HomeBlogGann Square of NineAngle Overlays

Angle Overlays

There are multiple ways we use additional tools with the Square of Nine. These tools are called overlays, and there are two famous overlays:

  • Angle overlays.
  • Shape overlays.

In the previous sections, We have use overlay of protractor, Chronometer and Cosmogram already.

Think of it like this: imagine we have a clear sheet that we can draw lines on. In the above picture, we’ve drawn lines to show angles that are important. These angles are like pathways on a map. They’re fixed angles on the Square of Nine, which is like our map.

Now, we can take that clear sheet with the lines and place it on top of the Square of Nine. We can turn it around and move it. The lines on the clear sheet line up with certain numbers on the Square of Nine that are 45 degrees apart. It’s like matching up landmarks on a map.

When we rotate the clear sheet, we can see those special numbers on the Square of Nine from different starting points. This clear sheet becomes a moveable tool that helps us understand where these important numbers are. On this clear sheet, there’s a bolder line at 0 degrees.

It’s like a big road on our map. Each line on this sheet is like a path, and we give them names based on how many degrees they’re from that big road.

For instance, the line directly across from the big road is the 180-degree line. There are also lines at 45 degrees away from the big road, called the 45-degree angle and the 315-degree angle. And there are lines at 90 degrees away, called the 90-degree angle and the 270-degree angle.

Apart from the overlay of 45 degree which was used by W.D Gann, here is another image that shows overlay with an angle every 60 degree.

So, by using this special clear sheet and turning it around on the Square of Nine, we can find these important numbers using these angles. It’s like using a special compass on a treasure map to discover hidden spots.

The overlay shown in image below is a unique tool that was employed by W.D. Gann. This particular overlay features the 180-degree angle, along with two additional angles situated at a distance of 144 degrees from the 0-degree angle. These two angles are marked as 144 and 216.

Fibonacci and Fibonacci Extension Angle Overlay

Fibonacci retracement levels establish connections between two chosen points that a trader considers significant, often a peak and a trough.

  • These percentage levels indicate zones where the price might pause or potentially change direction.
  • The frequently employed ratios encompass 23.6%, 38.2%, 50%, 61.8%, and 78.6%.
  • However, it’s crucial not to solely depend on these levels. It’s risky to assume that the price will invariably reverse upon reaching a particular Fibonacci level.

In the above image, the angles with Fibonacci levels are plotted as an Angle Overlay.

Interestingly, Fibonacci numbers and sequences were employed by Indian mathematicians many centuries before the time of Leonardo Fibonacci.

Fibonacci extensions serve as a technique that traders can employ to set potential profit goals or gauge the potential distance a price might cover once a temporary setback has concluded. These extension levels can also suggest zones where price reversals might occur.

  • Fibonacci extensions essentially indicate the potential scope of the next price movement that follows a temporary pullback.
  • Using well-known Fibonacci ratios, the typical Fibonacci extension levels encompass 61.8%, 100%, 161.8%, 200%, and 261.8%.
  • While extension levels offer insights into potential significant points, it’s important not to solely depend on them as a sole strategy.

As depicted in the image, the application of Fibonacci Numbers as an angle overlay has gained widespread popularity in recent times.

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