What are Gann Angles?

Understanding Gann Angles

Gann angles are diagonal trendlines that project dynamic support and resistance based on time-price relationships. Developed by legendary trader W.D. Gann in the early 20th century, these angles visualize how price "should" progress over time if trend momentum remains consistent. Unlike standard trendlines that connect swing points, Gann angles use geometric relationships between time and price.

The 1x1 Angle Foundation

The core Gann angle is the 1x1 line, which represents one unit of price change for one unit of time—visually a 45-degree angle on properly scaled charts. Price trading above the 1x1 angle indicates bullish strength and sustainable uptrend momentum. Price below the 1x1 suggests weakness and potential downtrend. Traders plot additional angles at different ratios—1x2 (price moves 1 unit for every 2 time units), 2x1 (2 price units per 1 time unit), etc.—to gauge acceleration or deceleration relative to the baseline trend.

Applying Gann Angles

Plot multiple Gann angles from significant swing highs or lows. The angles act as dynamic support in uptrends and dynamic resistance in downtrends. When price breaks below a Gann angle, it often finds support at the next angle down. Conversely, breaking above resistance angles suggests accelerating momentum. The angles fan out from the starting point, creating a grid that traders use to identify potential reversal zones.

Technical Challenges

Gann angle accuracy depends critically on correct price-to-time scaling. On logarithmic charts or with inconsistent timeframes, angles distort and become unreliable. Modern charting platforms with varying aspect ratios make it difficult to maintain true 45-degree geometry. Test your chart settings and validate angles against historical price reactions before committing to trades based solely on Gann analysis.