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!
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:
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