Bitcoin and Gann’s Square of Nine

Irealize that this column is meant to be focused on price analysis of the major cryptocurrencies, rather than on trading in general. But it is difficult to write a new article every day, particularly when not much has changed in the charts in the last 24 hours!
That is the case today. Bitcoin has recovered a little bit of the ground it lost, but not enough to have made any change in the chart. Ethereum is likewise virtually unchanged as well. So, I thought I would take a look at Gann’s Square of Nine and see if it can offer any insight into Support and Resistance on Bitcoin’s chart.
I realize Gann’s work, while the stuff of legends, is exceptionally difficult to understand. I don’t pretend to be a Gann expert. I know just enough about his methodologies to realize how very little I know. The Square of Nine is one such mystery. How could he have even have thought this up? Yet, despite the fact that it seems impossible, the square works often enough that it can’t be just a coincidence. What he did was created a large grid with the number 1 in the center, spiralling out from there increasing by 1. Imagine putting a pizza cutter on the diagram – centered on the central point – slicing the diagram into 8 perfect slices at 45 degree angles. Gann saw that by lining one of the lines on a significant price point, support and resistance could be found with surprising regularity on a 45 degree increment.
To illustrate, look at this square of 9:

This post was published at Crypto Coins News on 06/11/2016.