• Gann Analysis Unveiled

    From Arnhild Nading@21:1/5 to All on Sun Nov 26 14:29:57 2023
    Gann Analysis Unveiled: How to Use This Powerful Trading Tool
    Gann analysis is a method of technical analysis that uses geometry, astrology, and natural cycles to predict market movements. It was developed by William Delbert Gann, a legendary trader who claimed to have made over $50 million in the stock market in
    the early 20th century.

    Gann Analysis Unveiled
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    Gann analysis is based on the idea that the market is governed by natural laws that can be expressed in mathematical terms. Gann believed that everything in nature is cyclical and that these cycles can be identified and measured using angles, squares,
    and circles. He also believed that the market is influenced by planetary movements and that certain dates and times are more favorable or unfavorable for trading.

    In this article, we will unveil the secrets of Gann analysis and show you how to use this powerful trading tool to enhance your trading performance. We will cover the following topics:


    What are the main components of Gann analysis?
    How to use Gann angles to identify support and resistance levels?
    How to use Gann squares to measure price and time relationships?
    How to use Gann fans to determine trend direction and strength?
    How to use Gann cycles to forecast future market movements?

    What are the main components of Gann analysis?
    Gann analysis consists of four main components: angles, squares, fans, and cycles. Each component has its own purpose and application in trading. Let's take a closer look at each one.



    Gann angles
    Gann angles are diagonal lines that divide a price chart into different sections. They are drawn from significant highs or lows and extend into the future. The most important angle is the 1x1 angle, which represents a 45-degree angle or a one-to-one
    relationship between price and time. This means that for every unit of price change, there is an equal unit of time change.

    Gann angles can be used to identify support and resistance levels, as well as potential reversal points. The steeper the angle, the stronger the support or resistance. When price breaks above or below an angle, it indicates a change in trend or momentum.
    For example, if price breaks above a 1x1 angle, it signals a bullish trend. If price breaks below a 1x1 angle, it signals a bearish trend.


    Source: Investopedia

    Gann squares
    Gann squares are grids of numbers that are arranged in a spiral pattern. They are derived from the square root of a base number, such as 1, 4, 9, 16, etc. The base number is placed in the center of the grid and the numbers increase by one as they move
    outward along the spiral.

    Gann squares can be used to measure price and time relationships, as well as harmonic patterns. The numbers on the grid represent potential support and resistance levels, as well as pivot points. The diagonal lines on the grid represent Gann angles. The
    horizontal and vertical lines on the grid represent time and price intervals.

    One of the most popular Gann squares is the Square of Nine, which is based on the square root of 9. It can be used to calculate important price levels by adding or subtracting multiples of 9 from a given price. For example, if the current price is 100,
    then adding 9 gives 109, which is a potential resistance level. Subtracting 9 gives 91, which is a potential support level.

    <img src="https://www.investopedia.com/thmb/4wqyqzj
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