The Hidden Blueprint: How the Square of 9 and Rising Wedges Unmask Market Secrets

Why Most Traders Overlook These Two Power Tools (And How You Can Exploit Them)

Some traders rely on candlestick patterns, others swear by Fibonacci levels, but the real game-changers? The Square of 9 and the Rising Wedge. These two hidden gems in Forex trading have the potential to flip your losses into gains—if you know how to use them right.

The problem? Most traders treat them like an IKEA manual—glance at them, get confused, and proceed to assemble a financial disaster. But today, we’re breaking it down into actionable, money-making insights.

The Square of 9: A Mysterious Yet Powerful Trading Tool

What Is the Square of 9?

Invented by W.D. Gann, the Square of 9 is often dismissed as financial sorcery. But here’s the real secret: it’s a geometric forecasting tool that helps traders identify turning points in the market with eerie accuracy. Think of it as the Google Maps for price movements—it tells you where the market is likely to turn based on a mathematical spiral.

How Does It Work?

The Square of 9 operates based on square roots, angles, and cycles of time. The core idea? Price moves in predictable spirals.

Here’s a simple way to use it:

1. Find the Key Price Level: Take a recent market high or low.
2. Calculate the Square Root: Find its square root, then add/subtract key angles (like 90°, 180°) to project future price levels.
3. Look for Confluence: Check if these projected levels align with support/resistance zones or Fibonacci retracements.

Real-World Example:

Let’s say EUR/USD is hovering around 1.0675, and you calculate a 90° move using the Square of 9. It predicts resistance at 1.0730—which just so happens to align with a Fibonacci retracement and a past supply zone. That’s your signal.

???? Pro Tip: Combine the Square of 9 with trendline breaks for insane accuracy.

The Rising Wedge: A Sneaky Reversal Pattern You Should Fear (or Exploit)

What Is a Rising Wedge?

A rising wedge is the classic case of “it looks bullish, but it’s actually a trap.” It forms when price makes higher highs and higher lows, but the slope of the highs is weaker than the slope of the lows. In plain English: buyers are losing steam.

Why It Works:

1. Volume Tells the Story: As price moves higher inside a wedge, volume decreases—a major red flag.
2. Fake Breakouts Are Common: Many traders jump in expecting a breakout, only to see the price plummet right after.
3. Smart Money Uses It Against You: Institutions use rising wedges to trap retail traders into long positions before dumping.

How to Trade It:

1. Identify the Wedge: Look for narrowing price action making higher highs and higher lows.
2. Check Volume: If volume drops as price moves higher, the pattern is valid.
3. Wait for the Breakout: Enter a short trade when price breaks below the lower trendline.
4. Set Your Targets: The first target is the previous swing low, and the second is a Fibonacci extension.

???? Pro Tip: If a rising wedge forms near a Square of 9 resistance level, you have a sniper entry for a high-probability short.

The Secret Sauce: Combining the Square of 9 with the Rising Wedge

You might be wondering, “What happens if I combine these?” You get an edge that 99% of traders don’t even know exists.

Here’s the Playbook:

1. Use the Square of 9 to identify hidden resistance levels.
2. Look for a Rising Wedge forming near that resistance.
3. Check Volume—it should be declining.
4. Enter a Short Trade the moment price breaks below the wedge’s lower trendline.
5. Place Stop Above the Wedge and Target Previous Swing Low.

Case Study: EUR/USD Collapse in 2023

In June 2023, EUR/USD formed a rising wedge right at a Square of 9 resistance level. Volume was declining, and the market was heavily bullish—classic trap setup. Within days, the pair dropped 300 pips, handing traders a massive payday.

Final Takeaways: Your Elite Playbook

✅ Use the Square of 9 to identify key levels where price will likely reverse.

✅ Recognize Rising Wedges as traps and short them with confidence.

✅ Combine Both Methods for sniper entries that outsmart the market.

✅ Follow Smart Money—they use these exact strategies to profit.

✅ Never trade without volume confirmation—it’s your ultimate clue.

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Image Credits: Cover image at the top is AI-generated