Gann Angle Basic Principles

Gann believed that the cryptocurrency market also follows natural laws, and price movements are not chaotic, but can be predicted using mathematical methods. The core of Gann's theory is to establish trading order in highly volatile crypto markets, determining pullback points and trend reversal points.

1. Basic Construction of Gann Angles

Starting from key high and low points of cryptocurrencies like BTC, ETH, etc., draw 8 angles based on time and price ratios; when prices touch these lines, it indicates strong support or resistance.

Core ratios: 1:1 (time and price synchronized), with special focus on 2:1 and 3:1 lines;

Upward line: extending from a low point to the upper right, serving as bullish support;

Downward line: extending from a high point to the lower right, serving as bearish resistance.

Usage:

Stabilizing after falling to an angle line → can go long; breaking the line effectively → stop loss and exit;

Rising to an angle line with stagnation → can go short; breaking through effectively → follow the trend.

2. Operating Principles

1. Market Hierarchical Operation
The crypto market trend is divided into major trends of mainstream coins and small waves of altcoins. The large-scale trend determines the rhythm of smaller scales. Both rises and falls operate at fixed rates or multiples, forming converging or diverging trends, thus enabling price prediction.

2. Linkage of Time and Price
Time and price mutually counterbalance; Gann angles are the equilibrium trajectory of time-price.

Running along the angle line → trend continues;

Breaking through/dropping below the angle line → balance is broken, trend reverses.

Crypto markets are highly volatile, with rapid bull and bear transitions. The linkage effect of time and price is more obvious. By using Gann angles to control the balance between the two, traders can effectively capture trend reversal points, reduce trading risks, and increase profit probabilities.