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round it off: 117-04 equals 117. equals 117. 117-08. Each of these has a reset button that will return the value to 1. In the midst of this. This manual is intended to help people use the square of nine more effectively through the Unlimited Squares™ iPhone application. Setting the display The screen shot above shows the Unlimited Squares™ color-coded display and the settings used to generate that display. such as the Treasury Note and Bond prices. simply enter the straight digit price: for example. For markets like this. no effective and easy methodology has been developed for traders to use Gann's natural square of nine to take advantage of price swings on a daily basis.Recent years have seen an explosion in the number of day traders who use the internet. electronic exchanges. which means 117 8/32. Because Unlimited Squares™ can handle very large numbers.125. which is entered as 11712. the Unlimited Squares™ color-coding can give you easy-to-see estimates of market movement. while the CENTER NUMBER is a market high or low chosen as the starting point for analysis. Adjust the settings as follows to get this easy-to-read analysis: The TARGET NUMBER should be the current market price. it can provide information for some markets traditionally difficult to analyze this way. By putting in current information about the market.25 and is entered as 11725. If the price has more than two decimal places. and electronic trading platforms. If you prefer to use ticks .
find the location of the current market price on the diagram. If the price volatility is high. the range will expand or contract by one half. To adjust for price volatility. For example. and green to indicate different strength of points. If you want to enter ticks and see the price expressed by the exchange. without setting a skip number. which increases the price sensitivity (“zoom in”). the possibility of a price stall increases after the market makes a run-up to the yellow values. the blue value found between two corner blues is particularly important: Traders need to pay attention to this number because the price can be rejected when it reaches this position for the first time. Increasing the skip number will increase the difference between the corners. Historical testing of a particular market is important to understand which blue positions have the tendency to resist or support the most. and middle of the current range. Yellow values are found next to the blue corners. Unlimited Squares™ can only give you information about very small changes in price – changes too small to be useful. . the Excel version of Unlimited Squares™ can display the price handle plus ticks in1/4. This is especially useful when working with a very volatile price. Blue values are the maximum. In particular.” or decrease the price sensitivity. Reading the display Now that you have the appropriate display. you can also enter those: each tick is 1/32. and mark the corners and center of each side of the depicted ranges.instead. The SKIP NUMBER adjusts the price sensitivity of the Unlimited Squares™ analysis. The color coding uses blue. Increasing the skip number essentially makes the Unlimited Squares™ display “zoom out. the difference between the two blue corners on either side of the current price must be approximately equal to the average true range of the market for the period you are interested in. and the average true range of the market is about 32 cents. At these levels. it is often followed by a sharp reversal. In the screen shot above. adjust the skip number so that the difference between the blue corners on either side of the current price is about 32 cents. if you are displaying prices in cents. a “head fake” often take place: if the market fails at this level. until you reach the scale that shows the level of information you are interested in. minimum. Similarly. The range also helps predict future ranges: normally. In order for the display to be meaningful. Major support or resistance is often found at these prices. it is on the top side of the inner square. 1/32 and 1/64 because of its larger display area. The setting for DIRECTION controls whether the numerical progression of the display is positive (1) or negative (-1). 1/16. use the color coding to read off significant prices or times and the associated price actions expected. 1/8. so 117-08 becomes 3752 ticks. red. which decreases the price sensitivity (“zoom out”) and decreasing the skip number will decrease the difference between the two corners. to either 50% or 150% of its current size. yellow.
just inside the yellow values. .Red values. When the market begins to move outside of the current range. or “turn a corner” on the square. Historical Example Here is an example of an Unlimited Squares™ display. If this point is surpassed. The corresponding market movements are labeled on the following charts. The distance that the market has traveled to reach the red value is important in anticipating whether it is about to run out of steam. it may signal a critical breakout. which is related to the Fibonacci series. Fibonacci numbers and retracements can be used to buy or sell at these points. Green values are located at the points of the current range determined by the Golden Mean. are much like yellows in that a change of direction may happen when these are reached. the next red value reached on the outside of the square is often a point of major resistance. especially on the first attempt. or still has energy to keep going.
price low or the range has “squared out” with time. price retracements and price extensions for the specified range using the color-coded values. cents. if you day trade in the S&P 500. in any units (calendar or trading hours. indicating that he is only interested in changes of ten points or more.) then you may look for a trend change when 32 units of time have passed after an extreme high or low. This enables the trader to estimate when to expect the next turn without completely knowing the previous high. the location of the angles of multiple data samples can be compared. ticks. you can change the way prices are displayed by entering only the first few digits of your CENTER PRICE and TARGET NUMBER. calendar or trading days. The advantage of Unlimited Squares™ is that you can use the current spacing between the blue corners as if it is a known range. between two blue corners. For example. Again. a long-term trader might want to use 99 instead. Market Timing method . etc. you may want to examine prices that cover a very large range of values. then when 79 units of time.) have passed from the time 79 was posted. the major price level versus the number of days or weeks the market spent at the prominent highs or lows can be compared in angles.D.Advanced Topics Harmonic Analysis Because the Unlimited Squares™ program can display numbers in angles. . historical analysis can make you more comfortable with shifting price ranges in this way. This is another way of increasing the price sensitivity of the Unlimited Squares™ analysis. etc. which will give you a display expressing changes of only one-tenth of a point. One of the reversal techniques is to look for a change in trend when the price high.Squaring the range with time The legendary trader W. For example. Setting a high or low price Since the theoretical current price range is found along one side of the square. once the high or low price is known. This technique is also applied to the price range. Aside from adjusting the SKIP NUMBER. These angles are normally compared from the center of the square by reading clockwise. When these angles are separated by multiples of 45 degrees. even when the market has not moved through the entire range yet. This makes it easier to read the market range. If the range you are examining is about 32 units (dollars. For example. Conversely. you may need to use 9910 instead of 991. you can use this price to match the nearest blue corner cell by adjusting the CENTER PRICE. Examining prices in greater or lesser detail If you are examining trading over a long time span. low or the range as the base of the “square out”. Gann devised many techniques to trade the trend as well as reversals. removing the last digit is equivalent to multiplying the skip number by ten. if the extreme high or low is 79. thus decreasing the price sensitivity. they may signal a trend change. a trend reversal may be expected. Adding a zero is equivalent to dividing the skip number by ten. weeks.
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