The Geometric Principles Behind the Trading Strategies of WD Gann

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Many people know Mr. Gann’s famous trading methods, including the Gann Angles, the Square of Nine, Gann Wheels, and the Gann Box. But there’s more to his strategies than meets the eye—a Wealth of trading Knowledge lies beneath the surface.

The Unfolding of Geometry Theory of WD Gann

Gann didn’t see the Market as a Straight line. He saw it more like a pattern of Circles, Squares, and triangles, one inside the other. Probably, he applied Ancient Geometric Principles to Forecast future market movements.

Gann’s Geometric view of the Market holds significant importance.

Unfortunately, only a few students choose to pursue this topic further. That’s mainly because many Gann students take Gann’s Geometric work at face value.

For example, a Circle will maintain its meaning whether used Graphically, Numerically or in other ways.

The Circle, Square, and Triangle held inherent Geometric and Mathematical properties that could be applied and work well in the markets. Even Gann himself saw these shapes as representations of natural order and harmony.

Gann’s Geometrical approach lies in using shapes, how one uses and sees things that depend upon him, and, of course, on his imagination.

So, let’s take a closer look at the structure of Circle, Square, and Triangle.

Understanding Circle, Square, and Triangle

Shapes help us Understand the Market. By analyzing the Market from the perspective of Geometric shapes, we can better understand what might happen next.

It may seem strange at first. But behind the chaotic dance of Numbers and trends exists a Harmonious interplay of Geometric shapes that could help us to determine market movements.

Circles help us see patterns that repeat over time. Squares show us when the Market is in balance and might be about to change. Triangles can give us clues about which way the Market might be heading next.

However, we can combine the Circle, Square, and Triangle into a Single Unit through mathematics. That’s what Gann did through the Principle of Proportion.

Geometry Theory of WD Gann

Using the Principle of Proportion, we can divide the Circle into Halves, Thirds, Quarters, Eights or even further if needed.

Dividing a Circle (360-degree) into Halves (1/2) results in 180 degrees.

Dividing it into Thirds (1/3) gives 120 degrees.

Similarly, dividing it into Quarters (1/4) yields 90 degrees, while dividing it into Eight (1/8) gives us 45 degrees for each section.

Let me explain the correlation between a Circle, a Square, and a Triangle.

A Square consists of ‘Four‘ equal sides 90 degrees each, which makes it balanced.

Using a numerical representation, we see that the Triangle consists of ‘Three120 degrees each.

And as you know, a complete Circle consists of 360 degrees.

So, if we see the 90, 120 and 360 degrees in a Mathematical form, combine the Circle, Square, and Triangle into a Single Unit.

That may sound basic. But that is crucial. Understanding and using the Circle, Square, and Triangle as a Single Unit is critical to understanding Gann’s work. That sets the fundamental building block.

Geometry = Graphical

Another way Gann used Geometric concepts in his trading methods was through the graphic representation of geometric shapes. He used Circles, Squares, and Triangles to plot ‘Angles’ Vertically, Horizontally, and Diagonally.

Here’s an Important comment from WD Gann’s Commodity Master course regarding the Circle, Square, and Triangle.

The Primary and Core ideas remain the same: Circle, Square and Triangle. Therefore, a deep understanding of these shapes is necessary.

Some people like Gann’s Graphical Methods and Work, while others find it frustrating.

It’s famous because trading software companies just add overlay functionality to their software to please customers in the name of Gann.

However, software companies and their users forget that Gann’s Graphical work requires Proper ScalingA Balance between Price and time factor. The overlay does not yield results without scaling.

A Proper Balance between Price and time is necessary to yield results. The software’s overlay tools won’t deliver Precise results unless Scaling is done correctly.

That’s why Gann’s Graphic work can be frustrating. It’s difficult to determine the Correct Scaling of Price and time factor on charting websites or charting software(s), regardless of their cost.

Even if you invest in expensive charting software, it may not be helpful unless you can properly Scale your charts. So, think TWICE before spending your hard-earned money on expensive software(s).

Gann used a Geometric sequence of numbers to construct tables such as the Square of 9, 12, and 52. However, this still requires Scaling, but of a different nature.

The main question for users of these tables is when, where, and for what purpose they should be utilized.

Hint: I believe Gann used those tables Primarily for Long-term trading and
investment objectives rather than short-term ones.

To use the Gann Geometric methods without Scaling requires a core understanding of the Circle, Square and Triangle.

Summary: What’s the one thing you can do today?

You shouldn’t overlook the Geometric work of WD Gann if you want to decode and understand his trading methods since the Geometric work of Gann is highly important.

Pay close attention to Gann’s writing, where he used Geometric words like Circle, square and Triangle. That is the Key.

The only geometric figures Gann used in his trading were the circle, square, and triangle. Therefore, it’s essential to have a deep understanding of all three.

Take Your Trading to the Next Level with ‘Looking Ahead’

Here lies your Opportunity. ‘Looking Ahead‘ isn’t just Another course—it’s your Pathway to trading Mastery.

Looking Ahead‘ reveals the Master Secret for Predicting future highs and lows in Intraday trading. By delving into Natural laws and Ancient mathematics wisdom, you’ll gain the ability to recognize the Market’s shifts and changes. – Divesh

If you’d like to learn more about the “Looking Ahead” course, please email me at divesh@Gann-trade-secrets.com. I’ll be happy to provide you with all the details you need.

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About the author

Divesh Jotwani is an active and full-time trader in the Indian markets. He has spent over 20+ years researching and discovering WD Gann's methods and applying them daily in the markets.