Traders have known that Gann made use of geometrical figures in order to get a picture of the market. His Square of Nine technique is also referred to as the gann trading Pyramid. The use of time and the price elements are the foremost considerations when using the method in making trading moves in just about any market. Traders who would like to have higher winning probabilities have to apply the cyclic principles that have been espoused by Gann in his trading career about a hundred years ago.
Beginner traders who are not so sure about their calculations and about the accuracy of their geometric figures will still be able to trade better if they make use of the best kind of software program with this feature integrated. It is important that they see accurate graphical representation as well as get the exact measurement of the angles in between. Gann square of nine theory presents that when angles come very close to about 90°, there will be a major movement of the stocks or commodities in the market.
However, though the calculations and the angles may be done by a software program, traders still have to do their work. They have to be very observant and watch where the highs as well as where the lows are over specific time duration. They have to do this for days, months and even for years. Within the given time period, traders will have to check the prices using a 1:1 scale and they will also have to take note of the spatial relationships that they see between time and price. Using the Square of Nine theory, traders will be able to see the price moving in a direction within a given angle and then at some point, it will have to break the angle.
The gann trading method is applicable in any trading market especially in establishing the patterns or the cycles that it goes through. New traders though have to learn correct timing so that they may be in the best position to buy or to sell depending on the current trends in the market. More experienced traders combine a host of strategies together with this technique so that they may have a more accurate prediction of the prices over a certain period of time. To ordinary people, the concept of the Square of Nine may be a little difficult to follow but to those who are in the trading business, the 360° framework may spell their success.
Article Source: Gann’s Square of Nine Trading Method