The Best Gann Fan Trading
Strategy
The best Gann fan trading strategy is a complex support and resistance trading strategy that
uses diagonal support and resistance levels. Unlike the traditional horizontal support and
resistance levels, the Gann fan angles are mathematically calculated based on the price, time
and the price range of the market. If you want to learn how to correctly trade horizontal support
and resistance level we’ve got your back, just read
Support and Resistance Zones – Road to
Successful Trading
.
Our team at Trading Strategy Guides has developed the best Gann fan trading strategy which
can be applied to all markets because according to the Gann theory, financial markets move as
a result of human behavior which makes them cyclical in nature. In other words, history is a
good predictor of future price action.
One of the main reasons why Gann fan angles are superior to the horizontal support and
resistance levels is that financial markets are geometric in their movements. This means that if
you can spot a pattern or or any other geometric shape in a chart, then there is a high probability
you can spot them at the Gann fan angles.
Now…
Before we get started, let’s look at what indicator you need for the job for
the Best Gann Fan Trading Strategy:
The First and ONLY indicator you need is the:
Gann Fan Indicator: This indicator is notable unique because it draws diagonal support and
resistance levels at different angles. At first sight you might recognize the indicator because it’s
a colorful indicator much like the Fibonacci Channel indicator which has been introduced to our
audience in previous months, read more here:
Fibonacci Retracement Channel Trading Strategy
We have special Gann fan angles and more specifically Gann came up with 9 different angles
(see Figure Above).
The most important angle is the 45-degree angle or the 1/1 line. For every Gann angle, there is a
line that is derived from that angle. We can distinguish 4 different Gann angles above the
45-degree angle and 4 other Gann angles below, as follows:
·
1/8
·
1/4
·
1/3
·
1/2
·
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