Gann Angle Line Basic Principles

Gann believed that the cryptocurrency market also follows natural laws, and price movements are not chaotic but can be predicted using mathematical methods. The core of Gann's theory is to establish trading order in highly volatile crypto markets, identifying pullback points and trend reversal points.

I. Basic Construction of Gann Angle Lines

Starting from key high and low points of cryptocurrencies like BTC, ETH, etc., draw eight angle lines based on time and price ratios. When prices touch these lines, they encounter strong support or resistance.

Core ratios: 1:1 (time and price synchronized), with special focus on 2:1 and 3:1 lines;

Upward line: extending from a low point to the upper right, serving as support for bullish trends;

Downward line: extending from a high point to the lower right, acting as resistance for bearish trends.

Usage:

- When prices stabilize after falling to an angle line → consider going long; if the line is effectively broken → exit with stop-loss;

- When prices rise and hit an angle line and stall → consider shorting; if there's an effective breakout → follow the trend.

II. Operating Principles

1. Market Hierarchical Operation

Crypto market trends are divided into major trends of mainstream coins and small waves of altcoins. The large-scale trend determines the rhythm of smaller scales. Both upward and downward movements follow fixed rates or multiples, forming converging or diverging trends, making price prediction possible.

2. Interaction of Time and Price

Time and price mutually influence each other; Gann angle lines are the equilibrium tracks of time-price balance.

Running along the angle line → trend continues;

Breaking through or falling below the angle line → balance is broken, trend reverses.

Crypto markets are highly volatile, with rapid bull and bear shifts. The interaction between time and price is more evident. Using Gann angle lines to control this balance can effectively capture trend reversal points, reduce trading risks, and increase profit probabilities. $BTC