As I understand it a Gann square is basically a natural cycle represented by an overlay in the shape of the square,whose geometrical divisions represent potential support and resistance.144 is one such natural square that Gann is known to have used a lot,being the square of 12, but other numbers can be used like 45,90,180,360 or multiples thereof (based on the cycle of a year which is 360 degrees in Gann theory) .Numbers peculiar to an individual market based on its own trading history may also be used.The theory is that at the end of the square,when price and time are equal or in equilibrium the market is perfectly balanced and a change in trend will often occur.
Marks & Spencer had resistance at 400 based on a doubling of the low at 200 and a 38% retracement of the major range.The Elliot wave pattern also suggested a top.
The square of 144 overlay also suggested an imminent turning point as previous divisions had produced support and resistance (I have marked some with circles,such as the high around 385 which was the midpoint in time (72 days) and 75% in price (108 points).When the stock reached the end of the square (144 days) it fell sharply,gapping down, having just failed to reach the top of the square.
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