WD Gann's most significant contribution to the field of technical analysis was his unique approach of incorporating time as an important factor in his price analysis. He revealed that price action isn't one dimensional. His analysis, using a number of angles varying in degree, suggests that price and time actually move in conjunction.
Using Gann 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 Gann box and Gann angles, you need to lock your price/time ratio within Tradingview. Remember WD Gann 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.
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What might WD Gann be saying about this
BTCUSD
BTCUSD
chart?
For those of you guys who've studied WD Gann, you've almost certainly heard of this thing called 'The 50% Rule.' - WD Gann 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: 61.8% retracement of $11780 (key high established on Feb 20, 2018).
2) $8783: Upper-most horizontal resistance level within all quadrants of the Gann box.
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:
.....
FREE TRADING EDUCATION
We talk about all of this stuff every day Monday through Friday in our 100X Challenge livestreams on Youtube. You can check that out here.
If you want to learn the basics of technical analysis, risk management, setups, and the fundamental principles of profitable trading - Check out our Level 1 course.
We're giving it away for free right now (will sell for $2497) for Tradingview users to beta test over the next few weeks. Over 20 hours worth of content, brings you from the ground up and gets you analyzing charts like smart money.
Use discount code 'Tradingview' in the checkout.
- learn more and get a free course preview here.
Cheers,
FromTheEther
Using Gann 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 Gann box and Gann angles, you need to lock your price/time ratio within Tradingview. Remember WD Gann 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 Gann be saying about this
BTCUSD
BTCUSD
chart? For those of you guys who've studied WD Gann, you've almost certainly heard of this thing called 'The 50% Rule.' - WD Gann 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: 61.8% retracement of $11780 (key high established on Feb 20, 2018).
2) $8783: Upper-most horizontal resistance level within all quadrants of the Gann box.
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:
.....
FREE TRADING EDUCATION
We talk about all of this stuff every day Monday through Friday in our 100X Challenge livestreams on Youtube. You can check that out here.
If you want to learn the basics of technical analysis, risk management, setups, and the fundamental principles of profitable trading - Check out our Level 1 course.
We're giving it away for free right now (will sell for $2497) for Tradingview users to beta test over the next few weeks. Over 20 hours worth of content, brings you from the ground up and gets you analyzing charts like smart money.
Use discount code 'Tradingview' in the checkout.
- learn more and get a free course preview here.
Cheers,
FromTheEther