Gann technique
W. D. Gann developed various techniques for analyzing price trends. His techniques are based on geometric angles in connection with time and course. According to Gann, certain geometric patterns and angles have distinctive characteristics that can be used to predict prices.
All Gann techniques require equal time and price intervals (x- and y-axis) in the chart window so that a rise or fall of 1 x 1 always results in a 45° angle.
Gann angles are drawn between an extreme low and an extreme high. Gann defined nine essential angles, of which the 1 x 1 angle is the most important:
1 x 8 | 82,5° | 1 x 2 | 63,75° | 3 x 1 | 18,75° |
1 x 4 | 75° | 1 x 1 | 45° | 4 x 1 | 15° |
1 x 3 | 71,25° | 2 x 1 | 26,25° | 8 x 1 | 7,5° |
Details on the interpretation of Gann techniques can be found in the specialist literature.