All of Gann’s techniques require that equal time and price intervals be used on the charts, so that a rise/run of 1 x 1 will always equal a 45 degree angle (1). He believed that the ideal balance between time and price exists when prices rise or fall at a 45 degree angle relative to the time axis. This is also called a 1 x 1 angle (i.e., prices rise on price unit for each time unit) (2).

In his book, Technical Analysis From A to Z, Steven Achelis explains the concept of Gann Angles as follows: “Gann Angles are drawn between a significant bottom and top (or vice versa) at various angles. Deemed the most important by Gann, the 1 x 1 trend line signifies a bull market if prices are above the trend line or a bear market if below. Gann felt that a 1 x 1 trend line provides major support during an uptrend, and when the trend line is broken, it signifies a major reversal in the trend

“Gann observed that each of the angles can provide support and resistance depending on the trend. For example, during an uptrend the 1 x 1 angle tends to provide major support. A major reversal is signified when prices fall below the 1 x 1 angled trend line. According to Gann, prices should then be expected to fall to the next trend line (i.e., the 2 x 1 angle). In other words, as one angle is penetrated, expect prices to move and consolidate at the next angle.”(