The desert air didn’t just shimmer; it vibrated. High above the salt flats of the Mojave, the Gann Trade 6
Check Your Logic:
If your only reason for staying in a trade is "hope," you are in doubt. Use the Gann Angle Theory to objectively verify if the trend is still intact (e.g., is the price still above the 1x1 angle?).
- Plot key Gann angles from significant highs/lows (1x1, 1x2, 2x1).
- Observe how price interacts with these angles: bounces suggest strength, breaks suggest momentum shift.
- Action: Use angle interaction to trail stops and to decide whether to hold or reduce positions.
- When to enter? (After the 6th bar)
- Where to stop? (6 units away)
- Where to target? (6 or 12 units forward)
: Gann believed the best trades are often the most obvious. If a trade requires extensive struggle or over-justification to "make it work," it is likely a trade that should be avoided. Mental Clarity
Let’s walk through a hypothetical trade.
- Setup: Wait for a candle (bar) to close. Count the last 6 candles on your chart.
- Condition: If the last 6 candles have all closed higher than the previous candle (6 consecutive bullish closes), you prepare for a SHORT. If the last 6 candles have all closed lower (6 consecutive bearish closes), you prepare for a LONG.
- Why? Gann believed that most linear trends exhaust after 3 to 5 units. Reaching 6 units represents a "saturation" of momentum, triggering a reversal or a sharp retracement.