What it does
Designed by W.D. Gann, this technical study uses geometric angles in conjunction with time and price. By maintaining equal time and price intervals, he theorized that certain geometric patterns and angles could predict price action. Believing that an ideal balance of time and price is produced when prices rise or fall at a 45-degree angle relative to the time axis, Gann concluded that bull markets were identified by prices being above a trendline, and bear markets were identified by prices being below the trendline.
The most important angle, consisting of a rise/run of 1x1 (always equal to a 45 degree angle, if the x- and y-axes have equally spaced intervals), provides major support during an up trend. When the trendline is broken, prices should be expected to fall to the next trendline, signifying a major reversal. In other words, as one angle is penetrated, expect prices to move and consolidate at the next angle.
CQG allows up to 10 Gann lines to be displayed. They are:
(N*N)x1 UP
(N)x1 UP
1x1 UP
1x(N) UP
1x(N*N) UP
1x(N*N) DN
1x(N) DN
1x1 DN
(N)x1 DN
(N*N)x1 DN
where N represents the Scale parameter. For example, if N = 2, the following lines would be displayed: 4x1UP, 2x1UP, 1x1UP, 1x2UP, 1x4UP, 1x4DN, etc.
The Slope parameter is required to define the inclination for Gann lines. The Slope is the amount of rise or fall, in minimum chart scale increments, of the line from a specified point on a bar to the same bar on the following day. For example: a slope of 5 established on the 3rd bar of a specific day on a US Bond Chart would be drawn through a point 5/32 higher on the 3rd bar of the following day.
How to use it
1. Right-click the chart, point to Pointer Tools, then click Gann.
2. Click the chart to create a horizontal Gann cursor.
3. Move the cursor in and out to establish the second point, and click.
Gann Lines parameters
|
Parameter |
Description |
|
Value |
The point on the price scale where the Gann display starts. You can choose Open, High, Low, or Closing bar values or any other chart value. |
|
Date |
Date of reference bar. |
|
Time |
Time of reference bar. |
|
Slope |
Defines the +/- slope (in ticks or minimum price increments) to be used for the 1x1UP/1x1DN Gann lines, respectively. Other lines multiply/divide this factor by the Scale parameter to get their respective slopes. |
|
per Unit |
Defines the scale for the slope. Choices are per bar or per day. |
|
Scale(N) |
Defines the scale of the Gann lines. For the default of N = 2, the first line is "4x1UP" followed by "2x1UP," etc. |
|
Type |
Defines the extent of the display. Choices include Up, Down, or Full. |
|
Display |
Opens sub-window with Color, Weight, Display, and MaxAngle parameters. Color = Select colors for bars. Weight = Select thickness of bar. Display = Select the check box to show the circle on the chart. MaxAngle = Determines the maximum angle for N*Nx1UP. |
|
Id |
Turns on and off the labels for the Fibonacci lines. |
|
IdWt |
Select normal or bold for thickness of ID. |
|
ScaleLabel |
When selected, the display highlights the initial set point on the time axis. |