It is from Gann's Square of 9 (Master Price and Time Calculator) that he derives
the Cardinal and Fixed numbers. These are points of support and
resistance for price and time.
A look at the spiral chart reveals a square with a blue circle around it. In the center of the square (circle) is the number 1. The numbers increase by 1 in a clockwise fashion around the center. Each time around the square (circle) is 1 cycle. Once around the circle is 360 degrees.
Another way to use the chart is to enter the security's low value in the "1" or center position. Again, the Square of 9 will increase by 1 in a clockwise fashion. Many times the term "static" is used when the number "1" is in the center position and "dynamic" when the low value is used for the center position.
There is a yellow row intersecting a yellow column in the middle of the square. They form a cross, called the Cardinal Cross. Those numbers that fall on the yellow cross, as the price moves around the spiral, are the Cardinal values. These values are:
C1 = 0 degrees
C2 = 90 degrees
c3 = 180 degrees
C4 = 270 degrees
The numbers falling on the diagonal blue lines are the Fixed Cross values. They can be thought of as Gann's 50% numbers. Many times momentum will carry the price beyond the Cardinal value to "bounce" or "bump" off of the fixed number. These values are:
F1 = 45 degrees
F2 = 135 degrees
F3 = 225 degrees
F4 = 315 degrees
The cycle is complete at F4. From F4 to C1 Gann called the dead zone. This is because oftentimes the price will retrace at this point. Gann said that many times after a 7/8 run, the price would reverse. The F4 is the 7/8 movement.
The cycle may be divided into eighths, as well as quarters. The additional diagonal lines represent these divisions.
Hopefully this will pique your interest to learn more about this interesting technique. There are many interesting things associated with the chart. An example of this would be the numbers following along the line that connects the center to the F4 point. These are the squares of the odd numbers. Can you find the even squares?
Another point of interest, not always as obvious..., the chart you are looking at, is a Pyramid! Can you see it?