In an effort to maximize profits from foreign exchange transactions, Forex traders often try to use in their work the newest and most advanced market analysis techniques adapted to modern market conditions. In their opinion, it is precisely such methods that will allow a more accurate assessment of the market and forecast the course dynamics.
Meanwhile, in the practice of Forex trading, there are also market analysis tools that have proven themselves quite a long time as proven Forex tools, with a high probability leading the trader to the desired result.
It is to such analytical tools that the indicator, called the Gann Angles, belongs. Some Forex experts often attribute the “Gann Angles” to the category of scripts, which, of course, has certain grounds.
Indeed, the indicator allows Forex trader to obtain very important information about the state of the target market. It should also be noted that this indicator is part of the analytical tools MetaTrader4 - according to many traders, the most popular terminal software for online trading on Forex.
Graphic Display of the Indicator
Graphically, the “Gann Angles” indicator is displayed as straight lines, diverging at certain angles. This construction on the price chart visually resembles a fan, which caused the appearance of the second name of this indicator - “Gann Fan”.
It is understood that Gann Angles very accurately indicates price levels, near which the future increase in business activity of Forex participants is predicted. Of course, any analytical conclusions and forecasts based on the results of using this indicator are probabilistic in nature.
What factors need to be considered?
The use of the Gann Angles indicator to predict the situation on Forex, as many traders and analysts claim, justifies itself, since the use of this tool is based on the fact that the trader should take into account the following prerequisites:
• market quotations of currency;
• time cycles of the market;
• trade corridors within which the exchange rate fluctuates;
• a well-defined structure, in accordance with which the Forex dynamics occurs;
• natural cycles accompanying any market movement.
The most important parameter of the indicator is the line in the Gann Fan structure, which forms an angle of 45 (forty-five) degrees relative to the time axis on the price chart. It is considered to be the key “separator” of the price chart space, determining the trend relevant for the market. The direction of the course relative to this line determines the current trend in the market.
