Discuss Intraday Trading Using Gann Calculator at the Day Trading within the Traderji.com; Hi All, In the next 10 post, i will be explaining how to use Gann ...

 Register FAQ Calendar Search Today's Posts Mark Forums Read

#1
17th March 2010, 06:49 AM
 Member Join Date: Mar 2009 Location: mumbai Posts: 537 Thanks: 52 Thanked 573 Times in 231 Posts

Hi All,

In the next 10 post, i will be explaining how to use Gann Calculator and how to trade intraday based on this calculator.

I browsed through this forum for Gann Calculator and found many articles wrote on it. As a normal individual, i was not able to understand any of them.

After browsing through more than 25 websites (where no one is sharing their way of trading with this method, they just give GANN formula/square/angles/etc/etc), i found the simple way to trade using Gann Square of 9.

I will update this thread slowly day by day.

I am reserving the next 10 post for detailed explaination on Gann Calculator.

I will mention here all the formulaes, and logic behind the calculation, so tha if someone wants to develop excel or if someone wants to develop AFL, they can.

All suggestions are welcome.

For Quick reference, this is how the Gann Calculator looks

Quick Overview

Gann Square of 9 - Introduction

Some Interesting Facts about Gann Square

More Interesting Facts

How to make Gann Square of 9

How to execute trade based on this system

Lets Do Some practical trade based on Gann Calculator

How to fin Targets for Buy and Sell.

Last edited by radha55; 28th March 2010 at 04:48 PM.
 Sorry your browser does not support IFRAME
 The Following 17 Users Say Thank You to radha55 For This Useful Post: aabhi06 (13th April 2010), anilpalan (1st December 2010), balmal2511 (17th March 2010), biyasc (17th March 2010), deevee (17th March 2010), goodstocks (20th March 2010), GuluGulu (31st October 2010), hello_betu (26th October 2010), naser_mohammad (16th September 2010), OptionScalper (10th December 2010), pmg123 (1st April 2010), rangarajan (24th October 2010), rkkarnani (29th March 2010), sanjay_arora (20th November 2010), shubhsarvesh (24th November 2010), sudintripathi (13th November 2010), veen money (20th April 2010)

## Looking for a share broker?

#2
17th March 2010, 06:50 AM
 Member Join Date: Mar 2009 Location: mumbai Posts: 537 Thanks: 52 Thanked 573 Times in 231 Posts

Gann Square of 9 - Introduction

Gann relied heavily on geometrical and numerical relationships and created several tools to help with his work. Among these tools are the Square of Nine, Square of 144, and the Hexagon. The Square of Nine, or Square as we will refer to here, can be constructed in at least two ways. The static Square has the number 1 at the center and the dynamic Square has the historic low of the time series in the center.

The Square of 9 is basically a spiral of numbers. The initial value can be found in the center of the spiral. This value is then increased by moving in a spiral form. Normally the center value is 1 and the step is one creating the spiral shown below.

The numbers that represent a complete turn (0 or 360 degrees) are 2,11,28,53.....
The numbers that represent 1/8 of a turn (45 degrees) are 3,13,31.....
The numbers that represent 1 quarter of a turn (90 degrees) are 4,15,34.....
The numbers that represent a half turn (180 degrees) are 6,19,40.....

The Square of Nine is essentially a time and price calculator, and calculates the square
root of numbers, both odd and even numbers as well as their midpoints. It also looks
for both time and price alignments from a specific starting point or price level.
We will however not work on the time alignment as we are trading for intraday only.

Last edited by radha55; 17th March 2010 at 11:20 PM.
 The Following 14 Users Say Thank You to radha55 For This Useful Post: aabhi06 (14th April 2010), biyasc (18th March 2010), hello_betu (26th October 2010), hritik (1st December 2010), jinjin (29th March 2010), mukeshc (2nd October 2010), naser_mohammad (16th September 2010), rangarajan (24th October 2010), rkkarnani (29th March 2010), sasi0263 (29th March 2010), sibumajumdar (11th April 2010), sudintripathi (13th November 2010), sundaram iyer (8th November 2010), veen money (20th April 2010)
#3
17th March 2010, 06:51 AM
 Member Join Date: Mar 2009 Location: mumbai Posts: 537 Thanks: 52 Thanked 573 Times in 231 Posts

Some Interesting Facts about Gann Square

If you were to look at the numbers on the grid running down to the bottom left hand corner on the Square of Nine, you will find they are the square root of odd numbers E.g. 5x5 = 25.

If you were to look at the numbers running up to the top right hand corner on the Square of Nine you will find they are the square root of even numbers e.g. 4x4 = 16.

If you then look at the numbers running down to the bottom right hand corner on the Square of Nine you would find the midpoint between the squares of odd and even numbers. Using the numbers 16 and 25 as an example of our odd and even numbers you will find the number 21 representing their midpoint.

Cardinal Cross and Ordinal Cross

The numbers that fall on the blue lines form what’s known as the “Cardinal Cross”
and the numbers that fall on the red lines running into the corners of the square, form what’s known as the “Ordinal Cross”.

Any numbers that fall on these lines are said to act as significant support and resistance levels.

So the Square of nine is an interesting arrangement of numbers that have a specific order and can be used in many different ways.

The red and blue lines intersect with other and divide the square in 8 equal parts.

The angle between each line is 45 degrees.

Last edited by radha55; 17th March 2010 at 11:49 PM.
 The Following 11 Users Say Thank You to radha55 For This Useful Post: aabhi06 (14th April 2010), biyasc (18th March 2010), hello_betu (26th October 2010), jinjin (29th March 2010), mukeshc (2nd October 2010), naser_mohammad (16th September 2010), rangarajan (24th October 2010), rkkarnani (29th March 2010), sasi0263 (11th April 2010), sudintripathi (13th November 2010), veen money (20th April 2010)
#4
17th March 2010, 06:51 AM
 Member Join Date: Mar 2009 Location: mumbai Posts: 537 Thanks: 52 Thanked 573 Times in 231 Posts

More Interesting Facts

THE GANN WHEEL IS A SQUARE ROOT CALCULATOR

The Gann Wheel, what most people probably think of as the Square of Nine, is sometimes called a "Square Root Calculator" or a device that "Squares the Circle." This simple illustration may explain how and why these terms came about. You probably recognize that the illustration is just the first few rings of a Gann Wheel with the numeral "1" at the center.

In Square of Nine parlance we say things like 19 is 90 degrees from 15. That makes sense only if you can visualize that this rectangular table of numbers is enclosed in a circle (or series of circles) of 360 degrees. In this case, the number 19 is 1/4 the way around the circle from the number 15, or 90 degrees in circumference from 15. The number 34 is directly above the number 15 and positioned one circumference or one ring outside the circle that contains the number 15. In the same sense that we can say that 19 is 90 degrees from 15, we can say that 34 is 360 degrees from 15, or one complete rotation of the circle from 15. That explains where squaring the circle comes from. A more accurate expression would be that we're circling the square but that never did catch on.

HOW TO ROTATE AROUND THE GANN WHEEL

Here's where it gets fun. The square root of 15 is 3.87. Add two to the square root of 15 and we get 5.87. Square 5.87 and we get 34.49 which rounds to 34. Now we know that adding two to the square root of a number and squaring that sum is the same thing as a 360 degree rotation up on the Gann Wheel. If "2" represents a 360 degree rotation then "1" represents a 180 degree rotation, "0.5" a 90 degree rotation, and so on. W.D. Gann tells us that 90 degrees in very important in the stock market. What Gann is really saying is that adding and subtracting .5 (and exact multiples or proportions of .5) to the square root of a stock price and then squaring the result is very important! We acknowledge that there is is another school of Gann thought that will say that Gann's reference to 90 degrees relates to the movement of celestial bodies. We've looked into that and they may be right, but for our purposes we've also learned that these schools of thought can peacefully exist alongside each other without contradiction.

But Note: For our Calculation we would consider 1 as 360 because we are trading intraday.

Last edited by radha55; 18th March 2010 at 11:13 AM.
 The Following 11 Users Say Thank You to radha55 For This Useful Post: aabhi06 (14th April 2010), hello_betu (26th October 2010), jinjin (29th March 2010), mukeshc (2nd October 2010), naser_mohammad (16th September 2010), rangarajan (24th October 2010), rkkarnani (29th March 2010), sasi0263 (11th April 2010), srichakra (18th March 2010), sundaram iyer (24th November 2010), veen money (20th April 2010)
#5
17th March 2010, 06:52 AM
 Member Join Date: Mar 2009 Location: mumbai Posts: 537 Thanks: 52 Thanked 573 Times in 231 Posts

How to make Gann Square of 9 ?

You all probably might be interested to know, how to generate this square.

So lets begin....

To generate the square you need a reference point.
For intraday, this reference will be the LTP of stock/index.

How to take LTP?? (will describe in next post).

Lets say i get LTP as 5100.

Now i need to generate square based on this.

I will follow below steps to do this.
Step 1: Take SQRT(LTP) = SQRT(5100) = 71.41
Step 2: Take the 2 integers below SQRT(LTP) and 2 integers above SQRT(LTP). 2 integers below are 70 and 71. 2 integers above are 72 and 73.
Step 3: Now take SQR(70) = 4900. Place this in the center.
Step 4: Now increase the 70 by 0.125 ( 45 degrees ) ( as told in previous post 1 represents 360 degrees. )
Step 5: Take the square of 70.125. SQR(70.125) = 4917.51. Place this in left block adjacent to center block where u placed 4900.
Step 6: Increase the value further by 0.125. You get 70.25. Square it. SR(70.25) = 4935.06.
Step 7: Place this on the top block of the block where u placed 4917.51.
Step 8: After generating 8 values, you will be complete one level of square.
Step 9: Repeat the steps with values SQR(71.125), SQR(71.25),....

So finally you get square similar to the one shown below.

SQRT -> Square Root | SQR -> Square

More details in next posts.

Last edited by radha55; 18th March 2010 at 09:32 PM.
 The Following 11 Users Say Thank You to radha55 For This Useful Post: aabhi06 (14th April 2010), GBAJAJ (17th March 2010), hello_betu (26th October 2010), jinjin (29th March 2010), naser_mohammad (16th September 2010), rangarajan (24th October 2010), rkkarnani (29th March 2010), sam.k.ghosh (12th October 2010), sasi0263 (11th April 2010), susheel04 (3rd September 2010), veen money (20th April 2010)
#6
17th March 2010, 06:53 AM
 Member Join Date: Mar 2009 Location: mumbai Posts: 537 Thanks: 52 Thanked 573 Times in 231 Posts

How to execute trade based on this system.

To trade using this system in intraday you need to take the LTP of index or stock after 9:05 am in morning.

Ideally you should take the Weighted Average Price of any stock or scrip between 9:05 am - 9:15 am.

However, after 9:30 am, you should only take LTP of stock or index.

Idea is in early few minutes there is lot of volatility in market, so to decide fair price we should take Weighted Average.

Many times it is not possible for many to start trading from 9:00 am. In that case, those who start trading after 9:30 am, can take LTP.

Now lets say you get the price as 5152.

You enter the price in Gann Calculator

You will get the square that looks like below

5152 falls between 5166 and 5148.

So we should buy above 5166 and sell below 5148.

Targets are next levels in the calculator.

Hope this is clear.

Now lets say 1st target is achieved.(5181)
Then we we watch whether price is able to sustain above 5181 for more than 5 min.

If it sustains, we continue our long position. If not, we square off.

Last edited by radha55; 28th March 2010 at 12:12 AM.
 The Following 5 Users Say Thank You to radha55 For This Useful Post: aabhi06 (14th April 2010), hello_betu (26th October 2010), naser_mohammad (16th September 2010), rangarajan (24th October 2010), veen money (20th April 2010)
#7
17th March 2010, 06:55 AM
 Member Join Date: Mar 2009 Location: mumbai Posts: 537 Thanks: 52 Thanked 573 Times in 231 Posts

Lets Do some practical trade based on Gann Calculator.

This is tarde for HDFC on 26th Mar 2010.

During 9:05-9:15 am, the WAP (Weighetd Average Price) of HDFC in NSE was 2607

By entering this value in Gann Calculator, you get the Gann square similar to below one.

.

As per this we should buy above 2613 and short below 2601.

If you look, the price didnt went below 2601 after 9:15 am.

But price went above 2613. So we enetered in long at 2613.

Our Target 1 2625 got achieved soon.
The price was not able to sustain above 2625 for more than 5 min.
Infact the HDFC touched 2625 and started moving in rang 2618-2623. So there is possiblity for HDFC to move in downward direction.
So we square off at CMP ( 2620 )(approx price).
We ended up in profit of 2620 - 2613 = 7rs.

Now we take 2620 as our reference price. and put it in Gann Calculator.
We get the below recommendations

Recommendation:
Buy at / above: 2626.56 Targets: 2638.07 - 2650.92 - 2663.8 - 2676.72

Sell at / below: 2613.76 Targets: 2602.3 - 2589.55 - 2576.85 - 2564.17

So we buy only if price moves above 2627.

After 1-2 hrs, HDFC started moving up and it confirmed its uptrend by crossing the price 2627.

So we eneterd long again at 2627.

Our target 2638 just got touched and again price started falling indicating pressure at 2638.

So try to square off at price near to 2638.

And if look at the intraday graph of HDFC we see the HDFC was seeing resistance at 2625 and then at 2638. (see the image below)

Last edited by radha55; 28th March 2010 at 04:39 PM.
 The Following 8 Users Say Thank You to radha55 For This Useful Post: aabhi06 (14th April 2010), hello_betu (26th October 2010), jinjin (29th March 2010), naser_mohammad (16th September 2010), rangarajan (24th October 2010), sasi0263 (11th April 2010), Shilpa.Magdum (4th May 2010), veen money (20th April 2010)
#8
17th March 2010, 06:55 AM
 Member Join Date: Mar 2009 Location: mumbai Posts: 537 Thanks: 52 Thanked 573 Times in 231 Posts

How to find Targets for Buy and Sell.

Once, we are done making our Gann Square, we know our buy and sell levels.

But how to find the targets.

For finding the targets for Buy, we go in clock wise direction.
For finding the targets for Sell, we go in anticlockwise direction.

Have a look at image below.

Yellow lines are resistances for Buy.
Blue lines are support for Sell.

Targets are 99.95% of resistance and 100.05% of support.

So Target for Buy = Res * 0.9995.
Target for Sell = Supp * 1.0005.

Last edited by radha55; 29th March 2010 at 05:14 AM.
 The Following 9 Users Say Thank You to radha55 For This Useful Post: aabhi06 (14th April 2010), hello_betu (26th October 2010), hritik (1st December 2010), jinjin (29th March 2010), naser_mohammad (16th September 2010), OptionScalper (10th December 2010), sam.k.ghosh (12th October 2010), seetharamank (18th August 2010), veen money (20th April 2010)
#9
17th March 2010, 06:56 AM
 Member Join Date: Mar 2009 Location: mumbai Posts: 537 Thanks: 52 Thanked 573 Times in 231 Posts

Quick Overview

Gann Square of 9 - Introduction

Some Interesting Facts about Gann Square

More Interesting Facts

How to make Gann Square of 9

How to execute trade based on this system

Lets Do Some practical trade based on Gann Calculator

How to fin Targets for Buy and Sell.

Last edited by radha55; 28th March 2010 at 04:48 PM.
 The Following 6 Users Say Thank You to radha55 For This Useful Post: aabhi06 (14th April 2010), hello_betu (26th October 2010), naser_mohammad (16th September 2010), rkkarnani (29th March 2010), sasi0263 (11th April 2010), veen money (20th April 2010)
#10
17th March 2010, 10:23 AM
 Member Join Date: Apr 2007 Location: India, West Bengal, Kolkata Posts: 1,167 Thanks: 391 Thanked 252 Times in 110 Posts

Quote:
do you wanted to say that experts/experienced traders would'nt make money by trading this method.

btw, liked your approach. waiting for the details.
 The Following 4 Users Say Thank You to biyasc For This Useful Post: naser_mohammad (16th September 2010), rkkarnani (29th March 2010), rvchalam (23rd October 2010), trade man (2nd April 2010)

 Bookmarks

 Posting Rules You may not post new threads You may not post replies You may not post attachments You may not edit your posts BB code is On Smilies are On [IMG] code is On HTML code is OffTrackbacks are Off Pingbacks are Off Refbacks are Off Forum Rules

All times are GMT +5.5. The time now is 02:11 PM.

Indemnity, Disclaimer & Disclosure Notice:
* By visiting Traderji.com you automatically indicate that you agree to our Forum Rules, Indemnity, Disclaimer & Disclosure Notice and General Content Disclaimer Notice and indemnify Traderji.com, its associates and related parties of all claims howsoever resulting from the usage of the forum/site.