A new trend typically emerges at the point of "equilibrium," where the amount of price advance equals the amount of time consolidation or decline.

This is where "squaring" becomes literal.

If a stock’s range last week was $10 (high $50, low $40), you might expect a turning point 10 bars (hours, days, etc.) after the start of that range.

Traditional Gann 45-degree timing lines or custom angles derived from the chart's specific volatility are drawn from the pivots to find intersections of price and time. Practical Application and PDF Resources

Use the price range to define a time duration. For example, if a move covered 100 points, the "square" would suggest a potential reversal or significant event 100 bars later.

To use the Square the Range system, you need to identify four specific elements:

Identify a range with at least 3 clear touches on top and bottom. Draw a horizontal rectangle.

So, what are the benefits of using the Square the Range Trading System? Here are some advantages:

Michael S Jenkins - Square The Range Trading System 2012 - Scribd

The Square the Range system exploits the statistical fact that false breakouts (failed breakouts) occur 3x more often than true breakouts.

: Advanced practitioners use these to predict future price structures by "folding" past patterns into the future. Critical Resources & Reviews PDF Availability

To square a range, a trader identifies a specific price range—typically the distance between a significant high and low—and projects that distance into the future as a time measurement.