Gann Angles is one of the best and the most powerful methodology that we can assimilate from Gann. Among the several possible methodologies, while some are arcane and esoteric, some are easier. Gann Angles are perhaps the best and easiest to use with the maximum gains.
However, many people have it wrong. They do not understand, IMHO, the underlying factors why the angles themselves are useful. Once you understand why the angles are the fact of any geography including the chart and its repetitious nature, we can have a stronger grip on how to manipulate the angles.
There are many ways how NOT to use it. Well, when used inefficiently, even in error, it acts as a trendline and has some fact to it. However, it will not give you the prophetic* nature of the price chart.
*I must make a distinction here that the Trend as signified by a trendline, and the essential course of the price chart are quite different beings. That is because the essential nature of why these are used when they are used, and what they tell us is very different.
I hope to give in subsequent series of blog posts a sequence of how-tos on Gann Angles - how to use them, how to draw them, what makes them tick, how to trade them, what time frames they are useful and other such.
For now, here is a DAX's monthly chart. And a proper manner in how it should be used. While you may notice that there won't be much different from 'normal' usage of the angles (that is to be expected, refer *), you may be surprised by the fact "normal" is not how the way this is drawn. If you look closely, you would see the starts of fans are at different points.
In conclusion, even with the minimum lines and simple rules, Gann angles can help us foresee the angular supports and resistances that are otherwise unavailable. We will delve deeper into this.
However, many people have it wrong. They do not understand, IMHO, the underlying factors why the angles themselves are useful. Once you understand why the angles are the fact of any geography including the chart and its repetitious nature, we can have a stronger grip on how to manipulate the angles.
There are many ways how NOT to use it. Well, when used inefficiently, even in error, it acts as a trendline and has some fact to it. However, it will not give you the prophetic* nature of the price chart.
*I must make a distinction here that the Trend as signified by a trendline, and the essential course of the price chart are quite different beings. That is because the essential nature of why these are used when they are used, and what they tell us is very different.
I hope to give in subsequent series of blog posts a sequence of how-tos on Gann Angles - how to use them, how to draw them, what makes them tick, how to trade them, what time frames they are useful and other such.
For now, here is a DAX's monthly chart. And a proper manner in how it should be used. While you may notice that there won't be much different from 'normal' usage of the angles (that is to be expected, refer *), you may be surprised by the fact "normal" is not how the way this is drawn. If you look closely, you would see the starts of fans are at different points.
In conclusion, even with the minimum lines and simple rules, Gann angles can help us foresee the angular supports and resistances that are otherwise unavailable. We will delve deeper into this.
