What Is the Gann Fan
The Gann Fan is a technical analysis tool composed of nine diagonal lines drawn from a single significant price pivot. Each line represents a different rate of price change over time, creating dynamic support and resistance levels that advance with the passage of time.
The Nine Lines of the Fan
The nine angles are: 1×8 at 82.5°, 1×4 at 75°, 1×3 at 71.25°, 1×2 at 63.75°, 1×1 at 45°, 2×1 at 26.25°, 3×1 at 18.75°, 4×1 at 15°, and 8×1 at 7.5°. These must be drawn on correctly scaled charts.
Trading the Fan: Line Breaks and Bounces
The two primary ways to trade are line breaks and line bounces. A line break occurs when price convincingly penetrates one of the fan lines — signalling a shift from one geometric level to the next. A line bounce occurs when price approaches a fan line and reverses.
Fan Clusters and Confluence
The most powerful trading signals occur when fan lines from different time periods and different reference points converge at the same price-time location. When the 1×1 fan from a major yearly low coincides with the 2×1 fan from a more recent intermediate low, the probability of a significant market reaction is extremely high.
The Gann Fan is not drawn on a chart — it is revealed by the chart. When you scale correctly and anchor at the right point, the market’s own geometry emerges, and you see the invisible structure that has been guiding price all along.