How to use William Gann Indicators (Part 1):

Studies of Gann are important for professional trader, despite the changing of stock and the developing of trading ways, but it remains popular and essential method of analyzing.

It set necessary by Forex and ETFs to revisit some of the construction rules and explain concepts, although Gann angles and its basic construction are still the same.

Basic elements of Gann theory:

Gann angles are used to measure key elements like price, pattern and time so it is considered a trading tool and popular analysis. In Gann angles there are the past, the present and the future in the same time so it is the most debated subject of discussion among technical analysts.

The first thing should the trader do when he want to analysis or trade in a particular course is getting idea of where the market has been , and its relation to the former top or bottom , and how the trader should use the information to forecast future price action.

Gann angles versus trendlines:

Any professional trader should draw Gann angles in order to trade and forecast, and this way is considered the most popular analysis tool of Gann’s trading techniques available. With the development of ways of trading and technical analysis trader’s resorts to draw them manually on charts or use computerized technical to place them on screens.

There are different between Gann angles and trendlines, but few of traders do not feel the need to explore how and when and why to use them. As we know that a trendline is made by connecting tops to tops in the case of a downtrend and bottoms to bottoms in the case of an uptrend, while Gann angle is considered a diagonal line which moves at a uniform rate of speed.

So the benefit of using Gann angles comparing to trendline that allows the trader to forecast where the price is going to be at specific date in the future. So the analyst should know where Gann angles should be to gauge the strength and direction of the trend, so it is wrong to say think that Gann angle will always predict where the market will be. On the other side, trendline does not present long-term forecasts, although it has some predictive value according to the constant adjustments that it usually takes place, but it is unreliable.