Square of Nines levels... comparing ensign to Ninja Trader
Here are the ones generated by ensign (built in) which I (and many others) have found to be useful... the ones from the two Ninja custom indicators are different... I'm exploring how to get "good" ones... any comments would be welcome.
Pr, those are automatically generated from ensign... I've looked at the two offerings for NT in the NT forum and the values are not the same... since I've been watching ensign SON levels for over a year now in ES, I trust them, but I don't know how they are calculated.
The Square of Nine trading method, also known as Gann's pyramid, is a way of using geometry to forecast the moods of the market. The two variables at issue here are time and price. For instance, the most extreme market reactions that are typically seen, such as very high highs and low lows, appear to occur during weeks that are squares of odd numbers. Instructions
Difficulty: Moderately Challenging Things You'll Need
Trade stocks according to cyclic principles, geometric patterns and square roots if you want to beat the system--if W.D. Gann is to be believed, that is. Mr. Gann, the inventor of the Square of Nine principle, espoused this system about a century ago, and it's still going strong today, with software available to help you calculate the best time and price for your trades.
2 Step Two
Know that the Square of Nine theory puts time and price into a graphic representation and measures the angle between them. The theory is that, when the angle is at or close to 90 degrees, the stock will experience a major shift.
3 Step Three
Keep your eye on a stock or industry and watch for highs and lows for specific time periods, from days to months to years. Calculate angles between these "tipping points" and the next day's or week's prices. It's usually easiest and fastest to simply allow Gann software to make these calculations for you.
4 Step Four
Give the variables of time and price equal weight. This will allow you to see the relationship between them on a 1:1 scale, which is what's needed for angle calculations. It isn't the numbers that are important but the spatial relationships between the variables.
5 Step Five
Day trade your stocks, mutual finds, bonds, currencies or other commodities using this system by understanding when an angle is ascendant, when it is descendant and where the price is in relationship to these angles. The Square of Nine theory proposes that a stock price will continue to move in a certain direction within an angle until it breaks the angle.
6 Step Six
Know that this stock-trading theory uses past stock or commodity performance to predict future movement, which is something that many market pundits say isn't always viable. However, if you choose to day trade using the Square of Nine principles, know that Mr. Gann was firmly convinced of the cyclic nature of the market and the repetitive behaviors of both stocks and market players.
Tips & Warnings
Note the Square of Nine trading is one of the more advanced (and obscure) market forecasting techniques and is not the domain of the new-to-trading day trader.
Find a Gann Wheel at Gann Trading (see Resources below).
Know that some traders equate Square of Nine trading with astrology. Its principles have been called into question many times over the century that it's been in use.
I use the SON levels very simplistically... just another SR level to watch. Gann is a tad too esoteric for me and I think there is enough chart info to trade well without going into a deep study of it. I really have no opinion on whether they work because of the Gann theories or because enough traders pay attention to them... but it is clear to me that price reacts at those levels... I call it the SON dance... typically there is a clear reversal or at the very least bouncing around which forms a congestion area.
i know many who use ensign ad swear blind by the SON levels they provide, often an impulse move will stop and reverse there so they will exit or at least take one position off. the more i watch them the better they get!
I'm bringing these SON files into the mix in hopes that someone who has esignal can open them up and post the code...
Reason? because of the two NT indicators I have, one (SquareOfNine.cs) bogs down NT so much that it is nearly unusable without a very powerful system; the other (SquareOf9_V6.cs) doesn't display two of the line types (InputAngle000Color & InputAngle180Color) don't plot at all.. the latter doesn't appear to be such a hog, but I'm testing it early morning and the volume is light.
Square of Nine doesn't change for days at a time. It really doesn't need to be calculated more than once a day... twice at the most. So that's one aspect that "should" dial into the indicator optimization... I'm still getting a handle on NT indicator handling, but since NT does NOT have global variables, I assume that it wants to refigure each indicator on every bar... if that assumption is true, then there could be a test at the beginning of the procedure code that tests to see if it has already been calculated and simple load up the last value without recalculating it.
The other thing I'd be interested in is how it figures the "anchor" value. That forms the basis of the rest of the calculations. I noticed when I used to have both ensign and NT open at the same time that the lines were close but not exact. I suspect it is because the anchor value was not the same although I can't be sure. The SON code in ensign was built in so not accessible for viewing.
I'm attaching this here rather than in the Download area because it doesn't seem to be working correctly. However if the code is more efficient, it would be worth comparing to the "hog" (SquareOfNine,cs)
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