Unlocking Market Secrets with Sacred GeometryIn this post we’ll dive into sacred geometry and how it is used in trading. Geometry isn’t just shapes—it’s the foundation of nature, architecture, and even trading.
From Pythagoras to Gann, great minds have studied these patterns to unlock hidden market signals. Let’s break down these powerful concepts and see how we can apply them to our own strategies!
First, take a look at this picture…
What you’re looking at here is a life-size oil portrait painting that’s displayed in the Manly P. Hall Institute of Metaphysics in Los Angeles, up on Mulholland Drive. This painting was done in 1929 by an artist named Augustus Knapp, and it’s a fascinating representation of one of the greatest minds in history named Pythagoras.
Now, here’s something interesting. There are no actual portraits of Pythagoras from his time. No real images of him exist just written descriptions passed down through the ages. So, this painting is a compilation of those descriptions, a vision of what they believed Pythagoras might have looked like based on historical accounts. But beyond the visual, what really matters is what this man achieved.
Pythagoras lived in 653 BC over 2,500 years ago and his contributions to mathematics, science, and even philosophy were so far ahead of his time that people today still struggle to comprehend how he knew what he did.
If you look closely at the painting, you’ll see a globe to the left-hand side. This is where things get really fascinating. Pythagoras not only knew that the Earth was round long before it became commonly accepted he also knew that the distance between the Earth and the Moon was approximately 250,000 miles. Let that sink in. Over 2,500 years ago, without modern telescopes, satellites, or space exploration, he was able to determine this astonishingly accurate measurement. How did he do it? That remains a mystery.
But his genius didn’t stop there. Pythagoras was the first person in recorded history to use the square root of numbers, laying the foundation for many of the mathematical principles we still use today. His contributions to geometry are legendary, with the Pythagorean Theorem being one of the most fundamental concepts in mathematics. He was able to see numbers not just as mere figures but as an intrinsic part of the universe, something deeply connected to music, nature, and even human existence.
Albert Einstein himself once said that there was God, there was man, and in between, there was Pythagoras. That’s how brilliant he was. Einstein, one of the greatest minds of the modern era, placed him in a category beyond ordinary human intellect. Many scholars and historians consider Pythagoras one of the four or five most intelligent people to have ever walked the Earth.
Now, I want you to pay close attention to something else in this painting. If you look at Pythagoras’ right hand, you’ll notice he’s holding a pyramid above his head. This is extremely significant. The pyramid was not just a symbol of ancient Egyptian architecture; it represented knowledge, sacred geometry, and the hidden mysteries of the universe. Pythagoras believed that the structure of the universe was based on mathematical harmony, and the pyramid was a reflection of this divine order. The way he holds it above his head symbolizes his deep understanding of higher knowledge, knowledge that very few people of his time and even in our time could comprehend.
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Pythagoras didn’t just study numbers, he studied their meaning, their vibrations, their connection to music, and how they formed the very fabric of reality. His school, which was more of a secret society, was devoted to exploring these truths, and his students followed strict codes of discipline, silence, and dedication to learning. Some say his teachings went beyond what we call science today, delving into the realms of metaphysics and spirituality.
So, when we talk about Pythagoras, we’re not just talking about a mathematician, we’re talking about a man who saw the universe in a way that very few have. He understood numbers not just as tools for calculation but as the building blocks of existence itself. This painting is not just a historical representation; it is a doorway into understanding one of the most profound thinkers in human history.
Alright, let's dive into something incredibly interesting, especially if you have an appreciation for Italian geniuses. We're talking about Leonardo da Vinci's division ratio and proportions of the human body this is pretty fascinating stuff.
If you look closely at da Vinci's sketches, you’ll notice that the ratios and proportions of the human body, like the measurements of bones, joints, and limbs, are not random. There’s an underlying order that we can see across the body. He was the first to really study and break down how the human body relates in terms of proportions, especially with the numbers that make up these proportions. For example, he measured everything from your radius to your phalanges, to the femur and the tibia. These are all linked in a very specific way. From the head to the pubic crest, these measurements fall into the 0.618 ratio, which is one of the most famous numbers in nature.
Now, let's take a look at why this is so significant. This isn’t just a random number—it’s actually tied to something we call the Golden Ratio or Phi, which is 0.618. It’s a ratio that appears in all kinds of natural patterns, from the spirals of seashells to the growth patterns of plants. Da Vinci was keen on observing these relationships, and he recorded them in his Codex, a collection of his writings and drawings.
Let me tell you a Fun fact, Bill Gates bought this Codex in 1982 for $20 million, and today, it’s housed in the Smithsonian Institute, traveling the world half the year and staying in Washington for the rest. Da Vinci was ahead of his time, so much so that when he wrote about this ratio, he didn’t just write it down plainly. In fact, he wrote everything in a mirror image, so you had to read it by holding the paper up to a mirror. Why? Well, a lot of his work was coded, not necessarily because he didn’t want people to understand it, but because he didn’t want to give away his discoveries easily. He was mysterious like that!
Now, let’s zoom out and look at something even more mind-blowing. If you go back to ancient times—way before da Vinci’s time—you’ll see that the Egyptians were using this same ratio. Take the pyramids for instance. The dimensions of the human body, from the head to the feet, also follow this pattern of 3, 5, 8, 13, 21... all culminating in the golden ratio of 0.618. The Egyptians were just as obsessed with these measurements and proportions, and you’ll find this same 0.618 showing up in their designs and architecture, too. It’s something that connects us to the very ancient foundations of human culture and knowledge.
What’s even crazier is that this ratio holds up in medical science. If your body proportions are off by more than 5% from the standard, it actually gets classified under conditions like dwarfism or other abnormalities. So, this ratio is so accurate that it defines what the "ideal" proportions of the human body should be. When you study these numbers and ratios, you realize just how mathematically perfect the human body is designed—at least in theory!
Now let’s take this to a different dimension, The DNA. The very structure of DNA follows this same fibonacci spiral, the same pattern of proportions that we see in the human body. The DNA helix is a perfect example of the golden ratio at play in biology. So when you look at the genetic code, you’re actually looking at the same patterns that show up in the pyramids, the human body, and even the very spiral shape that defines life at its most fundamental level.
And speaking of DNA, there’s an interesting tidbit related to Italy. This is a bit of trivia: There has never been a murder conviction in Italy because of the uniformity of DNA in Italians. Everyone shares such a similar genetic code that it’s almost impossible to distinguish one person from another in certain cases. Fascinating, right?
Alright, now that we’ve explored these mind-blowing connections between da Vinci’s proportions, the golden ratio, and DNA, let’s bring it back to the market and how we can use these ratios to help us with trading.
Here’s what you need to know, The same ratios that define proportions in nature can be applied to price movements in the market. For example, in the AUDUSD pair, you can use these numbers to identify key levels where price may reverse. Let’s break this down a bit further. If you look at the market's movements on a Weekly chart, you might not notice anything special at first. But when you start applying the 618 retracement, 786 retracement, or 161.8% extension, suddenly these numbers start lining up with the price action.
As we’ve seen, the same sacred geometry and mathematical principles that govern nature, architecture, and even DNA also play a crucial role in the financial markets. From Pythagoras to da Vinci, these hidden patterns have guided some of the greatest minds in history—and now, they can guide us in trading.
The market, like the universe, moves in harmony with these timeless patterns.
Keep studying, keep observing, and most importantly—keep refining your strategy. The more you align with these natural cycles, the better your trading decisions will become. See you in the next post, where we’ll continue uncovering the secrets of market geometry!
Gann Fan
Understanding and Using the Gann Fan in TradingThe Gann Fan is a powerful technical analysis tool developed by the legendary trader W.D. Gann. It consists of diagonal lines drawn at specific angles, which help traders identify potential support and resistance levels based on time and price. While the Gann Fan can be complex for beginners, mastering its use can provide valuable insights into market trends and turning points.
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What is the Gann Fan?
The Gann Fan is a grid of lines radiating from a central pivot point on a price chart. These lines are constructed at various angles, representing the relationship between time (horizontal axis) and price (vertical axis). The most commonly used lines are:
- 1x1 (45-degree angle): Represents one unit of price for one unit of time. It is considered the most critical line, reflecting a perfect balance between price and time.
- 2x1: Indicates two units of price for one unit of time. This is a steeper line, suggesting faster price movements relative to time.
-1x2:Represents one unit of price for two units of time, showing a slower price movement compared to time.
Additional lines such as 3x1, 1x3, 4x1, and 1x4 can also be used to identify key levels of support and resistance.
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Principles of the Gann Fan
W.D. Gann believed that price and time move in harmony, and market trends develop at predictable angles. The Gann Fan lines aim to represent this harmony and forecast potential market movements. The key principles include:
1.Balance Between Time and Price: When the price moves along the 1x1 line, it indicates a balanced market.
2.Support and Resistance Levels:Gann Fan lines often act as dynamic support or resistance. Prices tend to respect these levels, bouncing off or breaking through them.
3.Trend Reversal Indicators: A break above or below a fan line can signal a potential trend reversal or continuation.
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How to Use the Gann Fan
Step 1: Setting Up the Chart
To use the Gann Fan effectively, ensure your chart has an equal scaling ratio between price and time. This ensures that the angles are accurate. Many modern charting platforms, like TradingView, automatically adjust the scaling when drawing Gann Fans.
Step 2: Identify a Significant Pivot Point
Choose a notable high or low on the chart as the anchor point for your Gann Fan. This point is critical as it determines the origin of the fan lines.
Step 3: Draw the Fan Lines
Using the Gann Fan tool on your charting platform:
- Start at the selected pivot point.
- Draw lines radiating outward at the predefined angles (1x1, 2x1, 1x2, etc.).
Step 4: Analyze Price Movements
- **Support and Resistance:** Observe how prices interact with the fan lines. If the price approaches a fan line, it might act as support or resistance.
- Breakouts: A breakout above or below a fan line may signal the start of a new trend.
- Trend Strength:The slope of the line indicates the trend’s strength. Steeper lines (e.g., 2x1) reflect stronger trends, while shallower lines (e.g., 1x2) suggest weaker trends.
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Best Practices for Using the Gann Fan
1. Combine with Other Tools:Use the Gann Fan alongside other technical indicators like moving averages, Fibonacci retracements, or oscillators to confirm signals.
2.Backtest on Historical Data:Practice using the Gann Fan on historical price data to understand how well it works for a particular market or asset.
3.Focus on Major Lines: Start with key lines like 1x1, 2x1, and 1x2 before incorporating additional angles.
4.Adjust for Scaling Issues: If your chart appears distorted, ensure that both axes are equally scaled.
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Limitations of the Gann Fan
While the Gann Fan is a useful tool, it’s important to be aware of its limitations:
- Subjectivity:Choosing the initial pivot point can be subjective, affecting the accuracy of the analysis.
-Scaling Challenges:Incorrect scaling can distort the angles and lead to unreliable signals.
-Not a Standalone Tool: The Gann Fan works best when combined with other analysis techniques and market context.
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Conclusion
The Gann Fan is a versatile and insightful tool for traders seeking to understand the interplay between time and price. By mastering its use and combining it with other analysis methods, traders can enhance their ability to predict market trends and make informed decisions. As with any technical tool, practice and experience are essential to unlock its full potential.
GANN TRADING LESSON: TIME IS MORE IMPORTANT THAN PRICE GANN TRADING LESSON: TIME IS MORE IMPORTANT THAN PRICE – W.D. GANN’S METHODOLOGY - The principles of W.D. Gann's trading methodology continue to intrigue and challenge traders worldwide.
At the core of Gann's approach lies the harmonious relationship between price and time, encapsulated in his concept of "squaring."
This principle emphasizes balancing movements in price with corresponding movements in time, thus uncovering the rhythmic and periodic nature of the markets.
Understanding Time Balance in Trading
Gann emphasized the significance of time balance, which involves aligning the duration of a market movement with its magnitude.
This balance is critical because markets, according to Gann, inherently strive to return to a state of harmony, even after experiencing disharmonious phases.
Recognizing these patterns enables traders to anticipate turning points and identify optimal trading opportunities.
The Concept of the Initial Impulse
Gann’s methodology suggests that every market movement begins with an “initial impulse,” which sets the stage for subsequent trends.
This impulse, whether periodic or rhythmic, forms the foundation for future market behavior. Periodic movements repeat after fixed intervals, while rhythmic movements grow proportionally to the initial impulse.
Understanding and marking these impulses on price charts is a vital step in applying Gann’s techniques.
The Series 144 and Squaring Principles
Gann frequently referenced the significance of numerical series, particularly THE 144 SERIES . He argued that price movements often align with values derived from this sequence.
For instance, the duration of an initial impulse may correspond to one value in the series, while subsequent reactions adhere to multiples or subdivisions of this value.
Squaring, a cornerstone of Gann’s theory, involves matching price ranges with equivalent time periods. This can be applied in various forms:
Squaring the price range: Balancing the maximum and minimum price range over a specific time period.
Squaring the minimum price: Equating the duration of a move with its lowest price point.
Squaring the maximum price: Aligning the time elapsed with the highest price point.
Periodic and Rhythmic Movements
According to Gann, markets exhibit both periodic and rhythmic behaviors. Periodic movements repeat after a set number of time units, while rhythmic movements expand or contract in known proportions.
Identifying these characteristics is crucial for marking trends accurately and predicting future price action.
Key Considerations in Applying Gann’s Method
Inharmonious Market Behavior: Gann acknowledged that markets often deviate from ideal structures but emphasized that they ultimately revert to harmony. Recognizing these deviations and their eventual corrections is central to mastering his method.
Critical Points of Strength: Gann’s theory highlights the importance of key levels, such as 50% retracements, as points where price and time converge.
Templates and Extreme Values: Gann’s approach involves overlaying templates based on extreme highs and lows for specific time units (e.g., daily, weekly, monthly) to track market behavior accurately.
The Law of Vibration
Central to Gann’s teachings is the “Law of Vibration,” which posits that all market movements follow universal laws of motion and rhythm.
By studying the past and present, traders can predict future price action with remarkable precision. This principle underpins the repetitive nature of market trends and cycles, reinforcing Gann’s assertion that history repeats itself.
Gann’s Legacy
Gann’s work, often regarded as esoteric, challenges traders to elevate their understanding of market dynamics. His insights into the interplay of time and price continue to inspire new generations of traders to uncover the “Creator’s plan” in financial markets.
While applying his methods requires patience and meticulous study, the rewards are profound for those who master the art of balance and harmony in trading.
Conclusion
By embracing the principles of time balance, the initial impulse, numerical series, and the Law of Vibration, traders can uncover patterns and cycles that enhance their market predictions.
Although Gann’s techniques require dedication and a willingness to delve into intricate concepts, they offer profound insights for those who persevere. His legacy endures as a testament to the potential of blending analytical precision with universal principles, making his methods a timeless guide for mastering market rhythms.
Join the Discussion:
Do you agree with Gann that TIME is the most critical factor in trading? Share your thoughts and experiences below!
GANN TRADING LESSON - GANN BOX & TIME CYCLE 144GANN BOX & TIME CYCLE 144 are two pivotal tools introduced by W.D. Gann , a legendary figure in financial markets. These tools integrate time and price dynamics seamlessly, providing traders with revolutionary methods to analyze market movements.
Here, we’ll explore these tools and how traders can apply them to achieve greater precision and insight in their trading. Understanding the interplay between time and price is a cornerstone of effective trading.
What is Gann’s Box?
Gann’s Box is a synthetic coordinate system that enables traders to analyze price dynamics within structured time and price parameters. The box helps visualize patterns and understand the relationship between upward and downward movements over specific periods.
By using this tool, traders can:
Identify directional trends.
Recognize structural alternations of price movement.
Pinpoint significant turning points in the market.
Principles of the Gann Box
First Principle: Directional Price Movements
The Gann Box segments price movements into discrete directional sections. These sections reveal periods of trend continuation or reversal. By overlaying a box on the chart from a significant extremum, traders can observe how price respects its boundaries over time.
Second Principle: Structure of Movement
Markets alternate between upward and downward movements in a structured and often periodic manner. Gann’s Box allows traders to:
Detect these alternations.
Visualize corrections versus trend-directed movements.
Forecast future structural changes based on historical patterns.
Cycle 144: A Unique Trading Model
Gann’s Cycle 144 is an advanced application of the Gann Box. It involves a fixed time cycle of 144 units (e.g., hours, days, or any chosen timeframe) and is based on the following principles:
Begin at the Extremum: The cycle always starts at a key high or low.
End After 144 Units: The cycle concludes after 144 time units.
No Gaps Between Cycles: Models should seamlessly connect without gaps.
Overlapping Models: Multiple cycles can operate simultaneously, enhancing prediction accuracy within the same timeframe.
This model offers a comprehensive framework to predict market movements within defined intervals.
Practical Steps to Apply Gann’s Box
Identify Key Extremums
Locate significant highs or lows on your chart to serve as the starting points.
Construct the Gann Box
Use the chosen extremum to calculate the parameters of the box. Ensure alignment between price and time scales.
Analyze Trends and Corrections
Observe how price behaves within the box, identifying trend continuations, corrections, and potential reversals.
Incorporate Cycle 144
Overlay the Cycle 144 model to refine predictions, ensuring to account for overlapping cycles for greater precision.
Why Gann’s Box Matters for Traders
Gann’s Box is not just a tool but a framework for disciplined and informed trading. Here are its key benefits:
Accurate Forecasting: Pinpoint turning points with precision.
Structured Analysis: Analyze price action within a logical, visual framework.
Improved Decision-Making: Reduce emotional bias by relying on objective patterns.
Conclusion
Gann’s Box and Cycle 144 offer traders a methodical approach to deciphering market movements. By integrating TIME & PRICE , these tools simplify the complexities of trading while providing actionable insights.
As with any trading method, success lies in practice and observation. Study past market movements, experiment with Gann’s concepts, and refine your understanding. With dedication, these tools can transform your approach to trading and unlock new levels of mastery.
Navigating Markets with Gann Fans: A Step-by-Step GuideWelcome to our comprehensive tutorial on placing and utilizing Gann Fans. In this step-by-step guide, we'll dive into the practical aspects of Gann Fans, a powerful tool for assessing non-horizontal support in resistance for technical analysis. We will thoroughly explain how Gann Fans are placed and what pitfalls to avoid when placing them. Whether you're new to Gann Fans or looking to enhance your trading strategy, this video provides actionable insights and a real-world example to help you harness the potential of Gann Fans with confidence. Join us as we demystify Gann Fans and empower you to navigate market swings with precision and skill.
What Is a Gann Fan Indicator?Alongside other titans of the industry, like Dow, Wyckoff, and Elliott, Gann is considered one of the most influential figures in trading. After he developed the Gann indicators, traders picked up his teachings worldwide. In this FXOpen article, we’ll dive into two of the most popular Gann indicators, Gann angles and Gann fans, and look at how they work, investigate their uses, and explore their limitations.
Introduction to W.D. Gann
William Delbert Gann, known as W.D. Gann, was a legendary trader and market technician born in 1878. He began his career on Wall Street in the early 1900s and quickly began developing a technique for predicting market movements.
Gann's theory was rooted in his belief that the market followed specific geometric patterns and that time and price had a special relationship. Throughout his career, Gann developed various innovative tools for technical analysis, including Gann angles and Gann fans. These tools, known as Gann indicators, still have a valuable use in the markets today.
Gann Angles
Gann angles, as the name suggests, use a sloping line to help traders predict future price movements. These angles represent the rate of change between time and price. The primary 45-degree Gann angle is the 1x1 line, where the market moves one unit of price for every unit of time.
Similarly, angles like the 2x1 line, where the price moves two units for every single time unit, will result in a line flatter than 45 degrees. A 1x2 line will see the price moving one unit for every two units of time. Other angles are 1x8, 1x4, 1x3, and 1x2, while the angles less than 45 degrees are 2x1, 3x1, 4x1, and 8x1.
These Gann angles are primarily used to predict future support and resistance levels, plotted by the Gann fan indicator. When the price moves in the direction of the 1x1 angle, Gann believed that this indicates a strong trend with balanced supply and demand forces. Sustained moves above the 1x1 line show a bullish trend, while moves below are considered bearish.
The Gann Fan Indicator
Gann fans offer an easy way for traders to plot these angles. The fans consist of nine diagonal lines that use the price-time relationships described earlier, as seen in the diagram. This offers a broad perspective on where the price may end up and helps to forecast potential support and resistance levels.
To construct a Gann fan, traders start by identifying a significant swing high or low point in the market. From this point, they draw a 45-degree, or 1x1 line, to represent the most critical angle. The Gann fan is then plotted along the angle, creating nine lines. As prices approach or move away from these lines, we can begin to predict market reversals and trend continuations.
How to Use the Gann Fan
Let’s take a look at how to use Gann indicators, specifically the Gann fan. Traders generally develop a Gann fan strategy using three primary methods: identifying support/resistance levels, timing entry and exit points, and gauging a trend's strength.
Support/Resistance Levels
Gann angles within the Gann fan often behave similarly to trendlines, revealing areas where the price may stall or reverse direction. These angles help traders identify crucial support and resistance levels, which may inform their decisions on future price movements.
Looking at the example above, we can see that the 2x1 line offered significant resistance, even as the trend progressed bullishly. Meanwhile, the 3x1 line provided strong support, allowing us to anticipate that these two angles would hold whenever the price visited them.
Timing Entry and Exit Points
Consequently, Gann fans can help traders time their entry and exit points. As the price approaches a Gann angle, traders may anticipate that the market may reverse in this area. They could then look for confirmation with other technical analysis tools, like candlestick patterns or momentum indicators, before entering to catch the reversal or closing their existing position.
As with each of the Gann charts shown in this article, these angles aren’t guaranteed to hold. This might help traders identify opportunities where prices will likely continue trending. The choppy area marked by the box in the diagram above could have shown us that the price wasn’t ready to reverse up, given that it closed below the 3x1 line several times.
Gann theorised that once the price had broken through one angle, it would likely head to the next. As a result, we could have predicted that momentum was likely to continue to the 4x1 line and enter a position to catch the move. Alternatively, if traders had entered a trade on the reversal at the 2x1 line, denoted by the dashed line, they could take partial profits at both the 3x1 and 4x1 lines.
Gauging a Trend’s Strength
As mentioned earlier, the 45-degree 1x1 line can also show us the strength of a trend. In the chart above, we can see that significant bearishness entered the market on the left-hand side. This was confirmed by the fact that the price was sitting beneath the 1x1 line, indicating that the strong bearishness was likely to continue.
Using this knowledge, traders could have predicted that the sharp move downward would carry on. As the price began to cross over the 1x1 line, the trend’s strength weakened. Traders could then start to anticipate that the price might begin to range or recover slightly, as it did in the chart.
In this sense, traders don’t even necessarily need to use the Gann fan. By drawing a 45-degree angle from a key swing point, they can use the line as a Gann trend indicator and expect that price will follow the trend's direction as long as it remains above (if bullish) or below (if bearish) the 1x1 line.
Limitations of Gann Indicators
While Gann angles and fans may provide valuable insights into the market’s behaviour, there are some limitations that traders need to be aware of. The biggest issue is subjectivity. Different traders identify different swing points; some may prefer the last swing point, while others use the most extreme. This might lead to differing results and interpretations.
There’s also the issue of subjective scaling. While a 45-degree angle seems simple enough to apply, the angle depends on the zoom and price-to-bar ratio of a trader’s chart. As a trader zooms in and out, the line will stay at the same angle, but its position on the chart will change.
This can be mitigated by locking the price-to-bar ratio of the chart, but this a) makes zooming in and out of price action cumbersome and b) still doesn’t offer a “true” 45-degree angle that can be universally agreed upon.
To see this for yourself, try using the Trend Angle tool under Trend Line Tools in TickTrader. Then, apply it to a swing point, and zoom in and out. You’ll notice that its position can vary wildly depending on your zoom level.
Besides locking the price-to-bar ratio, traders can try to correlate the 1x1 line with an area in which the price reversed, then plot the Gann fan over it. This may help to bring some uniformity to the process.
Your Next Step
In summary, Gann indicators, particularly Gann angles and Gann fans, may help us predict future price movements with a high degree of accuracy. However, their subjective nature can make them tricky to apply consistently, and they are better suited to more experienced traders.
Once you’ve mastered the Gann indicators, you can open an FXOpen account. We offer a wide range of markets, competitive spreads, and an ECN-based order routing system, so you can trade using Gann indicators and other advanced trading techniques. Good luck!
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Gann Fans: A Tool for Predicting Price MovementWhat Is A Gann Fan?
Gann fans are a popular technical analysis tool used by traders to predict price changes by analyzing the geometric and cyclical nature of the market. The Gann fan tool consists of a series of lines called Gann angles, which are drawn at specific angles based on price-to-time moves.
The tool is different from trendlines because it moves at a uniform rate of speed. While it helps gauge the strength and direction of the trend, it does not always predict the market's exact location. However, an appropriately set-up Gann fan can provide valuable insights into the market's future price movements.
How To Set Up A Gann Fann
To set up a Gann Fan, you first need to identify the main tops and bottoms on a price chart for your chosen time frame. Once you've found these points, select the Gann Fan tool and draw it from the identified earliest bottom to the most recent main top for an uptrend or top to bottom for a downtrend.
To adjust the Gann Fan, you need to set the correct scale ratio. This can vary depending on the market you're trading in, but a common ratio is 1:1. This means that each unit on the vertical axis (price) is equal to each unit on the horizontal axis (time).
Once you've set the scale ratio, you can adjust the Gann Fan by moving the starting point or the angle of the fan. The angle should be set so that it lines up with the trend line connecting the main tops and bottoms.
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Geometry: 1x8-8x1 EllipsesHey! Hope you are well!
In this chart is shown the various 1x8-8x1 ellipses.
The overlay on the four minute chart is shown here!
Here is the beginning.
There are successive boxes made on the chart. The boxes are the basis of the 1x1, 1x2, and all.
This next picture is the initial 1x1 ellipse - or circle if you will.
If that is overly populated, here is the same without the successive rings.
The ellipse is not inside of the rectangle because the ellipse is circling the rectangle versus squaring the circle; however, do note that whether squaring the circle or circling the square, the eccentricity is the same; only the proportion - the size - of the ellipse changes.
Next is the 1x2 and 2x1.
Now, all of the successive angles will be shown simultaneously.
Enjoy! Be well!
As an added bonus, here is what the chart looks like when the successive rings are added.
Suggested Reading:
Law of Vibration - Tony Plummer
Michael Jenkins - Geometry of Stock Market Profits, Chart Reading for Professional Traders, Complete Stock Market Forecasting Course
Scott M. Carney - The Harmonic Trader, Harmonic Trading Volume I, Harmonic Trading Volume II, Harmonic Trading Volume III
H.M. Gartley - Profits in the Stock Market
Bill Williams - Trading Chaos, New Trading Dimensions, Trading Chaos 2nd Edition
J.M. Hurst - The Profit Magic of Stock Transaction Timing, Cyclic Analysis: A Dynamic Approach
Fabio Oreste - Quantum Trading
Michael Jardine - New Frontiers in Fibonacci Trading
The Wave Principle, Nature's Law
Ralph Nelson Elliot
Technical Analysis of the Financial Markets
John J. Murphy
A Complete Guide to Volume Price Analysis
Anna Coulling
Mastering The Elliot Wave
Glenn Neely
Market Structure: Speed and Slope on Multiple TimeframesHey! Hope you are well!
In this selection, there is a showing of the use of angles to measure the passage of time and price.
In the first chart, the 30 minute chart, there is 40 units of time, and 40 units of price. The angle that is correspondent with this ratio spans to the end of the enclosed trend.
In the next chart, the four minute chart, there is 40 units of time and 40 units of price. The angle that corresponds to this ratio spans only to the end of the first trend.
However, the 8x1 angle stretches to the end of the full segment.
By these examples, the concept of speed is meant to be shown. In each corresponding timeframe, there is a speed. For the daily chart, the speed is one day. On the five minute chart, the speed is five minutes, so in making forecasts, predictions, trendlines, and others, consider the speed.
Suggested Reading:
Law of Vibration - Tony Plummer
Michael Jenkins - Geometry of Stock Market Profits, Chart Reading for Professional Traders, Complete Stock Market Forecasting Course
Scott M. Carney - The Harmonic Trader, Harmonic Trading Volume I, Harmonic Trading Volume II, Harmonic Trading Volume III
H.M. Gartley - Profits in the Stock Market
Bill Williams - Trading Chaos, New Trading Dimensions, Trading Chaos 2nd Edition
J.M. Hurst - The Profit Magic of Stock Transaction Timing, Cyclic Analysis: A Dynamic Approach
Fabio Oreste - Quantum Trading
Michael Jardine - New Frontiers in Fibonacci Trading
The Wave Principle, Nature's Law
Ralph Nelson Elliot
Technical Analysis of the Financial Markets
John J. Murphy
A Complete Guide to Volume Price Analysis
Anna Coulling
Mastering The Elliot Wave
Glenn Neely
Happy Holidays and Merry Christmas!The year 2020 was a year full of problems which we tried to face in the best possible way. I wish you from the bottom of my heart a happy new year 2021 and may this year be a full year of miracles for you and your families. A good year for trading.
Happy New Year 2021 from ME !!!
ALBANIA: Vitit 2020 ishte nje vit plot probleme te cilat ne munduam ti perballonim ne menyren me te mire te mundshme ju uroj thelle nga zemra gezuar vitin e ri 2021 dhe qofte ky vit nje vit plote mrekulli per ju dhe familjet tuaj. Nje vit i mbare per tregtim.
Gezuar Vitin e Ri 2021 nga MUA !!!
ITALIAN: Il 2020 è stato un anno pieno di problemi che abbiamo cercato di affrontare nel miglior modo possibile. Ti auguro dal profondo del cuore un felice anno nuovo 2021 e che quest'anno sia un anno pieno di miracoli per te e le tue famiglie. Un buon anno per il trading.
Felice Anno Nuovo 2021
DUTCH: Het jaar 2020 was een jaar vol problemen die we op de best mogelijke manier probeerden het hoofd te bieden.Ik wens je uit de grond van mijn hart een gelukkig nieuwjaar 2021 en moge dit jaar een vol jaar van wonderen zijn voor jou en je gezinnen. Een goed handelsjaar.
Gelukkig nieuwjaar 2021
Learn the "Gann Fan" in just 3 StepsGann theory has been widely used in various fields of finance. To learn to apply the Gann angle line, two problems need to be solved, namely, point selection and volatility. The question about volatility is in the Gann angle line. This article will mainly talk about the problem of selecting points.
The selection point of the Gann angle line is generally selected from the important top and bottom. When selecting, you can judge which point to choose based on your actual operating experience. But depending on the long-term trend, you can choose the Gann angle line starting from zero, which will play a very important role in future predictions.
We took NASDAQ as an example. In the chart, We have learned how to apply the Gann fan to a chart or the trend. It's complicated, but I tried to make it easy to understand and easy to apply. I have used only 2 to 3 things to perfectly apply the Gann Fan.
Gann fan is useful to all the traders, It can be applied to all the time frame.
In the investment process, Many investors like to buy bottoms. This is everyone's ultimate pursuit. That's because every market has important tops and bottoms. Analysis of this position is to make your own funds safer, with minimal risks and greater profits. These will use the Gann angle line confluence position. The force formed at the intersection of the rising angle line and the falling angle line can often form a reversal trend.
In " Financial Analysis Trends ", the grades are divided as follows:
1×1 intersects with 1×1
1×2 intersects with 2×1
1×3 intersects with 3×1
1×4 and 4×1 intersect
1×1 intersects with 1×2 or 2×1
1×1 intersects with 1×3 or 3×1
1×1 intersects with 1×4 or 4×1
1×2 intersects with 1×4 or 4×1
Above is the information about the Gann fan for education purposes only.
Gann Fan - How toWhat is called Gann Fan is actually set of angles that are part of the square.
In the video I've marked price swings using time balance concept and number 144
After marking swings I've put Gann Fan and set it to hit top and bottoms of the swings.
Next step I duplicated Gann Fan with the same settings to show that all price swings follow some angle and angle intersections create change in the trend.
Last step was to show importance of 3/4 angle.
Educational ... Gann FanGann fan .. one of frequently used tools trading almost every single equity in the market .
it can give you a clue on CIT (change in trend) which is a marvelous way to have the trend from it's beginning .
and as you can see it also acts as supports and resistance ... off course in conjunction with other methods .. but sometimes i can only rely on this tool.
not to mention that it can act as a classical trend even before it's beginning ..
if you think you like this pieces of information .. tell me in the comments and i'll try posting them more ..
don't forget to press the like button.. your support is appreciated TIA
Playing with Gann fansThe gann fan is a powerful tool to find future trend lines. Watching price near these line could be one more arrow in your quiver...
Why and when trends failHere, using gold I demonstrated the importance of time analysis. Most of traders analyze only price action in relation to price and most of indicators can do only that.
However price need to be analyzed also in relation to time, as price moves in Fibonacci sequences not only in price scale but also in time as you see. And when it hits an important Fibonacci TIME extension, a trend will change direction for hours, months or years depending on timeframe.
With these tools you can analyze time action:
Fibonacci time extensions
Fibonacci time zones
Fibonacci arcs
Fibonacci circles
Fibonacci fans
Pitchfork fan
Gann fan, Gann angles (to place Gann fan you have to LOCK scale. Then put 45 degree angles. Angle 1-1 has to run by 45 degrees).
Gann boxes
Cyclical oscillators, CG Oscillators (Center of Gravity as Fisher, Ehler's CG)
How to draw Fibonacci Time extensions - traditonally, time cycles are measures from LOWEST LOW to LOWEST LOW. You find 2 lowest lows and drag Fibonacci time extension tool between them and then drag back the third line to the first low where you started. Then you have Fib time extensions from the second lowest low that you connected, into the future. Its important, it has to be absolute lowest low. If you do it on weekly, zoom to daily and place the end on absolute daily low.
Fibonacci Time zones. You place 1 on lowest low wig, 2 has to fall on the next candle. Best to do it on daily. 1 candle -1 time zone unit.
BTC - Gann Fan Strategy - Remedium for anxietyHi Guys.
As market is still unstable we would like to share with you interesting and promising strategy which can help you to get calmer.
It presents in a elegant way current trend and tells us when to buy and sell or when we have to just wait for the final verdict.
This indicator is notable unique because it draws diagonal support and resistance levels at different angles. At first sight you might recognize the indicator because it’s a colorful indicator much like the Fibonacci Channel indicator.
One of the main reasons why Gann fan angles are superior to the horizontal support and resistance levels is that financial markets are geometric in their movements. This means that if you can spot a pattern or or any other geometric shape in a chart, then there is a high probability you can spot them at the Gann fan angles.
Gann fan trading strategy can be applied to all markets because according to the Gann theory, financial markets move as a result of human behavior which makes them cyclical in nature.
We have special Gann fan angles and more specifically Gann came up with 9 different angles.
The most important angle is the 45-degree angle or the 1/1 line. For every Gann angle, there is a line that is derived from that angle. We can distinguish 4 different Gann angles above the 45-degree angle and 4 other Gann angles below, as follows:
1/8
1/4
1/3
1/2
1/1 – 45 degree
2/1
3/1
4/1
8/1
According to Gann theory, there are special angles that you can draw on a chart that will give you a good indicator of what price is going to do in the future. All of Gann’s techniques require equal time and price intervals, in other words, a rise of a 1/1 would imply a 45-degree angle.
It may sound a bit ambiguous but it is easier that it sounds. In the comment section we will provide you step-by-step explanation how to proceed your Gann Fan Stratefy of any asset you want. We will base on latest BTC 3.22% chart.
So let's go!