W. D. Gann, 4 February 2012, important date

4 February 2012 is an important day in the Gann universe.

The Gann Wheel, what most people probably think of as the Square of Nine, is sometimes called a "Square Root Calculator" a Pivot 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.

31 32 33 34 35 36 37
30 13 14 15 16 17 38
29 12 3 4 5 18 39
28 11 2 1 6 19 40
27 10 9 8 7 20 41
26 25 24 23 22 21 42
49 48 47 46 45 44 43

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 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! 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.

That can be a little hard to get your brain around after spending years studying chart patterns, exotic moving averages, and oscillators. Price and time become interchangeable by converting them to degrees of a circle. Squares and square roots are part of that process. Once price and time are conceptualized in degrees of concentric circles we could care less about their magnitude. At that point we care only about their orbital relationship. Are they in opposition, conjunction or square?
Namaste

Can you say enigmatic again. Why do I feel I am on the wrong planet?

Here is a: Gann Square of Nine Calculator

here is a somewhat well balanced article about Gann...

http://moneystockstycoons.com/articles/w-d-gann-fraud-or-trading-genius/


It seems that so many in the trading community make projections and when they are correct they beat the drum and let us all now about it. When they are wrong nothing is said and no responsibility is taken. Bottom line is that there are just too many people selling stuff out there.


I guess in Ganns day they could still trade on Saturdays....today is Saturday February 4th so the turn can't happen today as the markets are closed. Somebody needs to update that wheel. The gann followers allow themselves a varience of a few days on either side. So if the turned happend on Friday ( which it didn't) then they would claim that as a good call...if it happens on Monday then they will also take credit......If the turn doesn't come then they don't follow up on the forums and just disappear until next time.

Sounds like the sellers of Gann can't lose in this case...I'd sure like us to hear from people who actually made money trading with his work......not likely to happen though.


Hunter - this isn't your writing style or format...perhaps you could post the site it came from...thanks in advance.

http://www.southparkstudios.com/clips/155284/sneaky-butthole

Explanation begins at the 1:00 min mark...sry may have to sit thru ad first.

Does any of this really matter? After all the world will end 12-21-12 right?

Bruce,
Noone broached the Gann topic, .... so I did. There are many W. D. Gann sources, with depth of content; so I didn't source it. Now that the end of the month / first of the month "window dressing" has passed, maybe we can forward, or not.

The Delta Phenomenon also projects a reversal at these benchmark highs, and they too allow for "slippage." The Delta Society published a 72% probability if the equity index price reversal / extension (the sequence is defined as "a price move directly or inversely,") doesn't occurred at "on time", the next day (four weeks, four months, year, four years, nineteen years five hours) has a 72% probability of reversing / extending ... and the second respective time frame has an 80% probability of reversing / extending price action.

I calculate Gann dates, they're useful sometimes. Problem is there are many ways to calculate Gann dates, adding trading days & calendar days from a major swing high or low using the square of 9 calculator, when TDs & CDs match on the same 45,90,270 etc. angles, it's a "potential turning point", the 180 & 0 angles carry more weight, some use excel for square of 9 dates. Depending on where you start the count from, will determine which days match up, so you could count from 3 major pivots & get several different dates. Another method for Gann dates is to measure time from a major high to a major low & use the square root formula to project price, or you can measure time from low to low or high to high... DX futures have made a low every 23-24 trading days since October, if that sequence continues Tue 2/7 will be day 64 & DX would be due to bottom & rally on or near that date. DX up,, markets down.. It's something to be aware of, a tool of judgment like anything else IMO.

I've read Kool's Tools many times, a lot of his work is Gann related. Gann said the 4 minute cycle is very important because the earth moves 1 degree every 4 minutes, when doing intraday predictions use a 4 minute chart. Maybe that’s why Kool added or subtracted a bar now and then because he used a 5 min chart? I don’t know, but the 4 min on gold is very harmonic, I measure the average trend times on a 4 minute chart, use 2 segments, one 22.5 degrees up & another 22,5 degrees down, when GC is in sync with its average trend time waves, scalping is like shooting fish in a barrel, when it's not in sync, it doesn't work. It's the same with the 15 minute & hourly, they all have average trend times, I use 45 & 30 degree segments on those for the 2 most common trend time lengths. Using the square of 9 price levels for your price grid as per Charter Joe's square of 9 thread works great w the angles.

I believe the diehard Gann-heads that hand draw charts on a wall going back 100+ years, hand figure all the Hurst cycle, Fast Fourier Transform algorithm stuff, probably can predict future market moves. But in doing all that, when do they have time to sell it or teach it? They don't. Their thinking is, there is nothing new, what is happening now has happened before, because human nature doesn't change, they go back in time, match past moves cycles/times to the present & work forward. Time is more important than price because when time is up the trend must change. That's my understanding of Gann predicting anyway

Originally posted by Hunter

4 February 2012 is an important day in the Gann universe.

These "lessons" you post are great and all. But without a contextual application, they don't help (me) very much.

How is 2/4/12 important? How did you determine this date was relevant?

Is it a major high in the US stock market?

If so, how far (or for how long) will it drop?

And about your comments on Delta Phenomenon, could you offer up something tangible? Does that system predict 2/4 as a major high, too?

ETM Good luck getting any explanation. I am 0 for 5 on understanding when and how on his streach.

Hi,
My thoughts may not reasonate with you, as it does with others. Maybe STAYLOR455 has a more effective communication style that will serve you with a greater understanding of the W. D. Gann methodologies. He has done his homework.

If my explainations of the (3, -1) formula were not delivered with real time candlestick interpretation, explaining more complex abstractions wouldn't be time efficient. I am sure STAYLOR455 would be happy to direct you to a library of W. D. Gann links and books. With respect to the Delta Society's "Delta Phenomenon" I suggest that you buy the software, and not attempt to interpret their sequence formula by just reading the book.

Onward with happier rewards, ... to the www.mypivots.com traders who also made profits trading the (3, -1) strategy, THANK YOU FOR SHARING YOUR MUTUAL INTERESTS.

The (3, -1) fade at 1.618% of the Stretch produced a profit for the trading day, 6 February 2012. Though the (3) of that (3, -1) price measuring objective from the 6 February low, 12722 + 39 + 39 + 39 = 12839, was not achieved until today, it is at the same level as the 7 February 1.618% of the Stretch above unchanged, 12776 + 61 = 12839. On a closing basis the 6 February fade at 1.618% of the Stretch below unchanged, i.e., long at 12730, was profitable on a closing basis. 12730 = 46 = 12776 settlement, ... 46 points x $5 = $230 per contract which is a 46% profit basis $500 intra-day margin.

7 February:
Basis intra-day trading the (3, -1) formula and fading the first intra-day counter trend move of the March $5 Dow (YMH2) futures, fading the first move was below the previous settlement, 12776. 12776 less the Stretch = 12776 - 38 = 12738 (12729 = LOW)
12729 + 38 + 38 + 38 = 12843 (12851 = high) .... $ :-)

Fading exactly at the previous settlement less the Stretch, i.e., 12776 - 38 = 12738, i.e., net long,.... 12738 + 38 + 38 + 38 = 12852 (12851 = high).

To be brutally honest, I'm not good enough with Gann analysis to show & teach major turning points w direction that will work consistently, my focus has never been on the longer term moves. I've been taught & have a basic understanding of a lot more in the longer term Gann predictions than I have practiced. I've only been studying Gann for a couple years. I don't have the patience or work ethic to figure cycles,count cycles, buy chart paper & draw a 100 yr chart on my wall, I don't care where markets go, if the daily chart goes there the hourly has to go first.

What I have done is take tid bits here n there from Gann's work & used them as tools. I calculate dates the easy way, calculate hourly & 15 min bars the easy way, it doesn't give me an exact turning point or a direction, it does give me a time when a move is more likely to happen bc of the time factor. One thing Kool & Gann have in common is they both count bars from one swing pivot to another & project to the next. I don't like the constant counting so I measure the most common trend time & the 2nd most common trend time adjust my Gann angled segments to the average trend times and scalp to the next swing pivot. Keep it simple.