Good Trading requires the Best Charting Tool!The Gann Square of 144 is among the most popular as well as fruitful technical indicators. Traders can use it to identify upcoming trend changes and key market areas.
If you wanted to learn about the secrets of the Gann Square of 144, then you are on the right platform. Because we are going to uncover how to harness this tool’s power to improve your trading strategy, identify key market levels, and enhance your overall trading performance.
Introduction to the Gann Square of 144
W.D. Gann, a famous trader in the early 20th century, developed The Gann Square of 144. The tool is a chart consisting of a grid of 144 squares starting with the number 1 in the center.
The first row and column contain the numbers 1, 13, 25, 37, 49, 61, 73, 85, and 97. The second row and column contain the numbers 2, 14, 26, 38, 50, 62, 74, 86, 98, and so on. Each square of the chart represents one trading day.
The Gann Square 144 is based on the idea that financial markets move in cycles. Moreover, we can predict these cycles because of patterns in price action. It is among the most powerful tools that enable analysts to identify key areas of support and resistance. Additionally, the Gann Square of 144 also helps in identifying key price levels as well as trend changes.
How to identify key market levels using the Gann Square of 144?
As mentioned earlier, the Gann Square of 144 is a square grid. It consists of 144 boxes. Two horizontal and two vertical lines divide the grid into 9 equal parts. The four points at which these lines intersect each other are marked as G, A, N, and N.
To identify key market levels regarding a particular asset using Gann Square, you have to plot the price action on the grid. In doing so, two horizontal and two vertical lines intersect each other. These are the points where the prices may reverse or change direction.
Steps to identify key market levels
Here a few steps you need to follow to identify key market levels
- Identify the anchor point which is the starting point for the construction of the square. You can use a significant high or low point as the anchor point.
- Start drawing a 12×12 grid around the starting point. The grid must consist of four quadrants. The top left quadrant represents prices above the starting or ancho point. Whereas, the bottom right quadrant represents prices below the anchor point.
- Identify numbers, both on horizontal and vertical lines, forming support and resistance levels.
- Confirm with other indicators as well to buy or sell around these areas of support or resistance.
How the Gann Square of 144 helps in enhancing your trading performance.
Gann Square is a powerful tool. It helps traders enhance their trading performance because of certain strengths it has.
- Helps in identifying areas of support or resistance that help traders in decision-making.
- Provides a visual representation of the price action over time. It, in turn, helps traders identify market trends, reversals, and patterns.
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