Gann Square of Nine

Introduction

The Gann Square of Nine is one of the most popular Gann tools among Indian traders, especially for Nifty and Bank Nifty levels. It is a spiral of numbers starting from 1 at the centre and moving outward in a square pattern. Gann used it to find price and time levels based on the circle of 360 degrees.

How the Square of Nine Looks

Number 1 is in the centre. Numbers 2 to 9 form the first square around it. Numbers 10 to 25 form the next square, and so on. Each full rotation around the centre equals 360 degrees. Numbers lying on the same straight line (the cross and the diagonals) are related by 90, 180, 270 or 360 degrees.

The Square Root Method

Traders today use a simple formula based on square roots to calculate Square of Nine levels:

• Take the square root of a price.
• Add or subtract a value based on the degree:
• 45 degrees = 0.25, 90 degrees = 0.5, 180 degrees = 1, 360 degrees = 2
• Square the result to get the level.

Example 1: A Stock at Rs 1,600 (Illustrative)

Square root of 1,600 = 40.

Example 2: Nifty at 24,000 (Illustrative)

Square root of 24,000 = 154.92 (approximately).

• +45 degrees: about 24,078. -45 degrees: about 23,923.
• +90 degrees: about 24,155. -90 degrees: about 23,845.
• +180 degrees: about 24,311. -180 degrees: about 23,691.
• +360 degrees: about 24,624. -360 degrees: about 23,384.

Intraday traders often use the 45 and 90 degree levels. Swing traders use 180 and 360 degree levels.

Using a Major Low or High

Gann-style analysis works best when you start from a major top or bottom, not just today's price. For example, from a major low of Rs 900 (square root 30), a full 360-degree move up is (32)² = Rs 1,024, and 720 degrees is (34)² = Rs 1,156. These can act as resistance levels in the rally.

Time on the Square of Nine

The same numbers can represent days. If a stock made a low at Rs 144, Gann would watch for time turns near 144 days. Price and time meeting on the same number is considered a strong signal.

Trade with GoPocket

Calculate Square of Nine levels for Nifty or your stock before the market opens. Use them with your chart levels on the GoPocket app. If price reaches a 180 or 360 degree level and forms a reversal candle, place a Limit order with a stop-loss just beyond the level. For intraday trades, a Cover Order ensures your stop-loss is always attached.

Frequently Asked Questions

Is the square root method the original Gann method?

It is a modern, widely used way to calculate Square of Nine levels based on Gann's chart.

Should I trade only on Square of Nine levels?

No. Use them with trend, angles and candlestick confirmation.

Key Takeaways

• The Square of Nine is a spiral chart based on 360 degrees.
• Levels = (square root of price ± degree factor)².
• Works best from major tops and bottoms.

Disclaimer: Illustrative calculations only. Not investment advice.