18 September 2015
If you are planning to spend this Friday combining the useful with the pleasant, welcome to our Forex encyclopedia “Clever FX”! We made a list of articles about analysing methods of William Gunn for you.
Have you met Mr. Gann already? This is an enigmatic famous trader of 20th century. He forecasted transaction results accurate to the few cent! Unbelievable? Yes! Especially if you know that at the beginning of his career he has lost almost all savings. In the rest of the money he went to travel between countries of the Ancient East and Africa in the hope of finding some secret knowledge. And he found!
Gann considered that markets move in accordance with the laws of geometry. One of his major geometrical instruments was the line at an angle of 45º, with the helf of which the fan is formed.
This line is also called balance angle or “one-to-one”, which means that one price interval corresponds to one time interval. The 45° angle of these lines finely demonstrates long-term line of thetrend!
This analytical method underlies Murrey levels theory. But Murrey’s method do not always work as we would like them to and often rebuilding of levels takes place. Gann improved it!
The main idea of how Gann grid works is related with the balance line. The upward tendency rules if the price is getting higher the Gann line. And we face the downward tendency if the price is below the line.
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Good luck in trading!
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