Gann Angles

Gann angles are a technical analysis tool used to identify potential support and resistance levels in the market. They are based on the Fibonacci sequence, a series of numbers in which each number is the sum of the two preceding numbers.

The most common Gann angles are the 1x1, 2x1, 3x1, 4x1, and 5x1 angles. The 1x1 angle is a horizontal line drawn at the current price. The 2x1 angle is drawn at 2 times the distance from the previous swing high to the previous swing low. The 3x1 angle is drawn at 3 times the distance from the previous swing high to the previous swing low, and so on.

Gann angles can be used to identify potential support and resistance levels by looking for price action to bounce off of them. For example, if the price is trading above the 1x1 angle, it is considered to be in a bullish trend. If the price breaks below the 1x1 angle, it is considered to be a bearish signal.

Gann angles can also be used to identify potential trading opportunities. For example, a trader may look for a long trade when the price breaks above the 1x1 angle. A trader may also look for a short trade when the price breaks below the 1x1 angle.

Gann angles are not always accurate. They should be used in conjunction with other technical analysis tools to confirm potential trading signals.