**SQUARING THE PRICE RANGE WITH TIME**

Defend your price range over time

The square of price and time was one of Gann’s most important and valuable discoveries. He said that in the trading process, “if you strictly follow the rules and always pay attention to when price squares with time or when time and price converge, you will be able to predict major trend changes more accurately.”

Squaring a price with time means it moves up or down by the same number of points, balancing over the same number of periods, whether days, weeks or months. Gann advised traders to set a range, a low price and a high price.

**Square the range**

When a Gann angle is plotted within a range, the angle provides the trader with a graphical representation of the square of the range. For example, if a market has a range of 100 and a scale of 1 point, the Gann angle moving up from the bottom of the range by 1 point per period will reach the top of the range in 100 hours. During these periods, peaks, troughs, or trend changes are expected. This cycle repeats as long as the market stays within a range.

**Squaring a Low**

Squaring a low means an equal amount of time has passed since the low was formed. This occurs when a Gann angle moving up from a bottom reaches the time period equal to the low.

For example, if the low price is 100 and the scale is 1, then at the end of 100 time periods an uptrending Gann angle will reach the square of itself. Watch for a top, bottom, or change in trend at this point. The market will continue to square the low as long as the low holds.

A graphical representation of squaring a low price can be seen on a chart Gann called a zero-angle chart. This chart starts an uptrending angle from price 0 at the time the low occurred and brings it up at one unit per time period. When this angle reaches the original low price, a top, bottom, or change in trend is expected.

**Squaring a High**

Squaring a high means an equal amount of time has passed since the high was formed. This occurs when a Gann angle moving down from a top reaches the time period equal to the high. For example, if the high price is 500 and the scale is 5, then at the end of 100 time periods a downtrending Gann angle will reach the square of itself. Watch for a top, bottom, or change in trend at this point. The market will continue to square the high as long as the high holds.

A graphical representation of squaring a high price can be seen on a zero-angle chart. This chart starts an uptrending angle from price 0 at the time the high occurred and brings it up at one unit per time period. When this angle reaches the original high price, a top, bottom, or change in trend is expected.