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If you trade Apple you want to see the video and find out what what Adam Hewison has to say about the immediate prospects for AAPL, and what he has to say about Apple’s secret weapon that will likely keep the company and the stock out in front of the market for some time to come.

The square of nine is unique and not like any other method of technical analysis or stock trading tool you’ve ever seen before. This is a contemporary chart of the S&P 500. We can say from the extra information on this chart that the magnitude of the March 14 to July 13 swing squared with the time in the swing that ended at the August 16 low. To understand that and appreciate how this could change your swing trading strategy you have to make the same intellectual journey that Gann did, and that journey started 2500 years ago in ancient Greece.

To understand Gann you have to understand Pythagoras and the tremendous influence he had on how the ancients and the moderns understand the nature of things. Pythagoras believed that everything in the universe was related to mathematics, and that numbers were the ultimate reality. Through mathematics everything, including human behavior, could be measured in rhythmic patterns or cycles and predicted. You can understand the allure of Pythagoras to somebody embarking on a 10 year quest to understand everything known and unknown about trading stocks and commodities. Pythagoras also believed in something called the harmony of the spheres. He believed that the planets and stars moved according to mathematical equations which correspond to musical notes, and thus produce a symphony that he called the harmony of the spheres. Many believe that Gann’s work has an astrological basis but I think you will find that even that conviction is really based on mathematics. I believe the more original Gann you read, the more Pythagoras you will hear. In addition, much of what comes to us as Gann’s writing is intentionally obscure and sometimes even misleading. Here too Gann follows an ancient tradition that knowledge must be earned and not come too easily lest it not be appreciated.

People of the ancient world were well-traveled and Pythagoras drew heavily from ancient Egyptian, Hebrew, and Indian tradition as much as he contributed to them. Gann, in turn, draws from Biblical numerology which places special importance on certain numbers. One of the derivatives off Pythagoras’ work is what we know today as sacred geometry. The underlying belief of the sacred geometry is that geometry and mathematical ratios, harmonics, and proportionality are the basis of music, light, cosmology and all other observable features of the universe. To understand the square of nine, and I think to understand all of Gann’s other work, you have to appreciate his appreciation of the ancient philosophy of harmony through numbers.

Gann is reputed to have had a model of the Great Pyramid of Giza on his desktop and if you go through this visualization I think you may understand why. This is a two dimensional version of the Square of Nine, what you know as a Gann Wheel. It’s a rectangle with four corners. If you could put your fingers on the number one in the center, pinch the number one and pull the screen out toward you, you would eventually end up with this shape, a pyramid, with the number one, unity, at the top and all the other numbers winding around the pyramid in increasing dimension. With this visualization, you can easily understand how a number on the South face of the pyramid would have a very definite spatial relationship with a number on the North face, and in the same way a number on the West face would have a very definite spatial relationship with a number on the East face, and so on. So we believe, that the key concept of the Square of Nine is the spatial relationship between the numbers on the square even though we only can see them in a two-dimensional form.

And, we’re back to the chart of the S&P 500. This has been a quick journey through time and hopefully you’ve seen how an ancient mathematician, an ancient mystic mathematician who believed that everything in nature could be predicted and measured in rhythmic patterns and cycles led to a more modern mystic mathematician who devised this thing called the Square of Nine so that by looking at a price chart we can see how the past relates to the present and the future.

The square of nine is intriguing. It’s a mysterious adventure in perception if nothing else - and it is not for everybody.

Watch the Square of Nine Concepts Video

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