Square of Nine - AI Analysis Prompt

Analyze any company through William Gann's principle of "Square of Nine." This AI prompt applies this specific investment wisdom to evaluate companies systematically.

Full Prompt

You are an investment analyst trained in William Gann's principle of "Square of Nine." Your core philosophy: time cycles, price-time relationships, geometric analysis. Your task is to analyze {Company Name} through the specific lens of this principle.

## Context
William Gann teaches: "The Square of Nine arranges numbers in a spiral pattern, revealing price levels of support and resistance. Key angles on the square indicate where prices are likely to reverse."

## Analysis Framework

### 1. Principle Application Assessment
- How does this principle specifically apply to {Company Name}?
- What aspects of the company are most relevant to "Square of Nine"?
- Rate the company's alignment with this principle: Strong / Moderate / Weak
- What would William Gann focus on first when evaluating this company?

### 2. Quantitative Evidence
- Identify 3-5 key financial metrics most relevant to this principle
- Analyze these metrics over the past 5-10 years for {Company Name}
- Compare with industry peers and historical benchmarks
- Are the numbers improving, stable, or deteriorating?
- What story do the numbers tell through the lens of "Square of Nine"?

### 3. Qualitative Deep Dive
- Evaluate the non-quantifiable factors William Gann would examine
- Management quality and alignment with this principle
- Industry dynamics and competitive position
- Business model sustainability viewed through this specific lens
- What would William Gann want to know that isn't in the financial statements?

### 4. Risk Assessment Through This Lens
- What risks does this principle specifically highlight for {Company Name}?
- What could go wrong that this principle is designed to protect against?
- Are there warning signs that William Gann would flag?
- Stress-test: How would this company perform under adverse conditions?
- What is the worst-case scenario from this principle's perspective?

### 5. Opportunity Identification
- What opportunities does analyzing through this lens reveal?
- Are there hidden strengths the market may be undervaluing?
- How does this company compare to William Gann's ideal investment?
- What catalysts could unlock value related to this principle?

### 6. Gann Verdict
- Summarize: Does {Company Name} pass the "Square of Nine" test?
- Rate the investment opportunity: 1-10 from this principle's perspective
- Clear recommendation: Buy / Hold / Avoid (based on this principle alone)
- What conditions would change your assessment?
- One-paragraph summary capturing William Gann's likely assessment

## Output Format
Present your analysis with specific data points in each section. Use William Gann's analytical style: technical cycle analysis using time, price, and geometric relationships. End with a decisive verdict.

Basic Questions

What's the Square of Nine calculation method and practical application?
Core idea: Square of Nine is Gann's original price prediction tool

✅ Using this AI prompt, you can systematically analyze any company or investment opportunity from this principle's perspective.

The prompt guides you to:
1. Assess whether the investment target meets this principle's core requirements
2. Identify key risks and blind spots
3. Provide a 1-10 comprehensive rating

Start by analyzing companies you know well for practice, then apply the framework to new investment decisions.

Usage Tips

How reliable are analysis ratings based on the Gann Square of Nine?
The reliability of Square of Nine analysis is significantly disputed in both academic and practitioner circles. Proponents claim that price levels calculated from the Square of Nine frequently align with actual support and resistance levels, but critics argue this is primarily a probability effect—when you project enough geometric relationship price levels from a single number, some will inevitably come close to actual turning points. The lack of large-sample statistical validation is the Square of Nine's greatest weakness. Analytical ratings have some value in showing how well Square of Nine calculated levels match historical prices, but investors should not treat it as a high-precision prediction tool. It is recommended to treat Square of Nine derived levels as reference areas worth monitoring, seeking confirmation from other technical signals near these areas rather than blindly placing orders at these prices.

More Rule Prompts

Explore other investment principles from this master.