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Gann Angles determine strength and weakness

Monday, 25 November 2013

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.


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.
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How to use William Gann Indicators (Part 2):

Sunday, 3 November 2013

When the trader uses Gann angles so he do that in order to forecast resistance and support so it is considered the most popular way he used. So he is going to trade when he when he determines the time period ( monthly , weekly, daily) so the trader is going to draw the three main Gann angles 1*2,1*1,2*1, from main bottoms and tops. And by this technique, the analyst can read the movement of the market inside this framework.
So from this framework we find that downtrending angles provide the resistance while the uptrending angles provide the support. And the trader is able to determine whether to bur or support or even sell at the resistance because he or she knows definitely where the angle is on the chart.
Rule of all angles means that traders note how the market rotates from angle to another one. And by this rule you should know that when the market breaks one angle, it will move towards the coming one.
There is another way to determine the support and resistance, by combining angles and the horizontal lines. for example , the combination will set up a key resistance point because downtrending angles will cross a % 50 retracement level, the same in this area which becomes a key support point because the uptrending angles will cross a %50 level.
And sometimes you will see many angles clustering near or at the same price, when you have a long –term chart, and they are price clusters, so the more important support or resistance by more angles clustering in a zone.
I hope you find some important information in Gann indicators I intent to divide Gann angles to three articles in order to understand it well.
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