![w d gann algorithms w d gann algorithms](https://zkm.de/sites/default/files/styles/r17_720_dynamic/public/bild/372-adm-xi.png)
Also, when a geometric angle crosses zero or another geometric angle, a trend change is likely. An angle that provided resistance, once decisively broken, should provide support.įurthermore, when a 1 x 1 angle crosses a horizontal line extending forward in time from a significant past pivot point price (an obvious high or low), then time and price are square relative to that past pivot point, and that is a likely time for a change in trend or an acceleration of the existing trend.
![w d gann algorithms w d gann algorithms](https://i0.wp.com/www.wdgann-lost-secrets.com/wp-content/uploads/2016/11/crudefollowup.png)
Eventually, after a downtrend, when price moves above and stays above the 1 x 1 angle (which is sloping down and to the right at 45 degrees), price should then make its way up to test the next, less-steep Gann angle, the declining 2 x 1 angle. In a downtrend, the 1 x 1 angle extends "southeast" at a precise 45 degree angle. The price should then drop down to test the 2 x 1 angle, below. When this 1 x 1 angle is broken, a significant price trend reversal is signaled. In a bullish uptrend, the 1 x 1 angle tends to provide major support. This 1 x 1 angle is the most significant angle: it represents a sustainable, perfectly balanced trend, not too fast and not too slow, but just right. On a perfectly proportioned time by price grid, in an uptrend, the 1 x 1 angle extends "northeast" at a precise 45 degree angle. Gann placed special emphasis on the 1 x 1 angle. In other words, as one angle is penetrated, expect prices to move to and consolidate at the next angle, which is less steep. According to Gann, prices should then be expected to fall to the next angle below, the 2 x 1 angle. A major reversal is signaled when prices fall below the 1 x 1 angle. For example, during an up-trend, the 1 x 1 angle tends to provide major support. Gann angles offer indications of support and resistance that may not be evident based on any other method. Nevertheless, Gann angles are flexible and can be used on any time-scale, so long as the time by price proportions are correctly calculated. Gann often said that the weekly chart was more important than the daily chart. Rather than thinking in terms of degrees, it is simpler to express Gann angles in terms of units of time by price.įor practical purposes, weekly Gann angles, drawn on a weekly bar chart, appear to offer the most useful perspective. But that would not affect the interpretation of the Gann angles if we avoid thinking in terms of degrees. That would not prevent correct Gann angles from being drawn on oddly proportioned grids it would only prevent the translation of time by price angles into correctly-displayed degrees. Without this equality of time and price scaling, however, Gann angles stated in degrees do not work out correctly. On such a proportionally scaled chart, the 1 x 1 geometric angle, which for every one unit of time rises one point in price, is a 45 degree angle. For example, 1/16 of an inch might be set to one week of time on the horizontal x-axis, and 1/16 of an inch might be set to one dollar of price on the vertical y-axis. Translating time by price into degrees assumes a square grid, where one unit of time on the x-axis takes up the same amount of horizontal space as the one unit of price on the y-axis takes up vertical space. N degrees specifies the slope of the Gann angle, measured in degrees. P is the number of units of price, graphically plotted on the vertical y-axis. T is the number of units of time, graphically plotted on the horizontal x-axis. He used just one pivot point to draw an angle that rose (or fell) at predetermined and fixed rates of speed, as follows: Gann drew his angles from all significant price pivot point highs and lows. Gann was fascinated by the relation of time (T) and price (P). Gann (1878-1955) developed the use of what he called "Geometric Angles", now commonly referred to as Gann Angles, used to determine trend direction and strength, support and resistance, as well as probabilities of price reversal. The following is an excerpt from my 820-page research book,Ĭolby, Robert W., The Encyclopedia of Technical Market Indicators, Second Edition, McGraw-Hill Publishing, 2003 (click here for a description).
W D GANN ALGORITHMS UPDATE
Gann, Technical Analysis, Stock Market Timing, Money Managers, Investing, Business, free news update Gann, Geometric Angles, 45 degree, 1 X 1, square, circle, spiral, master calculator, ratios, mechanical trading, the best, top-performing market timing methods, technical analysis, fast run, nature Gann Angles, Time and Price Analysis, Basic Explanation, W.