Gann angles on point-and-figure grids

Price change on a reversal grid

Geometric angles can be drawn on point-and-figure reversal charts, where the posted series emphasizes price change rather than a joint price-and-time record. A daily point-and-figure chart is built from a chosen box size and reversal count. Only moves at least as large as the box are posted, with advancing columns marked by Xs and declining columns by Os.

Box size is the minimum price increment recorded as one square on the grid. Reversal is the number of boxes required to leave the current column and start a new column in the opposite direction.

Posting a soybean-futures series

One soybean-futures construction uses a 2-cent box and 6-cent reversal, equivalently an 8-tick box and 24-tick reversal when the contract ticks in quarter-cent increments. The example series begins at 8.50.

After a posted high of 8.54, a further one-cent rise is omitted as smaller than the box. A drop beyond the 6-cent reversal opens an O column one square below that high at 8.52 and continues to 8.40.

Angle families counted in squares

On a 1:1 scale the usual angle set includes 7-1/2, 15, 45, 63-3/4, 75, and 82-1/2 degrees. The 7-1/2-degree line is counted eight units across and one unit vertically (8x1). The 45-degree line is the one-by-one, counted as one square across and one square vertically.

Because both point-and-figure axes represent price, the grid is equally scaled and Gann lines are drawn by counting squares. Without a time axis those lines mark possible reversal prices rather than dates.

Gann angles are straight lines drawn from a prior high or low by a fixed count of horizontal and vertical squares, used as candidate support or resistance. The one-by-one path is treated as the 45-degree angle and given the greatest weight in the family.

Support, resistance, and intersection zones

Angle lines originating at a prior low are read as candidate support. The same unit counts drawn downward from a prior high are read as candidate resistance. Other angle counts from additional highs or lows can confirm the same support or resistance band.

Support and resistance here means price bands where an angle, a prior extreme, or an intersection of angles is treated as a possible pause, reversal, or continuation if broken. An intersection-zone is a grid location where two angle lines meet, given extra weight as a candidate turning area or, if penetrated, as a continuation signal.

A soybean reversal example uses a 5-cent box and 15-cent reversal, projecting a 1x4 line from a 6.80 low and a 1x2 line from a 10.45 high. An intersection is classified as resistance when the preceding column is below it, and a break through an intersection is read as directional continuation.