How to use the Gan Fan for trading

This trading strategy is a complex support and resistance trading strategy. It uses diagonal support and resistance levels. Unlike the traditional horizontal support and resistance levels, the Gann fan angles are mathematically calculated based on the price, time, and the price range of the market. If you want to learn how to correctly trade horizontal support and resistance levels, we’ve got your back.

Our team at Trading Strategy Guides has developed the best Gann fan trading strategy. It can be applied to all markets because according to the Gann theory, financial markets move as a result of human behavior. This makes them cyclical in nature. In other words, history is a good predictor of future

Gann believed that when price and time move in sync, then 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, the 45-degree line will determine a bull market and prices below the 1/1 line determine a bear market (see Figure above).

A Step-by-Step Guide to Drawing Gann Fan Angles

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. The 45-degree line will determine a bull market. Prices below the 1/1 line determine a bear market

One of the main 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 can spot a pattern or any other geometric shape in a chart, there is a high probability you can spot them at the Gann fan angles.

Gann Theory Explained

We have special Gann fan angles and more specifically Gann came up with 9 different angles (see figure above).

The most important angle is the 45-degree angle or the 1/1 line. For every Gann angle, a line is derived from that angle. We can distinguish 4 different Gann angles above the 45-degree angle and 4 other Gann angles below, as follows:

1/8

1/4

1/3

1/2

1/1 – 45 degree

2/1

3/1

4/1

8/1

Mastering Gann Fan Indicator: A Comprehensive Guide

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. 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.

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.

First, you need to draw a perfect 45-degree angle. Most sophisticated trading platforms like tradingview should incorporate these tools. On the Tradingview platform, you can locate the Trend Angle tool on the left-hand side panelThe next step is to select any major swing high or swing lows on the chart from where you draw the Gann fan angles. Once you have chosen your swing low point, simply utilize the trend Angle tool and draw a perfect 45-degree angle.

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

Now, all you have to do is simply place the Gann fan indicator on the chart. Make sure it overlays on top of the 45-degree line you previously drew. 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.

See more here