The size of the graph is up to you. Of course, the bigger the graph, the more information you can refer to.
Be sure to use a square diagram with the same length and width.
First of all, you should look at what you are investing in, whether it is stocks, foreign exchange, gold or futures. Each square can only be used for one kind of investment.
Starting from the center of a square, fill in the long-term or medium-term low point of the market.
Then, starting from the right side of the center point, run counterclockwise and add a specific unit to each grid to form a square. Generally speaking, we will choose multiples or fractions of 10 as the unit of each cell, such as 0.00 1, 0.0 1, 1, 10 or 100. The choice of each unit should make the square number best reflect the current market price level. In some cases, multiples or fractions of 5 are also used.
How to analyze Gann's square;
The box below is used to display the Hang Seng Index. The mid-term low of Hang Seng Index is 0995 65438+6890. We put 6890 in the center of the square, which represents the starting point of the upward trend. Then add 100 points to each grid.
Starting from the axis in the figure, the prices on the vertical axis, horizontal axis and two diagonal lines of the square (that is, red numbers) are the support levels and resistance levels according to Gann theory. With these figures, investors can decide the entry and exit of goods. In particular, break through the resistance level, chase up in the short term, and fall below the support level for short-term shorting. (1) Price on two diagonal lines of a square (white)
(2) The square with the price on the horizontal axis (yellow)
(3) The price on the vertical axis of the square (yellow) Gann Square means a spiral shape that grows infinitely counterclockwise with a fixed step size.
According to this calculation method, its starting point (the center of the square) is the historical high or low point of a market. When expanding in fixed steps, the first layer has 8 steps, the second layer has 16 steps, the third layer has 24 steps ... and the nth layer has nX8 steps.
Therefore, the support potential and resistance potential calculated by Gann Square are actually a mathematical sequence of 8,16,24 ... Gann Square and Golden Spiral Square both start from a center and expand outward in a spiral form. The difference is that Gann square is arithmetic progression growth, while golden spiral is logarithmic growth, and its multiple unit is golden ratio 1.6 18 times.
One thing about the resistance and support of Gann Square and Golden Spiral Square is * * *, that is, most magic numbers fall on the important angle line of Gann Square, and the first nine items of magic numbers 1, 2, 3, 5, 8, 13, 2 1, 34, 55 all fall on Gann.
When the numbers on the diagonal of Gann's square encounter magic numbers, they often have strong resistance or support. The numbers in the lower right corner of Gann Square are 1, 9, 25, 49, 8 1,1,169, 225...65438 +0, 3, 5, 7, 9 respectively.
The number minus 1 on the diagonal of the upper left corner of Gann Square is 4, 16, 36, 64, 100, 144, 169 ... 2, 4, 6, 8,/kloc-respectively.
(1) If a big upward trend starts from a certain price, it may end on the square of this price.
(2) If a big downward trend starts from a certain price, it may end at the square root of this price.