Using Gann Angles
Gann watched for important tops and bottoms to form on a daily, weekly, or monthly chart and drew his angles from these changes in trend. When the trend is up and the price stays in the space above an ascending angle without breaking below it, the market is strong; when the trend is down and the price remains below a descending angle without breaking above it, the market is weak. The market shows its relative strength or weakness according to the angle it is above or below. For example, if the price is above the 2x1 the market has shown itself to be much more bullish than if it is above the 1x1. In his angles course, Gann argues that when an uptrending price reverses and breaks under an ascending angle, the tendency of the price is to go to the next nearest angle below it; likewise, when a downtrending price reverses and breaks up through a descending angle, the tendency of the price is to go to the next nearest angle above it.
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