W.D. Gann is known as the number one trader in history. Gann's success ratio is up to 90% and he achieved up to 4000% profit within a month. Gann developed technical analysis methods like the Gann angles, Square of Nine, Circle of 360, and many more. His theory is based on market forecasting using geometry, astronomy, astrology, and ancient mathematics.
According to Gann, if prices are moving up, they move from one odd square to the next odd square. For example:
1 to 9
9 to 25
25 to 49
If prices are moving down, they move from one odd square to the immediate previous odd square. For example:
169 to 121
121 to 81
81 to 49
Odd numbers and their squares:
1 – 1
3 – 9
5 – 25
7 – 49
9 – 81
11 – 121
13 – 169
When prices move from one odd square to the next odd square, they travel through stages called the "roadmap". For example, if prices move from 25 to 49, the roadmap would be:
25 – 0 degree
28 – 45 degree
31 – 90 degree
34 – 135 degree
37 – 180 degree
40 – 225 degree
43 – 270 degree
46 – 315 degree
49 – 360 degree
According to Gann, the following degrees act as the strongest support and resistance levels:
0 degrees
180 degrees
360 degrees
These Gann levels can be calculated using the closing price of a stock on a daily time frame.