There are two things to pay attention to when using Gann angles correctly:
- Correct volatility.
- Correct starting position.
So let’s study how to choose the right starting position. There is a Gann angle, but where to start drawing this angle? As we all know, an ascending Gann line is a straight line extending from the bottom of the market to the upper right; a descending Gann line is a straight line extending from the top of the foreign exchange market to the bottom right . Which of the many tops and bottoms should be selected as the starting point of the Gann angle? Here again, the tops and bottoms of the long-period, medium-period and short-period are involved.
Keep in mind that the length of time you choose when calculating volatility, there is generally a mathematical relationship to the time at which the drawn angle is suitable to be used. Another method that can be used together is to use indicators to help assist in finding. It is suggested here that you start with the long-period selection points, and then shorten them to draw on the relatively short-period selection points.
The Gann angles should be drawn as simply as possible. The correct starting point includes two meanings: the first is the high and bottom points of the market as the starting point, and the second is the important time of the market as the starting point. Generally, the vast majority of foreign exchange speculators start with the first method, and it is difficult to choose an important time as the starting point. I personally recommend starting from the price to select the starting point, and when the relative high and low prices are generated, the time is also very important, which meets the requirements of the second method. So, for these reasons, it is relatively easy to use price as a starting point.