A market can square price to time in several different ways. Price units in a trend equal time units in a trend. Base price equals time units to a new change in trend. Prior price range equals times units to a new change in trend. Prior time units equals next price range to a new change in trend.
Current price equals time units from a prior change in trend.
If you study Figure 5 carefully you will see an example of each of the methods Gann used to determine when a change in trend could eventuate. Gann placed extreme importance on squarings between price ranges, these could be retracement levels or alternating campaigns. The All Ordinaries Index between 1991 and 1994 is a perfect example of squarings between price ranges. See Figure - 6 . Range 2 is 2 times range 1.