Unlimited Squares Users Manual for the iPhone

Recent years have seen an explosion in the number of day traders who use the internet, electronic exchanges, and electronic trading platforms. In the midst of this, no effective and easy methodology has been developed for traders to use Gann's natural square of nine to take advantage of price swings on a daily basis. This manual is intended to help people use the square of nine more effectively through the Unlimited Squares iPhone application.

Setting the display The screen shot above shows the Unlimited Squares color-coded display and the settings used to generate that display. By putting in current information about the market, the Unlimited Squares color-coding can give you easy-to-see estimates of market movement. Adjust the settings as follows to get this easy-to-read analysis: The TARGET NUMBER should be the current market price, while the CENTER NUMBER is a market high or low chosen as the starting point for analysis. Each of these has a reset button that will return the value to 1. Because Unlimited Squares can handle very large numbers, it can provide information for some markets traditionally difficult to analyze this way, such as the Treasury Note and Bond prices. For markets like this, simply enter the straight digit price: for example, 117-08, which means 117 8/32, equals 117.25 and is entered as 11725. If the price has more than two decimal places, round it off: 117-04 equals 117.125, which is entered as 11712. If you prefer to use ticks

instead, you can also enter those: each tick is 1/32, so 117-08 becomes 3752 ticks. If you want to enter ticks and see the price expressed by the exchange, the Excel version of Unlimited Squares can display the price handle plus ticks in1/4, 1/8, 1/16, 1/32 and 1/64 because of its larger display area. The SKIP NUMBER adjusts the price sensitivity of the Unlimited Squares analysis. This is especially useful when working with a very volatile price. To adjust for price volatility, find the location of the current market price on the diagram. In the screen shot above, it is on the top side of the inner square. In order for the display to be meaningful, the difference between the two blue corners on either side of the current price must be approximately equal to the average true range of the market for the period you are interested in. If the price volatility is high, without setting a skip number, Unlimited Squares can only give you information about very small changes in price changes too small to be useful. Increasing the skip number essentially makes the Unlimited Squares display zoom out, or decrease the price sensitivity, until you reach the scale that shows the level of information you are interested in. For example, if you are displaying prices in cents, and the average true range of the market is about 32 cents, adjust the skip number so that the difference between the blue corners on either side of the current price is about 32 cents. Increasing the skip number will increase the difference between the corners, which decreases the price sensitivity (zoom out) and decreasing the skip number will decrease the difference between the two corners, which increases the price sensitivity (zoom in). The setting for DIRECTION controls whether the numerical progression of the display is positive (1) or negative (-1). Reading the display Now that you have the appropriate display, use the color coding to read off significant prices or times and the associated price actions expected. The color coding uses blue, yellow, red, and green to indicate different strength of points. Blue values are the maximum, minimum, and middle of the current range, and mark the corners and center of each side of the depicted ranges. Major support or resistance is often found at these prices. Historical testing of a particular market is important to understand which blue positions have the tendency to resist or support the most. In particular, the blue value found between two corner blues is particularly important: Traders need to pay attention to this number because the price can be rejected when it reaches this position for the first time. The range also helps predict future ranges: normally, the range will expand or contract by one half, to either 50% or 150% of its current size. Yellow values are found next to the blue corners. At these levels, a head fake often take place: if the market fails at this level, it is often followed by a sharp reversal. Similarly, the possibility of a price stall increases after the market makes a run-up to the yellow values.

Red values, just inside the yellow values, are much like yellows in that a change of direction may happen when these are reached. The distance that the market has traveled to reach the red value is important in anticipating whether it is about to run out of steam, or still has energy to keep going. When the market begins to move outside of the current range, or turn a corner on the square, the next red value reached on the outside of the square is often a point of major resistance, especially on the first attempt. If this point is surpassed, it may signal a critical breakout. Green values are located at the points of the current range determined by the Golden Mean, which is related to the Fibonacci series. Fibonacci numbers and retracements can be used to buy or sell at these points. Historical Example Here is an example of an Unlimited Squares display. The corresponding market movements are labeled on the following charts.

Advanced Topics Harmonic Analysis Because the Unlimited Squares program can display numbers in angles, the location of the angles of multiple data samples can be compared. For example, the major price level versus the number of days or weeks the market spent at the prominent highs or lows can be compared in angles. These angles are normally compared from the center of the square by reading clockwise. When these angles are separated by multiples of 45 degrees, they may signal a trend change. Setting a high or low price Since the theoretical current price range is found along one side of the square, between two blue corners, once the high or low price is known, you can use this price to match the nearest blue corner cell by adjusting the CENTER PRICE. This makes it easier to read the market range, price retracements and price extensions for the specified range using the color-coded values. Again, historical analysis can make you more comfortable with shifting price ranges in this way. Examining prices in greater or lesser detail If you are examining trading over a long time span, you may want to examine prices that cover a very large range of values. Aside from adjusting the SKIP NUMBER, you can change the way prices are displayed by entering only the first few digits of your CENTER PRICE and TARGET NUMBER. For example, if you day trade in the S&P 500, you may need to use 9910 instead of 991, which will give you a display expressing changes of only one-tenth of a point. This is another way of increasing the price sensitivity of the Unlimited Squares analysis. Conversely, a long-term trader might want to use 99 instead, indicating that he is only interested in changes of ten points or more, thus decreasing the price sensitivity. Adding a zero is equivalent to dividing the skip number by ten; removing the last digit is equivalent to multiplying the skip number by ten. Market Timing method - Squaring the range with time The legendary trader W.D. Gann devised many techniques to trade the trend as well as reversals. One of the reversal techniques is to look for a change in trend when the price high, price low or the range has squared out with time. For example, if the extreme high or low is 79, then when 79 units of time, in any units (calendar or trading hours, calendar or trading days, weeks, etc.) have passed from the time 79 was posted, a trend reversal may be expected. This technique is also applied to the price range. If the range you are examining is about 32 units (dollars, cents, ticks, etc.) then you may look for a trend change when 32 units of time have passed after an extreme high or low. The advantage of Unlimited Squares is that you can use the current spacing between the blue corners as if it is a known range, even when the market has not moved through the entire range yet. This enables the trader to estimate when to expect the next turn without completely knowing the previous high, low or the range as the base of the square out.

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