Play around with the tool and see if different degrees work for you. Steep angles indicate strong moves, while shallow angles suggest weak ones. Before placing the Gann fan on the chart you’ll need to establish the 45 degree line. The 1/1 line (drawn light blue) acts as the 45-degree center line. I’ll also explain the CORRECT method for placing Gann fans on your charts.

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I’ll provide a simple Gann fan trading strategy also show you how to use the Gann fan indicator using Tradingview. AMarkets is a global online broker, offering its services since 2007. Our mission is to provide clients and partners around the world with the opportunity to become successful in the financial markets. However, they’re more reliable on higher intervals—ideally on 4-hour charts or above. The higher the timeframe, the less market “noise,” which makes the indicator more accurate and meaningful. While there are multiple angles, the most important is the 1×1 angle, which reflects a perfect balance between price and time—forming a 45-degree slope.

Calculation errors, especially with manual methods or incorrect scaling (pips/decimals), are also common. Finally, misinterpreting or over-emphasizing the time cycle aspect without proper validation can lead to flawed forecasts. A Gann Box, conversely, is a geometric tool drawn directly onto the price chart, connecting significant highs and lows. Both stem from Gann’s work, but they are distinct tools in construction and application, though both might be incorporated into a broader technical approach.

Practical Examples & Chart Illustrations

Gannits, a well-known analyst and trader, in the early 20th century. Gannits is credited with having developed several trading tools and strategies in his lifetime. While Gann’s methods can be used standalone, many traders find they work best when combined with other technical tools. Using indicators like MACD or RSI to confirm momentum at a Gann level, or identifying traditional chart patterns near these levels, can increase the probability of a successful trade. Relying solely on the gann square trading strategy without any confirmation can be risky. A primary mistake when first attempting a gann square trading strategy is choosing an insignificant starting price pivot, which leads to irrelevant calculated levels.

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The tool should be used in combination will a solid understanding or price movement and behavior. The fan comprises nine diagonal lines with the 45-degree angle line acting as the center line, while the other eight will be located below or above this line. Today, Gann Fans are widely used by traders across different markets—from stocks and forex to cryptocurrencies and commodities.

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As one of the previous angles breaks the next line in the” fan,” it will act as support. In other words, they are just levels of support and resistance. Combined with other indicators the Gann Fan can be a very useful tool to trade with. It can be a great way to identify opportunities in the market. As always use proper risk management with any strategy you are trading. TradingView is an excellent starting point for trading with Gann Fans.

Gann Fan Trading Strategy: Time and Price Mastery for Trend Prediction

According to Gann’s theory, markets move from one angle to another, with each angle carrying unique characteristics and exerting influence on price behavior. The Gann Fan, a creation of W D Gann rooted in the Gann Theory, stands as a remarkable tool for crypto traders. Its unique geometry, depicted by diagonal lines, aids in pinpointing potential price reversal or breakout points.

• Gann, certain geometric patterns and angles held unique characteristics that could be used to predict actions in both price and time correctly.
• If the price bounces off this line, it may indicate a continuation of the uptrend.
• Relying solely on the gann square trading strategy without any confirmation can be risky.

See the ‘How to Use the Gann Fan Indicator’ section below. Thus, the above are some differences between the two types of technical indicators. Here is an example from TradingView that will help in understanding the concept.

• When traders discuss the “Gann Square,” they’re usually referring to the specific tool known as the “Gann Square of 9” (sometimes called the “Gann Wheel”).
• The benefit of drawing a Gann angle compared to a trendline is that it moves at a uniform rate of speed.
• In the above example the coordinates of the Gann box are listed.
• These lines are called “Gann angles” and are used to identify potential support and resistance levels.
• Hundreds of markets all in one place – Apple, Bitcoin, Gold, Watches, NFTs, Sneakers and so much more.

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They usually have a Gann Fan option under their trendlines, making it easy to apply directly to your charts. Taking a geometrical approach, you can identify significant highs and lows and draw your Gann Fan accordingly. If a stock breaks a major resistance level represented by a Gann angle, that may signal a broader market move and should not be ignored. We will help to challenge your ideas, skills, and perceptions of the stock market. Every day people join our community and we welcome them with open arms. We are much more than just a place to learn how to trade stocks.

Yes, we work hard every day to teach day trading, swing trading, options futures, scalping, and all that fun trading stuff. But we also like to teach you what’s beneath the Foundation of the stock market. You can also combine this strategy with Fibonacci Retracement Levels. Many times the Fan levels will coincide with a 61.8% Fib Line which will indicate it is a strong level to watch. In the image above you can see how the Fibonacci and Gann Fan lines meet which is exactly where the price found support. Then next you simply use the Gann Fan Tool and draw the line from the start of your 45-degree angle and align it with the 1/1 line.

What Are Gann Indicators?

With an understanding of the structure and calculations, you can start applying the gann square of 9 trading strategy. The goal is to use the calculated levels and potentially the time elements to inform trading decisions. Effective implementation of the gann square trading strategy relies on careful observation. The gann square trading strategy, especially using the famous Square of 9, offers a unique perspective based on geometry and natural rhythms.

Our chat rooms will provide you with an opportunity to learn how to trade stocks, options, and futures. You’ll see how other members are doing it, share charts, share ideas and gain knowledge. In 2018 I started Tradamaker a site that specializes in trading resource tutorials. 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. 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. The primary Gann angles are the 1X2, the 1X1, and the 2X1.