Using Counting Rods
Counting rods represent digits by the number of rods, and the perpendicular rod represents five. To avoid confusion, vertical and horizontal forms are alternately used. Generally, vertical rod numbers are used for the position for the units, hundreds, ten thousands, etc., while horizontal rod numbers are used for the tens, thousands, hundred thousands etc. Sun Tzu wrote that "one is vertical, ten is horizontal."
Red rods represent positive numbers and black rods represent negative numbers. Ancient Chinese clearly understood negative numbers and zero (leaving a blank space for it), though they had no symbol for the latter. The Nine Chapters on the Mathematical Art, which was mainly composed in the first century CE, stated "(when using subtraction) subtract same signed numbers, add different signed numbers, subtract a positive number from zero to make a negative number, and subtract a negative number from zero to make a positive number." Later, a go stone was sometimes used to represent 0.
This alternation of vertical and horizontal rod numeral form is very important to correctly understand written transcription of rod numerals on manuscripts. For instance, in Licheng suanjin, 81 was transcribed as, and 108 was transcribed as ; it is clear that the latter clearly had a blank zero on the "counting board" (i.e., floor or mat), even though on the written transcription, there was no blank. In the same manuscript, 405 was transcribed as, with a blank space in between for obvious reasons, and could in no way be interpreted as "45". In other words, transcribed rod numerals may not be positional, but on the counting board, they are positional. is an exact image of the counting rod number 405 on a table top or floor.
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