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I would suggest you know where they are, and if price sction and other evidence gives you reason to consider the divisions of a minor square, then this may be the frosting on the cake. But dont position on any one division in time or price without further evidenoe.

The important times to look for change in trend from price squares are at fifty percent in time of the square, as well as, the full square in time. Also, the fifty percent (180 degrees) in price level is very important. One of the best setups that oome from this work has to do with prioe moving into both fifty percent of a square in time and in price in the same time period. When the price of a stock falls from its high into that point where it is at 50 percent of the high or range in both price and time, it is a setup. You can look to buy with confidence. This setup does happen often even on monthly charts.

To draw a complete square on every chart for every major range, high and low would be confusing, and an extraordinary waste of time. All that you have to do to get the important divisions of the square of the high or a range is to draw the angles. A 45 degree angle is drawn down from the high, and a 45 degree angle drawn up from zero (for the square of the high), where they interseot is 50 percent price and time. The 2X1 angle from the high will give you 1/4 of the square in time when it crossed the 50 percent mark, and 1/2 the square when it hits zero. The 1X2 angle will give you twice the square of the second square when it hits zero.

Lets take a closer look at these squares, and see how Gann personally described their use.

The Square of 52

JJifi-square of 52 was developedfor use on weekly charts. In the materialstHat came with this text, i square of 104 which is two squares of 52. It has been my experience to not only place the square of 52 on all important highs and lows, but to also place it on the lows or highs which started a ninety day cycle. (Supplemental materials- S&P 500 weekly)

The following pages are an explanation of the square of 52 in Mr. Ganns own words:

�This Master Calculator shows Weekly Time Periods of 7 days each or a total of 52 weeks in one year. This represents 364 calendar days, therefore at the end of each year there is a gain of one day and at the end of 7 years a gain of 7 days, the time period coming out one week before the date of the important high and low prices. You must also add one day for each leap year. Suppose you want to get the time period for 15 years, you multiply 365 by 15, add the number of leap years and then divide the total by 7 to get the weekly periods of 7 days each in order to use the calculator.

The total square of 52 is 2704, which we can use to measure weeks, days, months, years or hours. In using days, it would, of

DIVISIONS OF TIME PBIIOOS

 1/8, which equals 6 13 weeks. 1/4, 90-92 1/3, 3/8, 135-138 1/2, 180-182 5/8, 225-227 2/3, « 3/4, 7/8, « 270-273 315-318

days

1 year, which is 52 weeks or 364 days

The angles run from each of the time periods for Price and Time in order to balance the Square and show resistance levels where price and time periods indicator a change in trend.

THIRD AND FOURTH DIMENSIONS OF TIME AND PRICE

We know of three dimensions, height, width and length, but there is a fourth dimension or element in market movements. We price the fourth dimension with the Master Calculator or Square of 52 in time periods of 7 days each for 7 weeks or more and the eame price relation. 7 X 52 equals 364 or 7 years.

THE CIRCLE, TRIANGLE AND SQUARE

The circle of 360 degrees and the nine digits are the basis of all mathematical calculations. The square and the triangle form

course, require 2704 days to pass through the square of 52. This would give 86 weeks and 2 days or approximately 7 years and 5 months, very close to the important cycle of 7 1/2 years, which is 90 months.

If we use hours to balance or square 2704, we get 112 2/3 days by dividing 2704 by 24, the total number of hours in a day during which time the earth makes one complete revolution on its axis.

The Square of 52, whioh is composed of 7 day periods, is one of the ffloet important for measuring price and time. The number 7 is referred to in the Bible more times than any other number, except the number 3. Both of these numbers are very important to use in connection with price and time changes.

You start time periods from the actual dates of important high and important low prices and not from the first day of each month or the first day of each year.

The Calculator is 104 weeks wide, which equals 2 years. The time periods run aoross the bottom of the Calculator from left to right to 104, which completes 2 years."

within the circle but there is an inner circle and an inner square, as well as an outer square and an outer circle which prove the fourth dimension in working out market movements.

PRICE

The most important points to consider are: the lowest price; highest price; the 1/2 point, mean or average between the extreme high and the extreme low. We get the fourth dimension, as shown on the Master Calculator, by drawing the 45 degree angle from the 1/2 point or gravity center, which is the most important for price resistance (Mr. Gann referred to resistance were we would use support or resistance); Volume of Sales. This ie the power which drives the market up or down but remember that TIME is completed, the volume of sales starts to move the market up or down.

TIME

Time is divided into sections or cycles by which we determine the change in trend. We use daily, weekly, monthly, and yearly high low prices. The weekly and the yearly time periods are most important for trend indications and for change in trend. The day is divided into hours, minutes and seconds. The 4 divisions of the day are: Sunrise, Noon, Sunset and Midnight. Of these the most important are noon, when the Sun is straight overhead or on a 90 degree angle, and Midnight, the opposite point or 180 degrees from Noon and 90 degrees from sunset.

Because we are using 7 day time periods with the calculator, 1/2 or the 7 days or 3 1/2 days is important to watch for change in trend. Always watch the 3rd and 4th day from any important high or low level for a minor change in trena which later may become a major change.

7-day periods--The time periods of 7 calendar days from any important high or low level is of great importance. 14 days is the most important and 21 days or three weeks is next in importance. Reactions will often end 2 weeks and sometimes 3 weeks and then resume the main trend. Rallies in a Bear Market often run 14 days and sometimes 21 days and then resume the downward or main trend.

Multiples of 7 days --The square of 7 or 49 days is very important for change in trend. You can start to watch for this change after the 42nd day but the first indication of a change may not occur until the 45th or 46th day, whioh is 1/8 of a year or 365 days. 1/16 of a year is 23 days, therefore, both the 46 day and 23 day periods are important to watch for change in trend.

YEARS

Later we will refer to the four seasons or the divisions of

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