The Square of Nine and the Hexagon are the two prominent Gann numbered "square" charts. There is an abundance of writings concerning these two tools and their usage. The majority of the writings about Gann's usage are mere speculation, although some speculators seem to have some pretty good evidence to back up their theories.
Concerning the hexagon, Square of 4, and other numbered charts; I've made an interesting observation. At a basic level, the x-agon numbered "squares" are just fancy quadratic equation calculators. ie the hexagon maps out a parabola or rate of change at one rate, the pentagon at a slower rate, the nanogon at a higher rate, etc.
These contrast from the square of nine in that the square of nine is more of a constant whereas each of the numbered squares is a variable rate. For example the spacing between 180° on the square of nine is the same regardless of where you are on the 180° line. But on an xagon, the spacing increases/decreases with each ring.
One way to view the difference is that the sq9 is the speedometer and the other numbered squares would be tachometers. Your rpm's can be different even though your speed or velocity remains the same depending on what gear you're in, whether you're ascending/descending a hill, weight load, etc.
Gann more or less explained it when he described the hexagon:
"Since everything moves in a circle and nothing moves in straight lines, this chart is to show you how the angles influence stocks at very low levels and very high levels and why stocks move faster the higher they get, because they have moved out to where the distance between the angles of 45° are so far apart that there is nothing to stop them and their moves are naturally rapid up and down."
Let's take a look at GE. GE is one of the biggest defense contractors so I chose the Pentagon shape just for poops and giggles. Instead of dividing by 4th's or 8ths like a square, the pentagon divides evenly by 5ths or 360/5 = 72°. Halving that = 36° increments. Going around the circle, the divisions would be:
Price made a high of 42.14 on 10/02/2007 at approx. 21:30 GMT. Converting price to a 3 digit number = 421. The most recent low is 12.58 on 11/20/08 at apporx. 16:35 GMT. Converting that price to 3 digits = 125 or 126. That is a drop of 295 points. That is also 288 trading bars or 414 calendar days. 290 trading is off by a few days. But converting each day to a degree would be 288 traded days. It is also 1997 hourly bars or converted to 3 digit = 200. (Halving 36° = 18° which is where 200 falls on the 'wheel'.) Below is a chart showing the correlation between 36° increments and the numbers 421, 125, 414, 288(290), and 295.
One technique taught by some of the Gann Masters such as Ferrara, Mikula, Myles Walker, Earik Beann of Wave 59 fame, and others is to plot the locations of the planets on the squares. For example, if the Sun is at 220°, mark on the chart 220 and see if there is a correlation or aspect to either price, time, or other planets marked off on the chart.
When it comes to the hexagon and other x-agon charts, I think the correlation with mapping out planets comes into play by taking into account the point of observation of a planet's orbit. Since the planets are in elliptical orbits, the speed at which the planets travel would appear to speed up/slow down depending on your point of observation. For example if you were to be looking lengthwise at an ellipse and angled the plane of observation to be perpendicular or close to it, it would appear parabolic and the planet would appear to speed up the closer it came and slow down as it went away from you. In the next installment I'll show the planets on the pentagon and how they correlated to the big down move and picked the high/low intraday within 5 minute windows.
Links to articles about Gann numbered squares/shapes:
http://www.sacredscience.com/ferrera/ganncube.htm
http://www.wave59.com/showcase/121304.asp
These contrast from the square of nine in that the square of nine is more of a constant whereas each of the numbered squares is a variable rate. For example the spacing between 180° on the square of nine is the same regardless of where you are on the 180° line. But on an xagon, the spacing increases/decreases with each ring.
One way to view the difference is that the sq9 is the speedometer and the other numbered squares would be tachometers. Your rpm's can be different even though your speed or velocity remains the same depending on what gear you're in, whether you're ascending/descending a hill, weight load, etc.
Gann more or less explained it when he described the hexagon:
"Since everything moves in a circle and nothing moves in straight lines, this chart is to show you how the angles influence stocks at very low levels and very high levels and why stocks move faster the higher they get, because they have moved out to where the distance between the angles of 45° are so far apart that there is nothing to stop them and their moves are naturally rapid up and down."
Let's take a look at GE. GE is one of the biggest defense contractors so I chose the Pentagon shape just for poops and giggles. Instead of dividing by 4th's or 8ths like a square, the pentagon divides evenly by 5ths or 360/5 = 72°. Halving that = 36° increments. Going around the circle, the divisions would be:
| 0° |
| 36° |
| 72° |
| 108° |
| 144° |
| 180° |
| 216° |
| 252° |
| 288° |
| 324° |
| 360° |
Price made a high of 42.14 on 10/02/2007 at approx. 21:30 GMT. Converting price to a 3 digit number = 421. The most recent low is 12.58 on 11/20/08 at apporx. 16:35 GMT. Converting that price to 3 digits = 125 or 126. That is a drop of 295 points. That is also 288 trading bars or 414 calendar days. 290 trading is off by a few days. But converting each day to a degree would be 288 traded days. It is also 1997 hourly bars or converted to 3 digit = 200. (Halving 36° = 18° which is where 200 falls on the 'wheel'.) Below is a chart showing the correlation between 36° increments and the numbers 421, 125, 414, 288(290), and 295.
One technique taught by some of the Gann Masters such as Ferrara, Mikula, Myles Walker, Earik Beann of Wave 59 fame, and others is to plot the locations of the planets on the squares. For example, if the Sun is at 220°, mark on the chart 220 and see if there is a correlation or aspect to either price, time, or other planets marked off on the chart.
When it comes to the hexagon and other x-agon charts, I think the correlation with mapping out planets comes into play by taking into account the point of observation of a planet's orbit. Since the planets are in elliptical orbits, the speed at which the planets travel would appear to speed up/slow down depending on your point of observation. For example if you were to be looking lengthwise at an ellipse and angled the plane of observation to be perpendicular or close to it, it would appear parabolic and the planet would appear to speed up the closer it came and slow down as it went away from you. In the next installment I'll show the planets on the pentagon and how they correlated to the big down move and picked the high/low intraday within 5 minute windows.
Links to articles about Gann numbered squares/shapes:
http://www.sacredscience.com/ferrera/ganncube.htm
http://www.wave59.com/showcase/121304.asp
