What is the â€śGann Octave approachâ€ť ? to use the expression of David.

Originally and basically The Gann Octave approach is the division by 8 of an interval.

A Time Interval with a Vertical Line - another VTL - Vertical Time Line

A Price Interval with an Horizontal Line

A Diagonal Line which describes Speed and Acceleration

That what you can see on a Gann â€śSquareâ€ť on a Graph â€śĂ la Gannâ€ť

That is what I call Gann version 1.0.

In that case you measure the price interval between a Low and a Top and you divide the result by 8.

You can draw these Horizontal Lines on whatever graph you use.

If you really want to use the Gann Method you need to take into account the TIME FACTOR.

Your Time parameters have to be a multiple of 8 to build the Gann Square.

Gann wrote that TIME is the most important parameter because for him whem TIME and PRICE meet, it is where there is a high probabilty for change, for Directional Change.

Gann uses the expression â€śsquaresâ€ť ; Time and Price are â€śsquaringâ€ť (balanced ) when they meet on the famous 45Â° "AngleÂ°.

The famous â€ś45Â° Angleâ€ť is liberaly used with plain stupidity by most (IMHO) ! Price and Time make a â€śSquareâ€ť ONLY if you tell them to draw such a square.

Your computer screen is not a square, but a quadrilater. If you use a Protractor the so-called 45Â° angle is a 22.5Â° angle !

The correct description is a (1x1) Angle = 1 Time Unit x 1 Price Unit. This Diagonal Line is ALSO a Moving Average.

Gann used more the term â€śMoving Averageâ€ť when Moving Averages became popular at the beginning of the 50â€™s.

Gann used mainly the expression 45Â° Angle to describe the (1x1) Angle because it is more visually descriptive AND because Gann and his followers used at the time, paper, ruler and pencils to build a graph looking as a Square. But Gann very often underlined the fact that it was a 1 Price Unit x 1 Time Unit Angle.

Even now the â€śdegradedâ€ť version of the 45Â° Angle you see in numerous software packagesis useful to compare and analyze Speed and Acceleration of a financial support on such a graph.

But this way you structurally can not determine WHEN Price and Time â€śsquaresâ€ť ie when and where a high probality of a Directional Change could occur.