Gann Angles - a Unique and Effective Tool to Achieve Gains from Trade

William Dilbert Gann has developed a technical trading systems enabled him to achieve wealth exceeded fifty million dollars.

Gann was a legend in the world of trade and its place shows in life-size portrait of people see when entering the New York Stock Exchange.

Gann angles were one of the most effective tools so let's take a look at it and how it works?

Gann angles allow you to specify points or entry or exit levels thus enhancing the chances of achieving profits.

Let's take a look at how work of Gann angles.

Gann was adopted in his investment strategy on the fact that studying the past we can see the models that can be repeated in the future which is now evident in all technical regulations, but his vision was unique singled out how the emergence of these patterns

Gann methods adopted on the following:

1. Price, time and range of motion are the only factors related to market movements.

2. Markets is a natural cycles

3. Price movements done in a geometric manner, whether in design or function.

Gann-security market movements are not only a reflection of human nature, which remain constant over time, and then he studied the past we can predict the future.

The use of angles committees

Gann-three models used to predict the behavior of future price

1. Study of the price - and using support and resistance lines, pivot points and angles.

2. Study time - and given the dates that are repeated historically derived from the natural order that security committees in control in the movements of the market.

3. Study patterns - by examining trends and reflective models.

Using Gann angles required practice and experience and we will try below determine the basic things that any user must to Jean angles that puts them in mind.

First, determine the time units.

This method in determining the time units used in the study of graphs and consider the periods in which price movements appear strong.

Place the corners of the test and see how their performance.

Intermediate period of time (1-3 months) tend to produce the largest amount of models minute as longer time frame in which it is trading.

Second, trader needs to determine the shape of the top and bottom lines that will draw it using Gann lines.

Here you can use Fibonacci levels or pivot points to help draw an accurate picture. Gann then started looking at the "vibrations" or "hops-price"

Finally, you'll need to know what the model that you will use is:

The most common patterns is 1 x 1 and 1 x 2 and 2X, which differ among themselves clearly in decline line.

1 × 2 is half the decline in the 1 × 1.

Numbers simply refers to the number of units and the decline of the line.

Traders need to look at patterns of trade.

Gradient either direction will be down and on the right of the point of the summit or to the top and on the right if the bottom point.

Always look for repetitive patterns on the chart.

Gann theories rely on the idea of rotating in the nature of the market movement, and thus the greater the degree of ease of model observed greater the degree of probability of its ability to trade profitably.

Use Gann angles in profits in trade

Gann angles are a great performance to predict support and resistance levels.

Of course, there are a lot of methods of trading that uses support lines and risk Nonetheless, the angles committees have given a new dimension to it simply be tilted.

The best forms committees

Will indicate the balance between time and price.

This will happen when prices move in the form of a compromise with the times.

This will be located when the angle of committees that are being studied completely tilted by 45 degrees.

In total there are nine different angles committees can be applied.

While one is broken lines, the next corner will determine the area of support or resistance.

Gann-angles are not only one of the tools used to achieve wealth of trade, in addition to other tools such as the golden ratio and Fibonacci numbers- when all these elements are blending will have a trading method proven effective. Since the markets characterized patrol and affected human nature never change the ways of committees to remain in place until today and are used by many shrewd traders.

Gann made a fortune from Jean angles, and using the tools mentioned above, you can study ways more deeply to see if it will help you in trading.

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Hexagon

Hexagon is a form of a polygon which consists of six edges and six vertices. And 720◦ is the total of the internal angles of any hexagon.

The hexagon patterns are the most prevalent in the nature due the strong efficiency which they have, if we take on consideration their existence either in bees’ honeycombs or the Giant’s Causeway.

If we talk about hexagonal structures we find that each line in the hexagonal grid is short but in the same time it can be if a large area to fill with the fewest number of hexagons, this mean that it is required less wax by honeycombs to construct and gain lots of strength under compression.

All the internal angles of the regular hexagon are 120◦ and have the same length of all its sides.

It has six lines of symmetry, and the longest diagonals are twice of the length of one side, and which are connecting opposite vertices.

The regular hexagon can be divided into six equilateral triangles, so we can see as triangle with a vertex at the middle of regular hexagon. And the regular hexagon gives the strength and the large space and building materials.

The regular hexagons, like squares and equilateral triangles, fit together without making gaps in the tile of the plane, as well as the reason resides behind the hexagonal shapes of cells of a beehive and makes efficient use of space and building materials.

Although it is equilateral, but it is not considered a triambus:

The upper equation gives the area of a regular hexagon of side length T.

And there is another formula which considered alternative formula for the area where A= 1.5dt and in which the length d is the distance between the parallel sides in the regular hexagon.

The alternative formula and which known flat to flat distance for the area is:

We can find the area by the two formulas:

Any hexagon in the circle is a cyclic hexagon, where all the three main diagonals intersect in a single point.

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What is Gann Angles?

It is called Gann Angles after the death of William Delbert Gann who discovered it, and it is considered from one of the best theories in the 20th –century in the stock market.

William Gann used the angles theory in his trading and called them The Basis of My Forecasting Method, and it consists from 33 pages as a written course which Gann wrote it in 1935 to enable him from trading in the stock market.

So his ways and techniques in trading and the correct results of them make a lot of questions about those techniques.

In order to calculate a Gann angle is very simple way and it is equal to find the derivative of a single line on the chart.

Gann considers each angle a line extended into space, and it divides the time and the price into proportionate pieces.

The 45° angle is the most important one and Gann calls it the 1*1, because as he said that this angle represents one unit of the time and the same of the price.

The another angles, which comes in the second place of importance, is called 2*1 , which moves up two points in one day, and then 3*1, 4*1, and the 8*1 and 16*1 angle.

Gann Fan is the group of angles when they are drawn together in a group, and they may be drawn descending from price tops or ascending from price bottoms according to their description.

As with other kinds of technical analysis of stock price movements, the Gann angle model contradicts the weakest way of the efficient market hypothesis which states that past price movements are not used to forecast future price movements.

In the next article I will explain more about Gann angles theory and I hope you find useful information about this subject.

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