THE W. D. GANN FAN (OR ANGLE)
Traders know W. D. Gann best by his famous 'Gann fans' or 'angles.' We still see the shadows of these fans on the published charts that Gann traded.
W. D. Gann's original use of fans and angles differed from how they are publicly displayed today. W. D. Gann had specific functions for his fans and angles, and set them up differently for each function. For instance, one use of the fans was setting a moving average of price/time. Another was to monitor the strength of a breakout from his Gann Squares. Yet another was to gauge strength of a new trend off a top or bottom. Perhaps Gann's most powerful use was to find support and resistance points in advance, pegging tops and bottoms.
Further, Gann used in set the fan or angle different for each function. The Law of Vibration for each market and the timeframe Gann traded determined those settings. These angles were only tools of confirmation or triggers that W. D. Gann combined with his core methods of trend prediction, price projection, and more.
Trying to incorporate Gann Fans into your trading without this knowledge will probably just help you lose money. That's why just using a one-to-one price/time ratio, guessing where to start the fan from, or drawing the middle line through the first high or low won't consistently work.
Further, Gann used in set the fan or angle different for each function. The Law of Vibration for each market and the timeframe Gann traded determined those settings. These angles were only tools of confirmation or triggers that W. D. Gann combined with his core methods of trend prediction, price projection, and more.
The examples of Gann Angles on this page work consistently because they are set according to Gann's original work. We do not use these fans on their own, but in the context of Gann's other techniques.
The fan below is scaled in two important ways. First, it used his formula for drawing a fan from high to peg resistance points on the decline and bounce. Second, the Gann fan is scaled in advance to the particular market in that particular year. Knowing the scaling formula in advance is the trick.
These scaling formulas are constants, knowable in advance and easily calculated for each market and time period. They change in a predictable pattern, which is taught in its entirety in our "Magic In The Markets" Course.
The gallery below of 5 consecutive days of the ES M19 on a 2min chart presents maybe the most potent example of Gann Fans. W. D. Gann used this scaling formula to "find the tops and bottoms" of resistance and support for the future price movements. These fans are drawn from the open price before the market develops, and the scale changes each day according to a preset formula. This technique was affectionately called the "Vampire Vector" by Brian S, an alumn of our Gann course. Note- support and resistance is only active for this method after the regular US session opens.
The Gann fans in the gallery below of 2-minute intraday charts of Facebook (FB) stock overs 4 consecutive days. This particular use of the Gann angles predicts slope and time/price resistance in advance of the day. The red angles mark descending support and resistance. The blue angles mark up-trending support and resistance. One could also elect to use only the blue or red fans in their analysis. Sorry we can;t show the proprietary places tghe fans are strated from.
The Gann Fan technique used above uses the same settings each day, The beginning of the fans changes each day based on the same standard principle. Again, the chart data is "normalized" and tuned to the market with W. D. Gann's Law of Vibration. These techniques work on all major timeframes.
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