The strategy is one in which a buy signal gets generated when an index or a stock has the same value for both, open and low. Conversely, the sell signal is generated when the index or stock has the same value for both, open and high. For the intraday open high low strategy to work well, traders must trade in large quantities, for small targets. As a trader, you need to make a quick entry and swift exit to book profits. Note that it is challenging to manage the strategy since it involves a high risk-reward ratio.
Originally designed for the US Indexes, the Mechanical Method identifies a 2 to 4-day trend for its entries and exits. It is flexible, and can be used for shorter timeframes like intraday or intra-week. The real beauty of the Gann's Mechanical Method is that it is self-contained. It works independently of astro and numerology, because it captures a repeating short-term pattern inherent to equity markets. This ancient market pattern determines the trader's risk, reward, and money management.
The Moon takes 27.3 days to orbit Earth, but the lunar phase cycle (from new Moon to new Moon) is 29.5 days. The Moon spends the extra 2.2 days "catching up" because Earth travels about 45 million miles around the Sun during the time the Moon completes one orbit around Earth.
The square of nine or Gann Square is a method which squares price and time. The Gann square of nine gets its name because if you look at the above chart again, the number 9 represents the completion of the first square. The square of 9 is a spiral of numbers with an initial value “1” starting at the center.