DECODING GANN FAN: HOW TO USE IT IN TRADING for OANDA:EURUSD by Lingrid

All nine diagonal lines of the Gann Fan are now placed on the chart. In the above example the coordinates of the Gann box are listed. In the first https://1investing.in/ column is price in the second column is time (bar). Before placing the Gann fan on the chart you’ll need to establish the 45 degree line.

Traders can use the angles of the trend lines on the Gann Fan to identify potential trend reversals. For example, if the price is moving up and then crosses below a downward-sloping trend line, it may be a signal that the trend is reversing. To draw a Gann Fan, you need to identify a significant high or low on the chart and draw a line from that point to the right. You then draw additional lines at different angles based on the theory that prices will move in specific increments. The primary Gann angles are the 1X2, the 1X1, and the 2X1.

1. 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.
2. The angles used when drawing the Gann Fan are based on the theory that prices will move in specific increments.
3. The Gann Swing Oscillator helps define market swings.

Once you’re done, you need to learn how to draw the Gann fan angles. In this step, use the Gann Fan indicator, which is located on the left-hand side panel (see Figure below). It’s important to know the limitations of the tool before you consider adding it to your technical analysis toolkit. The tool projects 9 lines from a selected significant high or low, selected by the trader. This point has been identified as the start of an up or down trend. The strength (or weakness) of a price move, is gauged with respect to the areas of the fan that price is trading.

It can be applied to all markets because according to the Gann theory, financial markets move as a result of human behavior. In other words, history is a good predictor of future price action. Gann took the perspective that the past, the present, and the future are all connected by the same influence along a given angle. This being said, the Gann angle can be used to forecast support and resistance, the strength of direction, and the timing of tops and bottoms. Gann angles are a popular analysis and trading tool that are used to measure key elements, such as pattern, price, and time.

How do I use Gann Fan in TradingView?

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. Each line represents a ratio of time and price units. The 45 degree line represents 1 unit of price movement with 1 unit of time. This timing indicator works better on longer-term charts, such as monthly or weekly charts; this is because the daily charts often have too many tops, bottoms, and ranges to analyze.

This is the correct way to draw the Gann fan angles. If you have been following all of these steps, all of the other Gann fan angles should comply with the Gann rules. In 2018 I started Tradamaker a site that specializes how to use gann fan in tradingview in trading resource tutorials. The tool is typically employed as part of a discretionary trading strategy. The tool should be used in combination will a solid understanding or price movement and behavior.

Gann Square

His trading theories and strategies are still widely used today. According to Gann theory, there are special angles you can draw on a chart. They will give you a good indicator of what the price is going to do in the future.

DECODING GANN FAN: HOW TO USE IT IN TRADING

This statement may sound obscure, but we’ll go through some examples shortly. You’ll get a better understanding of how to use the Gann fan indicator, and more importantly how to draw Gann fan angles. I’m Ben, I graduated with a degree in Engineering and Science from the University of Adelaide, Australia.

Step #3: Apply again the Gann Fan Indicator on the Swing low Prior to the Breakout above 2/1 Gann Fan Angle

These are the trading rules of the best Gann fan trading strategy. Gann analysis is controversial in the investing world, with some comparing it to financial horoscopes. Indeed, Gann was a strong believer in astrology and numerology, and frequently wove mysticism into his trading techniques. Although he claimed to have made millions from trading, later researchers learned that Gann’s estate was worth only $100,000 at the time of his death. This is not to say that a Gann angle always predicts where the market will be.

They are widely seen as innovative and still studied and used by traders today. Gann used angles and various geometric constructions to divide time and price into proportionate parts. Gann indicators are often used to predict areas of support and resistance, key tops and bottoms, and future price moves. Like any trading strategy, the Gann Fan is not foolproof and should be used in conjunction with other technical analysis tools and market research. However, many traders have found success using the Gann Fan to identify key levels of support and resistance and to determine entry and exit points for trades.

There seems to be a lot of mis-information about how to correctly scale the tool. To correctly scale your Gann fan check out the ‘How to Use the Gann Fan Indicator’ section above. For a complete list of Brokers that support Tradingview integration click the link. To find out more about connecting a brokerage account to Tradingview check out my previous post.

Then the increasing value will be used to get the value of each cell on the table. It’s possible to show the diagonals and a spot number to see what cell value the current price is close to. Each of the Fan lines can be interpreted by the trader as potential support or resistance area depending on where in the fan price is trading. The tool can be used to help identify trends and forecast future prices. One of the main goals of Gann Fans is to measure the slope or degree of the ascent or descent of price movement using the Gann angles to predict future price movement.

Most sophisticated trading platforms should incorporate these tools. On the Tradingview platform, you can locate the Trend Angle tool on the left-hand side panel (see Figure below). Gann believed that when price and time move in sync, that’s the ideal balance of the market. The biggest part of the Gann theory revolves around the fact that prices above the 1/1 line. Prices below the 1/1 line determine a bear market (see Figure above). Gann believed that when price and time move in sync, then that’s the ideal balance of the market.

Having an open mind and grasping the key concept that the past, present, and future all exist at the same time on a Gann angle can help you analyze and trade a market with more accuracy. Learning the characteristics of the different markets regarding volatility, price scale, and how markets move within the Gann angle framework will help improve your analytical skills. A Gann angle is a diagonal line that moves at a uniform rate of speed. A trendline is created by connecting bottoms to bottoms in the case of an uptrend and tops to tops in the case of a downtrend.

All the inputs will be detailed below Why create this indicator? I didn’t find it on Tradingview (at least with open source). But the main reason is to study the strategy and be able to draw it fast. Manually drawing the square is not hard, but moving all together to the right… The angles used when drawing the Gann Fan are based on the theory that prices will move in specific increments. Common angles include 45 degrees, 26.5 degrees, and 75 degrees.

Lines below the 45 degree line are typically considered as support lines. Two sliders adjust the visibility and opacity levels of the background between time and price levels. This is the Gann Square Technique that i saw from the YT channel “WD Gann Price & Time Technical Analysis”. Gann Levels for nifty 50 is very important to trade in options.