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SQUARES 1 TO 33 INCLUSIVE
PRICE AND TIME 1 TO 1089
This chart starts with the square of 1 in the center, and moves clockwise around with
the odd squares coming out on the 45 degree angle. These are 1, 9, 25, 49, 81, etc.
The even squares run in the opposite direction on a 45 degree angle, beginning with
the square of 2, which is 4 and continuing on this angle. This produces a variable in
and price of 2. That is 2 points in price, 2 days, 2 weeks, or two months in .
This chart proves why prices move so much faster at higher levels, and measures
exact resistance levels in the squares.
Example: May soy beans extreme low 44¢. This is in the square of 7. From 43 to
49, is 90 degrees. When the price was at 436-3/4, from 421 to 441 covered 90
degrees. Therefore to swing between these angles required 20 points while at low
levels it was only 5 points. It is the same with the time periods. At the present time
May soy beans is in the 253rd month from December 28, 1932 and you will note that
from 241 to 257 is 90 degrees, or 16 points, in price or 16 periods in months, weeks
and days. You will note that the 253rd months is on the angle of 22½ degrees or
112½ degrees from the starting point and the opposite point of the angle is January
13, making January 13 to 15 important for a change in trend. The time periods
starting at the left and in the East beginning March 21, are the seasonal time periods,
and get the same position on time, you would start soy beans from December 28,
which is just a little past the seasonal date of December 21, and January 15, is just 2
days from the 22½ degree angle, July 27, extreme low on May soy beans is just
beyond July 14, where the 22½ degree angle comes out.
All of the important highs on May beans are marked with a green circle. The
important lows are marked with a red circle. You will note that 44¢ was just one point from the 45 degree angle and 436-3/4 the extreme high was on this 45 degree angle. Also on a green angle of 22½ degrees. The extreme low on May beans, 67, on
July 27, 1939, was on a green angle of 22½ degrees, and this angles runs to the date of Aug. 31, and Feb. 28. Also 202½ was on the same line with 67, and 405 was just 1¢ away from the angle of 221½ degrees. From the important highs and lows, I have drawn 45 degree angles and 90 degree angles in order that you can see the important resistance levels.
Example: The recent high of 311¼ on May soy beans made on December 2, 1953, was on the 90 degree angle or straight up from 436-3/4, and also on the angle of 22½ degrees which runs from 44 and 277, and you will note that 310 is on a 45 degree
angle from 240 the low in August 1953, making this a strong resistance and selling level. The time period of 253 months is in red figures and the price of 305 is on the
90 degree angle from 233 low and 240 low. A price of 305 is below the 45 degree
angle from 44¢, 344, and 240. It is on the angle of zero degrees from 240. When the
prices sells at 303 it will be below the 45 degree angle from 240. A complete cycle or
a round trip is most important to watch for a change in trend. From 240 to 305, was a
complete square, cycle or round trip, but to reach on 90 degree angle, the price had to
make 308. The natural resistance level from the 45 degree angle at 307, to the 90 degree angle at 316, or one half was 311, the natural resistance and selling level.
When May beans declined on December 17, to 296, they were on the 45 degree angle
from 44, because the time period was 252 months and we 44 which gives 296,
making this a temporary support and buying level. Also, it was 1¢ above the angle of
no degrees or 180 degrees east of 44¢ extreme low.
You should always consider how many degrees the price has moved from an extreme
high to an extreme low. From a high of 311, to 298 is 67½ degrees and is about 11¼
degrees, which would make 78-3/4 degrees or 7/8th of 90.
When the price had advanced from 240 to 305 it had moved 360 degrees or a
complete circle. Therefore at 311, it had moved 33-3/4 degrees more than the circle
of 360 degrees. For the price to decline to the next natural resistance level from 340
low would be 289 which would be on a 90 degree angle and on the square of 17 and
on the 45 degree angle in the natural squares. To move to 90 degrees from 311 would
be 285. The next important resistance level would be 277-276, which would be 180
degrees from 311 and on the same angle of 22½ degrees.
Bring up all time periods from monthly highs and lows and weekly highs and lows
and see how they stand in the square in relation to the price.
Example: For the week ending January 9, 1954, May soy beans will be in the 20th
week, from August 20th low. Note that the beginning with square 1 at 20 on the
angle of 22½ degrees and should the price drop below 303 it will be below this time
angle, and should it decline to 297 it will be on no degrees or 180 degrees from 20 in
the time period.
February 15, 1920, high 405. November 15, 1953 was 405 months, therefore,
December 15 was 406 months and January 15, will be 407 months and 303 is no
degrees or 130 degrees from this time angle.
January 15, 1945 high to January 15, 1954 will 72 months. Look at 72 in the squares
and you will find that 72 which is in the square of 8 is on the same line as 44, and
running across the price is 295. Therefore, if the price is below this it is in a weak
position.
January 15, 1954 to Feb. 15, is the 73rd month and this is on a 45 degree angle,
naturally, making February important for a change in trend.
1959 [1939], July 27, May beans low, 67. To January 27, 1954, will be 174 months.
Note that 174 is opposite the price of 296, and that 176th month will be March 27,
and this will be in the balance between the two red lines and that the seasonal time
period is marked March 21, making this important to watch for a change in trend.
Suppose the price is at 288, this will be on a 90 degree angle of the time period of
176. And 176 of course, is opposite 69 low and 178 months which will be May 27
will be opposite 180 degrees from 67 the extreme low on May beans.
If you will put in the time to study and practice with this Master Chart, using all of the
time periods and price levels, you will soon find that it is easy to determine a change
in trend from this chart alone.
December 30, 1953
W. D. Gann |
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