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1985issue C051-16

When Gann lines, Gann angles, and a Fibonacci retracement coincide

Gann lines, Gann angles, and a deep Fibonacci retracement of the same price space are read as a stack. A candidate turn is the neighborhood where a Gann line, a 90-degree intersection of opposing Gann angles, and that retracement land close together.

  • Gann lines and Gann angles are complementary forward support and resistance constructions: equal horizontal divisions of a completed price space versus sloping rates projected from a prior pivot.
  • The high and low pair of equal term is the unit for Gann-line analysis. The individual pivot is the unit for Gann-angle analysis.
  • A single 50 percent or 61.8 percent retracement is treated as an incomplete map, because documented corrections continued to about 80 percent and 87.5 percent of the prior price space while still counting as retracements.
  • The Principle of Coincidence requires mutually independent, internally consistent constructions used together so that clustered confirmations, not any single line or ratio, mark a candidate turn.
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Current trackGann angles47 readingsFibonacci retracement165 readingsSupport and resistance227 readings

Price space and pivots

A pivot is a time-and-price location at which trend direction changes. Such pivots occur at multiple significance levels from micro through major on any chart interval.

A price space is a completed move bounded by a high and a low pivot of equal term. That pair is the unit for Gann-line analysis, while the individual pivot is the unit for Gann-angle analysis.

Forward support and resistance

Gann lines and Gann angles are complementary forward support and resistance constructions. Gann lines are equal horizontal divisions of a completed price space. Gann angles are sloping rates projected from a prior pivot.

Traditional support and resistance is taken from previously printed significant highs and lows. Forward support and resistance is calculated from prior price action and is treated as a complement, not a substitute.

Four construction steps

Construction is specified in four steps: isolate a same-level price space, divide it into Gann lines, project uptrending angles from the low, and project downtrending angles from the high.

A Gann-line study requires a high pivot, a low pivot, the height of the price space they define, and a chosen count of equal divisions, with eight or ten named as a usual starting count.

Gann angles are drawn forward from a key high or low as constant price-per-time rates, commonly the set 1x8, 1x4, 1x2, 1x1, 2x1, 4x1, and 8x1.

Retracement of the same price space

A single 50 percent or 61.8 percent retracement is treated as an incomplete map, because documented corrections continued to about 80 percent and 87.5 percent of the prior price space while still counting as retracements.

The principle of coincidence

Candidate turning neighborhoods are those where a Gann line, a 90-degree intersection of opposing Gann angles, and a deep retracement of the same price space land close together.

The Principle of Coincidence requires mutually independent, internally consistent constructions used together so that clustered confirmations, not any single line or ratio, mark a candidate turn.

Equal-eighth Gann lines on the DJIA swing of 16 Dec 1982–12 Jan 1983

Read the nine horizontals as the equal-band measuring rod taken from the last completed Dow swing: forward support and resistance sit on the eighths, and the 4/8 line is the 50 percent retracement Gann treated as primary. The source printed the boundary pivots (983.20 on 16 December 1982 and 1105.10 on 12 January 1983), the 121.90 height, the 15.238 eighth, and the first four additions; the remaining interior lines continue that same increment.
Read the nine horizontals as the equal-band measuring rod taken from the last completed Dow swing: forward support and resistance sit on the eighths, and the 4/8 line is the 50 percent retracement Gann treated as primary. The source printed the boundary pivots (983.20 on 16 December 1982 and 1105.10 on 12 January 1983), the 121.90 height, the 15.238 eighth, and the first four additions; the remaining interior lines continue that same increment.Dow Jones Industrial Average · 16 Dec 1982 – 12 Jan 1983 · 1982-12-16T00:00:00.000Z to 1983-01-12T00:00:00.000Z

The source fixed eight divisions of this price space. An earlier paragraph listed the same low as 983.30 and the height as 121.80; the line-by-line arithmetic uses 983.20 and 121.90.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
2 of 34 in the Gann angles track
19871-10 pp.Next on Gann anglesEvaluating angular cycle overlays on independent stock swingsKeep gann-angles as a calendar-fixed second series until scored crests lock onto stock-specific swings.
All readings on this track · 34 readings
  1. 1984Range grid to sideways break in 1984 gold
  2. 1985When Gann lines, Gann angles, and a Fibonacci retracement coincide
  3. 1987Evaluating angular cycle overlays on independent stock swings
  4. 1988Multi-scale Elliott counts with Gann and Fibonacci confluence
  5. 1988Gann angles as hand-scaled chart geometry
  6. 1989A time, price, and pattern filter on one platinum sequence
  7. 1989Gann angles on point-and-figure grids
  8. 1990Gann price-time clusters for Elliott retracements
  9. 1990Channel regimes and Gann angle hinges
  10. 1990A gold campaign log as a trade procedure
  11. 1991A fourth Treasury bond resistance test as one time-price hypothesis
  12. 1991An eclipse calendar as a testable cycle scaffold
  13. 1992Gann-angle intersections and half-range zones
  14. 1998Wave and ratio self-similarity as a testable chart hypothesis
  15. 2000Constructing Gann fan angles from swing extremes
  16. 2002Combining Fibonacci retracement, Gann angles, and the moving average in FX
  17. 2002Halfway retracement as a trend confirmation filter
  18. 2006Volume distribution, Fibonacci extensions, and Gann angles on one downswing
  19. 2007Constructing Gann fans as currency support and resistance
  20. 2010ABC completion, wave-two windows, and Gann ratios
  21. 2010Constructing a Gann, Fibonacci, and decade-scale reversal cluster
  22. 2010Gann angles as timed tests that still need structure and RSI
  23. 2010Gann angles heritage is not a signal
  24. 2010Gann-fan time windows confirmed by Elliott-wave position
  25. 2010Gann angles as a repeatable chart hypothesis
  26. 2011Wave and ratio overlays as confirmation, not forecasts
  27. 2013Gold wave four as a time and price cluster check
  28. 2014A case study that separates cycle forecasts from Gann and Elliott readings
  29. 2014Relative charting, Gann angles, and trendline breakouts
  30. 2016Gann fans and a 2016 long-wave case as checkpoints, not forecasts
  31. 2017Gann angles, scale dependence, and the gap between legend and method
  32. 2017Gann angles as overlay, not original practice
  33. 2018Combine Gann angles, oscillator zones, and a protective stop
  34. 2020Confirming Gann hi-lo swings with ADX and stochastics
By fieldTrend and channels228 readingsBy year198524 readings
All 47 readings tagged Gann angles
Also on Gann angles5 readings
2002Halfway retracement as a trend confirmation filter2010Constructing a Gann, Fibonacci, and decade-scale reversal cluster1988Multi-scale Elliott counts with Gann and Fibonacci confluence1989A time, price, and pattern filter on one platinum sequence1991A fourth Treasury bond resistance test as one time-price hypothesis