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In a message dated 97-10-19 17:46:52 EDT, you write:
<< Would anybody care to elaborate on exactly on how to square price and
time.....i have heard about this for 6 years now, but have never seen
anyone explain it...they talk about it all the time, but i cant ever get
anyone to explain on what you do, how you do it.i have a gann square
overlay to use on my charts if someone can explain how this "phenomon"
is accomplished. >>
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Craig:
First, this is not something you do but something the markets do and you
observe or find it. On a price chart, price moves One unit up or down for
each One unit of time. If the S&P has a low at 900 and 20 days later trades
at 920, price and time have been squared according to Gann analysts.
However, if the price is 940 instead of 920, price and time are squared
again -- but "obviously" (1) the price unit should have been 2 points per
unit or (2) this could be a 200% move in price in 100% of time and the labels
for this are numerous. In general, any multiple of price movement in
relation to time can be considered a square of time and price depending on
how mush of a Gann purist you are. (By "obviously" I mean in hind site
because that is generally how these things are recognized. If you could
consistently forecast this, you would already be wealthy and retired.)
Although you may not be able to forecast each time it will happen, you can
watch for it if the market approaches the square price each day.
On a "Gann Wheel/Gann Square" you look for a move of 90 degrees (usually) in
both time and price on the wheel not the price chart. The principle is the
same.
Lynn
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