Gann angles are a tool used by many savvy traders Quite simply Gann angles allow you to pinpoint your entry and exit levels for great profit potential. Let’s look at the effectiveness of Gann angles.

Gann based his investment strategy on the fact that by studying the Past, We Can Predict the Future. He assumed the following:

1. Price, time, and range are the only three factors relevant to market movement.

2. Markets are cyclical in nature.

3. The markets are geometric in their design and in function. Gann knew that market movements were a reflection of human nature which is constant over time, and this shows up in repetitive price patterns that can be seen with the right tolls and traded for profit.

**Gann’s techniques & use of angles**

Based on the above, Gann's used three ways to predict market behavior

1. Price study– This uses support and resistance lines, as well as pivot points and angles.

2. Time study – This looks at historically reoccurring dates derived from natural order.

3. Pattern study – This studies market swings using trend lines and reversal patterns.

**Gann Angles**

Using Gann angles requires practice, but here are the basics of what you need to do

1. Determine the time units - The way to determine a time unit is to study charts and look at the distances in which price movements occur.

Put the angles to the test and see how they perform.

The intermediate time frame (between 1 and 3 months) tends to produce the best amount of accurate patterns and is the time frame to focus on, rather than say, daily or multi year.

2. Determine the high or low from which to draw the Gann lines –

The best way to achieve this is to complement it with other technical tolls such as Fibonacci levels or pivot points.

Gann looked at what he referred to as "vibrations" or "price swings." He found these by analyzing charts using tools such as Fibonacci numbers.

After the above has done you then need to decide which pattern to use:

Gann looked at what he referred to as "vibrations" or "price swings." He found these by analyzing charts using tools such as Fibonacci numbers.

After the above has done you then need to decide which pattern to use:

1. The two most common patterns are the 1x1, the 1x2, and the 2x1.

These are purely variations of the slope of the line.

For example, the 1x2 is half the slope of the 1x1. The numbers simply indicate the number of units and the slope.

2. Look for patterns to trade the direction will be either downward and to the right from a high point or upward and to the right from a low point.

3. Always look for repeat patterns on the charts The whole basis of Gann’ theories are that markets are cyclical in nature and patterns repeat and can be traded.

**Using Gann Angles for Trading Profits.**

Gann angles are great for predicting support and resistance levels.

Many other trading methods use support and resistance lines; however Gann angles add a greater insight for traders - in that they are diagonal.

**The best Gann Formation.**

The optimum balance between time and price is when prices move identically in synch to time. This is present when the Gann angle is at 45 degrees.

**There are nine different Gann angles to use.**

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

Gann made a lot of money, a fortune in fact of over 50 million dollars and Gann angles helped him to do it, so discover what they could do for you today!

http://www.gann.co.uk

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