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Gann

The document explains Gann's principles of aligning price and time in stock trading, specifically using the Square of 52, 90, and 144 to predict market reversals. It emphasizes the importance of observing key price levels and time intervals to identify potential turning points in the market. Traders are advised to watch for signs of reversal or breakout when price and time match specific multiples of these key numbers.

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Atulit Agarwal
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71 views4 pages

Gann

The document explains Gann's principles of aligning price and time in stock trading, specifically using the Square of 52, 90, and 144 to predict market reversals. It emphasizes the importance of observing key price levels and time intervals to identify potential turning points in the market. Traders are advised to watch for signs of reversal or breakout when price and time match specific multiples of these key numbers.

Uploaded by

Atulit Agarwal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Imagine This Stock Story:

Let’s say you’re tracking a stock called XYZ Corp.

• On January 1st, XYZ hits a major low at $52.

• Today is Day 104 (i.e., about 5 months later).

• The stock is now trading at $104.

Here's What Gann Would Ask:

Are price ($104) and time (104 days) aligned in the spiral?

Yes — because:

• Both price and time are double 52.

• 52 × 2 = 104, and 104 lies on a diagonal angle in the Square of 52.

This is what Gann called "squaring time and price" — when the time since a key price matches
an important price level in the spiral.

Gann’s Rule:
“When price and time meet on a key angle or square, expect a major turn in the market.”

What to Do:

At Day 104 and price $104, you’d:

• Watch for reversal signs.

• If the market starts dropping, you might sell.

• If it breaks through $104 strongly, it might continue upward to the next square: $156
(which is 52 × 3).

What is the Gann Square of 90?

The Square of 90 is a tool that helps traders forecast turning points in the market by linking
time and price using the number 90 as a base.
• Just like the Square of 52 used 52 (weeks in a year), this one uses 90, which Gann
believed was important for:

o Quarter-year cycles (since 90 days = 1 quarter),

o Square roots and angles,

o Geometry of circles (360° ÷ 4 = 90°),

o And harmonics in price and time movements.

Why 90?

• Square of 90 = 8100

• This means the tool involves a spiral or square grid of numbers from 1 to 8100, arranged
in a specific pattern.

• Important numbers will lie on specific angles like 0°, 45°, 90°, 135°, 180°, etc.

Gann believed when a stock’s price and the time passed from a major low or high “square
out”, the market is ready to change direction.

Core Idea (in Easy Language)

The market moves in repeating patterns, and these patterns can be predicted if you understand
the relationship between price and time.

So if a stock:

• Started a major move at $90,

• And 90 days later the price reaches $180 (another multiple of 90),

• Gann would watch this carefully — it may be time for a trend reversal or breakout.

How to Use the Square of 90

Let’s break it into simple steps:

Step 1: Pick a Key Starting Point

• For example: A major low at $90 on Jan 1.


Step 2: Track Time in Days

• Mark off every 90 days, 180 days, 270 days, etc.

Step 3: Track Price Levels

• Watch for prices like $90, $180, $270, etc.

• Also, watch square roots: √90 ≈ 9.49 (used for angular relationships).

Step 4: Match Time & Price

• When the number of days matches a key price level (or angle), it’s a “square”.

• Gann called this “when time and price square”.

What is the Gann Square of 144?

The Square of 144 is one of Gann’s most powerful tools. It uses the number 144, which is a
special number in time and geometry.

Why 144?

• 144 = 12 × 12 (a perfect square)

• There are 1440 minutes in a day (important for intraday traders)

• It relates to the Fibonacci series and natural cycles

• 144 is often used to measure longer-term price and time cycles

Gann believed the market behaves mathematically — and that 144 is a master number for
detecting major trend changes.

Core Idea (Explained Simply)

“When price and time hit multiples of 144, watch out — the trend may change.”

So for example:

• If a stock makes a low at $144, and 144 days later the price is at 288, that’s a square
(144 × 2).

• Gann would call this “time and price are squared” — and it often signals a reversal or
breakout.
How to Use the Square of 144

Let’s walk through it step-by-step:

Step 1: Choose a Key Price or Date

• Let’s say a stock bottomed at $144 on Jan 1.

Step 2: Mark Out Time Intervals

• Add 144 days, 288 days, 432 days, etc.

Step 3: Watch the Price Levels

• Price: $144, $288, $432, $576, etc.

• These are multiples of 144.

Step 4: Look for Matching Points

• If both time and price hit multiples of 144 — it’s time to watch the market closely.

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