Gann line

The Gann line is a line drawn at an angle of 45°. The author of this concept is William D. Gann, he was a successful broker and was involved in the sale of stocks and various commodities.

In his work, he used mathematical and geometric rules for analysis.

A trader's work is based on the relationship between time and price. In his research, he attached great importance to the largest and smallest points. Gann line is a trend line that is drawn from the maximum segment or minimum at an angle. Angles are calculated based on cost and period. When constructing an angle of 45° on an increasing graph, the minimum point is determined and a line is drawn upward. In a downward trend, from the highest point there is a line to the right and down. The Gann line provides for an equal correspondence between time and cost.

According to Gann theory, a line that has a slope of 45° is a long-term trend line.

If the price is above the rising line, then the market is in a bullish trend. If the price is below the falling line, then the market is in a bearish trend. When the Gann Line intersects with the price chart, it means there has been a turning point in the general trend. If during an uptrend the price decreases to the Gann Line, then a balance of value and period occurs.

A case of further overcoming the Gann Line from top to bottom may indicate an imbalance and the emergence of a flat or a new, downward trend.

To build this line, you usually use a standard tool located in the trader’s terminal, at the address - the top menu “Insert”.