Square 4 (box)

In terms of science, putting price and time zones on chart under W.D. Gann method is called “squaring”. The box can be built through squaring of both price and time. The best performing square is the square built according to Gann's arithmetic patterns. As per Gann methodology, box is a pattern chart.

Those charts are called pattern charts, because for building them Gann takes a certain size along X and Y, size of charts is closely connected with Gann cycles. The most popular pattern charts are “Square 4”, “Square 144” and “Square 360” a full cycle. The number in name of chart means the number of periods as per price and time. There are a few ways of building those charts.

Let's consider one of the ways of building “Square 4”, which is easily rebuilt into any of patterns by adding vertical or horizontal sectors based on cyclical form to get more pivot points for both price and time.

“Square 4” otherwise called box is built on two pivot points along price and time, by forming the first square in the box . The first square contains a full first cycle of price movement. Having the first cycle, you can easily calculate for the entire cycle. You should put from the first square three price and time zones equal to the first square by size. In the result, you will get “Square 4” consisting of 16 squares. Further, you need to build Gann angles, by diagonals it will be 1:1 angle (45) and then the rest ascending and descending Gann angles.

Squaring is required for a correct selection of scale and further building of Gann angles. In “Square 4” there are four price and time zones. The second and third zones along price and time are flat zones, where accumulation and distribution of bullish and bearish forces takes place, over that period, trading moves from angle to angle. The fourth zone is determining for further movement of price.

Upon leaving the range of square, price continues movement within the range of angles built on zones of that square, such a box can be used prior to ending of the first cycle additionally drawing prize and time zones equal to the first square. Now the price needs to go through two zones for reversal, because squaring took place and the second cycle amounts to 8 price and 8 time zones etc until the full cycle.

Also you can use crossings of 1:1 squares built from the next time zone with 1:4 and 4:1 angles in the square, it is a very strong level able to turn price.