Gannfann
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.
Bitcoin, Gann fan and a drop of "Fairy"I love fibbonacci, gann, elliot waves, fractals - but my love for them does not make me smarter.
Today I came back tired and threw the mouse at the screen.
Because of this, the Gann fan randomly fell on the chart.
Then I saw: 2 is an accident, but 3 is a pattern.
This also coincides with my long-standing thought - about lengthening cycles. Waves are longer. Less price hikes.
Japanese candle - now becomes monthly.
Small patterns become big ones.
Postmodernism is already dying. Sincerity will return.
Cryptopunks will grow old but remain punks.
I often make mistakes, but I do not stop there. Only my tears become thick like drops of "fairy".
But I really am a fairy. Even if it's clueless.
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.
BTC Usdt Gann angles cycle time/price
A cluster area in the middle and a difficult angle at 180. If it is crossed to the top, it will be a strong ascent to the target of the 360 round, then the correction will be stronger and faster.
#gann
#btc
BSWUSDT bottom spottedPretty obvious for me to go in.
1. We have fib channel multiple tops
2. We have breakout at gann fan to middle part which indicates correction start
3. RSI trend channel already started uptrend movement with current stop loss killer is another signal to buy
Similar predictions / strategy:
AMC gann square speedfans and fibonacci levelsI made a smaller more relevant square inside with the same 0/45degree point but sized it to the gold horizontal.25 fib line on the smaller square to the price action from may2022 to now. That also had correlation to the bigger square too. It fits right in with price action and also matched with the over fibs/ganns things
EURJPY – SHORTThe possibility of selling from the Major Resistance Level and Supply Zone. Sell on a false breakout! The target is POC level in Demand Zone.
EURJPY – SHORT
ENTRY PRICE - 146.550
SL - 148.000
TP - 142.200
Always follow the 6 Golden Rules of Money Management:
1. Protect your gains and never enter into a position without setting a stop loss.
2. Always trade with a Risk-Reward Ratio of 1 to 1.5 or better.
3. Never over-leverage your account.
4. Accept your losses, move on to the next trade and trust the software.
5. Make realistic goals that can be achieved within reason.
6. Always trade with money you can afford to lose.
Please leave your comment and support me with like if you agree with my idea. If you have a different view, please also share with me your idea in the comments.
Have a nice day!
$DXY End of Month Range ReviewThere appears to be forces at work that are expect (are working on making) $DXY move down to 106.5 levels by months end. Today, 108 to 108.5 is in the window I'm looking through. Simple as that! Keep an eye out though, if we break 108.5, the market's gonna be tanking pretty bad, and there's already divergence between $DXY and assets like $BTC in play this week, and today's no exception!
PLTR upcoming new cycle W3 if BO >12, then 16 & 20 will be next.The 2020 low of PLTR is 8.90 which it broke below to make an ABC (A=C) at near 7.21 my max pain zone.
Max risk is only at 7.21 but the upsides are 8.90, 16 & 20. VERY GOOD risk to reward ratio.
A new Elliott wave cycle may have begun if PLTR holds the green 7.21 zone.
Not trading advice
The DXY is Currently Facing Direct ResistanceHere is a Gann chart of the DXY showing that we are currently facing the Heart of the Fann if we break above this then it's very likely the DXY will see highs up in the 120s but for the time being we are below it and it looks like the DXY will struggle to get above the heartline so i think now would be a nice time to look for a retrace and perhaps test the old resistance of 96 as new support before breaking to the 120s
BTC from Zero To Zero so the whole idea started from the question is it going back to Zero ?
using the Gann fixed squre . the chart was squared from the zero to the top . and then from the top to the zero again .
and two gan box ( star ) and support fan was used . to show possible support prices .
so the only possible long position would be 11932
or . if it holds above 22932 by end of August
More Swinging to Come for EtheriumThere's an upside for the story: there's an upside for Ethereum on the short term. The downside is that the medium future is rather bleak. Etherium's curve seems to be going through a classical shedding phase since a while. From a geometrical perspective, it is hard to imagine a reversal soon; on the contrary, an avalanche similar to what happened with Bitcoin a few months ago is about to come, especially due to the correlation with the macro economy which will continue to struggle for a while.
Trend curve projections show that next week is a prominent challenge to the current surge. I expect ETH to struggle a bit but then move up for a while until it reaches the upper consolidation area about 2500, the upper bound of the forming triangle. That's when everyone would start thinking that Crypto is back and dream about the 100 million in their banks next year. Institutional traders and whales, meanwhile, will have made their millions already and will initiate selling, knowing that the current economy and the physics of the market can't support higher levels. An avalanche would ensue until it hits a bottom around 1300, touching the lower trend somewhere in August, perhaps, after breaking away from the lower bound of the triangle.
The theory is also supported by the volume profile which confirms the levels of the Gann charts.
Overbought US Bonds Destined for Major CorrectionThe Dollar's been killing everything this whole year, but I think that's about to change. This week the US 10 YR's could fall away from the high price reached in May and start falling back down towards demand. Every time frame down to the 15 minute chart --there's an ascending triangle forming just inside the supply zone on the 4hr and 15-minute charts--seems to confirm the end of the 10 YR's bullish momentum at least for the next few months, which I think will be mirrored in the Forex market as well.
The US 10 YR and EURUSD are negatively correlated, thus, a sharp fall in US 10 YR could coincide a very sharp upturn for the struggling Euro.
ONE ANALYSISONE on the 4 hours timeframe will likely repeat the previous Gann Fan move from 14th of March.
We need the price to close with volume above the rectangle pattern.
If it does the price will touch the nearest minor resistance ($1.33) and retest the rectangle then continue it uptrend movement.
If not then we see a movement towards the bottom of the rectangle again.
DJI Dow Jones Tricky Triangle SetupWell, the Dow has enjoyed repeated bull runs. Something about COVID has me uneasy with any optimism. Understandably the NIKE and European sectors are suffering worse. Although as inflated as the dollar has become, it keeps dodging the "big one." Perhaps it will not affect the market, but for the short term, I have spotted a 4HR Triangle on the Technical.
Expecting a duration of 10 days on this next move.