A technical analysis tool developed by W. D. Gann. To draw a Gann Grid, attach the tool at an initial point on the chart. A second point is needed to set the cell grid size.
The resultant Grid consist of multiple lines at 45 degrees angle.
On the Gann Grid, there are three control points. By moving the first and the last points, the size of the grid cell may be set/modified. The middle point is used to move the Gann Grid on the chart keeping the dimensions intact.
Gann considered the 45 degrees line as the most important in representing long-term trendlines.
Based on Gann’s theory, prices:
- above the ascending 45 degrees line indicate an uptrend. Further acceleration of the upward movement may find resistance at the higher 45 degrees lines.
- below the ascending line. imply possible change in trend direction. Further fall of the prices may find support at the lower 45 degrees lines.
- below the descending 45 degrees line, indicate a downtrend. Further fall of the prices may find support at the lower 45 degrees lines.
- above the descending line, imply a possible change in trend direction. Further rise of the upward movement may find resistance at the higher 45 degrees lines.
