Gann angles, originally known as Geometric Angles, are some of the major tools used by W.D. Gann to profit from the market.
The angles can be used to:
- find support and resistance levels;
- analyze the strength and direction of trends;
- predict price reversals.
Gann angles are drawn from high or low points of a trend and are representations of time to price relationships.
There are 9 major Gann angles of various degrees, which represent fixed rates of speed of trends.
These angles are figured out as units of Time x Price (T x P), pronounced as Time By Price.
The 9 angles are:
1) 1 x 8 = 82.5 degrees
2) 1 x 4 = 75 degrees
3) 1 x 3 = 71.25 degrees
4) 1 x 2 = 63.75 degrees
5) 1 x 1 = 45 degrees
6) 2 x 1 = 26.25 degrees
7) 3 x 1 = 18.75 degrees
8) 4 x 1 = 15 degrees
9) 8 x 1 = 7.5 degrees
Gann angles offer best results when used in weekly charts.
They can be used in any time-scales but for accurate results traders should always keep the correct time by price proportions.
Gann angles provide significant market insights.
- High degrees of angles represent swift trends and low degrees represent small trends. Usually these trends are less reliable and less durable.
- During strong up-trends the price stays above a significant angle (1x2, 1x1 or 2x1). Similarly during a downtrend price stays below a significant angle.
- If one angle is penetrated (price reversal) the price tends to fall to the next less steep angle (e.g.: from 1x1 to 2x1).
- 1x1 is the single most important angle, which gives a 45 degree angle, showing a perfectly balanced trend (up or down). Whenever the price broke this angle a significant trend change is indicated.
- When Gann angles crosses a significant pivot point or other past angle then there is a higher change of trend changes.
More Info here
eTrader,
The angles can be used to:
- find support and resistance levels;
- analyze the strength and direction of trends;
- predict price reversals.
Gann angles are drawn from high or low points of a trend and are representations of time to price relationships.
There are 9 major Gann angles of various degrees, which represent fixed rates of speed of trends.
These angles are figured out as units of Time x Price (T x P), pronounced as Time By Price.
The 9 angles are:
1) 1 x 8 = 82.5 degrees
2) 1 x 4 = 75 degrees
3) 1 x 3 = 71.25 degrees
4) 1 x 2 = 63.75 degrees
5) 1 x 1 = 45 degrees
6) 2 x 1 = 26.25 degrees
7) 3 x 1 = 18.75 degrees
8) 4 x 1 = 15 degrees
9) 8 x 1 = 7.5 degrees
Gann angles offer best results when used in weekly charts.
They can be used in any time-scales but for accurate results traders should always keep the correct time by price proportions.
Gann angles provide significant market insights.
- High degrees of angles represent swift trends and low degrees represent small trends. Usually these trends are less reliable and less durable.
- During strong up-trends the price stays above a significant angle (1x2, 1x1 or 2x1). Similarly during a downtrend price stays below a significant angle.
- If one angle is penetrated (price reversal) the price tends to fall to the next less steep angle (e.g.: from 1x1 to 2x1).
- 1x1 is the single most important angle, which gives a 45 degree angle, showing a perfectly balanced trend (up or down). Whenever the price broke this angle a significant trend change is indicated.
- When Gann angles crosses a significant pivot point or other past angle then there is a higher change of trend changes.
More Info here
eTrader,