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Lionel The following is from "The W.D.Gann Method of Trading, a
Simplified,Clear Approach. Page 30 Gann Price
Levels
Percentages,Degrees,Gann Angles,Support/resistance
level percentage degree Gann Angle support/resistance
1/8 12-1/2 14 1x4 support
2/8 25 26-1/2 1x2 support
4/8 50 45 1x1 neutral
5/8 62-1/2 63-1/2 2x1 resistance
6/8 75 75 4x1 resistance
7/8 87-1/2 82-1/2 8x1 resistance
8/8 100 90 -- resistance
assumes a rising market: reverse for falling market
Unlike geometric angles,Gann angles are not the same for all markets. A 45
degreeGeometric angle is not equal to a 1x1 Gann angle in ALL markets.A 1x1
Gann angle is not at the same geometric angle for all markets in all time
frames. Gannssystem was designed to reflect the unique nature of each
market's price activity in relation to time.
Geometric angles represent each of Ganns eight-levels of price activity,
INDEPENDENT OF TIME. While some relationship may existbetween movements of
price units per unit of timeby using geometric angles, the relationship is
not constant for all commodities in all time periods or for all chart
scales. Gann found prices will react in a unique way when
following his Gann angles,designated as support/resistance in table 3. IF
PRICES BEGIN TO RISE FROM A SIGNIFICANT LOW (A BULL TREND) THEY WILL FOLLOW
A BASE ANGLE OF 1X1, OR 45 DEGREES, FOR MOST OF THE TREND. As a change in
trend starts to occur, the trends angle for prices may increase to 63-1/2
degrees, 75 degrees, and 82-1/2 degrees(see chart 54).
SHOULD PRICES "BREAK" THE 45 DEGREE LINE, they will find support along a
26-1/2 degree line. Should that line be broken , the last "line of defense"
before prices collapse will be along the 14 degree line. Gann was so
confidant that a change in trend was about to evolve AFTER PRICES CLOSED
UNDER A 45 DEGREE LINE, that he termed it the "DEATH LINE".
This is taken word for word from the above mentioned book, on page 30. Any
one on the list, who has the book can verify it.
You asked how I determined where to draw the line... FROM THE LOW ON 7/7
(XAU), I PUT MY MOUSE POINTER ON THE GANN ANGLE BUTTON ON MY TOOL BAR
,CLICKED ONCE THEN DRAGGED IT TO THE LOW POINT 7/7 AND CLICKED THE MOUSE
AGAIN. WOW A 45 DEGREE LINE APPEARED. EVEN MURRY'S 6 YEAR OLD STUDENTS CAN
DO THAT.
At 10:43 PM 8/24/97 +0000, you wrote:
>
>1. the gann angles are NOT geometric angles.
>
>2. what do you use for the price division to determine the direction of
>this psuedo 45 degree line?
>
>Lionel Issen
>At 08:41 PM 8/24/97 +0000, Arthur Rivet wrote:
>>Hi Gang..... A 45 degree angle drawn from a high or low was considered a
>>Line of Death by Gann. If one drew a 45 degree line up from a low it should
>>act as support. If prices went below the line they would keep on falling.
>>Drawn from a high, it would act as resistance.....Lets first look at Gold,
>>the XAU. from the low on 7/7 draw a 45 degree angle up. What do we
>>see???.... Now ,on the IND,from the high on 8/7, draw a 315 degree line
>>down.(360-45=315). See how the line acted as resistance this week.... Also,
>>in reguards to gold, do a Fib study from the high at the end of Feb to the
>>7/7 low. The 38% line is acting as support also.
>>
>>
>>
>
>
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