Gann Analysis Tools

Gann Square of Nine – Features and Secrets

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For years, the interest of numerous market scholars has focused on W.D. Gann, the architect of very successful market predictions. Eager for knowledge, a plethora of speculators have tried to find out how Gann was able to obtain such a level of precision, making such wise market predictions. For example, in number two of the fifth volume of the magazine Ticker and Investment Digest (December 1909), it is mentioned that Gann carried out 286 trades in the presence of William E. Gilley, of which 264 were successful. Therefore, his win ratio reached a spectacular 92%. In that 25-day period covered by the article, Gann was able to double his starting capital ten times.

Among Gann’s many speculative techniques, perhaps the most famous is the one known as the Square of Nine, one of his most mysterious calculations and trading systems.

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The Gann Fan – Description and Uses

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What is the Gann fan?

In this article, we will explain another market analysis tool developed in the last century by a famous analyst and trader, which was designed to study the price oscillations between market highs and lows. This tool has some popularity and can be found on most trading platforms, although its effectiveness has been questioned. The Gann Fan is a technical analysis tool used to indicate price movements from important highs and lows as well as to identify price breakouts.

William Delbert Gann developed analysis techniques based on geometric patterns and classical angles whose relationship, according to its creator, allows us to correctly predict future market movements in both time and price. This analysis tool is built based on Gann angles.

Gann was a stock market analyst who in the 20th century wrote his foundations to invest in the stock market in his work “The basis of My Forecasting Method”. This work, which consists of just over 30 pages as a manual, was published in 1935.

The Gann fan is formed by lines that start from the same point with different angles. It is similar to the Fibonacci fan, but the angles between the lines that make up this fan are classic angles like the 45 degrees one.

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