Trading Strategy Using The Gann's Indicator

Hello everyone, How are you doing, I welcome you again to my blog in the Steem Alliance community.

Today, we will discuss an interesting topic on the platform which will be: Trading Strategy Using The Gann's Indicator

---

• Introduction

---

This is a complete strategy for anticipating price developments in view of geometrics, and market structure, Gann's strategies stand out among the technical tools that I have come across, which might be due to its accuracy and effectiveness.

TradingView

In this article, we shall discuss the basics of Gann theory, applying the Gann indicator on charts, and trading strategy using the Gann indicator.

---

The Basics of Gann Theory

---

There are three fundamental ideas of Gann's Theory, which are angles, time cycles, and price patterns, in case this doesn't make sense to you, let's keep reading.

Gann Angles: - Gann Angles are geometric lines that are drawn from a significant price point at specific angles, the most generally used point is the 1x1 point, maintaining a 45-degree line, which balances between time and price.

TradingView

Time Cycles: - Gann's theory believes that time always repeats itself in trading, therefore he indicated key cycles, for example, the 30-year cycle, 60-year cycle, and more big cycles like the 90-day cycles, these cycles help in predicting important market changes.

---

Analysing the Gann Indicators on Charts

---

Gann Fan: - The Gann Fan indicator is an indicator that comprises several lines drawn from an important price point at different angles (for example, 1x1, 2x1, and 3x1).

These lines help to clearly view the support and resistance levels, helping traders make entry and exit positions.

TradingView

Gann Box: The Gann Box helps to predict future price movements within a specified range because it divides the time and price equally, traders use it to determine the possible support and resistance zones.

TradingView

---

Trading Strategies Based on Gann Analysis

---

Trend Reversal Strategy

---

Important Key Levels: We can Use Gann Fans to draw points from massive highs or lows, at the point when the price moves toward these points, search for movement towards reversals, and you can easily position ahead.

TradingView

Confirm with Time Cycles: Check in the possibility that the price is moving toward an important time cycle, and there is a possibility of a reversal anytime soon.

Entry and Exit: Enter exchanges close to Gann points and time cycles, submitting stop-misfortune requests just past the point lines. Leave when the cost moves toward the following huge point or time cycle.

TradingView

We can also see a similar trading strategy when we use the Gann box on the ETHUSDT pair as well

TradingView

---

Conclusion

---

Integrating geometric angles, time cycles, and price patterns did help to predict market movements, Gann's Theory is a special approach to technical analysis, traders can easily identify and anticipate key levels for potential trend reversals, support and resistance, and breakouts by using Gann tools like Gann Fans, and Gann Boxes.

---

---

---