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What is Gann Angles?

Thursday, 6 June 2013
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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