What it means
Squaring price and time means that a move has travelled as many price units as time units at a chosen scale: for example 8 points in 8 bars at 1 point per bar. Gann watched these points for possible turns.
It is the same balance idea as the 1×1 angle, seen as a box.
Why traders use it
If price and time are linked, a move that has "used up" equal amounts of both may pause or reverse. In practice it gives a time window to watch, not a price signal.
Chart examples
Eight points in eight bars
How to identify it objectively
- 1Choose a swing low or high and fix the scale.
- 2Count bars and price units from it.
- 3Mark where the two are equal (the square).
- 4Look for a price-based reversal near that point.
Bullish use
- 1After a decline squares in price and time, watch for a bullish reversal pattern.
Bearish use
- 1After a rally squares in price and time, watch for a bearish reversal pattern.
What confirms it
- A price-based reversal at the square.
- Other timing tools agree.
What invalidates it
- No reaction near the square.
- Scale changed after the fact.
How a hypothetical setup is built
Entry
Only on a price-based reversal close near the square.
Stop
Beyond the swing extreme.
Target
The start of the leg or the nearest level.
A hypothetical illustration of how the concept is turned into a plan, not a recommendation. Practise it on a paper account first.
Related concepts
Historical testing
Not tested on The Tradeskill.
Limitations: when it fails
- Entirely dependent on the scale.
- Coincidences are easy to find after the fact.
- Very little evidence of predictive value.
Knowledge check
Pick an answer to see the explanation. Nothing is saved.