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particular trend. As all times exist on the same line, the Gann angle can then
also be used to predict resistance, direction strength and support as well as
the timing on tops and bottoms.
Gann angles are most commonly used to determine the likely resistance and
support as it only requires the trade to determine the right scale of the chart
and then draw in the 1x2, 1x1 and 2x1 Gann angles from the primary
bottoms to the tops. This makes it less complicated for the trader to frame
the market, thus making it easier to determine the way the market is moving
based on this predetermined framework. Positive trend angles indicate
support in the market while negative trend angles indicate resistance. By
understanding the angle on the chart, traders can more easily determine the
most profitable times to buy and sell.
Additionally, it is important to always keep in mind the many ways that the
market can move between various angles. If the market breaks from a single
angle then it will likely move on towards the next, making your job to
determine where it is likely headed next. Support and resistance can also be
found by combining the angles along with the horizontal lines. If you find
that lots of angles appear to be clustering together near a specific price

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point, especially on a long-term chart, then you should be able to assume
the resistance and support in that area is worth a closer look.
The 1x2 angle indicates that one unit of price moves for every two units of
time, the 1x1 indicates that price and time move at the same rate and 2x1
indicates that two price units move for every single unit of time. Additional
angles can be extrapolated following the same formula including 8x1, 4x1,
1x4 and 1x8. When it comes to performing this type of analysis it is
important to always use the proper scale which is a square chart whereby
the 1x1 angle moves at an angle of 45 degrees. This is a test then as only
when the chart is scaled properly will the angle appear appropriately.