Gann Fan Forex Indicator
Different types of technical indicators were created by a famous trader and a man with market enthusiasm in the early period and his name is W.D Gann. Gann Fan is one of the widely used indicators among his creation. This indicator helps in determining the slope of market movement.
The currency value and its rate change can be measured by using the Gann Fan.
Price movements as described by Gann is represented in the form of box setting like 1×1 where one side represents the time period while the other as the amount of change. An angle of 45 degree will be formed when there is 1 point of movement in 1 period of time table. And when there is a movement of two points in 1 period of time table then a degree of 63.75 is fitted.
See video about Gann Fan Forex indicator:
Similarly, angle of 15 degree will be fitted if there is a movement of 3 points within 12 periods.
Nine angle values created by Gann Fan are given as below:
1. 1 x 1, 45 degree
2. 1 x 2, 63.75 degree
3. 1 x 3, 71.25 degree
4. 1 x 4, 75 degree
5. 1 x 8, 82.5 degree
6. 8 x 1, 7.5 degree
7. 4 x 1, 15 degree
8. 3 x 1, 18.75 degree
9. 2 x 1, 26.25 degree
Uses of Gann Fan
As suggested by Gann, the up and down lines of Gann Fan should be followed by the prices. Each of the lines within the Gann Fan is necessary for the resistance area to make the support. Whenever there is a fall in the price below the Gann Fan angle of 1×1 then it will support the next angle, else 1×2.
The above discussion shows that Gann Fan gives the accurate information about the AUDUSD currency in Forex charts. Such as the fall of price in 1×1 line followed by 1×2 line and then 1×3 before the original line rise. Applying the Gann Fan in the Forex chart will be of no harm as it is an indicator of Metatrader 4 but needs some practice.