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How to construct Gann Square of Nine?

Discussion in 'Finance' started by Chinmay Sarupria, Oct 8, 2018.

  1. Gann Square of Nine is a popular method used by Intraday traders. How to calculate resistance and support levels? Most of the websites have a calculator where you just enter a price and it returns the levels.

    I am looking for the formula to construct the square. This is what I know about it: take a price, find square root and subtract 1 and it will give the base number.

    Ex - if user input price is 81, then square root of 81 is 9, subtracting 1 will give 8 and 8 will be considered base number for construction of square. Square of base number will be put in the center of square.

    The important levels are found at 45, 90, 135, 180, 225, 270, 315 and 360 degrees. In numeric terms, 45 degree can be written as 0.125 (45 / 360). So to calculate levels from base number, 0.125 has to be added to it and then squared to get a new level.

    In the above example, the number next to 64 will be calculated as square of (base number + 0.125) and so on and so forth.. I have created a sample calculator in Excel which you can see below, the price I have entered is 81 so the base number is 8 and the base price is 64.

    [​IMG]

    Now the existing calculators on market calculate it differently. After the first 9 numbers, they skip 1 cell and at the 3rd level, they skip 2 cells and they give no explanation for such construction. I do know that values on 45, 90, 180 degree etc.. are important but that doesn't mean that no values exist at other degrees but this is how other people construct gann square, they completely ignore other degrees and the values which should come in those other degrees, they put it in important degrees.

    [​IMG]

    As you can see in the above screenshot, every gann square I have seen, they completely ignore some cells.

    So what is the correct way to construct Gann Square of Nine?

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