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by Craig Morena | Jan 12, 2021 | Market watch, W.D. Gann methods | 4 comments New moon newsletter – Issue #9
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The above picture is taken from page 400 of the Gann Master Stock Course.

W. D. Gann’s words on the Master “12” chart

In this article we will explore the Square of 12 chart that W. D. Gann used quite o en. He called it a MASTER “12” chart.
W. D. Gann does leave us some clues as to his thinking about some of the words he uses. The word “Master” refers to
Jupiter or god of the gods. “12” refers to the number of years Jupiter revolves around the sun which is 12 years.

On a point of interest, if you read W. D. Gannʼs texts or are already familiar with his works he refers to a certain “Master
Time Factor”. This is the Jupiter-Saturn cycle as Saturnʼs name is Chronos or “time”.

I stray a little, but getting back on topic, we will briefly explore the square of 12 as applied to the S&P 500. First letʼs
look at Gannʼs words with regards to this beautiful square:

“The MASTER CHART is the Square of “12 ” or 12 x 12, making the first square end at 144. The Second
Square of “12” ends at 288, the Third Square of “12” at 432; and the Fourth Square at 576, which will
cover most anything that you want, but you can make up as many more squares as you need.

This chart may be used and applied to anything – TIME, SPACE, PRICE OR VOLUME, the number of points
up or down; days, weeks, months and years. On Square No. 1, which runs from 1 to 144, I have drawn the
finer angles to show the grand-center or strongest resistance point in each minor square. The minor
centers, which are the strongest for minor tops and bottoms are 14, 17, 20, 23, 50, 53, 56, 59, 86, 89, 92,
95, 122, 125, 128, 131.

The major center is where the strongest resistance is met. These numbers are 66, 67, 78 and 79. Stocks
going up or coming down to these prices will meet with stubborn resistance. The next strong angle is the
45°, and the numbers of greatest resistance on it are 14, 27, 40, 53, 66, 79, 92, 105, 118, 151, and 144. The
other diagonal 45° angle from 12 is equally strong. The numbers are 12, 23, 34, 45, 56, 67, 78, 89, 100, 111,
122, and 133.

The numbers which are cut by the 45° angles through the center of each of the one 1/4 squares are next
in strength. These numbers are 7, 20, 33, 46, 59, 72, 61, 50, 39, 28, 17, and 6, and on the other side of the
Square, a er you pass the half-way point, these numbers are 73, 96, 99, 112, 125, 138, 139, 128, 117, 106,
95 and 84.

The numbers at the tops and bottoms of the squares are important prices for important tops and
bottoms to be made because they are opposition numbers and are equal to the half-way point. These
numbers for Square No.1 are 1, 13, 25, 37, 49, 61, 73, 85, 97, 109, 121, 133. The top numbers are 12, 24, 36,
48, 60, 72, 84, 96, 108, 120, 132, and 144. These are very important to measure time in days, weeks,
months and years.

The opposition angle, which runs through the center of the Square, from east to west, equally dividing it,
is one of the very strong angles because it equals one-half. Any stock moving up or down and reaching
these prices will meet with any resistance and make tops or bottoms. These numbers are 6, 7, 18, 19, 30,
31, 42, 43, 54, 55, 66, 67, 78, 79, 90, 91, 102, 103, 114, 115, 126, 127, 138, 139.

Remember, when anything has moved three sections over from the beginning, it reaches the square of its
own place, which is the first strong resistance. When it has moved six sections over it reaches the
opposition, or what equals the half-way point of its own place and meets still stronger resistance. Moving
over nine places or sections from its own place, it reaches the 3/4 point, another square. The 8th and 9th
sections are the strongest and hardest points to pass because this is the “death” zone. The next and still
stronger is the 12th section or column which ends at 144. Anything getting into this section meets the
strongest resistance but once it moves out of the square and gets as much as 3 points into Square 2, that
is, making 147, will indicate much higher. But a er reaching this, it should not drop back to 141 or 3
points into Square 1. When a stock gets into the Second Square of “12”, it has faster moves, and when the
time or number of months from any bottom or top moves into the Second Square, it is an indication of
faster moves, both up and down.

Apply the same rule to the 3rd, 4th, 5th and 6th Squares. In the 3rd and 4th squares of the Master “12”,
you will find that most of the big bull and bear campaigns culminate, when measured by months, which
determines the division, according to time. All the other rules given you to apply to Space movements,
angles and time, can be used with the Master “12” tables.”

Our analysis
When a stock gets into the Second Square of “12”, it has faster moves. When the time or
number of months from any bottom or top moves into the Second Square, it is an indication
of faster moves, both up and down.

Page 64 of the Gann Mastersʼ Stock Course

On 24 December 2018, using a scale of 1 Gann point to 16 SPX Points, the S&P 500 index made a low at 2315 which
is 144.6875. 1 Gann point is equivalent to 1 calendar month or 1 degree of heliocentric Saturn movement as Iʼve
explained in my book Unlocking Gannʼs Methods. Rounding up this number would bring the value to 145 which is
the beginning of the second square of 12. The observer would be quick to recognize that the S&P 500 swings and
volatility has indeed been wide reaching these past two years.

If we look to this current time of writing, on 12 January 2021, the S&P 500ʼs highest point reached was 3840 which is
240 points. The degree of 240 is a critical one as 240 if expressed in months is equivalent to 20 years, which is a major
time cycle relating to the Jupiter-Saturn synodic cycle.

In addition, 240 points in the second square of 12 is the last number in the 8th zone. Therefore, should the stock reach
241 or 3856, it would begin its foray into the 9th zone of the square of 12. Recall Gann mentioned that the 8th and 9th
sections are the strongest and hardest points to pass because this is the “death” zone.

We can expect a pull back from the 9th zone of the second square of 12. The question then is how big of a pull-back
can we expect?

243 or 3888 is a potential area where the 45-degree angle cuts through the center of the minor square. It is also 11/16
of 144. 246 or 3936 is also possible as itʼs the half point in the 9th zone of the square of 12. Regardless, it is extremely
unlikely that the S&P 500 can get through the 9th zone i.e. 4032 without having a significant reaction in the next few
weeks. By significant I mean at least a 288 point or 18 Gann point reaction. Time period would be approximately 3
weeks from the new moon of January 2021.

In my book Unlocking Gannʼs methods, I mentioned clearly how to derive the vibration of each stock point to 1 Gann
point (where 1 Gann point is equivalent to 1 calendar month or 1 degree of Heliocentric Saturn movement).

The modified square of 12 is shown in the picture below. It clearly shows the Gann points of the second square of 12
and the corresponding SPX value. This is applicable for S&P 500 as the vibration is specific to the S&P 500 i.e. 1 point
to 16 SPX Points.

Craig Morenaʼs square of 12 for the S&P 500 based on a vibration of 1 point to 16 SPX points.

The current 5 year bull campaign stretches from Feb 2016 to present which is equivalent to 257 weeks. Gann mentions
that when time and price squares then a change in trend is possible. Currently price is at 241 points at its highest point
which is BEHIND where time is and not squared. In this regard, a “snap-up” to 257 points i.e. 4112 would be on the
racks in the coming months as time and price squares.

Craig

4 Comments

1.
Tom on May 1, 2021 at 7:48 pm
Hi Craig, thank you for this article!

Question:
you wrote that price is behind time, assuming Gann Point 257 of your square #2 (=257
weeks since Feb 2016) expected S&P price of 4112 in January 2021.
When calculating the time using your other assumption (1 month = 1 Gann point) one
could come to the conclusion that price is actually before time:
Use Gann Point 113 (S&P 1808) as the start point and a er 257 weeks =~59 months (= 59
Gann Points) you get to Gann Point 172 and S&P price should have been at 2752 in
January.
Which method of squaring the time is correct?

cheers
Tom

REPLY

Craig on May 3, 2021 at 11:07 am

Hello Tom,

Thank you for this. Iʼm not too sure I understand but both ways are acceptable. W. D.
Gann stated that squaring can occur on a daily, weekly and monthly time frame so
one could even extend out the squares based on 1 Gann point is to 1 day.

If I may answer your questions another way, I typically use the square of 12 to convert
price into 1 month equivalents or the rate of vibration of the stock. Although I
mention 1 month, I mean in e ect degrees (i.e. 1 Saturn degree = 1 month). Thus for
example 2184.6 on the S&P 500 on 23 March 2020 is 136.5 points. Add the lowest
number (i.e. 133) in the 12th column of the square of 12 (signalling also the end of the
bull campaign) to 136.5 would be 269.5 which would mean the price should at
minimum cross 4312 to square out a complete square of 12 and bring an end to the
bull campaign. Of course it could go higher but should not exceed 3 points above the
top most number of 288 (i.e. 144 + 144).

The important distinction here is that making 1 Gann Point equivalent to 1 month is a
way to derive the stock vibration for measuring price movements.

Craig

REPLY

2.
Michael on May 25, 2021 at 1:06 pm
Hello Craig,
A er reading your blog and purchasing your book, I created a Gann Square of 12 in Excel.
You may find it useful. (I sent it via support@gannpoint.com.)

I am still unclear regarding how to determine when price and time is squared using the
chart. A detailed example using the S&P 500 would be greatly appreciated!

Thank you,

Michael

REPLY

3.
Amit on June 17, 2022 at 2:44 pm
Sir
Is it also applicable in Indian stock market?
Here Index Ni y is at 15300 level and Bank Ni y at 32500 level. In U.S 1 point is equal to 16
SPX.
In Ni y and Bank Ni y 1 point will be how much?
Thank you sir
Regards
Amit

REPLY

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