Basics of Gann Analysis
fiGure 19.27 The Cardinal and Ordinal Crosses within the Square of Nine Chart.kilogram of weight. After drawing a straight line through the center of the square
containing the price $105, and a line perpendicular to this first line which is also
drawn through the center of the square, simply count down from the price of
$105, in a counterclockwise fashion, until the next lower price is located at the
perpendicular line, which in this case, turns out to be $95, which represents the
−90‐degree support level from $105, in Gann’s unique terminology. Continu-
ing to count backward, the next lower support level would potentially occur at
the next line at $85, which represents the −180‐degree support level from $105.
The next two lower supports would be $76 and $68, representing the −270‐ and
−360‐degree support levels, respectively, as measured from $105. See Figure 19.28.
To locate potential future resistance, count up from the price of $105, in a
clockwise fashion, finding the next higher price located at the perpendicular line,
which in this case, turns out to be $115, which represents the 90‐degree resistance
level from $105, in Gann speak. Continuing counting forward, the next higher
resistance level would potentially occur at the next line at $126, which represents
a 180‐degree resistance level from $105. The next two higher resistances would
be $138 and $150, representing the 270‐ and 360‐degree resistance levels, respec-
tively, as measured from $105.numerical Method for Locating potential support and resistance using
Gann’s square of nine Gann identified numerical angular values in the follow-
ing manner:■ (^) 360 degrees (full cycle) corresponds to a value of 2
■ (^) 180 degrees (one half cycle) is equivalent to a value of 1
■ (^) 90 degrees (one quarter cycle) is equivalent to a value of 0.5
■ (^) 45 degrees (one eighth cycle) is equivalent to a value of 0.25