章節 3 What are Gann Angles?
Gann theory in the stock market contains multiple unique strategies for technical analysis. It involves analysing stock price charts based on angles and patterns that, according to Gann, have unique features that allow for predicting prices effectively.
A series of angles drawn and various price points help to forecast how the prices will move. These angles represent the characteristics of the stock price at different stages of time. Once the price points are connected on charts, Gann angles can be calculated.
According to Gann’s theory, the price and time are best when the relative angle of their rise and fall is 45 degrees.
For Gann Angles rice/run of 1x1 will always equal 45-degree angle. Gann states that price and time are at their best when they rise or fall at a 45 degree angle relative to each other.
To draw Gann Angles at different angles, you need to have a significant top or bottom. If prices are above the trendline, it is a bullish market. A bear market if they are below. Gann believed that 1 x 1 trend lines provide major support and resistance in an up-trend, and that when it is broken it signals a major reversal of the trend.
Gann identified nine angles where the most important is the 1x1.
1) 1 x 8 - 82.5 degrees
2) 1 x 4 - 75 degrees
3) 1 x 3 - 71.25 degrees
4) 1 x 2 - 63.75 degrees
5) 1 x 1 - 45 degrees
6) 2 x 1 - 26.25 degrees
7) 3 x 1 - 18.75 degrees
8) 4 x 1 - 15 degrees
9) 8 x 1 - 7.5 degrees
