Gann fast and slow Lines

Gann fast and slow Lines

The Gann fan is built up through these lines, with the main one called the “lifeline” that is the 1×1. As previously written, the levels of Gann relate time and money and 1×1 is nothing but the absolute balance between prices and unit of time (which can be daily, weekly, monthly, etc.).

The angle 1×1 so it is the most important and the second in order of importance is to 2×1. As long as the price of the instrument is maintained above the 2×1 you will have a strong bullish situation of the instrument. Consequently the same is true for the 3×1, the 4×1, and 8×1 known as “fast lines /corners.”

The “slow lines / corners” are the 1×2, the 1×3, 1×4 and 1×8. Because the angles are called slow and fast? Because they measure the price movements in relation to time, then the lenses are worn to signify that a unit of motion will match the price of 3 time (in the case 1×3) and vice versa is true for the fast corners.

Gann Theory: construction of the range, some rules to remember
Then we go to the point. How to draw the famous Gann fan? To draw the fan must be a minimum or a maximum of three consecutive sessions resulted in upward or downward. The three consecutive sessions can be daily, weekly or monthly depending on the time of setup where you use.

The straight 1×1, or life line, is drawn at an angle of 45 ° from the maximum or minimum desired. If the price remains above this line, it is very likely that the uptrend will last in the coming sessions. The breaking down of that line (as well as upward) provides an important indication of the trend reversal in place.

Obviously, the more the price will remain above angles more, the more evident the strength of the trend. I have to remember some simple rules:

Gann believed “violation” of a line when the price broke the same no longer reach it;
once you violated a line, the price will head to the nearest one (up or down) that will act as resistance / support;
as for the normal levels of resistance and support, once that a resistance is “broken” it becomes support and vice versa for the supports;
if a line is broken and immediately after recovered, it remains the strength of the trend signal in place without inversion.
So be careful, the Gann lines as they may look like the trendline are not absolutely. Are as previously said support and resistance levels and as such are to be interpreted.


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