Gann Square of 9 Intraday Strategy
The GANN Square of 9 calculator is a tool used in technical analysis, particularly in intraday trading, that is based on the theories and techniques developed by W. D. Gann, a famous American trader and analyst who lived in the early 20th century.
This calculator helps traders identify key support and resistance levels in the market based on a geometric grid pattern.
How to execute trades based on this system
To do intraday trades based on this system,
You need to take the LTP of the index or stock after 9:05AM i.e. the opening time in the morning!
The full form of LTP is the Last Traded Price. The price at which the last trade occurs between the buyer and a seller in the stock exchange. The LTP value varies in the live market.
Ideally You should take the Weighted Average Price between 9:00 AM – 9:15 AM (Pre-market Range) because of volatility caused due to price discovery in the initial minutes.
However, after 9:30 AM, You can just take the LTP!
This is in context of Indian Share Market when the pre-market starts from 9:00 AM and the market starts from 9:15 AM.
This system is not developed by Gann. It merely shows a vague use case for Gann Square of 9 Calculator with 22.5 degree as a base.
How to find Targets
Once We are done making our Gann Square, We know the buy and sell levels from the support and resistances.
But how to find targets?
Use the same numbers as Pivots i.e. The resistance level will become target if buy trade is triggered.
The support level will become target if sell trade is triggered.
Keeping slight versatility, Let’s keep the Targets at 99.95% of resistance and 100.05% of support!
So –
- Target for Buy Trade
= Res * 0.9995 - Target for Sell Trade
= Sup * 1.0005
While we all recognize W.D. Gann as the brilliant mind behind the Gann Square of 9, he didn’t provide detailed instructions on how to use it. Instead, he kept the finer points of its application somewhat of a mystery. As a result, other traders who were passionate about Gann’s approach took it upon themselves to fine-tune and popularize this strategy, elevating it to the prominent position it holds today.
But does it strategy works?