Gann analysis and paralysis

Gann most commonly used monthly ,weekly , and daily chart.


weekly charts are excellent tools for trading analysis
weekly chart shows 5 years price action.
Normal change of trend in weekly chart is minimum 3 weeks.
on weekly chart , most important part of the cycle is 60 weeks./points
30 weeks also imporant but secondary.
on weekly and monthly chart angle acts as strong support and resistance.


Gann used change of price with time , if no change is evident cycle is not valid.

example: Price rises for 270 days up(High) and than correcting  90 days down(low).then the price will rise again.


typical long term cycle 7 yrs or 5 yrs and short term cycle 90 days cycle.



Gann angle:

Usual angle 1x1 , 45 degree, most reliable,accurate angle.

Monthly or weekly chart 2x1,3x1 angle
3x1,4x1,8x1 angles are in the daily or intra day chart occurs during rapid movement.





Daily cahrts are most glamourous and most dangerous .




Most difficult chart are intraday chart.



two types of cycle in gann
1. Time cycle or natural cycle
2. Price cycle of stock or index or commodities

natural cycle of 1 yr or 52 weeks , 26, 13 weeks are cardinal points, as total 1 yr is 360 degree, so cardinal degree are 180, 90,45,

here 1 yr is 52 weeks , it makes square of 52.
1 cycle = 52 weeks
2 cycle =104 weeks
10 cycle = 10 years= 520 weeks

Major cycle
30 yrs cycle= 360 months
15 yrs=     180 months
7and half year= 90 months
5 yrs = 60 months

these are natural cycle.

High, low, range of price is squared with time.



square of of 52:
Is used for weekly charts.
master calculator for weekly chart.

• if u have patience and discipline use monthly and weekly chart  use daily chart for entry.

your success of trade will be high..

Trading with gann Method easy: SQUARING CURRENT PRICE WITH TIME FROM A PRIOR CHANGE IN TREND

look at the picture .
Its 4hrs chart shows data of  5 months 8 days.

See for top and bottom for resistance and support.


See  high 21.01.2014 .912 which is converted to 912(january 21, 2014)

low at .870 which is converted to 870 march 13, 2014.

CD ( counting day) = 52 days.= 353 degree.
TD( trading day)  = 38 day = 165 degree.
Closing price .872= 872= 15 degree

look here Closing price makes right angle with TD, Lowest price makes right angle with CD.
U may see gann cirlcle to see how these are make right angle.

Gann trading made easy.

look at the 4hrs chart below this is USDCHF pair.


look carefully here trend is down.
Resistance is formed by double tops, look 2nd top right , it is also forms head and shoulder. So it is reversal pattern, the trend will reverse from here and will form down trend.
its price is .910 to .916, Here highest peak is .916 its acts as resistance, .910 is the peak of double tops.
we can multiply it with 1000, the result will 910-916, It is strong resistance.


Points in favour of resistacne:
double tops.
Head and shoulder
the price is located in cardinal  cross line.
also see highest price and lowest price make angle of 90 degree.it is strong s/r

so conclusion , trend is down, price is on retracement.


also look at the chart below , the retracement price is .886, that is .886*1000= 886.

look 886 also make an angle of 45 degree with both 871 and 910, it is located  in between two.

So the price will go down .

We can also look highest price also make and right angle with highest and lowest price.
Right angle indicates strogn support and resistance and end of trend at that moment, and 45 degree angle indicates retracement.

Trading with divergence and hidden divergence

look at the picture

Daily chart

trend line  indicates up trend.
Candlestick shows price is retracing back to up

So the trend is up and we will look for buy entry.

Now 4 hrs chart

look at the picture
Here I have used fibbonacci fan, Stochastic . look at the picture
Here there is hidden divergence and price retracement on 61.8% fib fan
Also look candlestick which also shows reversal.
So it is the time to enter the trade, also put SL , Below d3, TP  target 1 D2, target 2 1.27% fibbos expansion.

Trading with divergence and hidden divergence

look at the picture

Daily chart

trend line  indicates up trend.

10 steps for divergence trading

4 steps in trading divergence with example MT4

Trading divergence


regular divergence ;  temporary change of trend
Hidden divergence: trend will continue.


See the example, Its 4 hrs chart

4 steps in trading divergence:

Step1:  

First detects 

1.  Higher high than the previous high
2. Lower low than the previous low
3. Double top
4. Double bottom

Step 2:

draw trend line from successive top to bottom

Step 3:
Do same for price and indicator (MACD,Stochastic,rsi)

Step 4 
U will get the divergence see picture above.