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.


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.