The secret of Gann angles

Many clever traders used Gann angles tool because it allow them to identify their entry and exit levels for great profit potential.

By the fact of studying the past Gann based his investment strategy, so as he assumed that we can predict the future:

1. There are only three factors relevant to market movement which is: Time, price, and range.

2. He considered that markets are cyclical in their nature.

3. Gann considered that market also geometric in their function and design. He sees that the movements of the markets are a reflection of human nature and it is constant over the time.

Gann’s Techniques and use of angles:

Basing on the previous ideas, Gann used three ways to predict the behavior of the market:

1. Time study, by looking at historically reoccurring dates which are derived from natural order.

2. Price study, by using support, resistance lines, pivot points, and angles.

3. Pattern study, by studying swings of the market and trend lines in addition to the reversal patterns.

Gann Angles:

In order to use Gann angles you should practice a lot, and I will give you now the basics of what you need to do:

1. Determining the units of time- you should look at the distances in which the movements of price occur, and then study charts in order to be able to determine a time unit.

See how the angles perform by putting them in the test.

The intermediate time frame (3 months) is better than daily or multiyear, it tends to produce the accurate patterns amount and it is considered the best frame to focus on.

2. Determining the high or low from drawing the Gann lines-

You should use other technical tools like Fibonacci levels or pivot points in order to achieve the best way of the above.

Gann found vibrations or price wings by analyzing charts using tools like Fibonacci numbers.

After you did the previous things you should decide which pattern to use:

1. The 1*1, 1*2, 2*1 are most common patterns, and considered purely variations of the slope of the line.

So remember that these numbers indicate the numbers of the slope and the units, for example, 1*2 is half the slope of 1*1.

2. The main basic role for Gann is that markets are cyclical in their nature so look for repeat patterns on the charts, to be able to trade.

3. In order to trade you should look for patterns and the direction will be downward on right of the high point or the right of the low point.

So we can conclude that Gann angles are important for predicting support and resistance levels.

The best formation for Gann:

Gann Angles are nine which he was using them, and when the angle is 45 degrees, price move identically in synch to time and that is the optimum balance between time and price.

So the following angle will then provide the next level of support or resistance if one of these lines is broken.