Understanding the Optional Mathematical Price-Reference Tool

The Gann Square of 9 module in AKMelytics – Market Intelligence provides additional mathematical price-reference levels on the chart.

It is designed as a supplemental tool for identifying areas that may be useful when reviewing:

• Support
• Resistance
• Target Lvl
• Risk Lvl
• Market structure
• Structure Fibonacci
• Potential reaction zones

The Gann module does not determine whether AKMelytics generates a Bull Transition, Bear Transition, Bullish Alignment or Bearish Alignment.

It operates separately from the main AKMelytics confirmation engine.

Think of it as:

An optional mathematical price-reference overlay

rather than:

A signal-generation engine.

---

Gann Is Disabled by Default

In the current AKMelytics configuration:

Show Gann Square of 9

is set to:

OFF

by default.

This is intentional.

AKMelytics can be fully used without displaying Gann levels.

Users who prefer a cleaner chart can simply leave the module disabled.

---

What AKMelytics Gann Displays

When enabled, the current implementation can display three primary price references around the market:

Upper Red Reference

Generally used as the nearest mathematical resistance reference above the surrounding Gann range.

Lower Red Reference

Generally used as the nearest mathematical support reference below the surrounding Gann range.

Blue Midpoint Reference

Calculated between the surrounding upper and lower red references.

The blue midpoint can dynamically be labelled either:

S1

or

R1

depending on whether current price is above or below that midpoint.

---

How AKMelytics Calculates the Gann Area

The implementation first converts the current price into a normalized working scale.

The scaling factor changes according to the price range of the instrument.

This allows the same calculation framework to work across instruments trading at very different nominal prices.

AKMelytics then searches its internally generated Gann sequence to locate:

• The nearest mathematical value below current price
• The nearest mathematical value above current price

These become the surrounding support and resistance references.

---

The Internal Gann Sequence

AKMelytics generates an internal sequence of mathematical Gann values.

The current script builds that sequence iteratively and then determines which two consecutive values surround the normalized current market price.

The lower surrounding value becomes the lower reference.

The upper surrounding value becomes the upper reference.

The midpoint between them becomes the blue reference.

---

Conceptual Structure

The Gann calculation can therefore be understood as:

Current Price

↓

Normalize Price Scale

↓

Locate Surrounding Gann Values

↓

Lower Mathematical Reference

Upper Mathematical Reference

↓

Calculate Midpoint

↓

Plot Support / Resistance References

This is the practical AKMelytics implementation.

---

Red Gann References

If:

On/Off Red Line

is enabled, AKMelytics draws the surrounding upper and lower mathematical levels.

The upper red line represents the current surrounding resistance reference.

The lower red line represents the current surrounding support reference.

When labels are enabled, the script marks them as:

R1

and

S1

respectively.

---

Blue Gann Reference

The blue line is calculated as the midpoint between the upper and lower red references.

Conceptually:

Blue Reference = (Support + Resistance) ÷ 2

The script then checks where current price is positioned relative to that midpoint.

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When Blue Is Labelled S1

If current price is above the blue midpoint, AKMelytics labels the blue reference:

S1

The interpretation is that the midpoint currently lies below price and is therefore displayed as a support-type reference.

---

When Blue Is Labelled R1

If current price is below the blue midpoint, AKMelytics labels it:

R1

The midpoint is above current price and is therefore displayed as a resistance-type reference.

---

Example — Price Above the Blue Level

Imagine the surrounding Gann references are:

Lower Red Reference: 95

Upper Red Reference: 105

The midpoint is:

100

If current price is:

102

then price is above the midpoint.

AKMelytics can therefore display:

Blue S1 = 100

with the upper red reference remaining a potential resistance reference.

---

Example — Price Below the Blue Level

Using the same surrounding references:

Lower = 95

Upper = 105

Blue midpoint = 100

Suppose price is:

98

Price is now below the midpoint.

The blue level is displayed as:

R1 = 100

This reflects the relationship between current price and the midpoint.

---

Important: Gann Does Not Predict Direction

The presence of:

R1

does not mean price must fall.

The presence of:

S1

does not mean price must rise.

These are mathematical chart references.

They should be interpreted alongside the wider AKMelytics framework.

---

Gann and Bullish Analysis

Suppose AKMelytics identifies:

• Bull Transition
• Positive AKM
• Bullish Market Flow
• Bullish BOS

The next Gann resistance reference may help identify an area where price could encounter an additional mathematical barrier.

For example:

Bull Transition at 100

Target Lvl at 108

Gann R1 at 107.50

The close proximity between Target Lvl and Gann R1 may make the area worth monitoring.

This is contextual confluence.

It does not guarantee a reaction.

---

Gann and Bearish Analysis

The same concept applies to Bear setups.

Suppose:

• Bear Transition occurs
• AKM is negative
• Market Flow is bearish
• Bearish BOS is confirmed

and AKMelytics shows:

Target Lvl at 82

Gann S1 at 81.80

The two independent references are close together.

That area may deserve additional attention when reviewing the bearish projection.

---

Gann vs Target Lvl

These two features use different calculations.

Target Lvl is calculated from the latest qualified directional event using ATR.

Gann references instead surround the current price mathematically.

---

Gann vs Structure Fibonacci

These features are also different.

Structure Fibonacci

Uses:

Previous confirmed market structure

and activates after:

CHoCH

Gann

Uses:

Current price

and an internally generated mathematical Gann sequence.

Structure Fibonacci is directional and structure-dependent.

Gann is not dependent on a CHoCH, BOS, Bull Transition or Bear Transition.

---

When Gann and Structure Fibonacci Align

Imagine a Bullish CHoCH activates a Structure Fibonacci projection.

One of the bullish Structure Fibonacci extensions is:

125.40

At the same time, the Gann upper resistance reference is:

125.70

Two separate analytical methods are identifying approximately the same price region.

This does not guarantee that price will reverse there.

However, it may identify an area worth monitoring more closely.

---

Multi-Layer Confluence Example

Suppose:

Bull Transition: Confirmed

Bullish BOS: Confirmed

Target Lvl: 120

Structure Fibonacci: 121

Gann R1: 120.60

Now three separate references are clustered around:

120–121

These derive from:

• Volatility
• Market structure
• Mathematical Gann pricing

This creates a technically interesting area.

But confluence still does not guarantee the market will stop or reverse there.

---

Gann and Risk Lvl

Gann can also provide additional context around Risk Lvl.

Suppose:

Bull signal reference = 100

Risk Lvl = 95

Gann lower support = 94.80

The proximity may provide additional technical context around that region.

However:

Risk Lvl should still be evaluated using:

• Position size
• Market structure
• Volatility
• Personal risk rules

Gann should not automatically replace your chosen risk method.

---

Gann and Market Structure

A Gann reference can become more meaningful when it is located near an existing swing level.

For example:

Previous swing high: 110

Gann resistance: 109.80

This creates two different references around approximately the same price.

Likewise:

Previous Higher Low: 95

Gann support: 95.20

can create additional technical context.

---

Gann and BOS

Suppose price approaches a Gann resistance level.

It then:

• Closes above the level
• Breaks a confirmed market-structure high
• Produces Bullish BOS
• Maintains positive AKM

The Gann resistance alone did not generate the setup.

The BOS and wider AKMelytics architecture provide the directional confirmation.

This is the preferred way to think about Gann inside AKMelytics.

---

Gann and CHoCH

A similar principle applies around CHoCH.

If:

• Price is near Gann resistance
• Bullish CHoCH occurs
• AKM improves
• Market Flow improves

the structural transition carries more information than simply observing that price crossed a Gann line.

---

Gann Settings

The current Gann Square of 9 settings include:

Show Gann Square of 9

Default:

OFF

Controls the entire Gann module.

---

On/Off Red Line

Default:

ON

Controls the surrounding upper and lower Gann references.

---

On/Off Blue Line

Default:

ON

Controls the midpoint reference.

---

On/Off Label

Default:

ON

Shows or hides:

R1

and

S1

labels.

---

Blue Line Color

Default:

Blue

Controls the midpoint colour.

Visual only.

---

Red Line Color

Default:

Red

Controls the surrounding upper/lower reference colour.

Visual only.

---

Extend Line Right

Default:

ON

When enabled, the Gann lines continue extending to the right of the chart.

---

Line Back Bars

Default:

20

Controls how far before the current candle the displayed Gann lines begin.

---

Line Forward Bars

Default:

20

Controls the visible forward section of the Gann line before any right-side extension is considered.

---

Gann Levels Recalculate With Current Price

The current implementation clears the previously drawn Gann objects and recalculates the relevant surrounding values on the latest chart state.

The calculation is performed on the last bar before the current references are redrawn.

This means Gann should be understood as a current price-reference overlay, rather than a fixed historical projection attached permanently to an old signal.

---

Why Gann Levels Can Change

As market price moves into another part of the internally generated Gann sequence, the nearest surrounding Gann references can change.

For example:

Price moves above the previous upper mathematical reference.

AKMelytics can then identify a new surrounding pair.

The previously displayed area may therefore be replaced by the new support/resistance references.

This is expected behaviour.

---

Gann Does Not Affect Bull Transition

This is particularly important.

Turning Gann:

ON

or

OFF

does not determine whether AKMelytics generates:

• Bull Transition
• Bear Transition
• Bullish Alignment
• Bearish Alignment
• Bullish Continuation

The primary directional engines operate independently.

---

Gann Does Not Affect AKM

AKM is calculated from the Adaptive Kernel Momentum engine.

Gann is not an input into:

• AKM slope
• AKM regression quality
• AKM acceleration
• Adaptive bandwidth

Therefore, a Gann level should not be interpreted as changing AKM momentum.

---

Gann Does Not Affect Market Flow

Likewise, Gann is not part of the Market Flow Ribbon calculation.

Market Flow uses components related to:

• Momentum
• CCI
• MFI
• Volatility
• Relative volume

The Gann module is separate from this calculation. The Market Flow formula is independently defined in the script.

---

Recommended Beginner Use

For users learning AKMelytics, I recommend initially leaving:

Gann Square of 9 = OFF

First learn:

• AKM
• Market Flow Ribbon
• Bull/Bear Transition
• Alignment
• BOS / CHoCH
• Target Lvl
• Risk Lvl

Then enable Gann once those core features are familiar.

This prevents unnecessary chart clutter.

---

Recommended Advanced Use

Once comfortable with AKMelytics, enable Gann when you want an additional mathematical reference around:

• Target Lvl
• Structure Fibonacci
• Swing highs
• Swing lows
• BOS breakout areas
• Potential reaction zones

The objective is not to let Gann override the rest of the analysis.

It should complement it.

---

Example — Bull Setup With Gann Confirmation

Suppose:

AKM:

Positive and strengthening

Market Flow:

Bullish

Structure:

Bullish BOS

Transition:

Bull

Target Lvl:

150

Gann R1:

149.60

The interpretation could be:

The bullish framework is aligned, while Target Lvl and the nearest Gann resistance are concentrated in approximately the same area.

This identifies a price region to monitor.

---

Example — Bull Setup With Immediate Gann Resistance

Suppose:

Bull Transition occurs at:

100

Target Lvl:

108

But Gann R1 sits at:

101

This suggests an immediate mathematical resistance reference exists very close to the transition.

The Bull Transition remains valid as an AKMelytics event.

However, the Gann level provides additional context when assessing nearby resistance.

---

Example — Bear Setup With Gann Support

Suppose:

Bear Transition:

100

Target Lvl:

90

Gann support:

92

Price may encounter the mathematical support reference before reaching the ATR Target Lvl.

This does not invalidate the Target.

It tells the trader that another technical reference lies along the path.

---

Example — Gann Level Breaks Cleanly

Suppose price reaches Gann resistance but:

• AKM remains strongly positive
• Market Flow remains bullish
• Volume participation remains strong
• Price closes above resistance
• Bullish BOS occurs

The Gann line should not automatically be treated as an exit.

The market has demonstrated evidence of continuation beyond that reference.

---

Example — Gann Level Produces a Reaction

Suppose price approaches Gann resistance.

At the same time:

• AKM weakens
• Market Flow becomes transitional
• Price fails to establish a new high
• Bearish CHoCH follows

The Gann level now forms part of a broader cluster of technical evidence.

The important information is not simply:

“Price touched Gann.”

It is:

Price reacted around a mathematical reference while momentum, flow and structure also deteriorated.

---

How to Analyse a Gann Reference

When price approaches a Gann level, ask:

1. What Is AKM Doing?

Strengthening or weakening?

2. What Is Market Flow Doing?

Bullish, transitional or bearish?

3. What Is the Structure?

HH/HL or LH/LL?

4. Is There BOS or CHoCH?

Has structure confirmed continuation or transition?

5. Where Is Target Lvl?

Is the ATR Target nearby?

6. Where Is Structure Fibonacci?

Does a structural projection also overlap?

7. How Does Price React?

Does price:

• Reject the level?
• Close through it?
• Consolidate around it?
• Retest it?

This provides far more information than simply trading a Gann line automatically.

---

Quick Reference

Upper Red Line

Nearest surrounding mathematical Gann resistance reference.

Lower Red Line

Nearest surrounding mathematical Gann support reference.

Blue Line

Midpoint between upper and lower references.

Blue S1

Displayed when current price is above the midpoint.

Blue R1

Displayed when current price is below the midpoint.

Gann ON/OFF

Does not affect core Bull/Bear qualification.

---

Gann vs Core AKMelytics Tools

Think of the hierarchy this way:

AKM

Momentum

Market Flow

Participation

Market Structure

Price behaviour

Bull / Bear Transition

Cycle change

Target / Risk

Trade planning

Structure Fibonacci

Structural projections

Gann

Supplementary mathematical price references

Gann sits toward the end of the analytical process.

It provides additional price context after the major directional questions have already been evaluated.

---

Common Gann Mistakes

Treating R1 as an Automatic Sell Level

R1 is a reference, not a guaranteed reversal.

---

Treating S1 as an Automatic Buy Level

Support references can fail.

---

Ignoring AKM

Strong momentum may carry price through a mathematical resistance level.

---

Ignoring Market Structure

BOS or CHoCH can provide more meaningful directional context than a standalone Gann level.

---

Assuming Gann Generates AKMelytics Signals

It does not.

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Using Too Many Overlays

Displaying:

• Gann
• Structure Fibonacci
• HH/HL/LH/LL
• BOS/CHoCH
• Target/Risk
• AKM line

simultaneously can create a crowded chart.

Only display the tools you actively use.

---

Suggested Clean Gann Layout

When studying Gann, consider displaying:

• Market Flow Ribbon
• MA1 / MA2
• Bull/Bear Transition
• BOS / CHoCH
• Target Lvl
• Risk Lvl
• Gann

and temporarily hide:

• HH/HL/LH/LL labels
• AKM Regression Line
• Structure Fibonacci

Then re-enable Structure Fibonacci when you specifically want to compare both projection systems.

---

Suggested Advanced Confluence Layout

For deeper analysis, use:

AKM

Market Flow

BOS / CHoCH

Target / Risk

Structure Fibonacci

Gann

The objective is to look for areas where independent forms of analysis converge.

---

Gann Workflow

A practical sequence is:

1. Determine Market Flow

↓

2. Read AKM

↓

3. Identify Market Structure

↓

4. Check Bull/Bear Transition

↓

5. Review Target Lvl & Risk Lvl

↓

6. Review Structure Fibonacci

↓

7. Enable Gann

↓

8. Compare Gann With Existing Price References

This keeps Gann in its proper role:

supplementary price context

rather than primary signal generation.

---

Key Takeaway

AKMelytics Gann Square of 9 should answer:

“Where are the nearest mathematical price-reference areas surrounding the current market?”

It should not answer:

“Should I buy or sell?”

The strongest use of Gann is to compare its support/resistance references with:

Market Structure + Target Lvl + Structure Fibonacci + AKM + Market Flow

When several independent references occur near the same price area, that region may deserve additional attention.

But no Gann level guarantees support, resistance, reversal or continuation.

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Next Guide

AKMelytics Relative Strength & Benchmark Guide

The next guide should explain one of the most important settings users can easily configure incorrectly:

• What the Benchmark Symbol does
• How Relative Strength is calculated
• Stock return vs benchmark return
• RS Momentum
• Leader
• Outperforming
• Positive
• Lagging
• Sector Rotation Score
• Choosing a benchmark for US stocks
• Choosing a benchmark for Bursa Malaysia
• Broad-market vs sector benchmarks
• Why the wrong benchmark can produce misleading context
• How Relative Strength interacts with the Market Intelligence Dashboard

→ Continue to: AKMelytics Relative Strength & Benchmark Guide

Previous Guide

← AKMelytics Multi-Timeframe Trend Guide

Educational Use & Risk Disclaimer

AKMelytics Gann Square of 9 levels are mathematical technical-analysis references intended for research and educational use.

Gann support, resistance and midpoint references do not predict or guarantee future market direction or price reactions.

The Gann module operates independently of the main AKMelytics Bull/Bear signal architecture and should not be interpreted as an instruction to enter, exit or maintain a position.

AKM, Market Flow, Bull/Bear Transition, BOS, CHoCH, Structure Fibonacci, Target Lvl and Risk Lvl can all fail to anticipate future market behaviour.

Trading and investing involve risk, including possible loss of capital. Users remain responsible for their own analysis, trade decisions, position sizing and risk management.