Gann’s Square of Nine
Gann’s Law of Vibration
Gann’s Time Cycle Method
Gann’s Square of 360-degree
Above all the gann strategies, first, most gann learners rushed behind learning the gann angles.
They spend 1000s of dollars on costly software and invest another 2000 hours in knowing & learning how gann is used to draw angles.
And in the end, they fail.
Yes, they cannot get the same result gann had with his angles.
And then they quit learning Gann’s angles concept and move ahead after wasting time and money.
Most gann learners fail in learning Gann’s angle method because they think WD Gann used ‘ANGLES only by drawing angles on the chart.
And that’s not just 100%, but 1000% wrong.
Gann had many ways to use and apply the Angles on the chart. And in this article, we’ll learn one of those ways (method) to use gann angles, and that too without spending 1000s of dollars. So let’s begin.
First, let’s understand what Gann angles are in simple words.
A gann angle is a geometric tool WD Gann used to find support & resistance and identify the trend’s strength. And to use and draw angles on the charts, gann used the plastic overlay template, a protractor used in geometry lessons in schools.
Like a protractor has many angles, Gann’s plastic overlay template also had many angles. And out of all the angles, the 1×1 45-degree angle is important.
Gann said, “You can beat the market by trading against the 45° angle alone if you stick to the rule, wait to buy on the 45° angle or wait to sell it against the 45° angle.” – WD Gann.
Apart from the 1×1 45° angle, the other important angles are 2×1,3×1, 4×1, 8×1, 16×1 angles.
Now the question is. Can we use a plastic overlay template like gann in today’s time? Yes, we can use the protractor in the place of the plastic overlay template.
The next important question emerges: will we get the same results with angles as Gann gets in his trades. And the answer for that is NO.
Because gann used to make charts through his hand, which were proper Square charts, and in today’s time, we don’t have access to such charts, and no software can construct the proper square charts.
We can make charts by hand. But that’s almost impossible because that exercise requires proper daily time. So most of us can’t keep that chart updated.
But hey, we can still use gann angles to trade the markets. And too, with great accuracy.
Yes, there is an option and handy way to use gann angles.
It’s a mathematical approach. That requires a basic calculation that a 10-year-old kid can do.
It’s not the last dish, but what we are learning in getting there.
In cooking and trading, we rush through things because we’re trying to get to a foolproof zone. But, along the way, we forget about the core meaning of things.
The WD Gann was like a master chef. He perfected his knowledge of geometry & mathematics so well that he learned how to adjust things along the way. The same he did with his angle method. He directly applied the degrees of angles as numbers.
We can use the same approach for using angles that work well and deliver excellent results in trading. So, let’s understand the simple calculation that gann used.
First, we’ve to convert the 2×1,3×1, 4×1, 8×1, and 16×1 angles into degrees, as I have done below. You can save the image for your use.
Next, we’ve to add or subtract (as per the trend) the angle/degree number (s) from the major tops and bottoms. Then, finally, we’ll get the price levels that will act as support & resistance in markets.
In simple words, we can use a 45-degree/angle or other degrees/angles as a number. The same gann did. But most gann students missed this view of gann and started working on tricky formulae.
We don’t have to use any complex formula to convert degrees into numbers. We just have to use degrees as numbers. And that works fine.
So let’s discuss a few examples to understand how this gann angle method works in the real market charts.
Nifty Gann Angle Calculation: From the 19 October 2021 high (18604), if we subtract 262.5 points (2*1 Gann Angle), we’ll get 18341. That’s almost the exact price level that took resistance on 18 January 2022 and fell 14%.
Bank Nifty Gann Angle Calculation: From the 25 October 2021 high (41829), if we subtract 2625 points (2*1 Gann Angle), we’ll get 39204. Again, that’s almost the exact price level where Bank Nifty took resistance on 03 & 10 February and fell 18%.
Maruti Gann Angle Calculation: In the 26 August 2021 low (6591), if we add 450 points (1*1 Gann Angle), we’ll get 7041. Then between 29 November-to-20 December 2021, the stock Maruti took support many times from the 7041 level and surged 26%.
MCX Crude Oil Gann Angle Calculation: In the 20 August 2021 low (4634), if we add 75 points (8*1 Gann Angle), we’ll get 4709. That’s almost the exact price level where MCX Crude Oil took support on 02 December 2021 and surged over 100%.
MCX Gold Gann Angle Calculation: In the 29 September 2021 low (47511), if we add 1500 points (4*1 Gann Angle 15-degree), we’ll get 47011. Then between November 2021-to-January 2022, MCX Gold took support many times from near the 47011 level and surged 15%.
What’s the one thing you can do today?
Stop spending hard-earned money buying the software just for using the one Gann angle technique. That is a waste of money.
Instead, take the time to practice the Gann angle mathematical method that we had learned in this article. That will save you money and time.