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Gannfanstrategy

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.
Education
by FXOpen
1
🛠️ Trading Tools Cheat SheetFibonacci Levels, Pitchfork, Fibonacci Arcs, Gann Square, Gann Fan, and Elliot Wave are technical analysis tools used in trading to identify potential levels of support and resistance, anticipate future price movements, and make informed investment decisions. These tools are based on mathematical calculations and relationships between price, volume, and time. They are widely used by traders to gain insights into market trends and make investment decisions based on past market data. However, it's important to note that these tools are not a guarantee of future performance and can produce false signals, so they should be used in conjunction with other forms of analysis and with a solid understanding of market dynamics. 🔹 Fibonacci Levels A technical analysis tool that uses horizontal lines to indicate areas of potential support or resistance based on the Fibonacci sequence. 🔹 Pitchfork A technical analysis tool that uses three parallel lines to identify potential levels of support and resistance and to anticipate future price movements. 🔹 Fibonacci Arcs A technical analysis tool that consists of several curved lines that originate from two extreme points (high and low) and converge at the fibonacci levels. 🔹 Gann Square A technical analysis tool that uses a grid to identify potential support and resistance levels and to predict future price movements based on the relationship between time and price. 🔹 Gann Fan A technical analysis tool that uses diagonal lines to identify potential levels of support and resistance and to anticipate future price movements. 🔹 Elliot Wave A technical analysis tool that tries to identify patterns in financial market data, particularly in stock market prices, which in turn can be used to make investment decisions. It's based on the idea that market prices move in predictable waves. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
9
Gann Fan Strategy Long Until $41800BTCUSDT has been shaky for a week now, and taking its flat movements and low volume into account, I can say that it's consolidating and ready for a minor move. According to. my Gann Fan strategy Bitcoin is now in a narrow channel between $40000 and $41800. To jump back to $45000 it first has to break the strong resistance at $41800. On my graph, I've marked the regions where my strategy correctly acted as resistance/support with red circles. I am relatively confident that this scenario will continue to be the case. After hitting $41800, it might try $40400 again, but if the buy volume is high enough it may also rally towards $44000-$45000. Let me know what you think in the comment section.
Long
by bartusen
How To Predict Market Reversals Using Gann MethodsFor this example I am using Ethereum ”TIME is the most important factor in determining market movements and by studying the past records of the averages or individual stocks you will be able to prove for yourself that history does repeat and that by knowing the past you can tell the future. … There is a definite relation between TIME and PRICE. Now, by a study of the TIME PERIODS and TIME CYCLES you will learn why tops and bottoms are found at certain times and why Resistance Levels are so strong at certain times and bottoms and tops hold around them. The most money is made when fast moves and extreme fluctuations occur at the end of major cycles.” ”Mathematical science, which is the only real science that the entire civilized world has agreed upon, furnishes unmistakable proof of history repeating itself and shows that the cycle theory, or harmonic analysis, is the only thing that we can rely upon to ascertain the future.” ”Every movement in the market is the result of a natural law and of a Cause which exists long before the Effect takes place and can be determined years in advance. The future is but a repetition of the past, as the Bible plainly states…” “Life affords no greater pleasure than that of helping others who are trying to help themselves.” —W. D. Gann 1
INDEX:ETHUSD
by EsotericTrading
2
BTCUSDT analysis using Gann Fan on Falcon CCI Gann Fan is amazing, it is very straight forward and gives us an idea about market bounces. Here in Falcon CCI, the Gann Fan will give us bounces where market will change its direction, a trend reversal perhaps. This method can be used when we are not sure where the market is going and gives a very clear indication so far in 2021. I have done some back testing and results are good even in Daily and smaller time frame charts. Here we are seeing that 4/1 Gann Fan from the top is in action, and needs a bounce confirmation to form a higher low, once this is done then CCI should quickly move up. Current weekly CCI20 level is around -41, indicating over sold area. RSI seems to be low too at 46, last July 2021 RSI was around 41 when it bounced and price started moving up. It is exciting to trade crypto because of so much volatility but TA gives you enough chances of making the right direction. More on this soon.
BITSTAMP:BTCUSDLong
by Falcon_Trader_1
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.
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CME_MINI:NQ1!Education
by forextidings
11
BTCUSD 1D THE BEST GANN FAN TRADING STRATEGY(Rules for BUY Trade) Step #1: Pick a significant High, Draw Gann Fan Angles and Wait For the 1/1 Line to Break to the Upside. The best Gann fan trading strategy works the same on every time frame. But we recommend not going lower than the 1h chart, as you want to be able to pick significant swing high points. This can’t be seen on the lower time frames. Step #2: Wait for a Break Above 2/1 Gann angle Before Buying at the market This step is significantly important because a reversal of the previous trend is only confirmed once the 2/1 Gann angle is broken to the upside. You want to buy at the market as soon as we break above 1/1 line. Step #3: Apply again the Gann Fan Indicator on the Swing low Prior to the Breakout above 2/1 Gann Fan Angle How to use the Gann fan indicator? Simply follow the instruction presented in the above sections. At this point, you can also get rid of the previous Gann fan angles drawn from the swing high. This will make sure your chart will not get cluttered and the price is still visible. One of the reasons why this is the best Gann fan strategy is because we use the Gann fan indicator to track every swing in the market. At this point, your trade is opened, but we still need to determine where to place our protective stop loss and take profit orders, which brings us to the next step of best Gann fan trading strategy. Step #4: Place Your Protective Stop Loss below the Most Recent Swing Low Which Should Align With the Point from Where You Draw the Second Set of Gann Fan Angles. The best Gann fan strategy has a very clear level where we should place our protective stop-loss order which is right below the swing low located prior to the 1/2 Gann angle breakout. Next, will learn where to take profits: Step #5: Take Profit One we Break and Close Below the 1/1 line. We Need the Close Below 1/1 line to be by at Least 20 Pips to Consider it a Valid Breakout We want to ride the new trend for as long as possible and with the help of the Gann fan indicator, we can pinpoint the ideal time to take profits. We take profit at the earliest symptom of market weakness which is a break below the 1/1 line that signals a possible start of a bearish move. Note** The above was an example of a buy trade using the best Gann fan strategy. Use the same rules – but in reverse – for a sell trade.
COINBASE:BTCUSDEducation
by Tradingstrategyguides
Volume Profile + Supply & Demand + Gann = Predictions (???)Same strategy and concept as the previous post, but in a Daily chart. Based on Volume Profile from 6 months behind I've found Supply & Demand Areas, where Big Banks and Hedge Funds "build" their prices, I've highlighted those areas (in orange) and plotted the Gann Fan. Now I'm just waiting for the New Zealand Dollar / U.S. Dollar to come back and reach the price around 0.64839 to "short." A LOT of pressure down will occur around the area 0.64839 and 0.65732! As I said before it's a strong area and that the big institutions don't forget!
Short
by Gottmann
1
BTCUSD: Breakout Possible Gann/Sequential StrategyThe light blue Gann fan has shown plenty of significance recently and if a continuation occurs these are the likely points of resistance. The most resistance probally at clusters with the blue Gann fan and the first test of this move will be the $4100 level. The big resistances tests will be the $4200 level and then the $5150 level. Breakage of the yellow line signifies the first higher high since the local bear trend started; while this would mean an end of this bear trend, this breakage would by no means signify the end of the bear market. (Entertainment Only)
COINBASE:BTCUSDLong
by Oatrick