and wider with each revolution. This is why the distance between the 1st and 2nd 360 degree level is 17 (28 – 11) but from 3rd to 2nd the distance is 25.

Gann Calculator Excel

Many Gann analysts use the degree levels as potential support and resistance points in the market, and they can work for any instrument in any time frame. The image below shows the Australian Dollar / US Dollar currency pair on a weekly chart, with the Static Square of 9 applied. The degree levels used are semi-square, or every 45 degrees (i.e. 45, 90, 135, 180, 225, 270, 315 and 360 degrees). As you can see, the chart has respected these levels on multiple occasions. In fact, at the time of this writing, the 225 degree level at $0.73 is proving to be a level of support.

Using the Price Unit

One important thing to remember is that the settings for the Square of 9 tool – and all Optuma tools for that matter – can be set by the user to their own specifications, whether the degree levels, the line colours, and perhaps most importantly the Price Unit. This crucial property is found in many Gann tools and it’s important to find the right value for the particular chart being analysed. In the currency chart above for example, using a Price Unit of 1 will not work on a chart trading in the $1 range with small increments. By setting the Price Unit property to 0.01, it recalculates the levels divided by 100, so that the first 360 revolution will be at 0.11 instead of 11, and the 180 degree line mentioned earlier at 1.06 is the equivalent of 106 on the wheel (as seen in Figure 1).

The software will try to select the appropriate price unit by default, but this can be manually adjusted via the tool’s Properties panel.

For more information on Price Units, Factors and Harmonics in Gann tools click here.

Going Dynamic

A variation of this tool is the Dynamic Square of 9, which, instead of looking at angles from the center square (ie 1), uses a user-defined value instead. For example, applying the tool on the low of McDonald’s in August 2015 (see chart below) shows the degree levels starting from $87.50, with the first 360 degree level at $128.92 showing resistance, and the current all-time of $178.70 being only a few cents above the second 360 revolution around the wheel from 87.5.

One other important feature of the dynamic tool is that it also works from a high going in the opposite direction, predicting potential support levels or targets. If you apply the tool to a significant high then click a second time below the level of the first click it will calculate the descending levels. The next example shows the high of Tesla at $389 with the Dynamic Square of 9 tool calculating significant support and resistance levels at descending 90 degree increments. By looking at the Square of 9 wheel you will see that the major low at $247 is exactly two 360 degree revolutions inside 389.

Gann Calculator

These are just a couple of examples of some of the advanced Gann tools that we have developed over the past 20 years which, when used in conjunction with other confirmation signals and a robust trading plan, will save you time and improve your analyses. To arrange a free trial of these tools and many more please click here, or click here to contact us.

Darren Hawkins, MSTA

Senior Software Specialist at Optuma

Darren is the senior Software Specialist at Optuma. He joined the company in 2009 after attending an introductory technical analysis course. Darren now instructs users all over the world, from experienced Wall Street traders and professional money managers to individual traders drawing their first trendlines.

Darren grew up in the UK and attended college in the USA where he earned a BA in Economics from St Mary's College of Maryland. He went on to spend a few years working at the Nasdaq Stock Market in Washington DC. Going on to live and work in Australia, UK and currently USA, Darren has a broad understanding of the individual needs of traders and investors utilising a wide range of methodologies.

In 2014 Darren passed the UK-based Society of Technical Analysts diploma course, and is looking forward to soon becoming a candidate for the Market Technicians Association's CMT programme.

When not looking at charts, Darren keeps a keen eye on England's cricket team - especially if they are playing against Australia. He recently moved to Charlotte, North Carolina with wife Wendy and their labrador, Gabba.

This tutorial will show you how to construct a Square of Nine Roadmap Chart from a regular price chart created in Excel You could also use a chart printed out from Yahoo or Big Charts or any other online service or charting program. This example uses Hourly Data (65 minutes actually) of the S&P 500. Hourly charts are good to practice with because conditions change quickly and you get many opportunities to experiment. We will assume that you already know how to create a stock chart in Excel. This is what the plain-jane stock chart looks like. We used high-low-close bars but if the chart doesn't get too crowded candles also work nicely.

When you scroll around on your Excel chart while working in the program itself, the value of the data point under the mouse cursor will appear in a little window. In this case we want to start the Roadmap from the low at 1166.31, which occurred on January 28, 2005 at the 11:40 bar.

Gann Square 9 Calculator Excel

From the Square Root Theory you learned that we can move 360 degrees around the Square of Nine by adding 2 to the square root of a number and squaring the resulting sum. In the example on the Roadmap Theory page we moved from 15 to 34, which is directly above 15 on the Square of Nine, by taking the square root of 15 (3.87), adding 2 (5.87) and squaring that sum (34.49). A paper version of the Square of Nine uses rounded numbers and 34.49 was rounded down to 34. Just so we have some common language to work with we call the '2' we added to the square root of 15 a Factor of 2. We understand that Factor is a mathematical term of art, and in that sense it's being misused, but most people reading this are not mathematicians and will not be greatly offended.

If a Factor of 2 represents 360 degrees or a full circle move, then 45 degrees or 1/8 circle will be represented by a Factor of .25 (360/8 = 45) and (2/8 = .25). Many, if not most, major stock market moves end on a multiple of 90 degrees. We're working with Hourly data and because 90 degrees may be too granular we use 45 degrees which is an exact division of 90 degrees for our Hourly Roadmap Charts. If you want to work with Daily or Weekly data then we suggest using 90 or 180 degree Factors, which are .5 and 1 respectively, (360/4 = 90 and 2/4 = .5) and (360/2 = 180 and 2/2 = 1). In practice, you can use any Factor you want and odds are that at least one will fit your trending data points exactly, even though it would have allowed you to draw the Roadmap Chart before the fact. Gann said that 90 degrees is very important for the stock market, and our own experience with the major stock market indexes confirms that, but there very well could be other very important factors for different stock market indexes, currencies, commodities or individual stocks. There is probably much more that remains unknown and undiscovered about the application of the Square of Nine than we can imagine, so experimentation is encouraged for those willing to do the work.

Gann Square Chart

Now that we've decided to use a Factor of .250 (representing 45 degrees) we can begin to actually construct the chart. We'll use our starting point, the low at 1166.31, to calculate price levels for the horizontal lines. Here's the math:

(SQRT(1166.31) + .250) ^2 = 1183.45

(SQRT(1166.31) + .500) ^2 = 1200.71

(SQRT(1166.31) + .750) ^2 = 1218.10

Eyeball these price levels on your Excel chart and draw in a horizontal line at each price level. The chart will look like this.

Let's add the vertical time lines. Use the same low price of 1166.31. Find the square root (34.15) and round it to the next whole number (34). To complete the vertical time lines all that must be done is draw the lines in 34 bar increments from the starting point of the bar at 1166.31. Draw as many vertical time lines as will fit on the chart. The chart will look like this.

You're almost there. Add one more vertical line at the starting point price bar at the low of 1166.31 and draw diagonal lines through the intersections of the horizontal and vertical lines. The chart-in-progress will show you graphically what and where to connect things better then any verbal description.

That's all there is to it! You've created a Roadmap Chart. Once you get a feel for the rhythm of the tickers you trade the most, and the Factor that best represents that rhythm, you can create a new Roadmap Chart within minutes of a suspected pivot point. The Roadmap Chart is self-defining. If the trend has changed then the new Roadmap Chart will contain the future price bars for the life of the trend. If the suspected pivot point bombs-out you will know immediately when price bars bust the channels.

One obvious thing we did not mention is that if you're drawing a new Roadmap from a high then you would subtract, not add, the Factor from the square root of the starting price. The vertical line, time calculation, would be the same. Depending on the quote price of your ticker you may get weird results in your early attempts to create a new chart. You will have to experiment, but generally, you want to convert prices into three significant digits (i.e three numbers to the left of the decimal point) to get proportional results. Use a multiple of 10 (multiply or divide by 1/10, 10, 100, 1000, etc.) to convert your prices to three significant digits before calculating the price levels of the horizontal lines. You do not have to change the price scale of the chart, only the price to use when calculating the horizontal price lines. We use natural S&P prices, which currently are four significant digits, for our charts and everything works just fine so like most everything else about the Square of Nine there are no absolutes, and the value you receive is directionally proportional to the effort you make..

Gann Square Of Nine

We think the Roadmap Chart is a great trading tool without learning another thing about the Square of Nine. How many tools allow you to define a trend ahead of time? Ideally, price will move across the width of the channels before ending the trend. Reactions that do not end the trend often occur near the midpoint of the time lines or the midpoint of the major horizontal price lines. There's no substitute for experience in learning the natural rhythm of your tickers and how to use the Roadmap Charts to your advantage. Although the Roadmap Chart is based on Square of Nine principles, and as elegant as we believe the Roadmap Chart to be, it does not square price and time. To do that you must first convert both price and time to degrees of a circle and measure them from defined starting points. The Roadmap Chart does not do that.