📖William Gann

Gann Angles

🌳 Advanced★★★★☆

The 45-degree angle represents perfect price-time balance.

💬

The 45-degree angle, or 1x1 line, is the most important. It represents a balanced relationship where price moves one unit per time unit. Angles above show strength; below show weakness.

— How to Make Profits in Commodities，1942

🏠 Everyday Analogy

Imagine hiking up a mountain on different paths: a steep trail means you climb quickly but tire easily, a gentle slope is slower yet sustainable. Gann Angles are like those trail slopes on a price chart. Each angle represents a specific “pace” at which price climbs or falls over time. When price walks along an angle, the trend is intact; when it cuts across or falls off that slope, it signals a change in direction or strength, just like leaving your original path on the mountain.

📖 Core Interpretation

The 1x1 angle defines balanced market movement; deviations signal trend strength
💎 Key Insight：Gann angles are trendlines drawn at specific geometric angles, with 45 degrees (1x1) being the most important. A 45-degree angle means price moves one unit for every one unit of time. Markets trading above the 1x1 angle are bullish; below it are bearish. When price crosses the 45-degree line, it signals a significant trend change requiring immediate attention.

AI Deep Analysis

Get personalized insights and practical guidance through AI conversation

❓ Why It Matters

Prices consistently react at Gann angle intersections, providing trading signals

🎯 How to Practice

Draw 1x1, 2x1, 1x2 angles from significant highs and lows to find support/resistance

🎙️ Master's Voice

Never trade without a plan. Know your entry, exit, and stop before you enter.
Gann was methodical about trading. Every trade had predetermined entry, exit, and stop points. He never entered a position without a complete plan for every scenario.

⚔️ Practical Guide

✅ Decision Checklist

  • Do I have a complete trading plan?
  • Have I defined entry, exit, and stop?
  • Am I prepared for all scenarios?

📋 Action Steps

  1. Write down your plan before trading
  2. Define all key levels in advance
  3. Never deviate from your plan

🚨 Warning Signs

  • Trading without a plan
  • Undefined entry, exit, or stops
  • Making decisions on the fly

⚠️ Common Pitfalls

✕Confusing a low price with true cheapness
✕Using one metric without business context
✕Overly optimistic assumptions that erase margin of safety

📚 Case Studies

1
Pre-Crash Market Timing (1929)
Gann used his angle techniques to forecast a major top in the Dow Jones Industrial Average before the 1929 crash, identifying geometric resistance and time cycles converging in September-October.
✨ Outcome：Reduced long exposure and took short positions, profiting as the market collapsed.
2
Railroad Stock Forecast (1909)
Gann reportedly applied Gann Angles to predict turning points in several railroad stocks, including Union Pacific, correctly forecasting price reversals based on angle support and resistance from key swing lows.
✨ Outcome：Executed multiple short-term trades with favorable risk-reward, compounding returns over several months.

See how masters handle real scenarios?

30 real investment dilemmas answered by legendary investors

Explore Scenarios →