Using angles (think 1:1, 2:1, 4:1, 8:1 1:2, 1:4, 1:8) can tell us a lot about the inherent strength or weakness of a trend.
In an uptrending market, if price is trading above the 1:1 (45°) angle it means the trend is strong. If price is trading below the 1:1 (45°) angle it means the trend is weak. In Gann's eyes, the degree to which we're either trading above or below the 1:1 angle determines how strong or weak the overall trend is.
In order to analyze a proper and angles, you need to lock your price/time ratio within Tradingview. Remember WD is an old timer and didn't have things like Tradingview to automatically resize his charts for him. This chart is sized at 25 units of price per 1 unit of time.
What might WD be saying about this BITSTAMP:BTCUSD BITFINEX:BTCUSD chart?
For those of you guys who've studied WD , you've almost certainly heard of this thing called 'The 50% Rule.' - WD states that an asset will usually retrace 50% of its range in 50% of the amount of time that it took to establish the range. Think 'market symmetry.'
What does that look like in this chart? Well, we have a low of of $3122.28 and a high of $9096.79. As shown on the bottom of the chart, it took 167 days to establish that range. In 50% of that amount of time (167/2 = 83.5 days) we should see a pullback in to $6109.54.
According to WD Gann's 50% Rule, a pullback in to $6109.54 around the date of August 22 seems probable.
An important confluence of levels that I'm seeing on this chart are:
1) $8472.75: of $11780 (key high established on Feb 20, 2018).
2) $8783: Upper-most horizontal within all quadrants of the .
3) ~$8500: Confirmed downtrend resistance
Also posted this chart a couple weeks ago which pointed out the myriad of resistance levels that we were coming in to.
Take a look at this and you'll see how the point at which BTC topped was actually quite cliché:
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