Gann Hexagon Chart

Introduction

Gann said that everything moves in a circle and nothing moves in straight lines. His Hexagon Chart shows this idea clearly. It explains why stocks move slowly at low prices and much faster at high prices, and it gives important time and price numbers.

How the Hexagon Chart is Built

Start with a circle numbered 1 in the centre. Place 6 circles around it; the second ring ends at 7. Each new ring adds 6 more than the previous ring:

• Ring 1 ends at 1
• Ring 2 ends at 7 (gain of 6)
• Ring 3 ends at 19 (gain of 12)
• Ring 4 ends at 37 (gain of 18)
• Ring 5 ends at 61 (gain of 24)
• Ring 6 ends at 91 (gain of 30)
• Ring 7 ends at 127 (gain of 36)
• Ring 8 ends at 169 (gain of 42)
• Ring 9 ends at 217 (gain of 48)
• Ring 10 ends at 271 (gain of 54)

Why Stocks Move Faster at Higher Prices

As the rings grow larger, the distance between the 45-degree angles grows. Gann said that at high levels, there is nothing to stop prices, so moves up and down become rapid. At low levels, the angles are close together, so prices move slowly and meet resistance often.

Real Market Example (Illustrative)

A stock rising from Rs 50 to Rs 100 moves in small steps and pauses often. The same stock rising from Rs 1,000 to Rs 2,000 can move Rs 100 in a few days. This matches Gann's observation: higher prices produce wider swings in rupee terms.

Important Time Numbers from the Hexagon

• 7: Gann considered 7 an important number for days, weeks, months and years.
• 127 months: about 10 years and 7 months. Gann said some campaigns run until they reach this point.
• 169 months: about 14 years and 1 month, double the 7-year cycle. Gann said important tops and bottoms culminate at this angle.
• 271: close to 270 degrees, three-quarters of a circle, a strong point.

Example: Using Hexagon Numbers for Time (Illustrative)

If Nifty made a major bottom in a particular month, a Gann trader would mark the 61st, 91st, 127th and 169th months after it as periods to watch for important changes in trend. These are not automatic reversal dates; they are dates to watch with other signals.

Hexagon Numbers as Price Levels

Some traders also use the hexagon numbers (7, 19, 37, 61, 91, 127, 169, 217, 271) scaled up as price levels, for example Rs 610, Rs 910, Rs 1,270 or Rs 1,690.

Connecting to the Master Charts

Gann said the Hexagon Chart confirms his Master 12 Chart and Square of Nine. All of them are based on the circle of 360 degrees and the idea of squaring price and time.

Apply on GoPocket

Mark the major bottom date of Nifty and your favourite stocks. Count forward in months using the hexagon numbers and note these months in a calendar. When one of these months arrives, study the charts on the GoPocket app closely for Gann reversal signals.

Frequently Asked Questions

Is the Hexagon Chart used for daily trading?

It is mainly used for understanding long-term time periods and price behaviour.

Why does Gann like the number 7?

He saw it as an important natural cycle, appearing in time periods such as 7 days, 7 weeks and 7 years.

Key Takeaways

• The Hexagon Chart adds 6 more with each ring.
• Prices move faster at higher levels.
• 127 and 169 months are important Gann time periods.

Disclaimer: Illustrative examples. Time cycles are not guarantees of reversals.