Edition

IFTA JOURNAL
2017 EDITION
W.D. Gann also used overlays with angles every 60 degrees,
like the examples in Figures 19 and 20.
Figure 19. Overlay Every 60 Degrees
Figure 20. Overlay Every 60 Degrees
W.D. Gann believes that every market has its own personality,
and each market has its own amount of movement around the
Square of Nine. 16 This proves that the selected shape overlay
tends to last and continue for a long time with its security, and it
never changes randomly except in very rare cases.
An important note is that active cycles may be repeated more
than one time in case of extreme price movements. For example,
if in normal price movement, the price action is trying to reach
1.5 cycles, or 540 degrees of rotation, in some extreme cases it
could reach double or triple this move, which means that it will
reach 3 cycles (2*1.5) or 4.5 cycles (3*1.5).
The idea that every reaction is equal to its action should be
also applied. For example, if prices normally advance by a (270
degrees) 0.75 cycle, if it then declines breaking its starting point,
prices are expected to decrease by (270 degrees) 0.75 cycle.
This point will be discussed intensively in the section about
applying the Square of Nine Bands and Square of Nine Oscillator.
Forecasting Prices Via Cell Number 17
The used Square of Nine with price increment = 100.
The selection of the price increment depends on the chart
price value and timeframe, and therefore its volatile nature.
The following example is of EGX30, the Egyptian stock market
index on a monthly basis.It can be noticed that the important
and significant support and resistance levels are coming from
90 and 225 degrees and sometimes from 270 degrees, as can be
seen in Figures 21 and 22. Cell no. 34, 61, 96 at 90 degrees and 49,
81, 121 are all plotted in Figure 21.
Figure 21. EGX30 on a Monthly Basis
To summarize, angle overlays and shape overlays are
dividing the Square of Nine by the following sequence:
1. Octagon overlay divides the cycle into 8 angles, every one
equal to 45 degrees: 45, 90, 135, 180, 225, 279, 335, 360.
2. Heptagon overlay divides the cycle into 7 angles, every one
equal to 360/7: 51.43, 102.86, 154.29, 205.7, 257.14, 308.57, 360.
3. Hexagon overlay divides the cycle into 6 angles, every one
equal to 60 degrees: 60, 120, 180, 240, 300, 360.
4. Pentgon overlay divides the cycle into 5 angles, every one
equal to 72 degrees: 72, 144, 216, 288, 360.
5. Square overlay divides the cycle into 4 angles, every one
equal to 90 degrees 90, 180, 270, 360.
6. Triangle overlay divides the cycle in 3 angles, every one equal
to 120 degrees: 120, 240, 360.
Figure 22. EGX30 Monthly Chart
From the results above, which includes all angle overlays and
shape overlays that are considered two sides of the same coin 15 ,
we can conclude that every market and security has its unique
nature that may be matched well with a specific shape overlay.
The cycle may be repeated more than one time (whether it was
a complete or partial cycle). Prices also can make a double cycle
by rotating 720 degrees or 1.5 cycle by rotating 540 degrees or
2.5 cycle rotating 900 degrees. The analyst can choose the shape
overlay that matches the price action.
PAGE 78
IFTA.ORG