![]() According to Gann, prices should then sink down to the next trend line (in this case, it is the ray of 2x1). If prices fall below 1x1 line, it means the trend turns. For example, ray of 1x1 is usually the most important support line when the trend is ascending. Gann noted that each of the above-listed rays can serve as support or resistance depending on the price trend direction. The simplest method of chart calibration consists in checking the slope of the ray of 1x1: it must make 45 degrees. It means that a unit interval on X axis (i.e., hour, day, week, month) must correspond with the unit interval on Y axis. Gann emphasized the following nine basic angles, the angle of 1x1 being the most important of all:įor the considered ratios of price and time increments to have corresponding angles of slope in degrees, X and Y axes must have the same scales. Gann thought that the ray of 1x1 is a powerful support line when the trend is ascending, and he considered the breaking this line as an important turn signal. If the price curve is located above this line, it is the indication of the bull market, if it is below this line it is that of the bear market. The trendline of 1x1 was considered by Gann the most important. Lines of Gann Fan are built at different angles from an important base or peak at the price chart. Request a presentation of MetaTrader 5 for Hedge Funds.Request a presentation of MetaTrader 5 for Brokers.
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