The Roots Of Periodicity by Richard J. Johnson
Squaring The Squiggles
It may seem ancient, it may seem complex; but it works and it’s simple. Here’s a look at how to analyze the markets using an insight gleaned from thinking about W.D. Gann’s squaring of price and time technique.
Legendary trader, mystic, and early market technician W.D. Gann frequently stated that one of the secrets to analyzing the markets was the squaring of price and time. What he meant by this has flummoxed technicians for decades. While there are some who offer this or that theory to answer for the mystery, no one today is certain what he really meant.
WILL WE EVER KNOW?
I offer no answer either. But thinking about it has encouraged me to slide over into a different angle of the issue, and, distinct from what Gann was probably thinking, propose that we can indeed kind of square price and time. I will do this by using the price to assign periodicity for the lookback periods utilized in two common indicators.