Let’s revisit the concept of Nine Gann Angles once more –
Gann identified nine significant angles, with the 1 x 1 (read as one by one) being the most important:
The other angles include –
- 1 x 8 – 82.5 degrees
- 1 x 4 – 75 degrees
- 1 x 3 – 71.25 degrees
- 1 x 2 – 63.75 degrees
- 1 x 1 – 45 degrees
- 2 x 1 – 26.25 degrees
- 3 x 1 – 18.75 degrees
- 4 x 1 – 15 degrees
- 8 x 1 – 7.5 degrees
Gann Fan
A Gann Fan displays a series of nine diagonal lines at each of the nine Gann angles.
Draw Gann Fan
- First draw a line using Trend Angle indicator with angle 45 degree.
- Make sure the chart is scaled.
When using Gann angles, it is important to lock the scale on the price chart. Most charting platforms adjust the scale when zooming in or out. That changes the angle. Locking the scale prevents this.
1×1 or 45-degree Trend Line drawn using Trend Angle indicator and the Trend Line marked with 1/1 Gann Fan Indicator is same!
Overlap them. The Gann Fan is automatically plotted now!
Interpreting Gann Fan
#1 Support and Resistance
Traders use the Gann Fan to identify potential support and resistance levels and predict future price movements.
When a price trend is intact, it tends to follow one of the Gann Fan angles.
#2 Trade Signals
- When the trend is up, and the price stays in the space above an ascending angle, it suggests a bullish signal.
- When the trend is down, and the price remains below a descending angle, it suggests a bearish signal.
#3 Trend Analysis – Uptrend
- In an uptrend, a price that stays above the 1:1 line is considered bullish.
- During an uptrend, if price stays in the space above an ascending angle without breaking below it, the market is considered bullish.
#4 Trend Analysis – Downtrend
- In a downtrend, a price that stays below the 1:1 line is considered bearish.
- During a downtrend, if price remains below a descending angle without breaking above it, the market is considered bearish.
So far, you have learnt –
- What is Gann Fan Indicator.
- How to draw Gann Fan Indicator.
- How to get Support and Resistance from Gann Fan.
- How to generate Trading Signals using Gann Fan.
- How to analysis Market Trend using Gann Fan.