Tools: Gann Square Grid

The next topic will be the super capabilities of the Gann Square draw tool.

The grid shown on the chart was created by manually drawing one Gann Square, but then checking on the property form the option for Fill Chart.   Note the use of subtle colors and line styles for the quarter and middle lines the divide the square.

The next example is created by checking the options on the right hand side of the property form for the 100%, 50% and 25% Diagonal lines.  The Horz and Vert lines have been unchecked except for the 0.000 Level to remove some of the line clutter.

The chart examples in the next section show the Gann Square grid with the Intersect Circles option checked, and the Horz and Vert for the 50 level checked.

The Gann Square tool in Ensign Windows is very flexible and can be used to show trends, timing, and price levels.  Gann Squares indicate possible time and price movements from important highs and lows.  A start and end point are necessary to draw Gann Squares on a chart.  Since the Gann Squares indicate possible values for future bars, it is often useful to the slide the chart bars to the left so there is blank space to the right of the chart bars.  To draw a Gann Square on a chart move the cursor on the chart to the starting point.  The starting point is generally an important High or Low on the chart.  Then drag the mouse to the right until a desired ending point is reached.  The start and end points will be the corners of the square.  The end point is often to the right of the chart bars.  Let's begin by looking at the tool's parameter form.

Price:  A Gann Square can draw horizontal lines at the price levels shown in the Horizontal check list.  These price levels are similar to those that could be constructed using the Fibonacci Price Levels draw tool.  Tip:  Watch for trends to change directions at the Gann Square price levels.

Time:  A Gann Square can draw vertical lines at the intervals shown in the Vertical check list.  These vertical lines are similar to those that could be constructed using the Cycles draw tool.  Tip:  Watch for trends to change at the Gann Square time intervals.   A Gann Square with both horizontal price levels and vertical time intervals is shown below.

In our example, the 1/8th, 1/4th, 3/8th, and Midpoint parameter boxes were checked for both the Horizontal levels and the Vertical intervals.   Thus, our square is divided both horizontally and vertically into eighths.  The 3/8th and 5/8th lines are colored red.

Another variation for the Gann Square is to check the Fan Lines parameter which is shown checked in the parameter form example.  When the Fan Lines box is checked, the tool changes from drawing horizontal and vertical lines to drawing Gann fans from the four corners as shown below.

The fan lines are drawn from the corners to the same eighth points on the square's perimeter used by the horizontal and vertical lines in the previous example.  The Horizontal check list will select the points used by the two fans whose vertex is on the left side of the square.  The Vertical check list will select the points used by the two fans whose vertex is on the right side of the square.  A common configuration for these fan lines would be to keep the two fans on the left side, but eliminate the two fans on the right side by unchecking all parameter boxes in the Vertical list except the Perimeter box.

Trading tips for predicting the timing of a turn from the intersection of primary Gann angles were given in the July issue of the Trading Tips newsletter.  Gann fan lines also provide price support and resistance, of which many are easy to spot in the example chart .