Gann trading is a method of technical analysis that was developed by William Delbert Gann, a famous trader and market analyst who lived in the early 20th century. Gann trading is based on the idea that financial markets are cyclical and that prices move in predictable patterns.
Gann traders use a variety of technical tools, such as Gann angles, Gann fan lines, and Gann squares, to analyze price charts and identify potential trading opportunities. These tools are based on Gann’s work on geometrical and numerical relationships, as well as his observations of the natural laws that govern market movements.
Gann traders may also use other technical indicators, such as moving averages and oscillators, to confirm their Gann trading signals. In addition, they may use fundamental analysis, such as studying economic indicators and company fundamentals, to supplement their technical analysis.
Gann trading requires a thorough understanding of Gann’s theories and a willingness to learn and adapt to changing market conditions. It is not a easy strategy and requires a lot of practice and discipline to master. However, for traders who are able to successfully apply Gann trading techniques, it can be a powerful tool for identifying high-probability trade setups and maximizing profits.