The Gann Fan uses lines that are drawn at specific geometric angels, starting from a significant high or low. The geometric angles signify the relationship between price moves over time. For example, the base line (1x1 line) is drawn so that the price moves one unit for every time unit. You can choose the size of the price and time units when drawing the Gann Fan. All fan lines serve as support / resistance lines. If a line is broken, it is believed that the price will move further towards the next fan line.
For drawing the fan, you need two reference points. The first reference point (A) sets the beginning of all Gann Fan lines. The second reference point (B) defines the base line (1x1 line), and therefore also defines the size of the basic price and time unit. You can for example draw the base line so that every five days (time unit), the price would have to move 10 points (price unit) to follow the line. If the price and time unit have the same size on the chart, the base line is drawn at an angle of 45°.
The other fan lines are added automatically. Three lines below the base line: 1x2 line (63,43°), 1x4 line (75,96°) and 1x8 line (82,87°); and three lines above the base line: 2x1 line (26,57°), 4x1 line (14,04°) and 8x1 line (7,13°). The angles of the lines are adjusted relative to the position of the base line or 1x1 line (45°). These lines show for example a move in every time unit of two price units (1x2 line), or a move in every four time units of one price unit (4x1 line).
You can change the color and style of all fan lines: See Customizing Gann Fans.
▪ Click on the Gann Fan icon on the Drawing toolbar:
▪ Click on the chart at the first reference point of your base line (A) and hold the mouse button down.
▪ Move the mouse pointer to the second reference point of your base line (B) and release the mouse button.
You can extend the lines of the fan to the right by using extension points: See Extending and Shortening Lines with Extension Points. To hide some of the fan lines, see Hiding and Showing Lines / Levels with Visibility Points.