Gann Angles 1 – S&P500

W.D. Gann used angles as the “basis to his analysis”

It’s no secret that Gann liked the CIRCLE, virtually everything he did was based around the Circle and the 360 degrees that fit inside the circle – Gann Angles are just another part of the circle – the angles from 0-90 degrees that fit onto a 2 Dimension chart – computer or paper the only option you have is using them within 90 degrees.

It would be worth you reading Ganns courses to understand how he put it all together.

gann-angles-sp500

I’ve not labelled the angles – the PINK lines are the 1 x 1 angle or in Gann’s parlance the 45 Degree angle.

From 2009 – 2015 it is obvious that PRICE has worked out to the 45 degree 1 x 1 angle

There is no way for certain to work out in advance whether price will follow which angle – price could follow the 8 x 1 up or the 2 x 1 – if price moves up 1000 pts and takes 1000 trading days/weeks or months then it has followed the 1 x 1 angle – you have no idea in advance whether it will or not – you can see though from the chart above that there is obviously something in it unless you’d not have that many hits.

Gann put an angle or combination of angles (as even he didn’t know which angle price would react too) on EVERY high and low, when they intersected/crossed Down/Up etc it often created support/resistance levels

Please note that the scaling on this chart is not 100% precise – I just use the angles as a gauge I don’t use them to trade/Invest from/with – I scaled the price by taking the extreme high and low and dividing by the time taken – this is good in HINDSIGHT but not for forecasting methods……

There is another way to use Gann angles I’ll make a note to do a post on part 2 sometime in 2017 – In the meantime watch out for my 2017 Market Forecast

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