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3/1
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4/1
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8/1
How to Use the Gann Fan Indicator
According to Gann theory, there are special angles that you can draw on a chart that will give
you a good indicator of what price is going to do in the future. All of Gann’s techniques require
equal time and price intervals, in other words, a rise of a 1/1 would imply a 45-degree angle.
This statement may sound obscure, but after we’ll go through some example, shortly and you’ll
get a better understanding of how to use the Gann fan indicator and more importantly how to
draw Gann fan angles.
Gann believed that when price and time move in sync, then that’s the ideal balance of the
market. The biggest part of the Gann theory revolves around the fact that prices above the 1/1
line, the 45-degree line will determine a bull market and prices below the 1/1 line determine a
bear market (see Figure above).
How to Draw Gann an Angle
In this section, I’m going to teach you how to draw Gann fan angles. Many traders are used to
draw Gann fan angles the wrong way which is why you need to pay closer attention to this
section.
You first need to draw a perfect 45-degree angle and most sophisticated trading platforms
should have incorporated such tools. On the Tradingview platform, you can locate the Trend
Angle tool on the left-hand side panel (see Figure below).
Next step is to select any major swing high or swing low on the chart from where you want to
draw the Gann fan angles. Once you’ve chosen your swing low point simply utilize the trend
Angle tool and draw a perfect 45 degree angle.
Once you’re done, you need now to learn how to draw the Gann fan angles. On this step you
need to use the Gann Fan indicator which again is located on the left hand side panel (see
Figure below).
Now, all you have to do is to simply place the Gann fan indicator on the chart and make sure it
overlays on top of the 45-degree line you previously have drawn. This is the correct way to draw
the Gann fan angles and if you have been following all these steps all the other Gann fan angles
should comply with the Gann rules.
Now, let’s move forward to the most important part of this article, the trading rules of the best
Gann fan trading strategy.
Before we go any further, we always recommend writing down the trading rules on a piece of
paper. This exercise will step up your learning curve and you’ll become a Gann expert in no time.
Let’s get started…
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