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Forex Glossary

The Industry's Most Important Terms Explained

The forex industry is made up of countless definitions and it's easy to forget a few along the way. But because no forex education can be complete without a glossary of forex terms, we've compiled one which aims at explaining key definitions in the simplest way possible. This way, you'll never be lost or confused again!


Gann Fan

A technical analysis tool developed by W. D. Gann.  To draw a Gann Fan, attach the tool at a major bottom/top and drag the mouse to the necessary length.

The resultant Gann Fan consists of seven lines at the following angles:

Time x Price

Degrees

1x8

82,5

1x4

75

1x3

71,25

1x2

63,75

1x1

45

2x1

26,25

3x1

18,75

4x1

15

8x1

7,5

Gann considered the 45 degrees line the most important line, where the market has some form of balance. Prices above the 45 degrees line indicate an uptrend, where below - a downtrend.  During an uptrend, prices will find resistance at the lines above the 45 degrees line.  When prices break below the 45 degrees line. then a possible reversal may be expected. Consequently, prices are expected to find support at the lines below the 45 degrees line.

Similarly, in a downtrend the lines above the 45 degrees line will act as resistance, where the lines below will be support.

Category: Technical Analysis

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