๐ Advanced ยท Geometry
Gann Fan
W.D. Gann's angle-based support/resistance system. Draw fan lines (1x1, 2x1, 4x1) from major swing highs/lows; price tends to respect these angles. Useful for time+price projections.
Setup
- Chart: daily or weekly candles with a Gann fan drawing tool
- Anchor the fan at a major swing pivot (significant high or low)
- The fan draws multiple angles: 1ร1 (main), 2ร1, 4ร1, 8ร1 (steeper), 1ร2, 1ร4, 1ร8 (shallower)
- The 1ร1 angle (one unit of price per one unit of time) is the most important โ it represents balance
Entry
Long: buy on a bounce off the 1ร1 or 2ร1 fan line from above in an uptrend. Short: sell on rejection at the same lines from below in a downtrend.
Exit
Target the next fan line above (long) or below (short). If price breaks a fan line, it typically moves to the next one.
Stop-loss
A few points beyond the fan line that was defended. If broken decisively, the angle-based structure has failed.
When it works
- Long-standing anchor pivots that the market has already respected multiple times
- Higher timeframes (weekly, monthly) where geometric levels have more meaning
- Traders comfortable with subjective drawing and pivot selection
When it fails
- Choosing anchor pivots after-the-fact to fit the chart
- Ignoring the underlying trend context
- Intraday timeframes where geometric ratios don't hold with any consistency
General trading rules that apply
Regardless of the specific setup, these apply to every strategy on this site:
- Never risk more than 2% of your account on a single trade
- Place a hard stop-loss before entering โ no exceptions
- Journal every trade: setup, reason, outcome, one lesson
- After two consecutive losses, stop for the session
- Backtest and paper-trade for a month before deploying real capital
Every strategy here is part of our in-house catalogue, written and calibrated for Indian markets. Past behavior does not guarantee future results. Charts run against 2-year Nifty data โ actual results in your account will vary. Backtest, paper-trade, and size responsibly before risking real capital.