Gann Angles series: Gann & Celtic knots - 2

The way to use these imploding and exploding energies depicted by the Celtic patterns is to stack them up. Or in our case with the Gann Angles - Stack them sideways.


1. Point no. 1

So basically, you will have angles going like below:

Angles, going one after the other. In one in-conclusive loop.

2. Point no. 2

However, when you expand the horizon, the 'flow' is not restricted entirely horizontally (for lack of a better word) but also flows vertically (again, for the lack of vocabulary). What it means, is that energy from the 'starting' point in our chart expands to include the next 'section' of the 'angle-set' (vocabulary-issue) but also goes higher.

Like the one shown below:

Here the span of the angles expands as the time flows by.

Why is this important? In most of our charts, this will not come into play. Very rarely does this even matter but when you see this on charts, you are granted a special advantage in knowing where the lines of supports and resistances are.

As it is known, the past has a big impact on future events, even though the memory regarding that fades away. Dates, prices, and angles matter. Market remembers. And, if I may so say, once it happens, the possibility is sort of embedded in the price.

Going along, we will apply these principles to prices. But first, another detour is needed.

Gann Angles series: Gann & Celtic knots - 1

Celtic Knots, the simple ones atleast, have a beautiful movement and syncrocity in it. There are no 'ends' in these patterns nor any 'beginnings.' Just like, time.

One of the most important component in understanding the Gann Angles - or for that matter all Gann's tools - is that it tries to understand and encapsulate time (in relation of price) and chart the strength of the flow over time. (Important) there are no beginnings and ends. Its just a constant stream of 'time' and flow (price).

If you observe the below image, you will see that the pattern - looks like a Gann angle fan - but has no ending. The 'ends' drop back into the points of the 'beginning'. The reason these 'time-frames' are in quotes is becuase they do not exist on this scale, even though we chart it out on our charts.

In other words, the past repeats in future, and the future repeats in past, all in a syncronous almost mathematical manner. Of course, (a big spanner in the works is) unless we have a big picture (and importantly an 'anchor' in time) we cannot use all of these theories to predict future. However, given the small scale of the price-charts we use, we may hazard a good guess as what may be in play. And, that is what the Gann's angles are all about.

Gann Angles series: Gann & Celtic knots

As far geometrical patterns are concerned nothing is as symmetrical, elegant, mysterious and enticing as a Celtic knot. There is something deep inside the pattern that attracts us. Without getting into the details, for a Gann proponent knowing the 'flow' of the Celtic knots - and the "waves" it creates, grants a good intuition on the Gann's broader picture.

An important suggestion here: though it may seem knowing the complex knots and their intricate designs may lend you leverage, but it is not so.

Every complex knot/pattern is a multiple of few simple patterns. IMO understanding these simple patterns, their 'flow' has a lot more advantageous and practical than following all the patterns.

From an esoteric view, this site may have some value. [Frankly, I haven't found the 'best' site or information yet. But then again, you don't need to go deep into this.]

Gann Angles series - Introduction - Correct way to use it

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.