Gann numbers or Gann angles are named after a legendary trader who made vast millions using this Forex trading method in the 1950s.
Gann's methods were based on his belief that the only factors relevant to Forex market movements are price, time and range, and that markets are cyclical in nature. He also believed that market movements are a reflection of human nature and that by studying the past we can predict the future.
So he used three patterns to predict market movements: Price study, using support and resistance lines, pivot points and angles; Time study; and Pattern study, using trend lines and reversal patterns.
What makes Gann's system unique is that the support and resistance lines he used are diagonal. When the angle on the chart is exactly 45 degrees, which indicates a balance between time and price, this is the best time to trade.
Gann also used Fibonacci numbers which we talked about yesterday. When the two are combined, this makes an extremely powerful trading method. For more about Fibonacci, visit http://www.bizwrite.co.uk/Forex/forexindex.html Don't worry if these advanced methods seem too complicated. If you start trading with Easy-Forex you can get going right away with the all-round tuition they provide, then you can progress to more advanced methods as your confidence grows.
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