There has been a request for information about Gann's Square of Nine in a post in the forum, so the purpose of this showcase is to show a few interesting things that happened recently to Microsoft, and hopefully get an interesting discussion going in the group. So consider this an interactive showcase. If you'd like to comment, do so in the following post:
[old bulletin board replaced by discussion group - go here instead]
Below is a chart of MSFT:
This chart is a little cluttered, but let's step through it piece by piece. First, take a look at the green and red forecast. This is actually the declination of Mercury, overlayed on top of price. Notice that the bumps in the forecast correspond very well with the turning points in Microsoft. The most recent bump happened at the May 6 low, which this showcase will focus on. A dotted vertical line has been drawn through this key point.
There are many bar counts shown on this chart. They refer to the distance (in calendar days) from our May 6th low to other interesting tops and bottoms on the chart. There doesn't seem to be much of a relationship between these counts until they are plotted on the Square of Nine:
See the pattern?
It's pretty clear. One of the basic ways of using the Square of Nine is to move to treat the corners as very important. The purple line on the chart marks the numbers in question. You'll note that all of our bar counts fall upon this line. It's important to use calendar days (or solar degrees) when using this technique. You can also look at the cross that runs vertically and horizontally from the center, which is also important.
The Square of Nine can be used in a huge number of ways. What has been shown above is fairly basic, although most authors tend to ignore using this tool for time and concentrate primarily on price action instead. A group of traders (Gann among them!) also used the Square of Nine as an astrological calculator. If you look on the graphic above, you'll see colored dots here and there. These represent the positions of the planets on May 6th. Each planet has it's own color. Here are a few interesting ones:
Venus - the green dot at 73
Moon - the gold dot at 343
Pluto - the gray dot at 257
You'll note that these particular planets also fall on our key diagonals. They are also important from a purely astrological point of view. On May 6th, we had The Moon square (or 90 degrees) to a Venus. Venus was part of a huge cluster of planets that astrologers were making a big deal about - you may have seen this in the paper. Additionally, the Moon was trine (120 degrees) to Jupiter, and Microsoft's birth Jupiter is trine to birth Pluto. So these planets have a special interaction on this day, and it's getting focused through the Square of Nine via the diagonals and relationships to calendar day counts.
If that seemed a little confusing, don't worry. Here's something easier:
This chart shows another interesting thing. The lines shown from points H and G are planetary speed lines plotted to the natural scale of 1 point per degree. The dark line is Saturn, and the lighter line is Jupiter. Note how three of them come together on May 6th (point A). The interesting thing is that the starting points (H and G) of our lines were also defined by the Square of Nine. 225 and 325 are both numbers on the diagonals.
Finally, there are price relationships that also should be considered. The vertical price distance from D to A is 16.67. 17 is on the diagonal, and 166.7 (or 167) is pretty close. E to A is 8.78, and 9 can be found on the same diagonal. So price relationships were also apparent at this low.
So there's a few things to think about. That May 6th low wasn't just a random turn - there were a ton of things happening, and we haven't even started looking at the standard tools yet. This is by no means a definitive analysis of the Square of Nine or astrology, but hopefully it got some ideas going for you. If so, make sure to share your thoughts in the discussion group!
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