Gann Angles

[M.A 10]

Gann angles were developed by WD Gann who is known to be a very successful trader with advance mathematical and analysis skills. Gann angles is an important indicator which is very simple to use once u understand its working. BUT he never used "single" indicator as a full trading system. So you must understand that Gann angles is an indicator, and not a trading system, which can be very helpful if u know how to use it and when to use it.

 

To make it easier for u to understand, I will divide it into 2 parts.

Images r attached so that u can understand it in a better way

1- Logic behind Gann Angles

• Gann was of the view that market behavior is cyclical. It doesnt mean that exactly same behavior is repeated but it is their nature which repeats. This view is of all traders who use support and resistance levels in one way or other.
  
• Second major logic behind Gann angles is that only time, price and range are relevant when analyzing market.
  

Conclusion of both of these points is :- "Market reflects human nature and human nature never changes:rofl:."

2- Gann Angles

These r angles formed from a given point. These angles r formed on a time vs price chart (Trading charts r time vs price).

These angles tell us trend and support/resistance levels. Gann angles consist of a set of 9 angles formed by 9 relationships between time and price.

1 unit of time vs 1 unit of price = 45 degree angle which shows ideal movement. Price moving at 45 degree angle will be following an ideal movement according to Gann.

Bullish angles will be when price rises. For example when 2 units of price rise vs 1 unit of time, it will form 63.75 angle.

Dont sleep plz and dun think that explaining angle is not necessary. It is really important to understand why angles or formed. For example u should know what does a specific degree angle means. If a price is moving at a higher degree it means market is bullish. Similarly if price is moving at lower degree is means market is bearish. Angles represent the strength of bullish or bearish trend.

 

Ideal angle = 1 x 1 = 45 deg

Bullish angles = 1 x 8 (82.5 deg), 1 x 4 (75 deg), 1 x 3 (71.25 deg), (1 x 2 = 63.75 deg)

Bearish angles = 2 x 1 (26.25 deg), (3 x 1 = 18.75 deg). (4 x 1 = 15 deg), (8 x 1 = 7.5 deg)

 

How to draw them?

Now here is a little analysis that u have to perform before u draw them. You have to judge low or high point on trading chart from where u can draw these angles.

 

Isnt it easier to understand? I hope everything is clear upto this point.

I said in the start that it is also useful to identify support and resistance levels. HOW?

Lets say price is moving between 45 and 63.75 angles. It means at this time these two angles r providing support and resistance levels. Any major break would, most probably, take it to next angle (26.25 incase of bearish and 71.25 incase of bullish).

 

This is all. Dun forget to see images (if u havnt seen them yet).

[SILVER 10]

 

This is all.

 

To be fair and complete you should have mentioned something called scaling.This over and over quoted 1:1 relationship is nothing but a hint from Gann,that is 45 degrees in a square with side length 1 is the bisection line of the square.

[M.A 10]

To be fair and complete you should have mentioned something called scaling.This over and over quoted 1:1 relationship is nothing but a hint from Gann,that is 45 degrees in a square with side length 1 is the bisection line of the square.

 

Correct.

1 x 1 itself explains scaling part but many traders wont understand it.

So I am explaining it in detail here.

 

To use Gann angles Properly scaled chart is necessary. Default forex charts r not usually scaled properly and if u draw a 45 degree or any other gann angle on that graph, it will not make any sense. I emphasized on relationships of time vs price because this is what u will have to see when drawing Gann angles.

So the question is "What is correct scale for Gann Angles???"

You have to first choose a time scale and price scale per grid. For example 1 day per unit for time scale and $1/unit for price scale. Also note that distance of each unit for both time and price should be same. If it is not same then it is hard for u to draw proper line unless u know mathematics rules.

 

By doing a little search, u can find some useful indicators that can do this job for u.

[celeron 10]

Gann angles were developed by WD Gann who is known to be a very successful trader with advance mathematical and analysis skills. Gann angles is an important indicator which is very simple to use once u understand its working. BUT he never used "single" indicator as a full trading system. So you must understand that Gann angles is an indicator, and not a trading system, which can be very helpful if u know how to use it and when to use it.

 

To make it easier for u to understand, I will divide it into 2 parts.

Images r attached so that u can understand it in a better way

1- Logic behind Gann Angles

• Gann was of the view that market behavior is cyclical. It doesnt mean that exactly same behavior is repeated but it is their nature which repeats. This view is of all traders who use support and resistance levels in one way or other.
  
• Second major logic behind Gann angles is that only time, price and range are relevant when analyzing market.
  

Conclusion of both of these points is :- "Market reflects human nature and human nature never changes:rofl:."

2- Gann Angles

These r angles formed from a given point. These angles r formed on a time vs price chart (Trading charts r time vs price).

These angles tell us trend and support/resistance levels. Gann angles consist of a set of 9 angles formed by 9 relationships between time and price.

1 unit of time vs 1 unit of price = 45 degree angle which shows ideal movement. Price moving at 45 degree angle will be following an ideal movement according to Gann.

Bullish angles will be when price rises. For example when 2 units of price rise vs 1 unit of time, it will form 63.75 angle.

Dont sleep plz and dun think that explaining angle is not necessary. It is really important to understand why angles or formed. For example u should know what does a specific degree angle means. If a price is moving at a higher degree it means market is bullish. Similarly if price is moving at lower degree is means market is bearish. Angles represent the strength of bullish or bearish trend.

 

Ideal angle = 1 x 1 = 45 deg

Bullish angles = 1 x 8 (82.5 deg), 1 x 4 (75 deg), 1 x 3 (71.25 deg), (1 x 2 = 63.75 deg)

Bearish angles = 2 x 1 (26.25 deg), (3 x 1 = 18.75 deg). (4 x 1 = 15 deg), (8 x 1 = 7.5 deg)

 

How to draw them?

Now here is a little analysis that u have to perform before u draw them. You have to judge low or high point on trading chart from where u can draw these angles.

 

Isnt it easier to understand? I hope everything is clear upto this point.

I said in the start that it is also useful to identify support and resistance levels. HOW?

Lets say price is moving between 45 and 63.75 angles. It means at this time these two angles r providing support and resistance levels. Any major break would, most probably, take it to next angle (26.25 incase of bearish and 71.25 incase of bullish).

 

This is all. Dun forget to see images (if u havnt seen them yet).

 

 

These Gann angles are an approximate measure of the real angles, which are calculated by the trigonometry.

In these pictures you can evaluate the differences:

[M.A 10]

Why such complex diagrams to understand angles?

Angles in Gann Angles r not derived from trigonometery but from graph. Angles measurement is a topic of trignometery but in Gann Angles, 45 degree angle is just to make 1 x 1 relationship understandable and it is not always exact 45 degree angle. It will only be exact 45 degree angle if both X-axis and Y-axis have same distance between units.

 

Your images r good but these images explain the concept of angles which is of no use in understanding Gann Angles unless u understand the relationship between time vs price.

[celeron 10]

Hi M.A. ,

thank you for the clarification.

 

My intention was only to specify that when you choose the 1x1 angle of 45 °, 1 unit of price for one unit of time (eg, $ 1 for $ 1 day), the other angles, such as the angle 1x8 (1 unit price x 8 units of time, eg $ 1 for 8 days) does not measure 7.5 degrees (as the Gann shows in his courses) but 7.125 degrees.

If you tilt the fan 1x8 to 7.5 degrees, after eight days you do not get $ 1 but $ 1,053.

 

I've only done a clarification that does not detract from the whole theoretical system of Gann angles, which I really appreciate.

 

I studied for a long time Gann and his techniques, that I use constantly and profitably on the markets

Also greatly appreciate anyone who is dealing with it.

 

Best regards

[M.A 10]

Hi M.A. ,

thank you for the clarification.

 

My intention was only to specify that when you choose the 1x1 angle of 45 °, 1 unit of price for one unit of time (eg, $ 1 for $ 1 day), the other angles, such as the angle 1x8 (1 unit price x 8 units of time, eg $ 1 for 8 days) does not measure 7.5 degrees (as the Gann shows in his courses) but 7.125 degrees.

If you tilt the fan 1x8 to 7.5 degrees, after eight days you do not get $ 1 but $ 1,053.

 

I've only done a clarification that does not detract from the whole theoretical system of Gann angles, which I really appreciate.

 

I studied for a long time Gann and his techniques, that I use constantly and profitably on the markets

Also greatly appreciate anyone who is dealing with it.

 

Best regards

 

Yes that is, without any doubt, correct. Gann angle measurements r not exact. Angles given are approximate measures or we can say rounded off.