The 1*2, 1*1, 2*1 are primary Gann angles, where the 1*1
means that the angle is moving in one unit of price for one unit of time, 1*2
means that the angle is moving in one unit of price for every two units of
time, 2*1 moves two units of price with one unit of time. So as the same
formula the angles can be 1*8, 1*4, 4*1, and 8*1.

So this type of analysis needs a proper chart scale, it is important.
Proper chart paper was important as well as a proper chart scale to Gann in
order to forecast technique because he wanted the markets to have a square
relationship.

If the chart is properly scaled, using degrees to draw the
angle will work, since Gann charts were square, so the 1*1 angle is often referred
as the 14- degree.

So we find that the angles not only show support and
resistance but also they give the analyst and the strength of the market a
clue.

So the market is balanced when trading on or slightly above
an uptrending 1*1 angle, while the market is a strong uptrend, when it is
trading or slightly above an uptrending 2*1 angle. So the trend is not as
strong when trading at or near the 1*2. And when looking at the market from the
top down, the strength of the market is reserved.

By the way anything in weak position when it is under the
1*1 angle.

Gann angles are used for Timing also:

Finally, important tops, bottoms and changes in trend are
forecasted by using Gann angles. So squaring is a mathematical technique and is
used to determine time zones when the market is likely to change direction. Thus
when the market has reached an equal unit of price and time up or down, the
main concept is to forecast the change in direction.

Note: the timing indicator works on longer term charts more
than short once such as monthly or weekly charts because daily charts have a
lot of tops, bottoms, and ranges to analyze.

Conclusion

Gann Angles are valuable tool for the traders and the
analysts and it is the key concept in which the past, present , future exist at
the same time to help the trader to analyze the market more accuracy.