# What Are Gann Angles & How To Trade With Them William Gann is one of the largest traders of the twentieth century, famous for inventing a unique methodology for predicting the development of market trends, which is now commonly called “Gann Methods.” Gann angles are one of the effective tools for analyzing and predicting price behavior. The method is based on the analysis of changes in the graph relative to lines constructed from extremes at certain angles.

## What are Gann Angles?

Gann Angle lines are drawn at different angles from the important top or bottom on the price chart. Gann believed the 1×1 trend line to be the most important level. The position of the price curve above this line is a sign of a bull market, and below it is considered a bear market. Gann believed that the 1×1 angle is a powerful support line in an upward trend, and considered a breakout of this line as an important reversal signal. Gann identified the following nine main angles, among which the 1×1 angle is the most important:

• 1×8 – 82.5°
• 1×4 – 75 °
• 1×3 – 71.25°
• 1×2 – 63.75°
• 1×1 – 45°
• 2×1 – 26.2°
• 3×1 – 18.75°
• 4×1 – 15°
• 8×1 – 7.5°

For the considered ratios of price and time growth to have corresponding slope angles in degrees, the X and Y axes must have the same scale. This means that the unit interval on the X-axis (i.e., hour, day, week, month) should correspond to the unit interval on the Y-axis. The simplest way to calibrate the graph is to check the angle 1×1: 45 degrees.

Gann noted that each of the above rays could serve as support or resistance depending on the direction of the price trend. For example, in an uptrend, a 1×1 angle is usually the most important support line. A fall in prices below the 1×1 line indicates a trend reversal. According to Gann, then prices should fall to the next trend line (in this case, it is a 2×1 ray). If one of the rays of the Gann Angle is broken, we should expect price consolidation near the next angle.

## How to use Gann Angles?

The analysis of angles is based on the main principle – all price movement occurs from one corner to another.

So, breaking down the line of one ascending angle, the price tends to the following. It doesn’t matter how it goes to the corresponding corner; the price, in principle, may not reach the corner, it is not obliged. But what very important is, the angles for the price are like magnet, and they somehow pull the price to themselves.

This fact is just laid down in the basic rule of angles that the price, breaking one corner, will tend to approach another.

The same can be seen on the downward fan of the Gann angles:

However, attention should be paid to the the Gann angle rule (if the price has broken a corner, then it will tend to the next corner). As this is far from a practical trading strategy.

This rule is not for trading. This rule will greatly help us in analyzing the price chart. With it, we can determine for ourselves where the price is now and what we should do exactly if the price goes one way, and what we could do if the price goes the other way and so on.

Gann Angles are not as easy other statistical indicators. However, we try to provide a basic trading based on 1X1 level.

• You can buy an asset if the price is above the 1X1 level whether it breaks out of the level get a pullback.
• You can place your stop-loss slightly below the swing low.
• You can place take-profit on the next level on the upside.