A properly selected and drawn angle is a form of moving average, but unlike a moving average, it can project out into the future ahead of the price action on a chart. Drawing angels correctly and the proper use of the angels is crucial in successful technical trading. Using the correct degree angels is critical to successful trading. The two angels I have found to be the most accurate and beneficial are the 45 degree and 22 1/2 degree.
These are W D Gann angels known as the 1×1, and the 1×2. Using only these two angels combined with the Fibonacci retracement levels of .382, .50, and .618 produce excellent trading results. W D Gann was a technical trader and perhaps the greatest trader of all time. W D Gann used geometry and mathematics as the basis for his incredibly successful trading.
W D Gann used the geometric circle of 360 degrees and the 90 degree square as the core of his technical trading. The 1×1 angel which means 1 price segment x 1 time segment, equals a 90 degree square. To divide this in half and get the balancing point, you draw an angle which is a 45 degree or 1×1 angle. The next W D Gann angle is the 1×2 or 22 1/2 degree.
This angle is 1 price segment x 2 time segments, and half of the 45 degree angle. I run these two angles from major bottoms and tops on bar charts, and let the price action come to the angles for support and resistance. This combined with the Fibonacci retracements of .382, .50, and .618 when close to, or on the angles gives excellent trade signals for support and resistance.
I DO NOT just run any degree angle along bottoms or tops and put the angle to the price action, but rather have the fixed 45, and 22 1/2 degree angles from major tops and bottoms, and let the price action come to the angles just the way W D Gann did it.
http://www.aawealth.com. TRY this simple method on your charts and see if your trading improves. By Robert Johnson - http://www.aawealth.com
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