Treasury Square of Nine
Overview
There has long been an issue for U.S. Treasury Bond and Note traders that wanted to use the power of Gann’s square of 9 with the same ease that commodity and equity analysts have been able to do. The Treasury Square of 9 solves this issue of markets in 32nds or 64ths by using a formula developed by one of the foremost experts on Gann, Constance Brown of Aerodynamic Investments.
The Treasury Square of 9 indicator automatically converts the Treasury prices into the Gann Square of 9 and generates market ready price targets for the trader. The underlying steps of the tool will create the common denominator in 32nds or 64ths (the Base default is 32nds) and then subtract the Conversion number required by the Square of 9 Wheel. The formula will then convert the Square of 9 targets into the correct tradable units for T-Bond or T-Note markets and automatically draw the results on the chart.
The conversion default is set at 2000. This is the ideal conversion for charting Treasury Bonds in most intraday time horizons up to about 3 days. A conversion of 2000 uses the outer rings of the Wheel. Decreasing the conversion factor will read the angles from the rings closer to the centre of the Wheel. Decreasing the conversion will increase the range between the starting price and the 360-degree target. The formula will maintain the precise aspect ratios within the price target series. Keep modifications from the 2000 default to multiples of 2 in most cases for Treasuries. As example 1000 to widen the range or 4000 for very short intraday applications.
The formula can be applied to more than just the Treasury market because the Base and Conversion factors are user defined. By changing the Base default to 10 and the conversion to 300 (for example), you will have the formula as described for intraday SP500 futures trading found in the book “Technical Analysis for the Trading Professional” Second Edition.
Note: This tool requires at least the Gann Lite edition of Optuma, or the Gann tools add-on.
To add the tool to your chart, select the tool from the Brown tool group, and left-click on the bar on the chart you wish to calculate the tool from. Next, left-click Optuma will then draw the tool using the default settings. You can then left-click and drag the blue dot on the lines to extend them across your chart.
Actions & Properties
Actions
Add Price Alert: Selecting this action will set a Price Alert at the value the Horizontal Line is positioned.
Add to Toolbar: Adds the selected tool to your custom toolbar.
Apply Settings to All: When multiple Treasury Square of Nine tools have been applied to a chart, page or workbook, this action can be used to apply the settings of the one selected to other instances of the tool. This is a great time saver if an adjustment is made to the tool - such as line colour - as this allows all the other Treasury Square of Nine tools in the chart, page or entire workbook to be updated instantly.
Copy Tool: Allows you to copy the selected tool, which can then be pasted onto a different chart window.
Move to Back: If the tool is displaying in front of other tools or indicators clicking this action will move the tool view to the background.
Move to Front: If the tool is displaying behind other tools or indicators on the chart, clicking this action will bring the tool to the forefront.
Restore Default Settings: Click this action if you have adjusted the default settings of the tool, and wish to return to the standard properties originally installed with Optuma.
Save Settings as Default: If you have adjusted any of the tool’s properties (colour, for example) you can save the adjustments as your new default setting. Each time you apply a new Treasury Square of Nine to a chart, the tool will display using the new settings.
Delete: Deletes the tool from the chart.
Properties
Tool Name: Allows the name of the tool to be changed, as displayed in the Structure Panel.
Square of 9 Angles: Click on this option to display the different levels. To add a new angle to the chart, left-click on the blue + button and enter the values as needed. To delete a level left-click on the red x.
- Value - Sets the levels in degrees (e.g. 90 is 90 degrees around the Square of Nine chart). To change the value amount, click in the field and enter the new value.
- Line Style - Sets the line colour, style, width and transparency of the levels.
- Visible - To hide a level, deselect the check box with the green tick.
Conversion: The default conversion of 2000 will provide a range of targets ideal for one trader, but another trader may require a wider or narrower price range based on the time horizon of their trading. To change the price target from minimum to maximum range just adjust the conversion factor to suit your analysis preference.
Base: Sets the base value of the underlying chart used in the calculation of the Treasury Square of 9.
Revolutions: The number of 360-degree cycles around the Square of Nine Chart.
Factor: Multiplies the magnitude between the levels. For example, if starting the Treasury Square of Nine at 1 with a Factor of 1, the first 360-degree line will be drawn at 9. The difference between the starting point (1) and 9 is 8: changing the Factor to 2 will double this to 16 and added to the starting point will draw the 360-degree line at 17.
Extend Left: Check this box to extend the degree levels to the left.
Extend Right: Check this box to extend the degree levels to the right.
Show Prices: This provides an option to show or hide the price and degree values for each level.
Label Alignment: You can elect to display the labels in different positions in relation to the levels. There are 8 options available: Top Left, Top Right, Centre Top, Bottom Left, Bottom Right, Centre Bottom, Centre Left and Centre Right.
Font Size: Allows you to adjust the size of the text displayed for each label. Moving the slider bar to the right increases the font size.
Base Line Style: Allows you to adjust the style, width, colour and visibility of the horizontal and vertical base lines.
Tool Transparency: Use this slider bar to adjust the transparency of the tool. Moving the slider to the left will increase the transparency of the tool.
Visible: Un-tick this checkbox to hide the tool from the chart.