Metodo Gann-1-90

Gann’s Method
Geometry of Making Profit
by
Mr Soumya Ranjan Panda
1
Gann’s Method
3rd Edition -November 2011
“ I can only say that W.D.Gann’s method is one

of the mathematical wonders. If you belief in the
Vaastu geometry for designing your home or
office then equally you must accept the Gann’s
method for predicting the stock price“
-Ranjan
2
Gann’s Method
Disclaimer
M/s Smart Finance is an independent publisher of

“Gann’s Method”. Examples given in the book are
for the education purpose only. Opinions or
suggestions are given with the understanding that
readers acting on this information assume all risks
involved. The information provided herein is not to
be considered as an offer to buy or sell security of
any kind. The author, M/s Smart Finance does not
assume any responsibility or liability resulting from
the use of such information, judgements, formulas
or opinions for trading or investment purpose.
M/s Smart Finance

#32/34, Mangalinagar 1st street, Arumbakkam,
Chennai-600106. ph: 9840348971
www.smartfinancein.com
3
Gann’s Method
“ Gann’s study has deeply inspired me to think

beyond the cosmos. I think the entire universe is a
perfect geometry.All the planets in the universe
are in their perfect trajectory since million and
billion years . Hence it is nothing wrong in using
the geometry for price time forecasting ”
-Ranjan
4
Gann’s Method
Preface
This book is having 8 chapters starting with the

basic Gan wheel to the advanced Gann tools. The
chapter -1 contains the basic gann wheel explana-
tion , the number and the degree relation etc. From
2nd chapter to 5th chapter I have discussed the dif-
ferent relations of price, time and degree. In that
course also you will find various interesting tricks
and techniques to predict a trade . Chapter-7 has
all the acceptable Gann tools.Chapter - 8 explains
34 intraday trading techniques.
The complete understanding of this book will

surely help you in making an accurate trade
decision.
-Ranjan
5
Gann’s Method
“ For me Gann was one of the best mathemati-

cians of his time and has done a great work which
is beyond the thought process of his contempo-
rary mathematicians”
-Ranjan
6
Gann’s Method
Acknowledgement
This work is one of my most important achieve-

ments in life . I convey my sincere thanks to all
my well wishers, friends and clients who have
supported me in this course of development. My
special thanks to my wife who is the 1st reader of
this entire manuscript before it has gone to press
for publishing. Her continuous support and
encouragement made me to finish this work for
the well being of the society. I have made an
attempt to present the entire concept in the
simplest manner but as a human being me too have
some limitations in thought process . Your feed
back is highly valuable to bring the modifications
in my future editions.
Soumya Ranjan
Panda
7
Gann’s Method
“Putting theory into practice is the best job which

one can do. In this book I have made an attempt
to do so ”
-Ranjan
8
Gann’s Method
CONTENTS
Page No
Chapter 1: Introduction to Gann’s Method 10
Chapter 2: Squaring Price With Price 25
Chapter 3: Current Price and Past Time 37
Chapter 4: Price Range and Time 49
Chapter 5: Price Range and Time In Current Trend 67
Chapter 6: Gann’s angle and dynamic principles 91
Chapter 7: Gann Tools and Technique 117
Chapter 8 : 34 Intraday Trading Techniques 131
9
Gann’s Method Introduction to Gann’s Method
Chapter 1
Introduction to Gann’s Method
1.1 Introduction
1.2 Gann wheel
1.3 Gann wheel analysis
1.4 Degree to Price relation
1.5 Constructing Gann’s channel
10
Chapter 1
Introduction to Gann’s method
1.1 Introduction :
William. D. Gann was one of the most
successful traders of his time. Born in
Lufkin, Texas on June 6, 1878 A.D, started
commodity trading and stock market trading
in 1902, and moved to New York City in
1908, opened his own broking firm,
W.D.Gann & Co., he died on June 14, 1955
at Miami,Florida.
His use of Natural Law and geometric
proportions based on the circle, square, and
triangle in the Stock and Commodities
markets are effective today as they were 50
years ago. His techniques work in any
market. His methods are seen to be a bit
unusual and even mystical to many traders,
but they have proven themselves time and
again over the past century.
11
The key point of his work is that he

establishes the relation between the price
and time after converting it into degrees.
Neither I am a Gann expert nor I have
attended any seminar conducted by the
Gann experts. I just love his mathematical
works and its application in forecasting the
future price and time. Many Gann experts
use the astrology with his work. Few s/w
also available to predict the future price
with respect to astrology using Gann
method but I never knew those methods.
What ever I am going to discuss in this
chapter is purely a mathematical one and
can be used with the help of paper and
pencil. This book will start with the Gann
wheel and will end at various squaring
techniques. Technique for taking weekly,
monthly trade decision are also included.
I found that it is very much useful for taking
the intraday trading decision. Hence there
is nothing harm in using this.
12
Though many Gann legends argue that this is

the only and the only one way to predict the
future price of a stock, but I do not agree with
them. It is just a method but not a full proof
technique to predict the future. If you ask me
is there any full proof method to predict the
future stock price. My answer will be - ‘No’.
1.2 Gann wheel:
The Gann wheel is the numerical arrangement

of numbers from 1 to 81 in a spiral manner. It
is a table consisting of 9 rows and 9 columns.
Many s/w program support 13X13 even more.
The picture given in the next page is a Gann’s

square of 9 wheel. The number one is placed
in the centre then one circle is completed by
placing 2 to its left, 3 on the top of 2, 4 on the
right of 3, 5 on the right of 4, 6 below5, 7
below 6, 8 on left of 7, 9 on left of 8. One
spiral is completed at this position.
13
Gann Square of 9 Table
The second spiral starts from 10. Like this

all the 81 members are arranged in the 9X9
table.
The above table is the basic arrangement of

numbers in a 9 X 9 table.
14
Now go to little complex nature of this 9X9

table. Imagine this table placed inside a circle
whose centre is at 1. Then the typical Gann
wheel will look like the below picture as in
section 1.3. Now don’t break your head to
explore the wheel because we will explain it
in detail in later section.
1.3 Gann wheel analysis:
Now little bit concentrate on the Gann’s 9X9

table. If you imagine a circle having centre at
1 and the squared table is inside the circle.
From Gann wheel imagine a circle having
element 15 in its circumference and centred
at 1. If the starting is the 0 degree then the
number 45 degrees from 15 will be 17, the
number 19 is 90 degrees from 15, 23 is 180
degrees up from 15 like wise 34 is
360 degrees up from 15.
15
16
1.4 Degree to Price relation :
Degree to factor table:
Degree Factor
360 degree 2
315 degree 1.75
270 degree 1.5
225 degree 1.25
180 degree 1
135 degree 0.75
90 degree 0.50
45 degree 0.25
22.5 degree 0.125
Why these factors?

If you will imagine this movement as spiral
then the arc length created by each one degree
movement is almost 5.55 X 10 -03 unit
assuming the diameter of the spiral starting
with 1. Based on this concept the factors are
being derived.
17
Now see the number relation with the

factors.
Example 1: Which number (say N) is 1800

down from number 15?
N = ( 15 -1)2 = 8.25. If you will neglect

the decimal part then the integer part will
be 8. If you observe the Gann table then
the number is exactly what we have found
out through the calculation.
Example 2: What number (N) is 1800 up

from number 34?
N= ( 34 +1)2 =46.66. If you will neglect

the decimal part then the number we will
get is 46. It is exactly what we have found
in Gann table.
Gann specifies that 450, 900, 1800, 3600 are
the potential resistance and support for a
particular stock price.
18
Example 3: On 30th August 2007 SBI, OHLC

data are as follows (1570, 1618, 1570, and
1596). Based on Gann’s degree to price
relation how to generate the most likely
support and resistances for the next trading
session?
Before applying the Gann technique let us

analyse the data for knowing the direction.
Simple techniques to analyse these data
points. Take the 5 days moving average MA
(5), 10 days moving average MA (10) and 30
days moving average prices MA (30). For our
example MA (5) = Rs 1570/-, MA (10) = Rs
1520/-, MA (30) = Rs 1571/-. My closing
price is well above 5 days moving average.
Hence in short term I will expect a positive
move in the script. Also it is a coincident that
my low is exactly equal to the MA (5), If not
also no problem.
19
Now I will start my calculation from the

day’s low of 1570.
DEGREE UP DOWN
45 1589.874 1550.251
90 1609.873 1530.627
180 1650.246 1491.754
360 1732.493 1415.507
Above table represents that 1589 is 450 up

from 1570 and 1550 is 450down from 1570.
My closing is well above the 450 up price.
Hence my next upside resistances will be
1609-1650-1732 support 1589-1550-1530.
Gann trader follows this rule as to enter a

long trade once the price crosses 450 up
from the days low, keeping the stop loss at
450 down from the days low. The target will
be above 900 -1350- 1800 data points.
20
Is this method useful for intraday?
It is one of the best methods for intraday. You

need to have 2 minutes or 5 minutes
data.Consider the hourly high or low point.
The starting point will be 22.50 or multiple
of it.
We have many interesting methods which are
explored in subsequent chapters. Hence read
all the techniques before applying it into
practice.
21
1.5 Constructing Gann’s channel:
Step 1: Consider the most significant low.
Step2: Compute the 45 degree, 90 degree,

180 degree, 360 degree, 540 degree, 720
degree price up from the low.
Step 3: Draw the horizontal lines at those

prices.
Step 4: Take the square root of low and

adjust it to an integer value. Say it as B.
Sept 5: Draw the vertical lines by counting

the B number of days from the low.
Continue this process for 4 to 5 steps.
Step 6: Draw the channels by joining the

intersections, points of the horizontal and
vertical grids.
22
Example : Construct a Gann channel us-

ing the swing low of SBI ?
Do this as your 1st assignment.
23
24
Gann’s Method Squaring Price with Price
Chapter 2
Squaring Price with Price

2.1 Introduction
2.2 Squaring price with price
2.3 Converting price to degree
2.4 Trade decision using price squaring

action
25
26
Chapter 2
Squaring Price with Price
2.1 Introduction:
Gann always stressed upon three things in

order to predict the future price movement
of a stock or commodity. They are 1. Price,
2. Time 3. Pattern. He establishes the
geometrical relation between the price and
time for predicting the future movement. If
you see Elliot’s wave theory, Gann theory and
Fibonacci theory, you will find one common
thing that all these theories are based on the
harmonic nature of price. This is a truth in
the capital market.
2.2 Squaring price with price:
In chapter-1 I have discussed how the price

is related to each other in a Gann’s square of
27
nine table. Before going deep into the

subject we should understand the Gann
square. Gann always specified that price,
time and pattern have a strong relation with
the geometrical figures like circle, triangle,
rectangle and hexagon. He also proved it
that the prices falling in the edge, diameter
of these objects are the key resistances and
supports of the current price movement.
What is a Gann square?
The rectangular spiral formed by placing

a number at the centre of the object is
called a Gann square. In chapter-1 Gann
wheel picture the four dimensional body
inside the circle is called a Gann square.
The horizontal line and the vertical line

containing the Gann squares centre number
are called cardinal.
28
Gann Square
57 58 59 60 61 62 63 64 65
56 31 32 33 34 35 36 37 66
55 30 13 14 15 16 17 38 67
54 29 12 3 4 5 18 39 68
53 28 11 2 1 6 19 40 69
52 27 10 9 8 7 20 41 70
51 26 25 24 23 22 21 42 71
50 49 48 47 46 45 44 43 72
81 80 79 78 77 76 75 74 73
Construction of the Gann square is quite easy.

It requires three inputs that is the starting
price, increments and the factor. If you see
the above Gann square table the starting price
is 1, increment is 1, and the computing factor
is also 1. Many working model is available
on line to construct Gann wheel.
29
What is Gann angle?

Gann has specified 11 different angle
combinations as follows:
1 X 16 = 86.25 degrees
1 X 8 = 82.5 degrees
1 X 3 = 71.25 degrees
1 X 2 = 63.75 degrees
2 X 1 = 26.25 degrees
3 X 1 = 18.75 degrees
8 X 1 = 7.5 degrees
16 X 1 = 3.75 degrees
1X1 angle is translated as one unit rise in
price with one unit rise in time.Though
Gann does not specify any scale on
30
how to place price and time in the X and Y

axis to derive these degree but Robert W.
Colbyin his book “the Encyclopedia of
Technical Market Indicators” Second
Edition, McGraw-Hill Publishing, 2003
mentioned that one unit of price will be taken
as 1/16th of an inch and one week of time
period will be taken as 1/16th of an inch to
draw ganns chart. But this is a standard
followed in all the s/w having the gann tools.
In very simple words, ‘Gann angles are the
slopes of the line made with x axis if you
will place prices and time in the order of
1X1,1X2,1X8 and so on.’
2.3 Converting price to degree:
Formula: - Mod ((sqrt(N)*180)-225,360)
This excel formula will convert any number
of your choice into degrees. Numbers
having same degree line square with each
other and considered as the major support
and resistance area.
31
Example: Below mentioned are the 4

weeks OHLC (open, high, low, and close)
data of SBI. Explain price squaring
relation?
Date Open High Low Close D1 D2 D3 D4

30-07-2007 1524.45 1614.8 1509.8 1578.05 323 168 289 85
31-07-2007 1622 1635.6 1540.05 1623.85 184 215 359 188
01-08-2007 1610 1610 1540.2 1548.05 157 157 359 17
02-08-2007 1550 1626 1544 1592.8 21.6 193 7.88 119
03-08-2007 1620 1652.4 1610 1635.75 180 252 157 215
06-08-2007 1610 1699 1580 1681.9 157 354 89.9 317
07-08-2007 1690 1725.9 1672.55 1682.1 335 52.9 296 317
08-08-2007 1700 1734.8 1698 1706.85 357 72.2 352 12
09-08-2007 1727 1728 1641 1650.6 55.3 57.5 227 248
10-08-2007 1601.55 1614.95 1575.2 1606.95 138 169 79 151
13-08-2007 1620 1629.9 1595.1 1613.05 180 202 124 164
14-08-2007 1636 1636 1604 1615.3 216 216 144 169
16-08-2007 1550 1557.9 1517.25 1520.95 21.6 39.6 306 315
17-08-2007 1510 1543.7 1461.05 1519.2 290 7.19 175 311
20-08-2007 1575 1590 1540.05 1549.65 78.5 112 359 21
21-08-2007 1565 1565 1451.25 1463.3 55.8 55.8 152 181
22-08-2007 1472.05 1504 1420 1458.8 201 276 77.9 170
23-08-2007 1480 1499.9 1407 1414.75 220 266 46.8 65
24-08-2007 1455 1472.9 1425 1466.05 161 203 89.9 187
27-08-2007 1519 1563 1486 1554.75 310 51.3 234 32
32
In the above table I have converted all OHLC

data to degree format by using the above
formula. Now consider 27th August closing
price 1554.75 which is 32 degree. All closing
prices having 32 degree or multiple of 32
degree will square with this price. You can
grant error up to 7 degrees. Hence 23rd
August 07 price 1414.75, 13th August 07 price
1613 squares with the prices and act as the
support and resistances of the next move.
2.4 Trade decision using price squaring action
Whatever I have discussed earlier is with

respect to the past event. Now see the present
event. Gann traders believe that the prices
45 degree, 90 degree, 180 degrees are
important for trade decision. Hence price
above or below from the present price by 45
degree, 90 degree, 180 degree factors will act
as a point of trade decision. Squaring angles
up from the computed angle
33
(i.e. in our example 32 degree) is calculated

by adding 45, 90,180 to the computed angle
and vice versa. Below mentioned table
displays the squaring angle of 32 degree
and its price conversion using square root
formula (explained in chapter 1).
Angles up from 32 Angle factors price

77 0.43 1589
122 0.68 1609
212 1.18 1649
Angles down from 32
13 0.072 1549
58 0.32 1529
148 0.82 1491
With respect to the closing price of 27th

August 07 i.e. 1554.75 the next level of
resistances are 1589, 1609, 1649 and
support 1549, 1529, 1491.
34
Below mentioned data is the price data from

27th August to 3rd September 07.
Date Open High Low Close

27-08-2007 1519 1563 1486 1554.75
28-08-2007 1575 1575 1541 1550.6
29-08-2007 1504.1 1585 1504.1 1573.85
30-08-2007 1584 1604.7 1559 1570.85
31-08-2007 1570 1618 1570 1600.35
03-09-2007 1619 1623 1602.35 1606.65
On 28th August if I have to initiate a trade in

the opening session using this principle then
I will observe the opening price which is well
below the 1st level of resistance 1589. This is
also the price falling below 45 degree line. it
is a bearish signal. I will enter a sell order
keeping my stop loss at 90 degree up price
i.e. 1609. my initial target will be 45 degree
down price from 32 degree price point that is
1549. If you observe the 28th day data then I
am very much in the target.
35
This method is not discussed by any gann

expert. Based on gann principle, taking
the previous day data I have innovated
this static technique for day traders. This
is one of the best static techniques for day
traders. I never claim that it is a full proof
technique but it works well in an unbiased
and less volatile market.
You can experiment this with 60 degree and
its multiples also.
36
Gann’s Method Current Price and Past Time
Chapter 3
Current Price and Past Time
3.1 Introduction
3.2 Squaring current price with past

time
3.3 Conclusion
37
38
Chapter 3
Current Price And Past Time
3.1 Introduction:
In the earlier two chapters we have discussed

the price squaring action. Now from this
chapter onwards we will discuss the price and
time squaring actions. Price and time squares
with each other in five different ways. From
chapter 3 to chapter 7 we will discuss one by
one. Each chapter will tell you how to use
these techniques. Always the price action is
not a silent activity. For example if you
consider SBI, on the 2nd week of August 07 it
made high of Rs1700/- plus and in the
following week it touches a low of Rs1400 /
- plus. In the month of September 07 when it
is trading at Rs1600/- plus, what kind of
decision I shall take? This decision process
will be discussed in this chapter using Gann’s
square of nine principles.
39
3.2 Squaring current price with past time
In chapter-2, I have explained how to

convert the price to degree. In this chapter
I will give a relation between time and
degree. Go back to your elementary
mathematics, years back when you were
in your upper primary standard your teacher
would have taught you a relation that is 1
degree is 4 minutes. If you will convert your
number of trading days into the degree
format then you need to convert it to hour
then minute format. Once it is converted
to degree you need to divide it by 360 to
find out the number of rotations you have
taken from one price change to other price
change.
Example 1:SBI 8 th August high was

1734.8, 23rd August low was Rs 1407/- and
current price is Rs1610/- on 4th September.
What will be my decision based on
40
price time relation? From high to low it has

taken 11 trading days and 16 calendar days.
This is, 24 X 11 X 60 = 15840 minutes. If
you divide it by 4 then it will be 3960 degrees.
One circle rotation is 360 degree. These 11
rotations will complete 3960 degrees. This I
have explained to understand the degree and
time relation. But this calculation will always
result the number of days as the minutes can
be represented as days. So straight way you
can take the number of days.
Once it is converted to the number of rotations

we will treat the days as a mere number
nothing other than that. Convert that number
to degree using MOD function as discussed
in the chapter 2. The number 11 is 12 degree.
Its 0, 45, 90,180 and 270 degree offsets are
12, 57,102,192,282.
Converting 16 calendar days to degrees we

get 135 degrees.
41
Now convert the low 1407 to degree which

is 47 degree. The 0, 90,180, 270 degree of
set of the price are 47,137,257, 317.
From this I conclude the 16 calendar days

is squaring with the low 1407 at 90 degree
offset i.e. 47+90=137, which is two degree
more as compared to the calender days
(degree conversion) .
Now the Gann square prices will be 90

degree addition starting from 137 and time
scale will be 16 period counts starting from
23rd August.
Angles up from 47 Angle factors

137 0.761 1465
257 1.428 1516
317 1.761 1542
407 2.261 1582
497 2.761 1622
587 3.261 1662
42
The point at which the current price squares

with the time, the current trend ends there.
In our case the price 1465 squares with the
time 16 calendar days. This is a confirmation
signal that the down trend ends once the price
crosses 1465. After this cross over if the
upward march is continuing the script will
take next 16 trading sessions to touch its all
time high to complete one cycle of harmonic
motion.
The price square is completed on the day

following the 23rd August low. On 12 days
from the 24th August the script is at Rs
1610 /-. Hence the price is in between 407
and 497 (4th and 5th row in the table).
Therefore buying is advisable here by
keeping the stop loss at 1582 and target 1662
to 1740 in next 4 calendar days.
Though many books have told about how
price in current trend squares with the time
in prior trend but they do not explain
43
which price will be considered as a change

of trend indicator. Very precisely Gann
has specified that when price and time
will square the pre-existing trend will die
and new trend will start. In our example
of SBI the down trend will end when the
price cross above 1465.
How much time it will take to cross this

price?
The price Rs 1465/- is almost in the 15 %

retracement from the high Rs1734.8. The
15% retracement of 16 calendar days is 2.4
days, round it to 2 days.
So we conclude that by using Gann price

in current trend with time in prior trend if
the stock moves above 1465 in next two
calendar days then this should be taken as
a time and price squaring action.
44
This price will be considered as the strong

support for the forthcoming trend.
If this cycle continues then the stock will

touch its high in the coming 14 days. This
does not hold good always. If neither the
trading days nor the calendar days in the prior
trend square with the price in current trend
then you need to drop this method and see
for other methods discussed in other chapters.
So far we have been talking about the price,

time and the trend but not about volume. In
many Gann studies I did not find the
importance of volume. May be the reason
would be Gann was a commodity trader and
given more importance to price, time and
trend.
Through regular mind bugging exercises to
establish a perfect correlation of volume with
the Gann’s method, I found out when the
squaring of price and time happens with
45
rise in 10 days average trading volume the

prediction comes true or else it is just a
false signal. For better practice of this
method just have a look in 10 days average
trading volume before entering a trade. If
price action supports the volume then go
ahead with this technique, it will yield the
best result.
3.3 Conclusion:
To use this technique following steps are

given.
Step-1: Identify the high –low or low –

high or high- high or low-low of a prior
trend.
Step-2: Convert the low or high to degrees.
Step 3: Compute the +45, +90, +180, +270

and -45,-90,-180,-270 degree offsets of
46
converted price degree.
Step 4: Count the number of calendar days

and number of trading days between this high
–low or low –high or high- high or low-low
of the prior trend.
Step 5: Convert days to degrees.
Step 6: The price offsets degree which

coincides with the time degree called the
‘price time square’.
Step 7: Convert that price offsets degree and

its higher order degrees to price using degree
factors.
Step 8: Take the current market price and

compare with the computed price and the
elapsed days to take a trade decision. It
will not even take more than 2 to 3 minutes
to decide upon a trade by using this method
47
These 8 steps can be put on an excel sheet

and just do the job in one click of mouse.
It will not even take more than 2 to 3
minutes to decide upon a trade by using
this method.
48
Gann’s Method Price Range and Time
Chapter 4
Price Range and Time
4.1 Introduction
4.2 Number to degree conversion table
4.3 Squaring price range and Time
4.4 Conclusion
49
50
Chapter 4
Price Range and Time
4.1 Introduction:
In the previous chapter we have discussed

about current price and previous time
squaring action. In this chapter we are going
to discuss about how the price range in the
prior trend squares with the time in the prior
trend. If you happen to know the Fibonacci
Retracement Technique, this is one more way
of retracement technique by taking static
point increment and decrement. In this
chapter I will discuss few interesting intraday
techniques for serious traders. Just take a print
out copy of ‘the number to degree conversion
table’ and keep it on your table. With the help
of a pencil you can be able to take a trade
decision by using this technique.
51
4.2 Number to degree conversion table:

Number Degree Conversion table
Number Deg Number Deg Number Deg Number Deg Number Deg
1 315 32 73 63 124 94 80.2 125 347
2 30 33 89 64 135 95 89.4 126 355
3 87 34 105 65 146 96 98.6 127 3.5
4 135 35 120 66 157 97 108 128 11
5 177 36 135 67 168 98 117 129 19
6 216 37 150 68 179 99 126 130 27
7 251 38 165 69 190 100 135 131 35
8 284 39 179 70 201 101 144 132 43
9 315 40 193 71 212 102 153 133 51
10 344 41 208 72 222 103 162 134 59
11 12 42 222 73 233 104 171 135 66
12 39 43 235 74 243 105 179 136 74
13 64 44 249 75 254 106 188 137 82
14 88 45 262 76 264 107 197 138 90
15 112 46 276 77 274 108 206 139 97
16 135 47 289 78 285 109 214 140 105
17 157 48 302 79 295 110 223 141 112
18 179 49 315 80 305 111 231 142 120
19 200 50 328 81 315 112 240 143 127
20 220 51 340 82 325 113 248 144 135
21 240 52 353 83 335 114 257 145 142
22 259 53 5.4 84 345 115 265 146 150
23 278 54 18 85 355 116 274 147 157
24 297 55 30 86 4.25 117 282 148 165
25 315 56 42 87 13.9 118 290 149 172
26 333 57 54 88 23.5 119 299 150 180
27 350 58 66 89 33.1 120 307 151 187
28 7.5 59 78 90 42.6 121 315 152 194
29 24 60 89 91 52.1 122 323 153 201
30 41 61 101 92 61.5 123 331 154 209
31 57 62 112 93 70.9 124 339 155 216
52
If you happen to observe the number degree

conversion table then see number 1, 9, 25,
49 squares with each other since all of them
are 315 degree.
4.3 Squaring price range and Time :
You can find the price range from close to

close, high to low, low to high in a particular
time range. Convert the price range to degree
and compute its offset. Take the total trading
days and calendar days in that price range.
Then from the table find out its degree
equivalent. The price offset which coincides
with the time offset is considered as the
squaring points. Trade decision will be taken
at this point.
This mathematical thing looks very simple

but in reality these are bit difficult to take
one uniform trade decision.
53
What makes me to rely on these

methods?
While following the retracement

techniques I have limitations for static point
retracement ratio. Though this is also a
static point technique but I have the
freedom to make it dynamic. See the next
example to know the importance of this
technique.
Example 1:
On 5th September 07 Nifty touched intraday

high of 4503 at 10 a.m. and touched low of
4464 at 11.50 a.m. Based on the price in
current trend to the time in prior trend
suggest what type of trade decision I
should take ? Below the intraday chart is
given for reference.
54
From the above data I have understood that

from high to low I have travelled 4503-4464
= 39 points and it took 1 hour and 50 minutes
for me which is almost 110 minutes. Taking
5 units as one unit we get 22 units of time.
The conclusion is for 39 units of price change
we take 22 time units.Converting the 39 and
22 to degree format we get 179 and 259
degree which never squares with each other.
55
Now use the dynamic approach in time, by

reducing the time units by one and
converting into degrees or finding the
numbers which squares with 39 from the
number to degree conversion table given
above. We found 18, 39, 68 time unit
squares with price range. 18 is 4 time units
less from 22 time units and it will be an
ideal choice for this job rather than 39 and
68 units.
Now the price range 39 squares with 18

time unit at angle 179. Round it to 180.
Hence my new range will be
N(R) = ( 39+1)2 = 52.49
N (R) = Price range of square to end.
In the next move in 18 time units if I will

move 52.49 points in price line then I will
complete a square.
56
Dividing 52.49 with 18 we got 2.91. Hence

in each time unit I need to move 2.91 (round
it to 3) point in price to complete the square
and in this journey these prices will act as a
resistance for me.
Price squares time Resistance Time
Unit 1 resistance 4466.916 11.55 a.m.
Unit 2 resistance 4469.832 12 p.m.
Unit 3 resistance 4472.748 12.05 p.m.
Unit 10 resistance 4493.161 12.40p.m.
Unit 14 resistance 4504.826 1p.m.
57
This square will not complete until and

unless 4516 level is not crossed. If you see
the chart in the subsequent time period nifty
will find resistances in those prices.
White paper proof:
At 11.55 a.m. from 4471 Nifty fell to 4469

At 12.05 p.m. from 4475 Nifty fell to 4471
At 12.11 p.m. from 4478 Nifty fell to 4472
Though the time and price are not matching

because of the adjustments we made in time
but the resistance prices are matching
perfectly in 5 min chart. If you will get an
exact match of time and price square, the
time factor also works out precisely.
What is the trade decision? The price
squares with time in 180 degree and hence
180, 360,540,720 are the angles of interest.
The factors will be 1,2,3,4. One should buy
on 4516 cross over which is factor 1 price.
58
Target will be 4532 which is factor 2 price.

Stop loss will be 4464 which is 0 degree from
the 180 degree price 4516. This will be valid
for that day.
This is very much useful for intraday. Based

on these levels and applying our own
intelligence you can take any number of trade
decisions.
Gann specifies each price as an ‘energy

packet’. If it crosses one price time square,
the energy completes one circle and has the
tendency to cross the next circle. In this theme
‘Elliot wave theory’ was also defined.
This above technique is not been defined by

any Gann expert till date. This theory only is
interpreted by many Gann experts time and
again. Fact is Gann experts always treat this
method as a static method not a dynamic one.
The way I have adjusted the time same
59
way you can adjust the price range with

the elapsed time and derive one more set
of resistance and support.
In wave principle, cross over of one

resistance level act as a support for the next
resistance. Three consecutive support
breaks should be considered as an exit
point. Three consecutive resistance break
out should be considered as a point of entry.
This principle you should follow if you
want to enter the trade inside the square.
Example 2:
Below mentioned table contains one week
data of SBI based on price in current trend
with time in prior trend.Analyse what will
be the most probable forecasted price ?
30-07-2007 1524.45 1614.8 1509.8 1578.05
31-07-2007 1622 1635.6 1540.05 1623.85
01-08-2007 1610 1610 1540.2 1548.05
02-08-2007 1550 1626 1544 1592.8
03-08-2007 1620 1652.4 1610 1635.75
60
In the week starting 30th July 07 to 03rd august

07, the script made high Rs1652.4 and low
Rs1509.8. Hence the range is Rs142.60
Round it to Rs142/-. The time is 5 trading
days and 5 calendar days.
Converting it to degree; number 5 is 177

degree and number 142 is 120 degree. The
price squares the time in +60 degree offset.
That is 120+60= 180 just 3 degree more from
the time degree conversion, this is an
acceptable error. Hence 177,237,297,357 are
the angles where the price will square with
time. But we require only one value that is
177. For mathematical simplicity take it as
180 degree.
Hence the price range for squaring is ( 142

+ 1)2 =166.83. Round it to 166. If the price
moves Rs166/- in 5 time units then it will
complete this upward journey.
61
But in our case two week-ends are falling

from the last trading day 3rd August to 6th
August. Hence take the time unit as 7
instead of 5. Hence the price unit 166 will
be divided by 7 to produce one unit change
in price with time. That is 166/7= 23.71.
In price term 1652.4+166=1818.4, is the

price at which this up trend will end in
coming 7 calendar days. During this period
it will find resistances as given in the
following table.
Price squares time Resistance Time

Unit 1 resistance 1652.4+23.71=1676.11 6th august 07.
Unit 2 resistance 1676.11+23.71=1699.82 7th august 07
Below mentioned is the OHLC of SBI from

6th August 07 to 10th August 07.
62
Date open high low close

th
6 aug 07 1610 1699 1580 1681.9
th
7 aug 07 1690 1725.9 1672.55 1682.1
th
8 aug 07 1700 1734.8 1698 1706.85
th
9 aug 07 1727 1728 1641 1650.6
th
10 aug 07 1601.55 1614.95 1575.2 1606.95
The unit 2 resistance is coinciding with the

6th August high. 7th August high coincides
with unit 3 resistance.
Why this time is advanced by 1 day? The

exact cause of this is still beyond my
understanding. But I see all months having
31 days exhibit such action.
What will be my trade decision?
The squaring of current price with time in

prior trend is far from the current market
price.
63
It is advisable to do the trade inside the

square. Cross over of one resistance level
should be taken as entry point, bearing
target at the next resistance level and stop
loss at one step below the entry level.
In many cases the price range will not

square with the time in the prior trend. But
nothing to worry because we have other 3
methods to trap the price time action.
4.4 Conclusion:
To use this technique
Step-1: Identify the high to low or low to

high of a prior trend.
Step-2: Find out the price range.
Step-3: Convert the price range to degree.
64
Step-4: Compute the +45, +90, +180, +270

and -45,-90,-180,-270 or 60 degree and its
multiples or 90 degree and its multiples
offsets degrees.
Step 5: Count the number of calendar days

and number of trading days between this high
to low or low to high of the prior trend.
Step 6: Convert days to degree.
Step 7: The price offsets degree which

coincides with the time degree is called the
price time square.
Step 8: Convert that price time square and

its higher order degrees to price using degree
factors.
Step 9: Take the current market price and

compare it with the computed price and the
elapsed days to take a trade decision.
65
These 9 steps can be put on an excel sheet

and you can do the job in one click of
mouse. It will not even take more than 2 to
3 minutes to decide upon a trade by using
this method.
66
Gann’s Method Price Range and Time in Current Trend
Chapter 5
Price Range and Time in Current

Trend
5.1 Introduction
5.2 Squaring the price range of prior trend

with time in present trend
5.3 Extreme price and time in current

trend
5.4 Squaring price and time in current

trend
67
68
Chapter 5
Price Range And Time In Current Trend
5.1 Introduction:
In chapter-4 we have discussed how the price

range in prior trend squares with the time in
prior trend. In this section we are going to
discuss how the price range in prior trend
squares with the time in the current trend. In
earlier chapter we used to compute the price
range, the time elapsed in that price range
and based on this we used to compute the
future price resistance and support. Thing
will be more realistic and live if we will be
able to time the trend in advance. This
chapter will teach you this wonderful
technique of Gann to predict the time in
advance.
69
If someone asks you SBI has fallen from its

high 1734 to 1407 in 15 trading days,
Advise me how many days from this low
of 1407 it will take to touch 1650, then you
may not be in a position to answer this .
This is a question Gann faced time and
again and he has solved it in a more precise
way. It is not a miracle. It is not astrology.
It is the power of number. Each number is
hiding the mystery of his future number.
Many Gann experts understood his formula
in a right way, but failed to apply in real
life example.
This Chapter is having all the essence to

answer the above puzzle in scientific
manner.
5.2 Squaring the price range of prior trend
with time in present trend.
In previous chapter we have learnt the

conversion technique to convert the
70
numbers to degree.
We also learnt the square root theory to

convert the degree to number by using the
degree factor.In this chapter we will learn a
new formula to convert degree to number
which squares with the original number. I feel
after learning this formula all your purpose
is solved.
Numbers falling on particular angle:
((2 X N) + ((2 X A)/360) +1.25) 2
N is the number of rotations you want in a

spiral. It starts with 1.
A is the angle of your choice.

1.25 is a standard constant for square.
The proof of this formula lies in your 7th

standard mathematics.
71
Example 1: You are being provided with

Tata Steel past 2 weeks open-high-low-
close data. Considering the one week data
as prior trend and 2nd week time as current
trend predict what will happen in the
following days?
25-Jun-07 599.75 603.75 593.2 600.15
26-Jun-07 599 610.85 597.7 604.15
27-Jun-07 602 603.45 588.8 592.65
28-Jun-07 592 599.45 588.1 593.5
29-Jun-07 592 601.8 591.35 597.4
02-Jul-07 597.4 608.7 592.2 593.45
03-Jul-07 594 605.8 591 600.75
04-Jul-07 603 618.8 599 616.35
05-Jul-07 620.55 630 614.5 628.1
06-Jul-07 628.65 635.5 621 623.3
The high to low price range in the previous

two weeks is 635.5-591= 44.5 .Round it to
44. In degree terms it is 249 degree. In the
first week the script moves from low to
high. Time elapsed from 1st week high to
end of 2nd week is 5 trading days and 7
calendar days. The degree equivalent of 5
and 7 are 177 and 251. The price range
squares with the time in calendar days in 3
72
degree off set. This is an acceptable error.

Now our job is to predict the time and price
action for the future week.
The number of calendar days which squares

with the time in this up trend based on the
formula (given in page 71) is 21, 44, and 74.
In the coming 21 calendar days from 6th July

07 the price trend is going to change. If it
does not change then the same trend will
continue for another 23 days (i.e. 44-21) from
there.
What will be the price for this termination

points?
Converting 21 days to degree we get 240

degrees. The 240 degree is 1.33 in factor
terms. Using the square root theory taking
the highest value 635.5 as the initial point
we have: ( 635.5+1.33)2 = 723.5
73
723.5 is the 1st termination point for this

uptrend.
During this journey of 21 calendar days the

price range will be 723.5 – 635.5 = 87.5
It will find the resistance at various points
given in the following table. In one time
unit the range is 4.16 i.e. 87.5/21.Adding
this price to the Rs 635.5 the consecutive
21 resistance points are as follows.
RS1 640
RS2 644
RS3 648
RS4 652
RS5 656
RS6 661
RS7 665
RS8 669
RS9 673
RS10 677
RS11 681
RS12 685
RS13 690
RS14 694
RS15 698
RS16 702
RS17 706
RS18 710
RS19 715
RS20 719
RS21 723
74
Below mentioned is the 21 days price data of

Tata Steel from 9th July to 31st July 07.

09-07-2007 627 632 622.1 626.5
10-07-2007 629 638 624.2 634.1
11-07-2007 630.1 661 627 655.5
12-07-2007 662.1 674 660 672
13-07-2007 672 699.5 672 695.8
16-07-2007 699.7 712 686 694.8
17-07-2007 694.1 702 674.1 681.1
18-07-2007 682 691 660.3 682.8
19-07-2007 686 692.9 678.7 682.5
20-07-2007 684 720 684 715.2
23-07-2007 712 726.6 710 721.1
24-07-2007 723.4 732.4 709 721.8
25-07-2007 720.5 725.7 702.2 709.4
26-07-2007 712 717.9 697 703.7
27-07-2007 695 697.2 646.2 651.6
30-07-2007 655 675 635 643.5
31-07-2007 646.9 659.8 642.3 656.3
If you observe this price data the termination

of this uptrend happens 3 days in advance
from the price range of 723 after the script
made 4 consecutive attempts to close above
75
this level. Out of these 21 resistance levels

8th, 10th, 13th, 16th and 18th resistances are
very important. That is the 0.382, 0.5,
0.618, 0.786, 0.888 level retracement of
21 days. From price data if we will observe
the high then these prices has proved
themselves as potential resistances.
How to enter a trade?
If the price range and time is very wide

then it is better to enter a trade inside the
square. To my idea entering a long trade
above 38.2% resistance for target as the
termination point will be the best choice.
Same way if the trend changes signal and
stock falls below 78.6% support zone after
touching the termination price then it is
advisable to initiate a short trade.
76
5.3 Extreme price and time in current trend
In this section we are going to discuss one

more combination of price time squaring
action. Gann’s method has not only the price
time squaring but also geometrical angle
transformations. We will discuss few more
interesting things in the subsequent chapters.
This method of Gann’s square exhibits how
the ending price of one of the prior trend
squares with the time in current trend.
Example : On 4th January 07 Tata motor hit

the high 988.4 and then fell to low of 712 on
07th March 07 . Using price in prior trend with
time in current trend advice what kind of trade
decision is advisable?
Below mentioned is the price and time chart

of Tata motor, given for reference.
77
78
Total number of calendar days is 63 and the

number of trading days is 41. Now the highest
price from where the trend change happens
in the prior trend is 988.4. Convert these three
things to degrees using the formula discussed
in the chapter 1, we get 988.4 is 34 degree,
63 calendar days are 124 degree, 41 trading
days are 208 degree.
Hence the price in prior trend squares with

the calendar days’ time in 90 degree offset,
since 34+90=124. Now using the degree to
number conversion formula as discussed in
this chapter
For N = 1, number of days which will square
with the 63 calendar days is 15.
For N= 4, number of days which will square
79
Your count will start from 7th March. From

7th March 07, the 15th, 35th, 63rd and 98th
calendar days we will see major trend
change in this counter. As per the
calculation 21st March, 10th April, 8th May
and 12th June are the days of major trend
change in this counter.
Price action 124 degree is equivalent to 0.69

in factor terms. Hence price from 712 in
this factor will act as the resistances from
this price. But in this case the calculation
will differ a bit.
Using the square root theory
The 1st level of resistance will be ( 712 +

0.69)2 =749.
1st level of support corresponding to 1st level
of resistance is ( 712 - 0.69)2 = 675
2nd level of support corresponding to 1st
level of resistance is ( 675 - 0.69)2 = 639
80
3rd level of support corresponding to 1st level

of resistance is ( 639 - 0.69)2 = 605
4th level of support corresponding to 1st level

of resistance is ( 605 - 0.69)2 = 572
2nd level of resistance will be ( 749 + 0.69)2

=787.
1st level of support corresponding to 2nd level
of resistance is ( 749 - 0.69)2 = 711
3rd level of resistance will be ( 787 + 0.69)2

=826.
1st level of support corresponding to 3rd level

of resistance is ( 787 - 0.69)2 = 749.
If you will relate this price data with the

squaring time the 4 th period time data
perfectly coincides with the 4 th period
support. Exactly on 12th June 07 the script
falls to 575 and close at 641. The question is
81
why this 4th period time 98 days give the

accurate result but not other forecasted
times.
To explore this I have gone into the original

writings of Gann. That I have given in this
book as a separate chapter in chapter 6.
Gann specified 3,5,7,9 and 12 are the

master numbers. Out of which 7 is the most
important, its square 49 also important, its
second square 98 also important, and its
third square 147 also important. Number 5
he considered as balancing number.
Number 3 is in the list next to 7.
From the computed days 15, 35, 63 and

98; 98 is the most important day since it is
the 2nd square of 7. Hence we see a greater
price action on that day. The number 15
and 35 is containing the balancing number
5 in its factor hence less price action
82
we have seen in these days. Number 63 also

contains number 3 as a factor in its multiple
9x7. Hence we see less activity on that day.
I made a small change in Gann’s method in

this junction. Since the calendar days 63
squares with the price. I have factored it as
3x3x7 and taken the most powerful master
number in that factor which is 7. Then 7
calendar days and its multiple 7,14,21 days
act as my point of observation. I have taken
those days from 7th March to observe the price
change . I found 14th March, 21st March, 28th
March 07 also act as the days when major
price change happened.
No need to break your head in this number

game. Simplest way to apply this technique
is; in price line on the specified day count if
you are above the support point of its price
then go long. If you are below the support
point go short.
83
In our example on 21st March Tata motor

opened at 772, touched high 778, low 760.
This price is much above the 1st level of
resistance and support. In this point going
long in this counter is advisable with stop
loss of 749 for target 787. This target is
achieved in the next trading session. Same
way taking a short call on 3rd level of
resistance is advisable for target of 2nd level
of support.
Once one resistance is crossed convincingly
it used to become a potential support point.
Second most important thing is Gann has
always specified that 3 consecutive rise or
fall should be taken for identifying a trend.
These two things we need to follow in all
Gann’s techniques.
5.4 Squaring price and time in current trend:
This is the technique for which you have
been waiting for long time. We all the capi-
tal market players do not believe on past
rather than present.
84
Gann’s method and tool is the only method

which value only to present but not to the
past. For example if some one asks you, SBI
has fallen from 1734 to 1507 in a time frame
of two weeks then what will be the next move
in the SBI in coming days considering these
two points are swing high and swing low. In
what time frame it will hit what price in
future? The answer of this amazing
technique lies in this chapter.
Example: SBI from its 4th December 06 high

1379 fell to 898.10 on 16th March, 2007. After
touching this low it gave a swing reversal.
What will be its next move in price in future
time period?
In terms of calendar days it is 103 calendar

days (from 4th December to 16th March) and
69 trading days. The price range in that
duration is 1379-898.10= 480.9. Round it to
480.
85
Converting this 480 to angle is 119 degree,

103 is 162 degree, and 69 is 190 degree.
The 45 degree price offset is 119+45=164.
This squares with 103 calendar days by 2
degree difference hence it is an acceptable
error. Hence the days of my interest will
be the days falling in the 162 degree angle.
Using the formula ((2 X N) + ((2 X A)/

360) +1.25) 2
Iteration 1:
Considering N=1, angle 162 we get number
of days 17. That is 1st April 07 (non trading
day)
Iteration 2:
Considering N=2, angle 162 we get
number of days 37. That is 21st April
07(non trading day)
Iteration 3:
Considering N=3, angle 162 we get
number 86
of days 66. That is 20th May 07 (non trading

day)
Iteration 4:
of days 103. 26th June 07 (non trading day)
Iteration 5:
of days147. 9th August 07 touches high 1728.
Hence we conclude that the stock will take

the 147 calendar days from the low 898 to
touch the new high of the current swing.
What will be the price at that time?
The price will be the summation of the mid

point of swing low and swing high and the
new price range will be based on 162 degree
factor. (1379+898)/2 =Rs1139/-.
87
The factor equivalent to 162 degree is 0.90.

Applying the square root theory the price
range is ( 480 +0.90)2 = 520. Target price
of the current swing will be 1139+520=
Rs1659/-
Some amount of ambiguity lies in this

method. Since the swing we have taken for
computation is a static one and long enough
for the stock analysis we will discuss one
more example based on this to clarify the
action.
Example 2: Take the case of nifty intraday

on 7th September it made swing high of
4544 at 13:02 p.m. and swing low 4518 at
13:43 p.m. Explain how the price and time
in current trend affect the future movement.
The price change is 26 points in 41 minutes.

Taking 5 minute as one trading session and
1 min as 1 calendar session we have 41
88
calendar sessions and 8 trading sessions.

Number 8 is 284 degree, number 26 is 333
degree, and number 41 is 208 degrees. Hence
the price squares the trading time in 45 degree
offset. That is 333-45=288 just 4 degrees
more from the 284.
Hence the trend change time is 23 time unit

from 13:43 p.m. This is roughly at 15:34p.m.
Since we have closing at 15:30 p.m, we will
see the price change towards the end of the
session.
What will be the price action?
(4544+4518)/2 = 4531 is the initial level of

resistance.
4531+44= 4575 is the next level of resistance.
4531-44=4487 is the support for 1st level of
resistance.
For 2nd level of resistance 4531 is the support.
89
This support or resistance of 4531 is

supposed to hit in the mid way of 23 time
units that is by 14:35 p.m. time (23 time
unit is divided by 2 followed by
multiplication with 5 to give the time in
minute .That many minute from 13:43 p.m
is 14:35 p.m.).
How to initiate a trade?
Always initiate a trade in the cross over of

the initial level of resistance for the target
of second level of resistance. Keep the stop
loss below the 1st level of support.
More realistic view of Gann’s method we

will explore in the chapter 7.
90

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Gann’s Method

Geometry of Making Profit

Mr Soumya Ranjan Panda

3rd Edition -November 2011

“ I can only say that W.D.Gann’s method is one

M/s Smart Finance is an independent publisher of

M/s Smart Finance

“ Gann’s study has deeply inspired me to think

This book is having 8 chapters starting with the

The complete understanding of this book will

“ For me Gann was one of the best mathemati-

This work is one of my most important achieve-

“Putting theory into practice is the best job which

Chapter 2: Squaring Price With Price 25

Chapter 3: Current Price and Past Time 37

Chapter 4: Price Range and Time 49

Chapter 5: Price Range and Time In Current Trend 67

Chapter 6: Gann’s angle and dynamic principles 91

Chapter 7: Gann Tools and Technique 117

Chapter 8 : 34 Intraday Trading Techniques 131

Introduction to Gann’s Method

1.2 Gann wheel

1.3 Gann wheel analysis

1.4 Degree to Price relation

1.5 Constructing Gann’s channel

Introduction to Gann’s method

The key point of his work is that he

Though many Gann legends argue that this is

1.2 Gann wheel:

The Gann wheel is the numerical arrangement

The picture given in the next page is a Gann’s

Gann Square of 9 Table

The second spiral starts from 10. Like this

The above table is the basic arrangement of

Now go to little complex nature of this 9X9

1.3 Gann wheel analysis:

Now little bit concentrate on the Gann’s 9X9

1.4 Degree to Price relation :

Degree to factor table:

Why these factors?

Now see the number relation with the

Example 1: Which number (say N) is 1800

N = ( 15 -1)2 = 8.25. If you will neglect

Example 2: What number (N) is 1800 up

N= ( 34 +1)2 =46.66. If you will neglect

Example 3: On 30th August 2007 SBI, OHLC

Before applying the Gann technique let us

Now I will start my calculation from the

Above table represents that 1589 is 450 up

Gann trader follows this rule as to enter a

Is this method useful for intraday?

It is one of the best methods for intraday. You

1.5 Constructing Gann’s channel:

Step 1: Consider the most significant low.

Step2: Compute the 45 degree, 90 degree,

Step 3: Draw the horizontal lines at those

Step 4: Take the square root of low and

Sept 5: Draw the vertical lines by counting

Step 6: Draw the channels by joining the

Example : Construct a Gann channel us-

Do this as your 1st assignment.

Squaring Price with Price

2.2 Squaring price with price