Everyone likes to watch mysterious things, so I’ll draw something different.
First, let me briefly explain the "Gann angle line". Gann angle line uses a band and divides it into eight equal parts, which is called the "percentage value method". To calculate and predict the market highs and lows and retracement areas. That is, it is evenly divided into 1/8, 2/8, 3/8, 4/8, 5/8, 6/8, 7/8, 8/8, and then 1/3 and 2/3 are inserted into the relevant positions, and the following numbers can be obtained: 1/8=12.5%, 2/8=25%, 1/3=33%, 3/8=37.5%, 4/8=50%, 5/8=62.5%, 2/3=67%, 6/8=75%, 7/8=87.5%, 8/8=100%. Its meaning is very similar to the golden ratio. 37.5% and 62.5% in the percentage value method are very similar to the golden ratio 38.2% and 61.8%.
Then these nine line segments are divided into:
1. 7.5 degrees (8×1): time changes by 8 units and price changes by 1 unit, which is the smoothest;
2. 15 degrees (4×1) time changes by 4 units and price changes by 1 unit;
3. 18.75 degrees (3×1) time changes by 3 units, price changes by 1 unit;
4. 26.25 degrees (2×1) time changes by 2 units, price changes by 1 unit;
5. 45 degrees (1×1): When time changes by 1 unit, price changes by 1 unit, which is the balance line;
6. 63.25 degrees (1×2) time changes by 1 unit, and price changes by 2 units; 7. 71.25 degrees (1×3) time changes by 1 unit, and price changes by 3 units;
8.75 degrees (1×4) time changes by 1 unit, price changes by 4 units;
9.82.5 degrees (1×8) The steepest change is when the time changes by 1 unit and the price changes by 8 units.
The basic ratio of Gann Line is 1:1, that is, 1 unit of time to 1 unit of price. 1×1 Gann Line means that the price moves 1 unit per unit of time, and 2×1 means that the price moves 1 unit per 2 units of time. When the market trend changes from falling to rising, the price usually moves upward along the rising Gann Line. When the upward trend eases, the price will rise along the 2×1 line. If the rebound is strong, the upward trend will increase to 1×2, 1×3 or 1×4 lines. In most cases, the price will rise along the 1×1 line (45-degree line), and the downward trend is the opposite.
In a strong bull market, the price can change more than two units per time unit, while in a bear market, it takes more than two units of time to increase the price by one unit.
1×2, 1×3, 1×4) and reverse downward, it must first break 1×4 and then break 1×3, etc. If it falls below 1×1, it means it has entered a bear market. Similarly, when the price turns upward from the bottom 8×1, it will inevitably break through 4×1, 3×1, 2×1, etc. When it breaks through 1×1, it will enter another bull market. Therefore, the 45° line represents an important meaning. As for each angle line drawn in the above figure, it can become a pressure line or support line in the market trend, depending on its price position.
Among the 9 angles, the 45-degree (1×1) line is the most important. It is the balance line between time and price, so it is considered the main trend line. In a strong bull market, the price is usually above the main trend line. If the price falls below the 45-degree line, it is considered a major uptrend reversal; in a big bear market, the price is usually below the main trend line. If the price successfully breaks through the 45-degree line upward, it represents a major downtrend reversal. Therefore, it also shows that in a bull market, as long as the price remains above 45 degrees, the bull market will continue to be effective.
In layman's terms, it is through these repeatedly tested points that the "strength" of the overall price movement is judged, and this degree is "replaced by the slope". As long as it remains above 45 degrees, it is assumed that the "bull market continues to be effective" and will continue.
You can clearly see the following figure. When the price tests these slopes, there are very "obvious" high and low points, which form the angle chart at this moment.
