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GANN TIME CYCLES/FACTORS

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Generally speaking, cycles fall into two categories, fixed and variable cycles.

Fixed cycles refer to cycles that repeat at regular intervals eg 90, 144 and 52.

More importantly, variable cycles are of greater interest to us when analysing the markets.

VARIABLE CYCLES

Above is a weekly chart together with a Gann Time cycle in green.

How do you read this Time cycle? The start and ends of the green box represent Time cycles to watch for a change in trend. More importantly, the vertical lines in the green box also represent Time cycles.

Focus on the arrow on the left, labelled 1. It coincides with a pivot bar before the market collapses. The cycle generates the vertical line labelled 2, giving us the low in March 2020. The cycle also generates the vertical line labelled 3, giving us the August 2020 high. The end of the green box gives us the low, labelled 4.

This is an example how variable cycles can be used to give us turning points in Time.

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GANN POINTS

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Gann Price and Time points can be any of the following:

  • HIGHS
  • LOWS
  • SECONDARY HIGHS
  • SECONDARY LOWS
  • GAPS
  • THRUST BARS
  • BREAKOUT BARS/BREAKDOWN BARS

Above is a daily chart highlighting various Gann price points. In this example, the Gann grid levels to focus on are the square degrees (45, 90, 180, 270, 315 and 360).

Look how lows, highs, gaps, breakout/breakdown bars are reacting to the Gann square degrees. They are all Gann points.

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GANN SQUARE of 9 and HEXAGON CHART

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We will use the square of 9 and hexagon calculators to determine price support and resistance. A market or stock will use ONE of these calculators (NOT BOTH) to determine support and resistance.

The first step therefore, is to determine whether the market that is being studied is a Square market (using the square of 9) or a Trine market (using the Hexagon chart).

The way to do this is to test both calculators on your price data and see which one vibrates better.

SQUARE of 9

Above is a daily graph of the SP500 index. We determined that the SP500 index, is a Square market so we using the Square of 9 calculator.

Placing the Gann Square grid on the November 2018 high we can see how the market found support at the 180 and 360 degrees.

The square of 9 degrees are: 45, 90, 120, 180, 240, 270, 315, and 360.

HEXAGON CHART

Above is a daily graph of the FTSE 100 index. We determined that the FTSE index vibrates on the Hexagon grid.

We place the Hexagon grid on the March 2020 low and the calculator gives us the resistance levels on the way up.

Look how the FTSE index finds support/resistance on the 240 and 360 degrees.

The Hexagon calculator uses the following degrees: 60, 90, 120, 180, 240, 270, 300, 360.

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GANN FAN

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Another technique Gann used was the FAN tool. This tool consists of a set of geometric lines drawn with different slopes. These lines give support and resistance when placed on a chart. A 1X1 line is a 45-degree line, one unit on the Y axis and one unit on the X axis.

The FAN tool uses 1×1, 1X2, 1X3, 1×4, 1X8, 2X1, 3X1, 4X1 and 8X1.

Above is a weekly chart together with a Gann Fan line drawn from the March 2020 low. Fan lines give resistance and support in Time and Price.

The November 2020 low hit a 45-degree support (green line) at 308. Recently price hit the 2X1 angle in January 2021 (brown) at 465.

Fan lines can be drawn from Different Gann points. The intersection of Fan lines can be very important support/resistance in Time and Price.

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FIBONACCI ANALYSIS

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Another technique we use to determine support and resistance is Fibonacci analysis.  Below is an example of Fibonacci confluence.

Confluence support or resistance is when a Fibonacci grid is drawn from different points and we get an intersection of the Fibonacci levels.

Confluence points are more important than single Fibonacci points.

Above is an example of Fibonacci confluence: Let’s say we want to find the confluence support on the FTSE 100 index from its recent highs at 6900.

We place a Fibonacci retracement tool from the high to point 1. We draw the second grid by taking a new Fibonacci retracement tool and place it on the high and end it at point 2 (thrust bar).

We get an intersection of 38% and 50% from the two Fibonacci grids. We have created a confluence point using Fibonacci support. We can see the market bouncing off 6400.