FIGURE - 5.
Cycletrader/Wavetrader

Gann Examples of Price and Time Squaring Relationships

Gann developed a unique method of squaring price to time and time to price. He taught that every stock or commodity maintained a vibration where there was a relationship between 1 degree of price to 1 degree of time. The difficulty with many stocks and commodities is in finding what value represents 1 degree of price. For the purposes of this demonstration I have used the All Ordinaries Index and used 1 unit of price to 1 unit of time.

A market can square price to time in several different ways.

  1. Price units in a trend equal time units in a trend.
  2. Base price equals time units to a new change in trend.
  3. Prior price range equals times units to a new change in trend.
  4. Prior time units equals next price range to a new change in trend.
  5. Current price equals time units from a prior change in trend. (zero angle).

To keep a track of the position of his price to time he would draw GANN ANGLES up from lows and down from highs. He also used 4 to 1, 2 to 1, 1 to 2 and 1 to 4 angles. 1-4 means 1 unit of time to 1/4 unit of price. If you study Figure 5 carefully you will see an example of each of the methods Gann used to determine when a change in trend could eventuate.