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Market Geometry Introduction Time / Price Square is one
of the mysterious techniques used by W. D. Gann. According to Gann, there is
a mathematical relationship between time and price. Using the time to price
conversion factor, the price can be converted into time cycle, which projects
the market reversal date in the future. There is three types time / price square: ·
Square
of High Price ·
Square
of Low Price ·
Square
of Price Range Time
/ Price Conversion The algorithms of the time to price conversion are
as follows: Daily Chart If chart low > 10000, P/t scale = 100 If chart low > 1000 and chart low <= 10000,
P/t scale = 10 If chart low > 100 and chart low <= 1000, P/t
scale = 1 If chart low > 10 and chart low <= 100, P/t
scale = 0.1 If chart low > 1 and chart low <= 10, P/t
scale = 0.01 If chart low > 0.1 and chart low <= 1, P/t
scale = 0.001 Weekly Chart If chart low > 10000, P/t scale = 100 If chart low > 1000 and chart low <= 10000,
P/t scale = 100 If chart low > 100 and chart low <= 1000, P/t
scale = 10 If chart low > 10 and chart low <= 100, P/t scale
= 1 If chart low > 1 and chart low <= 10, p/t
scale = 0.1 If chart low > 0.1 and chart low <= 1, p/t
scale = 0.01 Monthly Chart If chart low > 10000, p/t scale = 100 If chart low > 1000 and chart low <= 10000,
p/t scale = 100 If chart low > 100 and chart low <= 1000, p/t
scale = 10 If chart low > 10 and chart low <= 100, p/t
scale = 1 If chart low > 1 and chart low <= 10, p/t
scale = 0.1 If chart low > 0.1 and chart low <= 1, p/t
scale = 0.01 High
Price to Time The conversion of market high price into time cycle
follows the formula below: T = H*CF Where T is the time cycle projected from the market
high, H is the price of the market high and CF is the conversion factor.
If the chart is a weekly chart, the time cycle would
be in the unit of week. Following the same line of thought, if the chart is a
monthly chart, the time cycle would be in the unit of month. On the chart, pink time line would appear after
clicking [High Price to Time]. The multiple time lines represent the
multiples of the time cycle. Low
Price to Time The conversion of market low price into time cycle
follows the formula below: T = L*CF Where T is the time cycle projected from the market
low, L is the price of the market low and CF is the conversion factor.
If the chart is a weekly chart, the time cycle would
be in the unit of week. If the chart is a monthly chart, the time cycle would
be in the unit of month. On the chart, pink time line would appear after
clicking [Low Price to Time]. The time lines represent the multiples of the
time cycle calculated. Range
to Time The conversion of market price Range into time cycle
follows the formula below: T = PR * CF Where T is the time cycle projected from either
market high or market low, which depends on user's selection of [From high]
or [From Low]. PR is the high to low price range on the chart and CF is the
conversion factor.
If the chart is a weekly chart, the time cycle would
be in the unit of week. If the chart is a monthly chart, the time cycle would
be in the unit of month. After selection, pink time line would appear on the
chart. The time lines represent the multiples of the time cycle calculated. According to the theory of Gann, market reversals
may happen near these time cycle lines. Square
of High and Square of Low The functions of Square of High and Square of Low
combine the following techniques of Gann: w Gann Price Cycle w Price Time Square w Gann Angles Each of the techniques has been discussed earlier in
this manual. Square
of Low The followings are calculated by the function of
Square of Low: The low price on the chart would be multiplied from
1 to 8. That means the price levels of the multiples will be shown on the
chart to show the support and resistance of the market. Low price would be multiplied by the Time / Price
Conversion Factor in order to get the duration of the time cycle. The market
reversal date may be projected by adding the time cycle to the date of the
low price on the chart. The time lines appeared are
the multiples of the time cycle. Upward Gann Angles are also drawn on the chart to
show the squaring of price and time cycle when they are in parity at the 1 x
1 Gann line (Shown in red). Reversal forces may appear at the centre of the
square, the top right-hand corner of the square and the conjunction of time
and price lines. Square
of High The followings are calculated by the function of
Square of High: The high price on the chart would be divided by 3
and by 8. That means the price levels of the divisions will be shown on the
chart to show the support and resistance of the market. High price would be multiplied by the Time / Price
Conversion Factor in order to get the duration of the time cycle. The market
reversal date may be projected by adding the time cycle to the date of the
high price on the chart. The time lines appeared are
the multiples of the time cycle. Downward Gann Angles are also drawn on the chart to
show the squaring of price and time cycle when they are in parity at the 1 x
1 Gann line (Shown in red). Reversal forces may appear at the centre of the
square as well as the conjunctions of price and time lines.
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