A Gann Fan is drawn between a significant bottom and top (or vice versa) at various angles.
For a Gann fan, two reference points define the middle line of a seven-line "fan" of time relative to price. The first reference point is the one from which the fan extends. The second reference point, drawn to the right of the first, determines the rate of equivalence between time and price. The angles of the fan, relative to an assumed horizontal line and middle line's angle, are shown in the table value.
In Gann's original formulation, the rate of equivalence between time and price was 1/1 (one unit of time equals one unit of price), so that the middle line of the fan defines a 45º angle.
Since the rate can be m/n (m units of time equals n units of price), angles relative to the middle line's angle are adjusted accordingly. For example, the actual ratio of the 1-to-8 line is 1-to-(8*n/m).
The table below displays the calculations involved in the Gann Fan.
|
Time x Price |
Fan angle (degrees) via 45º middle line |
|
1 x 8 |
82.5 |
|
1 x 4 |
75.00 |
|
1 x 3 |
71.25 |
|
1 x 2 |
63.75 |
|
1 x 1 |
45.00 |
|
2 x 1 |
26.25 |
|
3 x 1 |
18.75 |
|
4 x 1 |
15.00 |
|
8 x 1 |
7.5 |
When the fan is drawn, two "grab bars" are placed where the control line starts and ends. To change the position of the control line, position the cursor on either of the grab bars, and drag it to the appropriate location.
To move the Gann Fan, position the cursor in its center (the cursor changes to a hand). You can now drag it to a new position on the chart.
You can change several of the Gann Fan properties. To access the tool properties, select and right click on the highlighted tool.
|
Property |
Description |
|
Up to nine lines can be displayed for a Gann Fan. For each line, you can set these properties: |
|
|
Angle |
The Fan angle (degrees) via a 45º middle line control line (Line 5 if they are all displayed). |
|
Color |
The color of the line. Click the Color box to choose a color from the drop-down list. |
|
Width |
The width of the line, between 1 - 10. |
|
Coordinates: Point 1 is where the GANN FAN is initiated by the drawing tool. Point 2 is the point on the middle line (#5) where the line drawing was stopped -changing this point will affect all other lines equally. |
|
|
Beginning Price |
The price value on which the fan is currently positioned. |
|
Beginning Time |
The time value on which the fan is currently positioned. |
When done, click Apply. Click OK.