Square of Nine
Square of Nine is The most popular financial trading tool from the legendary trader W.D.Gann is the Square of Nine. that book was created to bring together every known method for trading and forecasting the financial markets with the Square of Nine. If you are a Square of Nine beginner this book was written with you in mind. The book is written in simple language with many examples.
Square of Nine indicator describes in patrick mikula book which is name ” The Definitive Guide to Forecasting Using W. D. Gann’s Square of Nine “. Let see how we can use this tool in our trade system or trade analysis:
When you click on SQ9 Indicator for Attach it on Chart, you just Set Indicator Period which is 9 by default.
Figure 1: Indicator Setting:
Figure 2: SQ9 Indicator:
SQ9 Indicator give you 2 kind of signal to analysing chart and market:
- Zero Line
Let see How it Works:
- Zero Line Method
When SQ9 Cross the Zero Line and change its direction, We Have Buy or Sell Signal for Trading:
- SQ9 Cross the Zero Line and Goes Above The Line Which Means Buy Signal
- SQ9 Cross the Zero Line and Goes Below The Line Which Means Sell Signal
Here is an Example on AUD/JPY pair on Daily chart (Figure 3):
Divergence helps the trader recognize and react appropriately to a change in price action. It tells us something is changing and the trader must make a decision, such as tighten the stop-loss or take profit. Seeing divergence increases profitability by alerting the trader to protect profits.
Let See How SQ9 Shows You the Divergence:
EUR/USD pair on Daily chart (Figure 4):
EUR/JPY pair on Daily chart (Figure 5):
- SQ9 or RSI:
SQ9 is very similar to RSI indicator. In Figure Below, We Add SQ9 with 14 Period & RSI in 14 Period and then We Mark the Divergence Signal on Chart:
GBP/USD pair on Daily chart (Figure 6):
So, What’s The difference?
If you Look at on Chart Again, You can see some Divergence signal that RS can’t show or detect them but SQ9 shows you that. Lets have another look on GBP/USD chart again (Figure 7):
The red lines on chart shows you the Different between SQ9 and RSI. Here is Some Example:
EUR/AUD pair on Daily chart (Figure 8):
EUR/USD pair on Daily chart (Figure 9):
Hope You Enjoy It!