Basics of Gann Analysis
formed in the following S.O.N. calculations (some prices have been rounded up
to the closest integer):■ (^) 90-degree support from $1561: [(√1561) − 0.5]^2 = $1522
■ (^) 180‐degree support from $1601: [(√1601) − 1.0]^2 = $1522
■ (^) 270‐degree support from $1641: [(√1641) − 1.5]^2 = $1522
■ (^) 540‐degree support from $1762: [(√1762) − 3.0]^2 = $1519
■ (^) 630‐degree support from $1803: [(√1803) − 3.5]^2 = $1518
This represents a confluence or cluster of bullish indications around the $1518
to $1522 price zone. Price subsequently found resistance at 360 degrees above
$1522, at around [(√1522) + 2]^2 = $1682.
In Figure 19.30, we observe the USDCHF finding support at 0.8558 to 0.8566,
which is approximately 720 degrees (two full cyclic revolutions) below 0.9315.
We also observe the USDCHF finding support at the 360‐ and 720‐degree sup-
port levels from 0.9594, which coincided with a channel bottom. This represents
a confluence of bullish indications.
In Figure 19.31, we observe the daily Gold prices finding resistance at $1431,
which is very close to the 360‐degree level from the prior resistance level at $1265,
that is, [(√1265) + 2]^2 = $1411. Price found resistance once more at $1586, which
is very close to 360 degrees above $1431, that is, [(√1431) + 2]^2 = $1584. Notice
the MACD at historically overbought levels at Point B, coinciding closely to an
expected cyclic high.
variation on Gann’s square of nine technique
for price projections
We may also position the price of a significant peak or trough at the center of the
square and have it revolve outward, in the usual counterclockwise and clockwise
fiGure 19.29 Square of Nine Price Projections on the 4‐Hour Chart of Gold.
Source: MetaTrader 4