Unknown Gann Method: Square of nine

Introduction to the William Gann theory

A brief historical overview. Algorithm of construction and practical

application. Identification of entry points on a timescale.
Dear friends,
Today, I’d like to start a new educational block that will be fully devoted to
study of the writings of a really distinguished person among traders -
William Delbert Gann, who was called the Nostradamus among the
participants of financial markets. You can learn more about this in
article William Gann – the Finance Nostradamus.

Gann, like all geniuses, was an extraordinary person. In his books, he

combined such sciences as geometry, astronomy, astrology, ancient math
techniques and religious studies.
Being a deeply religious person (the Bible plays an especially important part
in his books), Gann was convinced in scientific value of this book. Gann was
 also a 33rd degree Freemason, to which some attribute his sacred
knowledge of ancient mathematics.
One of the best-known and historically proven Gann’s forecasts was
published in Wall Street Journal in 1909. There, Gann wrote that cotton price
would be down below 99 cents before the end of the year, and it would be
up at 1.45 USD the following spring. Finally, it was fulfilled accurately within
a cent.
Gann had spent over 10 years on studying exchange trading. Finally,
according to the outstanding results of his predictions that were hardly ever
less than 90% accurate, he succeeded in it. However, working as a
consultant and selling his forecasts to other traders, he wasn’t willing to
share his secrets. Unfortunately, he wrote just about ten books during his
life, but didn’t reveal his main key to trading success. Nowadays, William
Gann’s writings have become the subject of detailed studies of his followers.
It is acknowledged that the combination of all Gann’s tools is a full-scale and
self-sufficient method of high-accuracy forecasting. However, each of the
tools, taken separately, performs not so well. Perhaps, that is why the
instruments available in any trading terminal, like Gann fan or Gann box, are
not that popular. Traders just don’t have the right idea of how to utilize
them and apply to trading and finally they give up on these instruments,
being disappointed.
Real disciples of Gann spend years to understand all the peculiarities of the
Great Master’s methods. I’m not aiming at retelling Gann’s books, but I’d
like to describe the basics of his trading concepts, focusing on their practical
application and to suggest you key points to study by yourself.
Only this way, each reader will be able to see the new, unknown side of
Gann and exploit his writings with most efficiently.
Roughly outlined, Gann’s trading methodology is based on three major
concepts:

 Cardinal Square
 Principle of price and time agreement
 Geometrical angles

In this series of articles, devoted to Gann’s methods, I’ll describe in detail all
the three of these elements from the point of view of theory and practice. I’ll
also describe different variations of combining Gann’s tools with other
popular indicators and trading systems.
The first and the most important element of Gann’s trading system is
Cardinal Square. So, I recommend everybody, who wants to apply Gann’s
trading methods, to start with studying this element.
 I recommend reading The Definitive Guide to Forecasting Using W.D. Gann's
Square of Nine by Patrick Mikula to learn more about the theory.
I won’t go too deep into theory in this article; rather, I’ll start with the
practical application of this tool.

Description of a particular case of Cardinal Square – square of 9

Gann himself drew square of 9 on a sheet of lined paper. In the 21st

century, we don’t have to draw it by ourselves. There is a special tool in free
access that is called Gannzilla Pro. It is software designed by a Russian
programmer, Artem Kalashnikov. You can download and run it free of
charge.
So, to exploit any of Gann’s tools, you need to through the
following algorithm step by step.
1. Decide on the period to analyze (short-term, middle-term, long-term).
The model is constructed in the following time periods:

o For short-term trading – since the previous day till the following one;
o For middle-term - since the previous week till the following one ;
o For long-term – since the previous period between equinox and solstice till the following
one.

The following timeframes are usually used for analysis:

o Short term - М5;

o Middle-term - М30;
o Long-term - D1.

2. Configure Gannzilla settings.

3.Select the points where the price reversed during the chosen period of
time.
4. Select the figure and modify its rotation angle so that its diagonals would
cross or be as close as possible to the marked points.
5. Identify the pivot points in the studied period in future.
6. Identify the price “Favourite angle”, based on the circle around.
7. Calculate the price unit and set the key levels.
8. Identify the date and the time of the price reversal.
9. Mark everything on the chart.
So, let’s start with step 1. To exploit the trading instrument most efficiently,
you need to analyze all periods. If the instrument hasn’t been analyzed in
 the long-term period, you always start with it. Then, you go on to shorter
timeframes.
In this post, I’ll dwell upon long-term analysis. In my next article, I’ll
perform a similar analysis in the middle-term and short-term periods, draw
final conclusions and suggest trading scenario.
Having selected the period to analyze, you need to make the corresponding
configurations of Gannzilla Pro. You move to the left panel and modify the
values starting from the top section. There are correct settings for long-term
analysis below:

 Layout
o Visible – enable
o Clockwise – enable
o Size – 10
o View – Square of 9
o Data type – Date
 Date
o Today – disable
o Value – default
o Find - default
o Show trading days – for cryptocurrency market – disable, for others - enable
o Format - dd.mm.yy
 Protractor
o Visible – enable
o Clockwise – enable
o Angle - 1800
 Chronometer
o Visible – enable
o Clockwise – enable
o Angle - 1800
o Range – Annual (for long-term analysis)
 Cosmogram
o Visible – disable

The rest parameters that haven’t been outlined should have default values.
Check if the above parameters correspond to the values on your screen.
Switch off the highlight for all objects by right-clicking on the right part of
the screen.
If you’ve done everything in the right way, your screen will display the
following:

The check point is at the right side of the middle horizontal line (marked
with the blue box). At the point, the protractor must always display 0
degrees, and the chronograph – March 21.
Next, according to step 3, you select the points where the price reversed in
the chosen period.
As I’ve already mentioned, for long-term forecast, you use the range
between the previous period of equinox and solstice and the future period.
To accurately identify the period, I suggest consulting Wikipedia.
As I write this article, it is November, 2018; and so it is the period between
the equinox of September 23, 2018 and the solstice of December, 2018 (I
highlighted it with green in the table below). Therefore, the previous period
is from June 21, 2018 (start of solstice) and to the start of equinox on
September 23, 2018 (highlighted with red). I also marked the future period
that starts on December 21, 2018 and finishes on March 20, 2019
(highlighted with blue).

You mark these time periods on the price chart for the trading instrument,
you analyze.
Next, you open Gannzilla Pro that has been already modified, and in the
Data section, in the Value box you enter the first date, marked in the chart,
that is 21.06.2018.

After that, you return to the BTCUSD chart and mark the critical points.
They are the local low of 29.06.2018, the local high of 07.07.2018 and other
extremes of 13.07.2018; 24.07.2018; 14.08.2018, as well as the extremes
of 05.09.2018 and 08.09.2018.
(see the dotted lines in the chart below).
Step 4. Select the figure and correct its rotation angle.
To do it, you mark the points in the chart within the previous period on the
square of 9 in Gannzilla Pro with green highlight (see the result below).

Next, you sort the figures, starting from triangle and finishing with decagon
(marked with the red arrow). Your objective is to select the figure and the
rotation angle so that the diagonals would cross the maximum number of
the highlighted green boxes. If there are a few of such figures, you choose
the one that has fewer angles.
In the given case it is decagon (see the picture below).
There are global control pivot points at the outer circle – chronograph. In the
given case, you pay attention only to those that correspond to the analyzed
period till March 20, 2019.
In the zoomed-in picture below, you see that the needed dates are October
15, November 20, December 26, January 31 and March 8.
You mark these dates with thick green lines in the analyzed periods (see the
green lines in the chart)

Here, I must note that the first line of October 15 accurately fits the
momentum in the chart, it means high accuracy.
If you aren’t convinced with this coincidence, you can look at the previous
global points.
They are 14.04, 20.05, 26.06, and 02.08.

Finally, you see in the chart above that all these global levels mark the start
of the strong wave with a deviation of just a few days. In general, the
deviation within 1 or 2 days is quite acceptable, but the movement occurs
much closer.
Step 5. You identify pivot points in the studied period in future. To do it, you
move along the diagonals of the selected figure. In the given example, it is
decagon. There, you mark the squares that fit in the studied range and are
crossed with the diagonal lines. As a decagon has as many as five diagonals,
you pay your attention to those, which cross green squares (see the picture
below).
For clarity, I marked the squares that are in the future period with the
yellow highlight. Those, which have already occurred, are marked with red
(here, I primarily interested in the last month).
Next, you mark these key points on the chart (see the chart below).
As it is clear from the chart above, all the five thin red lines are preceding or
accurately coincide with the levels, where there were strong momentums. It
is the further evidence that the square rotation angle on the chronograph
circle is correct.
Next, you mark the points, included in the analyzed period, in future.
These dates are:
01.12.18, 05.12.18, 16.12.18, 25.01.19, 30.01.19, 11.02.19, 25.02.19,
03.03.19

As you see from the chart above, there are several series of pivot points that
mark the periods of high volatility, and so, high probability of the future
strong movements. All these series are close to the global key levels (green
lines).
The first series starts on December 16 and finishes on December 24, and so,
we can expect a strong momentum within this period. The next wave starts
on January 25 and finishes on January 31. The last group of lines is in the
period between February 25 and March 8. You should also pay attention to
the single lines on December 01 and 05, and on February 11; they can also
indicate a potential strong momentum.
However, these lines are not sufficient to make forecasts. Though, combined
with trend indicators and other reversal signals, these levels may serve to
confirm the price reversal or a future strong momentum.
To complete this analysis, you need to identify the key levels in the price
chart. The needed point is at the meeting place of the price level and the
date. It will be the indicator and the target in the trading system.
However, to make this analysis full-scale, so that we can see the complete
picture, we need to study the middle-term and the short-term periods. Only
then we can see the most accurate trajectory of the future price moves. I’ll
describe it next week.
Here, I am about to finish my first article, devoted to Delbert William Gann
and his studies, which I applied to the BTCUSD pair. I hope this information
is interesting and useful for you.
Subject is further described in the following parts:
Part 2 - Algorithm of drawing and practical use if Gann’s Square of 9 in long-
term analysis of the BTCUSD pair. Identification of entry points on a
timescale. Application of Gann’s vector to a detailed crypto market analysis.
Part 3 - Algorithm of drawing and practical use if Gann’s Square of 9 in
middle-term and short-term analysis of the BTCUSD pair. Combination of
common technical analysis tools with Square of 9.
Part 4 - Algorithm of drawing and practical use of Gann’s Square of 9
in analysis of historical extremes
I wish you good luck and good profits

Unknown Gann Method: Square of 9 (part 2

Extended description of William Gann’s theories

Algorithm of drawing and practical use if Gann’s Square of 9 in long-

term analysis of the BTCUSD pair. Identification of entry points on a
 timescale. Application of Gann’s vector to a detailed crypto market
analysis.
Dear friends,
Today, I’ll go on describing Gann’s studies and his forecasting methods. In
particular, I’ll go on explaining how to exploit Gann’s Square of 9. If you
haven’t yet read the first introductory part, I strongly suggest you follow the
link below and read.
Unknown Gann Method: Square of 9
Do read that article from beginning to end. Otherwise, you won’t understand
how to configure basics settings and apply this method; and so, you won’t
digest anything, written below.
For those, who managed to study the previous article a week ago, I’ll remind
the key points:

1. We’ve determined the time period to analyze. As one always should start with the long-term
forecast, I suggest the daily chart for analysis.

2. We’ve configured the Gannzilla Pro software for operating in the D1 timeframe. All
screenshots and configuration details are presented in the previous post Unknown Gann
Method: Square of 9.

3. We’ve determined the period of the studied zone by means of the cycles between the
solstices and equinoxes.

4. We’ve identified the price extremes during the selected period in the chart history and
marked them on the Square of 9 (marked with green).

5. We’ve attached the figure to the chart so that its diagonals cross as many as possible of the
marked green squares that show the extremes.

6. Next, we’ve marked the global critical dates on the chronometer circle, which are indicated
by the figure’s angles.

7. I’ve marked the future dates in the studied period with yellow, and the dates that already
occurred – with red; thus proving that the drawn angles are correct.

8. I’ve placed all the dates in the price chart, so that I can identify the most likely dates of
possible future reversals and strong momentums.

Now, I aim at marking the price levels in the daily chart according to the
Square of 9. Once I find them out, at their meetings with the key dates, I
will see the points, which will feature the reversal, a possible start of a new
wave or a strong momentum.
To figure these price levels out, I need to define the price “favourite” angle.
It is quite easy. I only need to have another look at the Square of 9 that was
constructed. The favourite angle is the one that is pointed by the by the
median line that crosses the maximum number of extremes (green squares).
You see from the chart above that the most of green squares are equally
distributed along three diagonals. As known, there can’t be three favourite
angles, so, I need to select a single one.
Gann always paid special attention to the diagonal and cardinal crosses. In
the above figure, I marked the cardinal cross with gray squares, it looks like
“+”, and the diagonal cross looks like X. It is clear that the upper diagonal
too much deviates from these crosses, but the two bottom median lines are
quite close to them.
If you zoom in, you’ll see that the upper diagonal is at 1310, and the nearest
angle of the cross is at 1350. The lower median line is at 95 degrees and the
nearest angle of the cross is at 900. Therefore, the upper diagonal is closer
to the cross value, and so, the price favourite angle is at 1310. After you’ve
identified the price favourite angle, you need to modify some Gannzilla Pro
settings. In the Layout section you indicate the Data type as the Price, not
the Date.

Next, you need to enter in the Value box the minimum price for the studied
period. Remember, this period for the daily chart we’ve identified according
to the periods of solstices and equinoxes. Finally, we’ve marked the zone,
covering the period from June 21 till September 23.

It is clear from the chart above that the lowest value in the zone is the low
of the spike, recorded at 5755.00 USD. So, I take this value as the starting
point.
Next, I need to calculate the price unit (Increment), meaning the price
movements between the blocks.
There is the formula to do it:

Therefore, I already know the minimum. Now, I need to find out the
maximum.
It is clear from the chart above that the price high in the studied period is at
8506.70 USD

Based on the above formula, the price unit is 30.57 USD.

Next, I need to enter all the calculated data into the Gannzilla settings.

Next, I go back to the Square of 9 and mark at the median, pointing to the
favourite angle, the price squares, crossed by the line.
It is clear from the picture above that these levels are 5999, 6488, 7222,
8200, 9392, 10860, 12572, 14523, 16729.
The last value is remarkable as it means that the price won’t go higher than
16729 USD within the studied period. Remember, the timeline is the equinox
on 20.03.2019.
To find out the support levels in case of a bearish scenario, you only need to
change the increment sign from “plus” to “minus”.
Finally, as you see from the chart above, there are the following levels:
5510, 5021, 4287, 3309, 2117, 650 USD.
Therefore, the price won’t go lower than 650 USD until March 20, 2019.
Now, let’s mark the levels in the chart.
As you see in the logarithmic chart above, all the indicated levels quite
accurately fit in the extremes of the strong levels in the traded zone, which
proves their importance.
Therefore, if you attach these levels to the key dates, figured out in the
previous article, you’ll get a kind of grid finally.

Next, to carry out a more detailed forecast, I need to go through the same
procedure for the middle-term and short-term periods. I’ll write about it in
my next posts. The presented results will be already sufficient for those, who
prefer long-term trading.
As I’ve already written above, all horizontal levels are potential support and
resistance levels. The points where they meet vertical lines will mark critical
points in the chart.
Next, a way to make a further forecast is to apply a Gann fan.
You need to use it in the following way.
In the chart within the studied period, you find the point that is close to the
price peak and draw a diagonal line to the next nearest critical point, where
the wave finished.
You see in the chart above that there are multiple diagonal lines that
connect critical points (I marked them with the green arrow). Next, I
connect these points by means of Gann fan.
At first it looks rather confusing.

However, if I remove all unimportant objects from the fan, and leave just
the zone from 1 to 8/1, it is more comprehensible.
Finally, you see the zones where the trend can develop. In the chart above,
there is one large bearish zone, inside which the local trends were
developing. You see that the price left the local bearish trend and went on in
the sideways trend, already in the bullish zone. Finally, the price couldn’t
consolidate outside the zone of bearish trend, which confirmed the
continuous descending movement in the end.
To find out the BTCUSD future price moves, I need to draw a fan from the
first key point of the last ongoing wave to the nearest key point of the
current ticker’s place in this wave.
An this fan, I need to keep all the angles that are more than 1 (see the
example in the chart above).
If the ticker is lower than one in case with the bearish trend, it suggests the
market is strongly oversold and should be soon back at 1/1. In case with the
bullish trend, it is the same. If the ticker goes higher than 1/1, it is likely to
return to the trading zone soon.
The forecast for Gann grid suggests you analyze each cell. The idea is that
we don’t know for sure where the price will be heading for; but when it
moves from one block to another, we understand the range of the price
movements inside a certain cell, and so, we can anticipate the direction of
the movement. It is whether the price will go up or down inside this square.
In the above chart, you can see an example of how the price movement
inside the cells is indicated. You see that the trend is developing in the zone
between the angles of 1/1 and 2/1. All cells, where the price was going
down, are marked with downward arrows. The price growth inside a cell is
marked with an upward arrow.
If you analyze BTCUSD movements inside the Gann cells, you’ll see that a
narrow, stretched upwards, cell suggests a pulse price movement, sharper
than in broad cells. Besides, if the ticker moves from one zone to the next
one inside the same cell, it is likely to be moving in the breakout direction in
the next square. You should always remember that the trend zone of a
senior order always dominates.
To see it clearer, let’s study the example of the current situation.
You see in the chart above that the ticker is inside a broad cell in the zone of
1/1-2/1. The current cell is surrounded by 9 other squares. Three of them
are behind, and for the obvious reasons, the market won’t get back there.
Next, you see that square 5 is at the crossing of two zones. Gray zone of
1/1-2/1 has been already closed, and so, the price can only move to the
next trading zone of 2/1 – 3/1. When the price moves through the support
or resistance levels without matching to the key dates, it rarely goes on in
the same direction. That is why this upward movement here will stop and
BTCUSD should go on, moving in the purple zone.
Entering cell 4 suggests moving along the diagonal through the key point.
This movement can provide a momentum for a strong bullish correction up
to the border of the bearish zone at 5755 USD.
Entering square 3 suggests moving from the gray zone to the purple one,
which means the sideways trend inside the new zone, going on up to
December 16.
Entering cell 2 suggests moving through the bottom key point, and so, there
will be a strong bearish signal of continuous fall down to the next support
zone at 2117 USD.
Square 1 suggests the support breakout, not confirmed by the key date.
Therefore, it increases the probability of either a false breakout or a flat.
Therefore, cells number 1 and 5 can be referred to as the zone of a false
breakout or the trend exhaustion.
Squares number 4 and 2 are the zones of strong pulse movements.
Square 3 is the accumulation zone.

Based on the above, as the price entered the studied cell through zone 1,
the Bitcoin will hardly drop down sharply. Therefore, it is unlikely to be
moving to square 1 or square 2. It is also unlikely to go to cell 5, as I don’t
see strong attempts to buy the BTCUSD out at the current level. So, square
4 has chances for the further development but not more than square 3. I
suggest the price be most likely to enter this zone.
If the price hypothetically goes into square 3, the zone of the fan will
change. Based on this assumption, the further movement will feature
weaker bears, but still in the bearish trend. If the ticker closes the cell in the
next zone, the will be a chance for the corrective movement towards 5700
USD.
 For a more detailed forecast, I need to draw a smaller grid on a middle-term
and short-term scale. Based on Gann’s principles and analyzing trends on
different scales, I can suggest the future Bitcoin price movements as
accurately as possible. But that will be in the next articles.
Here, I am about to finish my next article, devoted to Delbert William Gann
and his studies, which I applied to the BTCUSD pair. I hope this information
is interesting and useful for you.
I wish you good luck and good profits!

Unknown Gann Method: Square of 9 (part 3)

Further description of William Gann’s theories

Algorithm of drawing and practical use if Gann’s Square of 9 in

middle-term and short-term analysis of the BTCUSD pair.
Combination of common technical analysis tools with Square of 9.
Dear friends,
I go on my series of articles, devoted to Gann’s studies. Today, I’ll continue
explaining how to exploit Gann’s Square of 9 and draw the levels for middle-
term and short-term outlook of the BTCUSD pair, to predict it more exactly.
Those, who are unfamiliar with the first two articles, devoted to this method,
I strongly suggest you read the previous posts here:

1. Unknown Gann Method: Square of 9

2. Unknown Gann Method: Square of 9 (part 2)

Those articles will help you understand the material, published in this post,
and make up your own forecast according to Gann method, following the
steps, described
Well, in the previous two articles, I described how to identify the key dates
on the time scale and draw the key support and resistance levels in the long
run. I also explained one of the ways to make a forecast, using Gann grid
and Gann fan.
To predict BTC price in the middle-term, I need to follow the same logic as
for the long-term forecast, only operating in 30-minute timeframe. Besides,
I’ll analyze the period between the previous week and the next one.
So, the first date to start the analysis will be November 19.
I marked the week from Nov. 19 to Nov. 26 with a big translucent box in the
chart above. Next, I identify the extremes, nearest this week’s start – the
price high and low. You see that the nearest extreme is on Nov. 20 at 11:30.
I mark this level in the chart in the same way as for long-term analysis, with
the red vertical line, only the line is dotted to distinguish between different
tiers in the timeframe. Next, I mark the rest of local extremes in same way.

The results of my analysis are in the chart above.

I marked the following dates and times:
20/11: 11:30, 17:30, 23,30;
21/11: 12:30;
22/11: 00:30, 04:30;
 23/11: 00:00, 08:00;
24/11: 03:00;
25/11: 13:00.
I recommend you to write down these results on a sheet of paper, so that it
will be easier to work with the numbers in future.
Next, we shall configure Gannzilla Pro v.8.2, you’ve already know from the
previous posts. You may have different version of the program, but do not
worry, Square of 9 is a basic function of the software.

In the settings, you leave everything the same as it was for the long-term
analysis. You only need to change the following parameters:

1. You change that data type in the Layout section into Time

2. In the Time section you enter the value of the first extreme that is on 20/11, 11:30;

3. Increment is 30 minutes

4. If you analyze the crypto market, then you switch off the option Show trading days.

5. The data format must be dd.mm

(see the details in the chart above).

Finally, if you’ve done everything correctly, you should have the following
picture:
Where, there will be 20/11, 11:30 in the middle of the square.
The decagon, I constructed for the previous forecast, must be removed, so
that it won’t confuse the current analysis.
Next, you mark on the new square the cells that correspond to the
extremes, marked above. After that, like in the long-term forecast, you
attach the figure, whose diagonals cross the maximum number of the
marked cells.
Finally, I’ve got an octangle (see the figure above)
Next, you identify the Gann favourite angle. You need to find the median line
that crosses the maximum number of highlighted squares.
If there is more than one and you hesitate, you choose the median that is
surrounded by the biggest number of green cells. If it doesn’t help, you look
for the line that is the closest to the values of the Cardinal and Diagonal
crosses (gray squares).
In the given example, the situation is clear. The favourite price angle is easy
to find out.
It is clear from the chart above that the angle is 144 degrees.
Now, within the identified angle, I mark the cells that are within the current
and the following weeks, that is until December 9.
As the square size covers 10 lines drawn the center, the last date of the
square is on 27.11

To mark all the needed dates inside the studied zone, I need to increase the
square size, so that in its lower left corner, there will be the date, further
than the last date in the period, December 9.
Finally, the size of the square is 16 lines from the center.
Now, in the new space, I need to mark the cells that are included into the
studied zone.
Finally, I have three dates, they are:
03/12, 13:30
05/12, 17:30
08/12, 01:30
I mark the new dates in the chart with small blue dots. You see that the red
square form the chart above accurately identifies the moment of the strong
momentum, it is 01/12 13:00. So the marked points are highly likely to
work out in future. Now, I need identify the price levels for the middle-term
scope. I’ll apply the same method as for the long-term forecast, described in
the previous article (see Unknown Gann Method: Square of 9 (part 2)).
First, I’ll identify the price low for last week. It is 3657 USD.

So, first, I need to find out the price high and the low for last week. They are
3657 USD and 5655 USD (see the chart above).
Next, I enter these values in the above formula to calculate the square
increment

Finally, I have 22.19 USD

I modify Gannzilla settings in the same way as for the long-term analysis, I
described in the previous post (see the chart above). On the Gann favourite
angle, I marked the cells that meet the needed diagonal.
Finally, there are the following levels:
3835 USD; 4190 USD; 4744 USD; 5454 USD; 6365 USD; 7430 USD.
Next, I change the increment sign to minus and do the same procedure,
marking the squares.
The following cells correspond to the favourite angle that is 144:
3480 USD; 3125 USD; 2570 USD; 1860 USD; 950 USD.
All the obtained levels are marked with the small blue dots in the chart.
That is how I construct Gann grid (see the chart above).
Next, I need to construct Gann grid in the short-term period.
Here, I operate in the 15-minute timeframe and the analysis is based on the
previous day to forecast the price for the next one. In my example, I take
01/12. I will identify the levels for 02/12 and 03/12.

I perform the same procedures as for the middle-term prospect. First, I

mark the extremes in the studied period of the previous day. As the daily
volatility is quite strong, I suggest using the volume profile to filter the
extremes, so that you mark only the points that were accompanied or
preceded by volume surges. I marked the levels with green dots.
If it is not clear from the chart, I present the marked points here:
00:50; 02:30; 03:40; 07:30; 09:50; 11:15; 15:00; 17:45; 19:10
Next, I need to configure Gannzilla to operate in the 5-minute timeframe.
The date type is Time;
The Time value is at the start of the previous day (00:00);
The Increment is 5 minutes
In the Chronometer section, the Angle is 270 degrees;
The Range is Daily.

To check, make sure that the Chronometer and the Protractor have zero
values at the same place on the right of the screen center. If they don’t, you
need to check the settings for the Range and the Angle and corrected them
if needed. After that, you mark all the points, figured out above, on the
updated Square of 9.

You can see my results in the chart above. Finally, the most appropriate
figure for this square is the symmetric heptagon. Its diagonals bisect the
angle, meeting the maximum number if green cells.
The favourite angle is 219 degrees. This line is surrounded by the most
number of green squares.
That is why I’ll identify the future time levels for the short-term trading
range here.
As it is clear from the chart above, levels, marked in the chart history, quite
accurately identify the change of the fractal model. Now, I need to find out
the price levels for the short-term analysis. The procedure is the same as for
long-term and middle-term analysis. First, I find out the highs and lows on
01.12.

You see from the chart above that, on Dec. 1, the BTCUSD low was at
3953.6 and the Bitcoin high was at 4338.0 USD. Then, I enter the obtained
values in the formula to calculate the increment for the short run.
So, I have:

Therefore, the increment is Х=5.37 USD.

Now, I enter the obtained values into the Gannzilla settings and mark the
levels on the Square of 9.

The screenshot above displays the right settings.

Finally, I have the following levels:
3964 USD, 4018 USD, 4114.7 USD, 4254.32 USD, 4331.53 USD, 4657.07
USD, 4925.57 USD.
Next, I change the increment sign to minus and mark the levels below.
I have the following levels:
3942.86 USD, 3889.16 USD, 3792.5 USD, 3652.88 USD, 3475.67 USD,
3250.13 USD, 2981.63 USD
Remember, to mark the price levels, you base only on the Gann favourite
angle.
I mark the calculated levels in the chart above. So, I have a grid of three
tiers:
Blue solid line is the long-term,
Blue dotted line is the middle-term,
Green dotted line is the short-term.
For the analysis, I, first of all, need to identify the series of levels of
different tiers at the same place.

I highlighted all the series of levels in the 15-minute BTCUSD price chart
above. As it is clear from the timescale, there is a series of the middle-term
and short-term levels on 03.12 in the period of 13:30 – 14:45.
Based on the BTCUSD price, the resistance zone above is between 4209 and
4287 USD, where, there stands out a smaller zone, between 4254 and 4287
USD.
Another series is in the support zone:
It is from 4018 to 3942 USD. Inside the zone, there is reinforcement
between 3964 and 3942 USD. I hope it goes without saying, how you should
exploit the data. There are multiple short-term levels between the upper and
the lower support zone. Basically, you can operate with the levels in any
strategy, using them as additional signals.

There is an example of use in the 30-minute BTCUSD chart above. You see
that the ticker rebounded from the resistance zone and headed down
towards the support zone 4114 USD (see the green arrow). Next, there
formed white candlestick of the bullish hammer that sent a buy signal. As
the pattern completed at the same time as the rebound, I can put an early
long entry with a stop, lower than the low of the candlestick tail. Besides, I
already know the target; it is Gann level at 4254 USD.

Next, you see that the long worked out very accurately, having reached the
level of 4255 USD.
Now, I can construct the trading channel, drawing the lines along two highs
and two lows. You see that RSI oscillator entered the overbought zone.
MACD and RSI don’t yet send bearish signals, so I can try to put an early sell
entry when there is an attempt to test the high at 4254 USD, and put a
short stop beyond the resistance zone, according to Gann levels, at about
4300 USD. The levels, marked with short green dotted lines are rather weak
and may not set the market move back for the second time. So, if Bitcoin is
heading down, the target should be at about 4018 USD. Close to the level,
there is a volume surge, indicated by the volume profile. It confirms the
local buyers’ interest at this level.

In case bitcoin is going up, I can also use Gann grid to suggest a scenario
and offer some trading ideas for BTCUSD .
If Bitcoin price goes up, it is likely to rebound from Gann level at 4431 USD.
When it is retracing towards the nearest local high at around 4338 USD, I
may enter a long and hold it up towards the next Gann level at 4627 USD.
 In this analysis, I consider the key date for the short-term Bitcoin forecast
that is on 3.12 at 03:00 GMT. Therefore, if the price hasn’t reached the
target by this time, but it is going up, I can close at least a part of the
position to go breakeven is the stop loss is triggered, or I can completely
take the profit, if the indicators and candlestick analysis suggest signal a
bearish correction.
I described one of the simplest ways to exploit those levels. I will describe
more opportunities provided by Square of 9 in my next training article.
Here, I am about to finish another article, devoted to Delbert William Gann
and his studies, which I applied to the BTCUSD pair. I hope this information
is interesting and useful for you.
I wish you good luck and good profits

Unknown Gann Method: Square of 9 (part 4)

Further description of William Gann’s theories

Algorithm of drawing and practical use of Gann’s Square of 9

in analysis of historical extremes
Dear friends,

I go on my series of articles, devoted to Gann’s studies.

In the previous articles, I described how to identify the key pivot dates and price levels for the long-
term, middle-term and short-term trading horizon. I also explained how to identify Gann favourite
price angle and make forecasts, using Gann grid, Gann fan and combine them with common
indicators.

Before you go on reading, I suggest those, who are unfamiliar with the previous articles devoted to
William Gann, read these articles first:

1. Unknown Gann Method: Square of 9

2. Unknown Gann Method: Square of 9 (part 2)

3. Unknown Gann Method: Square of 9 (part 3)

The way to identify key dates and price levels, described in those posts, may seem to be quite
complicated and subjective.

For such people, Gann offers an alternative method to apply the Square, which I’ll describe below.
Before we start, I want to say that many elements of this method are the same as the steps, I’ve
already described. That is why I won’t repeat myself and write about them again. So, if you haven't
yet read the previous posts, I recommend you to get familiar with the last three articles to understand
the present material.

As an introduction, I’d like to add that the alternative method is neither better nor worse than the
previously described one; it is just a little different. Nevertheless, as Gann, himself, recommended,
and the experience shows, the best way is to apply all Gann’s tools when you analyze the market and
pay special attention to the levels that are identified by both methods.

First, I’ll describe the alternative way to identify key dates by means of Chronometer, the circle that
surrounds Square of 9.

How to identify key dates, using Chronometer

How to identify key dates, using Chronometer.

In the first part of this educational block, I’ve already mentioned a similar method that identified
global pivot points in long-term analysis of time periods.

I’ll remind you that the points were identified when I chose the figure that would cross by its diagonal
lines the maximum number of the key levels, suggested by Square of 9, marked at the square itself.

To apply the present method, I’ll look for key dates, regardless of the periods of equinoxes and
solstices, taking only historical values into account.

First, I should identify the historical high in the price chart of the analyzed instrument. In my case, it
is Bitcoin price chart.

As you see from BTCUSD price chart above, Bitcoin all-time high 19666 USD was recorded on
December, 2017. I also mark the price low, nearest to that date; it is 5920 USD on February 6, 2018.
Next, I configure Gannzilla settings as I described in the first part.

I use the date of the high as a reference point. Then, I select the figure so that one of its angles must
point to this date (see the example in the chart above). Furthermore, the perfect figure will be the
one, whose next angle in a clockwise direction coincides with the low marked below, with the deviation
of not more than 2-3 days. If there isn’t such a figure, then you need to take the next low and choose
the figure, based on it.
You try all the figures, from a decagon to a triangle.

Choose the appropriate figure. In my example, it is a heptagon.

As it is clear from the picture above, the figure exactly matches to the low of February 6, and so, that
is what I need.

Next, I attach all the levels to the dates in the chart, which are marked by the rest of the figure angles
on the Chronograph.
As you see from the chart above, all points are quite close to the chart extremes. If the historical high
was later than a year ago, all the levels you’ve marked will completely coincide with the chart history.
To figure out the historical points for the forecast, I need to mark these points in the future.

To do it, I repeat the circle and mark the same values in the future.

So, I extend the market cycles into the future. This cycle is relevant until there is a new all-time high.
In this case, the cycle will start from the new high. I want to emphasize that, according to this
method, there are no concepts like long-term or short-term forecasts. You operate only with historical
data in the daily timeframe.
The next big stage is identifying the historical price levels. This step is similar to that, described in
the second article of the block, devoted to Gann model. So, I need to go back to the chart, where I
have already marked the historical values.

As the price favorite level, I mark the one that coincides with date, nearest to today; it must match to
the market reversal as accurately as possible. As you see from the chart above, this line is the red line
on September 4. At the next step, I need to identify the increment; the price unit when it moves from
one cell into another in the Gann square. With this regard, Gann offers an alternative way by trial and
error

I take the historical low as a reference point, and then, I select the increment so that one of the few
nearest values in the cell, which is crossed by the price favourite level, was at the extreme that
matches to the chosen key date. To explain it more clearly, I'll give an example.
As you see from the chart above, the BTC high in the studied period is at 7411.85 USD. Bitcoin all-
time low was 0.003 USD for 1000 BTC in 2009; so, first, I take a possible tick value in chart as 0.01
USD. Next, I need to build price levels from this point with the increment so that one of the cells at
the favourite angle is as close to the high at 7411.85 USD as possible.

Gann, as an alternative method to select the starting value of the increment, offers to use the
increment of 5 USD and more for the prices higher than 1000 USD; 0.5 USD and more – for the prices
exceeding 100 USD. I suggest we make it a little simpler and divide the price of the high into 1000.
Experience proves it is one of the most relevant ways.

Therefore, the settings will look like this:

By trial and error, I got the increment value at around 7.633 USD. Having found the increment, I can
figure out the Square of 9. Besides, I want to emphasize that the square size must be increased so
that the last value, matching to the favourite angle, will be higher than the high (in the given example
it is 19666 USD). In my example, the square size was increased from 10 cells to 33 cells. You may
already know what to do next. You are right; I just mark the crossed price levels at the favourite
angle that points to Sep. 4.
Finally, if you’ve correctly followed my recommendations, you’ll have a similar big square and the
diagonal line along the green cells. I marked the high of 7411, which was crossed, by yellow.
Now, I’m about to start one of the most tedious stages of analysis, when you need to mark all the
identified levels in the chart. Fortunately, the historical highs are not updated very often, and so, I
won’t have to make these calculations very frequently.

Finally, I have the following picture. You can choose the color and the thickness of the lines as you
like. As you see from the chart above, almost all price key levels match to the key points and, in the
chart history, they are the zones of reversal, consolidation, or correction in the trend. So, now, there
is the most interesting moment. All Gann’s trading models are based on the analysis of cycles. And
this method is not an exception. If you want to better understand what I’m writing about, I
recommend you to read about fractal analysis. I devoted a whole educational block to fractal models a
long time ago (the last article is here)
For ease of the analysis, I marked each level with a number. You may have a different number of
levels in your chart. It depends on what level you start from to construct the grid. I take the base
level of 1320 USD, as I don’t think Bitcoin will go deeper. Nevertheless, the order number of the level
doesn’t matter, as I will be calculating the difference.

As I apply a heptagon to figure out the cycle, the cycle will include seven columns, seven stages that I
ranked by using the letters from A to G.
Then, I count the cells, closed during the time of each stage. If the BTCUSD ticker broke through the
cell’s line but didn’t cross the block completely, I don’t count this square. There also matters the
mathematical sign. It is whether you have the number with the plus sign or the minus. It will further
help you identify if the price will go up or down.

It should be also noted that the forecast basically works out only if there is a complete cycle. If the
starting point of the new cycle is based on a completely new historical high, for your analysis, you can
use the regularities, emerging between the stages; but, if you extend the old cycle into the future for
your forecast, you can make a lot of errors.

It is clear from the chart above that during the first stage, it is A, the price went 10 cells down, during
the B stage, all the rise finished by the rollback, and the column closed with zero increment. During
the next C stage, the growth, adjusted for the loss, covered 2 cells. During the D stage, Bitcoin was
two cells down.

At the E stage, it was 1 cell up.

At F stage it was one more cell down.

At G stage, the fall covered four cells.

What'snext?

Next, I draw the cycle projection in the chart. The moves are identified according to how the previous
cycle stage finished; therefore, after each of the stages finishes, I correct the expectations for the
next one. Nevertheless, the direction of the movement inside the stage can be anticipated quite
accurately.

As you see, a particular increase or reduction in the cells’ number for the projection into the future
can’t be taken literally. It is about a relative change. That is, if the previous cycle featured the fall by 1
cell, and the next one was 2 cells down; therefore, next year, if the price goes down by two cells in
the same stage, it should rise by four cells in the next stage; that is proportion is the same for the
number of cells between the stages and the direction of the movement. In addition, there are no strict
constraints, it rather about the price movement direction and the minimum potential for the
movement inside the stage.

For example, I’ll make a forecast for the Bitcoin current situation. Assume that the last G stage of the
cycle finished with a fall by four blocks. Taking into account that in the past, the A stage featured a fall
by 10 cells, following the rise by 11 cells, then I don’t expect that the price will go up in the future A
stage higher than movement length in the previous G stage, which is most likely to close by adding
three cells up. It doesn’t mean that the price can’t at all add 6 cells up. I just understand that this
stage is highly likely to feature a rollback and see the minimum target for it.
At the next B stage, the increment is equal to zero, and so, there can be both the rise and the fall, it is
only important that it is likely to finish at breaking even. As an example, I displayed different possible
scenarios by the dotted lines in the chart above.

Next, at the C stage, Bitcoin is likely to draw down a little, based on the idea that I mirror the previous
cycle.

If the next stage closes with the price increase, the mirror effect will disappear, as the cycle may enter
the bearish phase and the price will start a new fall, despite that it was growing before. Before I finish
the post, I want to again emphasize that the above chart doesn’t display my forecast for Bitcoin future
price; it is just an example of how you can apply the Square of 9 to forecast the price moves in each
stage of the cycle. Here, it is very important to pay attention to how the previous stage finished. What
is the final price change, compared to the previous stage? What is the price change, compared to the
same stage in the previous cycle?

To exploit this method most efficiently, I recommend combining it with other Gann’s trading methods,
including those, described in the previous articles. In the next post, I’ll move away from mathematics
and write about the stars. I’ll describe how Gann used astrology in his studies and try to apply it in
practice.

Here, I am about to finish another article, devoted to Delbert William Gann and his studies, which I
applied to the BTCUSD pair. I hope this information is interesting and useful for you.

I wish you good luck and good profits

Unknown Gann Method: Cosmogram (part 5)

Continue studying William Gann’s theories

Basics of astrology according to Gann’s method and its practical

application
Dear friends,
Today, I will go on studying Gann’s trading methods, applied to the
cryptocurrency market. Everyone knows that Gann was distinguished by
excellent knowledge of geometry and mathematics. One of the important
directions of his work was astrology.
Gann himself wrote many times that one needs to apply astrological
calculations, in addition to mathematical ones, in order to receive profits
instead of losses from trading.
As you know, I have quite concisely described the practical application of
Gann Square of 9 in the previous four parts.
You can read the articles here:
Unknown Gann Method: Square of 9
Unknown Gann Method: Square of 9 (part 2)
Unknown Gann Method: Square of 9 (part 3)
Unknown Gann Method: Square of 9 (part 4)
I started describing Gann’s trading methods with this topic because its a link
between maths and astrology. Today, we’ll get closer to the stars and study
Gann’s works, devoted to astrology.
Works by Michael Faraday (1791 – 1867), a British scientist and philosopher
had the strongest influence on Gann’s theory concerning how the stars affect
market behaviour.
Faraday discovered fundamental direct correlation between the Earth
magnetism and sunlight that reaches its atmosphere. The stronger is solar
activity, the stronger is the Earth’s magnetic field, and vice versa.
As the sun is the main source of life and power on the Earth, it directly
affects all the living, including humans; that is their physical and
psychological state.
Given the fact that the market in its any aspect is the quintessence of
human feelings, the application of the astrology laws no longer seems such a
delusional proposition even to the strongest skeptics.
William Delbert Gann was one of the first to seriously study the influence of
stars on the markets.
First, let’s study the fundamentals of astrology, according to Gann method.

Fundamentals of astrology according to Gann method

The basic fundamental for Gann method is Zodiac circle.

To explain clearer, I’ll use Gannzilla Pro v.8.2 application that you already
know.
To see the Zodiac circle, you need to activate Cosmogram. It should apply
Geocentric system, that is the Earth is in the center, at Angle of 180 degrees
and move Clockwise. It is also important to select in the Location section the
City, the time zone of which is used for the forecast (see the screenshot
above).

Finally, if you’ve done everything correctly, you should see the following
picture.
Aires 0°-29°
Taurus 30°-59°
Gemini 60°-89°
Cancer 90°-119°
Leo 120°-149°
Virgo 150°-179°
Libra 180°-209°
Scorpio 210°-239°
Sagittarius 240°-269°
Capricorn 270°-299°
Aquarius 300°-329°
Pieces 330°-359°
In addition to Pluto, long after, as astronomers discovered such objects as
Ceres and Eris; which, Gann, unfortunately, couldn’t learn about.
In this article, to maintain the experimental integrity, I won’t take into
consideration the influence of these three objects, as there are no reliable
materials that would describe the methodology, including all the twelve
celestial bodies.
Later, as an experiment, I suggest using the complete Cosmogram with all
the twelve celestial bodies and compare it with the classical framework,
applied by Gann. I think it is going to be interesting and, may be, unique
experiment.
Each of the twelve celestial objects has its symbol (see the figure above).
To move on, you need to understand that Cosmogram is a two-dimensional
map of the celestial dome. So, it is very important to correctly identify the
time and the place for the analysis, because at different times and different
places the heaven is different. Historically, I draw my charts fro analysis
according to the time zone of UTC + 3, which corresponds to Moscow local
time.
Therefore, understanding that each celestial body is constantly moving
inside in the astrological cycle, they rather frequently change their locations
and take a particular angle at the Zodiac circle.
This location is called ephemeris. In the Cosmogram coordinate system, the
ephemeris of each planet includes three different types of data, they are the
number of degrees along the whole circle, the number of degrees at the
Zodiac sign and the name of the sign (see the table above, showing the data
as of 15.03.2018).
For contraction, all celestial bodies are called planets, whether it is a planet,
a satellite or an asteroid.
As the above-listed bodies influence one another, in Gann astrological model
includes five planetary combinations:
Conjunction - two planets are at the same longitude
Sextile – two planets are at a distance of 60 degrees from each other
Square – two planets are at a distance of 90 degrees from one another
Trine - two planets are at a distance of 120 degrees from one another
Opposition – two planets are opposite at a distance of 180 degrees
Astrologers also apply:
Semisextile, two planets are at a distance of 30 degrees
Semisquare, two planets are at a distance of 45 degrees
Sesquisquare, two planets are at a distance of 130 degrees
Quincunx, two planets are at a distance of 150 degrees
Each of these aspects has its symbol; however, to maintain experimental
integrity, I’ll describe all the nine combinations later. Now, I’m going to
follow the classical model that consists of the first five aspects.
If I remove all the unnecessary combinations from the filter, then, on
15.03.2018, you’ll see in the above Cosmogram two connecting lines with
symbols, which show that Sun to Jupiter, and Mars to Uranus are coming
Trine on this date.
Also, in astrology, including the works of Gann, such concepts as Lunar and
Solar eclipsesare used. I think these phenomena are known to all, and so, I
will not dwell on them in detail.
Also, the concept of Retrograde motion is mentioned as an object of analysis
- it is, in fact, an optical illusion that conveys the appearance of a celestial
body moving in the opposite direction.
You also need to understand the difference between the Heliocentric and
Geocentric systems of orbits. I have noted this above. Heliocentric orbit is a
planet position in relation to the Sun; and Geocentric orbit is a planet
position, relative to the Earth.
The main core difference between these two coordinate systems is that, all
celestial bodies move with relative constancy, relative to the sun from year
to year, and the coordinate system of the geocentric system is in constantly
changing.
Just as often, Gann considers such an event as the Planetary Ingress. In
fact, this moment is marked by a certain date, when a planet moves from
one Zodiac sign to another.
When I change the date in Cosmogram, you’ll see that the planet symbols
move clockwise on the Protractor. When a planet enters the zone of a new
Zodiac sign, it usually suggests a trend reversal or a new wave’s start. To
apply Gann Astro method to trading, you need to follow the following rules
by William Gann.
Rule 1: Simultaneous planetary ingress of a planet and the sun during the
same day means high probability if the trend reversal on the same day.
Rule 2: Simultaneous planetary ingress of a planet and the sun during two
consecutive days suggests the trend is about to change during these two
days.
Rule 3: On the day, when only a planet or only the sun enters a new Zodiac
sign, you need a confirmation by additional astrological signals. If there are
such confirmations, this satiation may result in the trend reversal. But this
signal is not so important as simultaneous planetary ingress of one, or a few
planets, and the sun.
Another important moment is that the Moon is not taken into consideration,
when using this method!

I’ll go on and apply the rules to the BTCUSD ticker. In the chart above, there
are the following key points.
May 21 - The sun entered Gemini, Uranus entered Taurus, Mars joined
Aquarius, Venus joined Cancer. As it is clear the chart above, following this
event, the market dropped rather sharply.
October 24 - The sun entered Scorpio, Uranus entered Taurus. This event
did not affect the momentum in the chart. However, it can be seen as an
early signal of a sharp impulse downward movement due to an additional
signal on November 1, when Mercury entered Sagittarius.
So, the BTCUSD history suggests that this method can really work. However,
you need to take calculations error into account for planetary ingress of
planets with long orbits, like Uranus, Neptune, Eris. When there are signals
concerning these planets, it will be good if faster planets send confirming
signals.
The next twin planetary ingress will be on February 12, 2019. On this day,
the Sun will enter Pieces, and Mars will have just started joining Taurus.
As my experiment proves, this event doesn’t always influence the market.
Therefore, it is better when a twin or a multiple planetary ingress is
confirmed by other astrological signals, or by tools of technical or
mathematical analysis.
Another important concept of astrology is Declination. The Cosmogram is the
map of celestial dome, it also has cardinal points and the equator, the
imaginary line that divides the map into two two conditional parts – the
northern and the southern hemispheres (see the red lone in the figure
above).
Therefore, each planet can’t move more than 90 degrees from the equator.
The point of a the point of contact between the planet and the celestial
equator is called the declination point.
When a planet moves north of the celestial equator, it is the northern
declination. When it move south, it is the southern declination.
Such transitions are important for astrologers, and so, I must also take them
into account in my forecast.
Gann pays special attention to the Moon declination, that is the moment
when the Moon pass across the celestial equator. According to his personal
observations, at this moment, there is often forms a ivot point that marks
the trend ending or the start of a new wave.

If you look at the BTCUSD ticker movements and the Moon declination in the
chart above, you’ll see that they quite accurately coincide with major
momentum movements and pivot points.
I marked the northern declination with the blue line, and the southern
declination – by the orange line. As you see, the declination type doesn’t
correlate with the movement direction. So, you need to pay attention the
event itself, rather than to its direction.
The next Moon declination will be on December 28, and the following one
will be on January 12. So, we will be able to check how this indicator works.
Next, I’ll describe the ways to anticipate the price levels by means off
Cosmogram. I will also explain how to apply astrology to the Square of 9.
 Cosmogram practical application: Retrograde motion and the Price and
Longitude Conversion Method

Continue studying basics of astrology according to Gann’s method

and its practical application. A detailed description of the Retrograde
motion and the Price and Longitude Conversion Method.
I go on to delve into the secrets of Gann trading models, in particular,
cosmograms and market analysis, according to the stars.
In the above part, I wrote about main concepts, William Delbert Gann uses
in his studies. They are the location of planets and celestial bodies in relation
to the Earth; the planets moving between different Zodiac signs and the
location of the Sun and the Earth.
I also mentioned the Retrograde motion. As I’ve already wrote, it is an
optical illusion when the movement of a celestial body seems to opposite.
Gann himself didn’t pay much attention to this phenomenon; it is not often
mentioned in his writings. But I am curious and want to understand every
detail, so I want to delve into it deeper.
For this methodology, it is important to consider a few rules:

1. The Retrograde motion is important for the market on the days when it starts and ends.

2. When the start or the end of the Retrograde motion coincides with other astrological
phenomena, it increases the probability of a momentum move at this moment.

3. The influence of the Retrograde motion of each particular planet on each particular
instrument needs to be studied separately, as the effect and the power may be different.

4. The Retrograde motion is featured only by the planets, moving around the Sun.

For practical application, I analyzed Mercury motion during 2018. This planet
has the shortest orbit, that is, it is the closest planet to the sun. So, based
on statistics, the planet should have had this phenomenon most often during
the past year.
To perform this analysis, I used Gannzilla Pro v.8.2, as usual.
For the sake of convenience, I removed all unnecessary elements and left
only Mercury and the protractor on the map.
Next, I analyzed all days, starting from January 1, 2018 to see how the
planet is moving clockwise. However, at the shift between March 23 and 24,
the planet started moving in the opposite direction, so, the Retrograde
motion started.
It is clear from the cosmogram that Mercury stopped at 19 degrees on the
protractor.

If we continue going through the days one by one, we’ll see that, between
April 19 and 20, Mercury changes the direction and starts going clockwise
again.
You see that the motion stopped at 5 degrees on the protractor.
Finally, I marked the dates when the Retrograde motion started and ended.
For the accuracy of the experiment, I continued my observations, which I
marked in the chart above.
I was myself surprised, but each date, when the movement in the opposite
direction started, exactly matched to the start of Bitcoin downtrend or a
bearish momentum.
I marked the lines (24.03 / 31.07 / 20.11) with blue in the chart above.
The next date when the Retrograde Mercury motion starts is March 7, 2019.
And so, we can expect a downtrend around this date.
I marked the dates of the Retrograde motion end with orange lines. It is
clear in the chart above that these levels are not so accurate, but they quite
often match to the bullish corrective wave or mark its soon start. The dates
are 19.04 / 23.08 / 08.12.
The next date of the Retrograde motion end is March 31, 2019. Therefore,
around this time, I can assume at least a bullish correction.
If you think that I adjusted the dates to the BTC price chart, I suggest you
check them on your own. It is very simple.
Finally, as a result of my research, there are levels, which are already
sufficient to identify the point and the direction to enter and exit a trade in
future.
You may study the Retrograde motion of other celestial bodies as your
homework, my dear readers. I will be happy to learn about you research of
other instruments and other planets in the comments.
Finally, I’d like to remind you once again that, in astrological analysis, every
event, like in technical analysis, should be confirmed by other astrological
events. It is even better, when different kinds of analysis suggest the same
point; then you can really say that the stars aligned in this place.
Continuing to dwell upon the idea of the planets’ location relative to the
Earth and their influence at each point on the price of a trading instrument,
Gann developed a unique timing method, it is Price and Longitude
Conversion Method.
The greatest difficulty of this method is, however strange it may sound, to
convert price to degrees of longitude.
The matter is how to refer price to the degrees of Zodiac if there are only
360 degrees and the price can be any.
You will be lucky if the price for your trading instrument is about 360 USD.
In this case you can safely apply the ratio of 1 USD - 1 degree. Since Gann
worked in the US commodity markets, where all prices were quoted in
dollars and their price was much higher than 1 USD or 2 USD, the problem
was solved quite simply. By default, he just applied this ratio - 1 to 1.
Consequently, the product price that was more than 360 USD was converted
into longitude very simply. If every 360 USD is a whole circle, then all
conditionally completed circles were discarded and there was a remainder,
which determined the longitude of the current price on the cosmogram.
For example, bitcoin current price is 3679 USD; therefore, it is 10 circles,
360 degrees each. The remainder of the last circle that is 79 USD; it defines
the longitude on the cosmogram.
Considering the current cryptocurrency market situation, this methodology
doesn’t suit very well because it doesn’t take the market volatility into
consideration. It is obvious that for the instrument, whose price is about 1
USD and for the instrument that can cost 10 000 USD, the increment of 10
dollars will have a completely different meaning!
What should those do, who trade the instrument, cheaper than 1 dollar? And
what should those do, whose instrument is quoted not in dollars but in
bitcoins, for example? Then, the price can go down as low as one hundred
millionth (0.00000001)
For these cases, I offer an alternative way to convert price to longitude. To
do it, I suggest using the following formula:
Since, according to the zodiacal circle or the cosmogram, the Sun makes a
circle within one year in the geocentric model, and the earth makes one
circle around the Sun in the heliocentric model, I suggest using one past
year to calculate the formula.
To test this model, I’ll take the low and the high of 2017, in order to check
the data obtained by the BTC/USD price movement in 2018.

Therefore, it is clear from the above chart that the low of 2017 is 755 USD,
and the high is 19666 USD.
I enter these values in the above formula and have the following:
(19666 – 755)/360 = 52.53 USD
As a result, I get the ratio of 52.53 USD = 1 degree of the diagonal.
Now, remember what planet combinations Gann defines (I wrote about it
above).
For this method, Gann pays special attention to the following combinations:
Square – two planets are at a distance of 90 degrees from one another
Trine - two planets are at a distance of 120 degrees from one another
Opposition – two planets are opposite at a distance of 180 degrees
Now, my objective is to identify what planet currently influences the market.
To do it, I take the first local extreme, recorded in the new year, for the
analysis.
At my experimental square, it is the local high of January 6, 2018 at
17234.99 USD.
Next, I convert this price to degrees, considering the increment. So, I divide
the price level into the increment size:
17234.99 / 52.33 = 329.35
Finally, I have 329 degrees longitude at the Zodiac circle.
For clarity, I marked this value at one of the angles of Trine or simply a
triangle in the figure above.
As a result, you see that this level is at Aquarius. As I’ve already wrote, each
Zodiac sign has 30 degrees. At the Aquarius sign, the price is at degree 29.
Now, I need to identify the planet that will be the closest to its Zodiac sign,
compared to 29 degrees.
It is clear from the figure above, that the closest is Uranus at 25 degrees in
Aries.
Next, already taking Uranus location into account, I draw a triangle and a
square.
I got five more longitudes:
Three longitudes, indicated by the square are 115 degrees, 205 degrees,
295 degrees
Besides, 205 degrees will be here the strongest longitude as it is in
opposition to the current Uranus location.
Two longitudes, indicated by the triangle are 145 degrees and 265 degrees.
Therefore, I have the following levels:
Three values, suggested by the square are 6017.95 USD, 10727.65 USD,
and 15437.35 USD.
Two levels, indicated by the triangle are 7640.18 USD and 13867.45 USD
I marked these levels with dots at the studied date of January 6,2018.
Since all celestial bodies are constantly moving, I need to regularly update
these dots.
Uranus is in a distant orbit of the sun, its movement along the cosmogram is
very slow, and so I don’t need to correct the values every day.
In total, till 30.09.2018, that during 10 months, Uranus moved by just 7
degrees and is at 32 degrees longitude of the cosmogram.
Therefore, all key levels have also moved by 7 degrees. So, I need to correct
them, according to new angles. I have the following levels:
Three values of the square are 122 degrees or 6384.26 USD, 212 degrees or
11093.96 USD,302 degrees or 15803.66 USD.
Two values of the triangle are 153 degrees or 8006.49 USD, 272 degrees or
14233.76 USD.
I also mark these levels with dots in the chart. Now, I can connect the
identified intervals and so, find out the support and resistance levels.
As you see from the chart above, the level of 205 degrees or 10727.65 USD
really was the strong support, and the market hadn’t been going lower for
quite a long time.
The most illustrative is the level of 115 degrees or 6017.95 USD. This level
was a powerful support to the market and the BTCUSD ticker hadn’t been
able to break through for 8 months.
I emphasized September 30 not by chance. That matter is that on the night
from 30.09 to 1.10 the Retrograde motion, I describe above, started.
As you remember, this event means the trend reversal. In this case, it was
soon followed by a new bearish wave after a long consolidation.
If you scroll the cosmogram calendar forward, you can see that this motion
ends on February 21. Therefore, the end of the Retrograde motion may
harbinger the trend reversal or at least a strong bullish correction.
During its Retrograde motion, Uranus angle reduced by 3 degrees and
became 29 degrees.
Therefore, I again need to correct the key levels.
The new values are in the chart above.
I go on tracking the history of movement and see that the ticker broke out
the last key support at 6384.26 USD.
What are the support levels below?
It is only the angle of the planet position left.
In the given case, for Uranus the angles are 25 degrees on 06.01.2018, 32
degrees on 30.09.2018, and 29 degrees on 21.02.2019.
So the last edge before the abyss is, first, at 1308.25 USD, next, it is
1674.56, and, finally, it is 1517.57 USD.
I marked these levels in the chart above.
So, I described the way to convert the price to longitude according to Price
and Longitude Conversion Method.
In order to fully apply this method starting from January 6, when I identified
the first extreme, I also need to find out the closest planets with short
orbits, such as Mercury, Venus and Mars. If the rapid and slow planets are
far from the chosen extreme, I will need to choose another one.
The planet deviation from the price shouldn’t be more than three degrees.
If you check the location of rapid planets on January 6, 2018, you’ll see that
the fast planet nearest to the price level is Mars (24 degrees, compared to
29 degrees), but the difference is still too big.
To choose another extreme, the perfect will be the one, marked at the
levels, identified by means of the planet with long orbit. In the given
example, it is Uranus.
It is clear from the chart above that the ticker obvious formed a peak at
level 5920.72, close to the last level of Uranus square.
I convert 5920.72 to degrees and get 113 degrees.
By means of cosmogram circle, I find out that 113 degrees are at 23
degrees at Cancer signs.
Now, I look at the location of the fast planets with a close position angle on
the map in relation to its Zodiac sign.
You see from the cosmogram (see the figure above) that the most suitable
position among the fast planets is taken by Venus – 24 degrees at Aquarius
sign.
Next, I find out Venus angles, suggested by the triangle and the square and
track their movement in the price chart.
Finally, I get the following angles 54 / 84 / 144 / 204 / 234 degrees.
I convert them in USD and have:
2825.82 / 4395.72 / 7535.52 / 10675.32 / 12245.22 / 16954.92 USD
For a detailed analysis, I take only the angles that are the closest to the
extreme; they are 84 / 144 / 204 degrees or 4395.72 / 7535.52 / 10675.32
USD
Next, I go on updating the chart daily and monitor the ticker movements in
relation to the levels identified.
You see from the chart above that the longitude of the square and the
triangle angles to Venus is constantly increasing, following the planet
motion. Eventually, each of these lines will go along its 360 degrees and its
development will end. But somewhere below, there will be a new line,
resulted from the angles’ movements.
It is clear from the chart that the breakout of Venus short lines drives the
ticker to the level of Uranus long lines. Finally, I can find out the points to
enter and exit a trade and act according to the rules of channel trading and
trend trading strategies.
For example, when crossing the equator, i.e. 180 degrees, the opposite
angle will create in the chart a new point with the size of one degree or
52.33 USD.
Now I draw Mercury levels from the current values.
To do this, I enter the value of the last extreme in the date box; it was
formed on December 15.
Next, I find out Venus position on cosmogram at the movement. Then, I
identify the angles of the square and the triangle in relation to the calculated
planet angle and convert the degrees to the price levels.
I consecutively switch the date counter and make sure that the planet does
not enter Retrograde motion. I don’t usually see more than two weeks ahead
for middle-term analysis.
For the next points, I enter 01.01.2019 in date box.
According to the new date, the planet will move along the Zodiac, and so all
the five angles, identified before will also change.
I convert the new values to price levels and mark them in the chart. I
connect these two points with a line, whose direction can be projected into
future.

Finally, there are two channels, where the ticker is trading. One is formed by
the long blue lines of Uranus; another one is bordered by the short red lines
of Venus.
Therefore, since the market is in Uranus Retrograde motion, the ticker is
likely to break out the support level at the red channel. Besides, the
instrument can move inside this channel as its upper border is near level
6000 USD. There, there is the next level of Uranus blue line, which is
currently the strong resistance to the cryptocurrency traders.
For a more detailed analysis, I need to study other Gann levels, identified
earlier by means of other methods.
The main advantage of this method is that it is compatible with any trading
strategy for middle-term and long-term trading.
That is all I wanted to write in this part, devoted to Retrograde motion of
celestial bodies and the Price and Longitude Conversion Method.
 In the next post, I will describe specific combinations of different planets on
the cosmogram and the method of combined application of astrology and the
Square of 9.С

Сosmogram: Specific Combinations of Different Plants

I continue one of the most enigmatic and mysterious topics in the Gann’s
works and, perhaps in all the studies devoted to trading, is the use of
cosmogram and Square of 9.
Today, I’ll start with specific planet combinations and their influence on price
action of different trading instruments.
I already mentioned in my previous articles that there are several certain
combinations of planets, defined in astrology:

 Conjunction - two planets are at the same longitude

 Sextile – two planets are at a distance of 60 degrees from each other
 Square – two planets are at a distance of 90 degrees from one another
 Trine - two planets are at a distance of 120 degrees from one another
 Opposition – two planets are opposite at a distance of 180 degrees
 Semisextile, two planets are at a distance of 30 degrees
 Semisquare, two planets are at a distance of 45 degrees
 Sesquisquare, two planets are at a distance of 130 degrees
 Quincunx, two planets are at a distance of 150 degrees
In this list, Gann especially distinguishes Square (when two planets are at a
distance of 90 degrees from each other) and Trine (when two planets are at
a distance of 120 degrees from each other), as well as the Conjunction of
two planets.
Gann believed these three combinations to be the key ones for any type of
the market.
Besides, it is important which planets make up a Trine or a Square. Gann in
his studies observes the motion of 9 planets, they are: the Sun, the Moon,
Mercury, Venus, Mars, Jupiter, Saturn, Uranus, Neptune.
That is, there are 80 possible combinations of different celestial bodies in
total.
I won’t describe in detail all possible combinations; I would rather pay
attention to those that Gann himself distinguished.
In his studies, William Gann pays special attention to specific combinations
of the following pairs of planets:
Sun - Mercury
Venus - Saturn
Mars - Jupiter
In general, this methodology is quite simple. In perfection, you need an
instrument with long trading history in daily charts.
It is a matter of fact that the longest trading history is featured by Bitcoin,
that is why I’ll take this cryptocurrency for my experiment.
To perform this test, I first need to construct the correct Cosmogram.
I’ll traditionally use Gannzilla Pro v.8.2 for my experiment.
 The major program settings are in the figure above.
I switch unnecessary Aspects and Planets off and leave only the Sun,
Mercury, Venus, Mars, Jupiter, and Saturn visible.
For convenience, a suitable combination will be highlighted (see the chart
above):

 For Square - the red line;

 For Trine - the green line;
 For Conjunction - blue circle, marking the planets that fall under the Conjunction.

Next, I open the BTCUSD trading history on the daily chart. I set the
beginning of last year as the starting point in the cosmogram.
I set the initial time in the Gannzilla Pro as 01/01/2017 and start slowly
sorting out day by day in increasing order.
The planets on the cosmogram begin moving and I only need to count the
number of coincidences in which one of the needed planet pairs will show a
combination and the market will or won’t reflect any movement.
Finally, I’ll have statistics that will clearly show which of the planet pairs and
in which Aspect has the strongest influence on the market and in which
direction.
The longer trading history you study, the wider is the selection, the more
relevant will be your analysis.
For my example, the analysis for 2017 will be sufficient. But each if you may
do the same, analyzing statistics for other years and obtain a more accurate
result.

So, starting to count from January, 2017, I get the first Aspect; it is the
Square of the Sun and Jupiter on 11.01.2017.
Although it is not included in the list of important planet pairs, I will enter it
in the table for the sake of experiment.
As you see from the chart above, the BTCUSD rate dropped that day; so, it
enter this event in a simple Excel table for statistics. Furthermore, already
the next candlestick was counter trend and started a new bullish wave, so,
I’ll also mark the trend reversal.

I should say a few words about the table itself. As you see from the figure
above, it looks like a separate section for each planet pair, where I mark the
market response to each of the three Aspects: Square, Trine and
Conjunction.
The lines include four market phenomena:
 bullish momentum
 bearish momentum
 trend reversal
 flat or sideways trend

I count a bullish or a bearish momentum in case of a strong market

movement during the astrological phenomenon adjusted for one day before
or after; trading flat, as you see, marks no market response to a studied
phenomenon. Besides, it should be noted that at the time of an Aspect there
was a strong movement and the trend reversed on the next day (as in the
above example), I give a score to each of both events.
I go on my research, and the next Aspect is Mars - Saturn on 01/18/2017
and again Square on the screen.

Although this Aspect is not listed as the favourite pair of planets, I’ll still
monitor this pattern within my experiment.
It is clear from the chart above that this Aspect was preceded by a strong
growth, so, I can assume that this pattern became a growth signal.
I’ll also enter it in the table to the corresponding pair.

I go on doing the same until the last trading day.

Finally, I analyzed the market response to the positions of the suggested
above planets and their different Aspects.

I counted separately for each pair of planets, including those that Gann
didn’t rank among the favourite ones.
I finally made about 139 records, which are of course not that numerous,
but still sufficient to draw certain conclusions and find out specific
combinations of planets.
In total, during two years, I surprisingly found out almost equal number of
Squares, Trines and Conjunctions – 50, 44 and 45 cases correspondingly.
Besides, it should be noted that, out of the whole number of records, flat is
about 11.85%, i.e. almost 90% of signal matched to a market movement,
which suggest high efficiency of the studied signals. Moreover, 34% of all
signals resulted in trend reversal and only 36% of all signals were bullish.
Bearish momentums matched to only 17.78% of patterns.
I must say that one of the most distinct Aspects is the Conjunction of two
planets. At its time, in 42 cases out of 100 the trend reverses and a new
wave starts.
Admit, this result itself is impressive and means its high accuracy. A
combination of this signal with technical indicators can forecast the reversal
point more exactly.
Out of all planet pairs, the trend reversal corresponded most accurately to
the Conjunction of the Sun and Mercury; in 56% of cases, it matched to the
start of a new trend; furthermore, 71% of all signal sent by the conjunction
were bullish and only 14.5% - bearish.
Therefore, I can already single out one specific combination of planets for
future analysis; it the conjunction of Mercury and the Sun, which suggests a
favorable situation for a bullish reversal.
I noticed that the planet conjunction is in general a positive signal for
BTCUSD, which in most cases results in a bullish reversal.
It is not that clear with Trine. The share of bullish signals, corresponding to
this Aspect in the total mass was only 57%, bearish signals were in 20% of
cases. Furthermore, 30% of signals were followed by the trend reversal.
The most bullish pair for BTCUSD in Trine was Mercury – Saturn; 80% of all
Trines for this pair corresponded to a bullish momentum. At the same time,
36% of all signals were followed by the trend reversal.
Therefore, I should mark for myself, another discovered specific combination
of planets that works for the BTCUSD. If Mercury enters Trine to Saturn, an
impulse upward movement is 80% to occur. In case with bearish trend,
there might be a bullish pump.
Perhaps, one of the most controversial Aspects for BTCUSD was Square. It
corresponded to a large number of both upwards and downward
momentums.
 On the other hand, there is no particular pair of planets that will send a
certain type of signals, so the signals of Squares should be the most reliable.
The Square of Venus-Saturn indicated in 100% out of 100% the bullish
momentum.
However, at the same time, Venus-Mars and the Sun-Saturn in 100%
indicated the bearish momentums.
At the same time, it is remarkable that the planet combinations, emphasized
by Gann, such as Venus - Jupiter and Mars – Jupiter, proved to send rather
weak and ambiguous signals. To be fair, I must say that I came across very
few patterns with them within the two years, I studied. The Aspects of Venus
– Jupiter provided 7 signals, Mars - Jupiter - only 4 signals.
The obtained results suggest two conclusions: First, for analysis, you have to
study all possible combinations of celestial bodies, and second, two years is
a rather short period of time for a detailed analysis. So, to prove its
relevance, it is necessary to expand the period of studying at least for a few
more year;, and it is best to start from the very beginning of cryptocurrency
trading, when the first Bitcoin block was generated. But that is another
story.
I believe you see how to use the data obtained in practice. You need to find
out the discovered patterns in the bitcoin future price chart and mark them.
In the given case, they are:

 Conjunction, the Sun-Mercury suggests a high probability of the trend reversal and bullish
momentum;
 Trine, Mercury - Saturn - high probability of a bullish momentum;
 Square, Venus-Saturn - high probability of a bullish momentum;
 Square, Venus-Mars and the Sun-Saturn - a high probability of a bearish momentum.
I scroll forward the calendar of the future cosmogram, and you see that the
Sun will conjunct with Mercury on 31/01/2019 (see the figure above).
Therefore, knowing that this pattern suggests a high probability of a bullish
reversal signal, I can set an alert on this date not to miss the moment. If on
this day, or a day before, I see a bullish divergence, or preconditions for the
BTCUSD price rise, I can safely enter a long.
So, studying already future patterns of planets, based on the statistics
obtained, I can correct my trading strategy for BTCUSD.
It is clear from the chart above that on June 31 and on 15 March there will
be the Conjuncture of the Sun and Mercury, so, it a bullish signal for me. In
general, a combination of several consecutive bullish signals may indicate a
possible start of BTCUSD bullish trend.

However, already on March 20, Venus will be in square to Mars, which

already a bearish signal for bitcoin. Such a close position of bullish and
bearish signals means a critical point in this period of time, which may be
accompanied by strong market volatility and emotional tension. April 8,
when the Sun will enter the Square with Saturn (which is also a Bitcoin
bearish signal) and the situation will clarify somehow and I understand that
a new bearish wave is likely to start in the middle of March; it may last till
the middle of May. On May 17, Mercury will enter the Trine to Saturn, which
indicates a change of bearish sentiment or even the beginning of a new
bullish wave.
Therefore, I already have a kind of trading map, that will help me filter out
the signals, sent my trading strategy; combined with other tools it will help
me trade more confidently.
But still, I must note that this case is an example of how one may use
Gann’s theories in the modern cryptocurrency market, rather than trading
advice. For a complete analysis, it is necessary to expand the period of
research for a few more years, as well as to study other planets that could
also perform good results.
Perhaps, one of the drawbacks of such an analysis is that it is complex and
long process. In total, I have spent 8 hours to analyze specific combinations
of just 6 planets and their three Aspects in the two-year period on the daily
chart. So, it is hard to imagine the analysis of the entire trading history, with
all the parents and Aspects, offered by the Cosmogram.
However, having done such a job one, you won’t have to do it again; the
most diligent traders may like this method.
That is all for the part, devoted to the analysis of the specific planet
combinations in the Cosmogram. In the next part, I will describe the results
of my studies and my research – the method of combined application of
astrology laws and the Square of 9.
Here, I am about to finish my another article, devoted to Delbert William
Gann and his studies, which I applied to the BTCUSD pair. I hope this
information is interesting and helpful for you