Trading with Gann Fans
Gann Fans, developed by Gann, are one of the most widely used tools by Gann himself to exploit the relationship between price and time. Gann fans derive their existence from Gann angles, there are 9 major Gann angles and 1 x 1 or 45 degree angle is the single most important one. Know more about Gann Angles. Gann fans are used by traders to find support and resistance levels, trend changes and major price-time junctions.
Gann fans are plotted over charts; from recent peaks or bottoms. The chart should have same unit in X and Y axis; in other words consistency of unit is important. Lines of various lines (at 82.5, 75, 71.25, 63.75, 45, 26.25, 18.75, 15 and 7.5 degrees) are plotted. When ever the price moves above a line, the instrument is in upward trend and whenever the price moves below a line, the instrument is in downward trend. The lines serve as immediate support and resistance levels. Trend changes are indicated when a line is crossed and new trends are identified when price cross another line. When one line is broken prices then fall/rise to next nearest line.
In most cases Gann fans serve the function of trend lines and Fibonacci fans. Traders can enter and exit trades when the lines are broken or prices are at a strong trend (like 1 x 1 line). Price movements in higher degrees indicate swift price movements. Gann fans offer better results when used in conjunction with other trend and volume indicators.
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Gann fans are plotted over charts; from recent peaks or bottoms. The chart should have same unit in X and Y axis; in other words consistency of unit is important. Lines of various lines (at 82.5, 75, 71.25, 63.75, 45, 26.25, 18.75, 15 and 7.5 degrees) are plotted. When ever the price moves above a line, the instrument is in upward trend and whenever the price moves below a line, the instrument is in downward trend. The lines serve as immediate support and resistance levels. Trend changes are indicated when a line is crossed and new trends are identified when price cross another line. When one line is broken prices then fall/rise to next nearest line.
In most cases Gann fans serve the function of trend lines and Fibonacci fans. Traders can enter and exit trades when the lines are broken or prices are at a strong trend (like 1 x 1 line). Price movements in higher degrees indicate swift price movements. Gann fans offer better results when used in conjunction with other trend and volume indicators.
NobleTrading.com Offers Online Stock Trading, Online Options Trading
Online Futures Trading, Online Forex Trading
Worldwide Brokerage Service, Day Trading Brokerage
posted by NobleTrading at
7:56 AM
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