How To Draw Gann Angles Correctly

The Best Gann Fan Trading Strategy

How do I use the Gann Fan indicator? How do I draw Gann Fan? these are the most common questions almost this indicator. But for a good reason, though!

This trading strategy is a complex support and resistance trading strategy. Information technology uses diagonal support and resistance levels. Dissimilar the traditional horizontal support and resistance levels, the Gann fan angles are mathematically calculated based on the toll, time and the toll range of the market. If you desire to acquire how to correctly trade horizontal support and resistance levels, we've got your back. Just read Back up and Resistance Zones – Road to Successful Trading.

Our squad at Trading Strategy Guides has developed the best Gann fan trading strategy. It tin can be applied to all markets because according to the Gann theory, financial markets motion every bit a event of human beliefs. This makes them cyclical in nature. In other words, history is a good predictor of future cost action.

One of the principal reasons why Gann fan angles are superior to the horizontal support and resistance levels is that financial markets are geometric in their movements. If you tin spot a blueprint or any other geometric shape in a chart, there is a high probability you tin spot them at the Gann fan angles. Also, read my personal trading program reviewed by Kim Krompass.

Before nosotros get started, let's wait at what indicator you need for the task for the All-time Gann Fan Trading Strategy:

The Showtime and ONLY indicator you need is the:

Gann Fan Indicator: This indicator is notable unique because it draws diagonal back up and resistance levels at different angles. At first sight, yous might recognize the indicator because it's a colorful indicator. Information technology is much similar the Fibonacci Channel indicator, which was introduced to our audition in previous months. Read more than here, Fibonacci Retracement Channel Trading Strategy.

Gann Theory Explained

We accept special Gann fan angles and more specifically Gann came upward with ix dissimilar angles (run across figure to a higher place).

The most of import bending is the 45-degree angle or the one/1 line. For every Gann angle, a line is derived from that angle. We tin distinguish 4 unlike Gann angles above the 45-degree bending and 4 other Gann angles beneath, as follows:

• i/viii
• 1/4
• ane/3
• 1/two
• one/ane – 45 degree
• 2/ane
• 3/1
• 4/1
• 8/1

How to Use the Gann Fan Indicator

Co-ordinate to Gann theory, there are special angles y'all tin can draw on a chart. They will requite you a adept indicator of what the price is going to do in the hereafter. All of Gann'southward techniques require equal time and toll intervals. In other words, a rise of a 1/1 would imply a 45-degree bending.

This argument may audio obscure, simply we'll go through some examples before long. Y'all'll get a meliorate agreement of how to apply the Gann fan indicator, and more than chiefly how to draw Gann fan angles.

Gann believed that when price and fourth dimension movement in sync, and so that'south the ideal balance of the marketplace. The biggest part of the Gann theory revolves effectually the fact that prices in a higher place the 1/ane line, the 45-degree line volition determine a bull market and prices below the 1/1 line determine a bear market (encounter Figure in a higher place).

How to Draw Gann Fan Angle

Gann believed that when cost and time move in sync, that's the ideal residue of the market. The biggest office of the Gann theory revolves around the fact that prices in a higher place the ane/1 line. The 45-caste line will decide a balderdash market. Prices beneath the i/one line make up one's mind a deport marketplace (run across Figure above).

First, you need to draw a perfect 45-degree bending. Virtually sophisticated trading platforms should incorporate these tools. On the Tradingview platform, you can locate the Tendency Angle tool on the left-hand side panel (see Figure below).

The next step is to select any major swing high or swing lows on the chart from where you draw the Gann fan angles. In one case you take called your swing depression indicate, simply utilize the trend Angle tool and draw a perfect 45-degree angle.

Once you're done, yous need to learn how to depict the Gann fan angles. In this step, employ the Gann Fan indicator, which is located on the left-mitt side panel (meet Figure below).

Now, all y'all have to do is to simply place the Gann fan indicator on the chart. Brand sure it overlays on top of the 45-caste line you lot previously drew. This is the correct way to draw the Gann fan angles. If you lot have been following all of these steps, all of the other Gann fan angles should comply with the Gann rules.

Now, let'south move forrard to the most important function of this article. This are the trading rules of the best Gann fan trading strategy.

Before we become whatsoever further, nosotros always recommend writing down the trading rules on a piece of paper. This exercise volition step up your learning curve and you'll become a Gann proficient in no time. Hither is another strategy called The PPG Forex Trading Strategy.

Let'due south get started…

The Best Gann Fan Trading Strategy

(Rules for BUY Trade)

Step #1: Pick a meaning High, Depict Gann Fan Angles and Look For the one/1 Line to Break to the Upside.

The best Gann fan trading strategy works the aforementioned in every fourth dimension frame. Just we recommend not going lower than the 1h nautical chart, as y'all desire to be able to pick significant swing high points. This tin't be seen on the lower fourth dimension frames.

To draw Gann fan angles delight refer to the previous "How to draw Gann fan Angle" section.

Next, let'due south address our entry indicate:

Stride #2: Wait for a Break Above 2/1 Gann angle Earlier Ownership 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. Yous want to buy at the market equally soon as we break in a higher place ane/ane line.

Now, after we have our position opened, we need to do one more than important thing:

Step #3: Apply again the Gann Fan Indicator on the Swing low Prior to the Breakout to a higher place 2/1 Gann Fan Bending

How to use the Gann fan indicator? Simply follow the instruction presented in the above sections. At this signal, yous tin too get rid of the previous Gann fan angles drawn from the swing high. This volition make certain your chart will not get chaotic and the price is still visible.

One of the reasons why this is the best Gann fan strategy is because we utilize the Gann fan indicator to runway every swing in the marketplace.

At this point, your merchandise is opened, merely we nevertheless need to determine where to place our protective terminate loss and take profit orders, which brings us to the next step of the all-time Gann fan trading strategy.

Stride #4: Place Your Protective Finish Loss below the Nigh Recent Swing Low Which Should Align With the Indicate from Where Y'all Describe 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 club which is right below the swing low located prior to the one/ii Gann angle breakout.

Next, volition acquire where to take profits:

Pace #5: Take Profit One nosotros Break and Close Below the 1/1 line. We Need the Shut Beneath 1/1 line to be by at Least 20 Pips to Consider it a Valid Breakout

We desire to ride the new trend for as long as possible and with the help of the Gann fan indicator, we tin can pinpoint the platonic time to take profits. We take profit at the earliest symptom of market weakness which is a interruption below the 1/1 line that signals a possible start of a bearish move.

We also want to add a buffer of twenty pips to the ane/one Gann angle breakout only to demolish possible false breakouts.

Notation** The above was an example of a buy trade using the best Gann fan strategy. Use the same rules – merely in reverse – for a sell trade. In the figure below you can see an actual SELL trade example using this strategy.

Simply follow the how to utilize the Gann fan indicator section to draw the Gann fan angles. We've applied the aforementioned Step #1 and Step#2 to assistance us place the SELL trade and followed Step #3 through Step#v to manage the trade (run across adjacent figure).

Determination

This is the best Gann fan strategy because unlike the traditional support and resistance lines the Gann angles tin pinpoint significant changes in the market swing trends. Nosotros at Trading Strategy Guides have a clear understanding of what is really going on at these critical levels because we always brand sure we backtesting our strategies so they have a positive expectancy.

If you desire to gain a much clearer understanding of how support and resistance level actually work we recommend having a await at our work hither: Support and Resistance: What Is Going On At These Critical Areas.

Cheers for reading!

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