Research Advisory

Research Introduction / Gann Derived Levels

Gann EUR Jan 2006 Gann JPY Jan 2006 Gann Fan Channels

FX Concepts employs a proprietary trend line analysis technique to determine support and resistance, or the level at which buyers and sellers will congregate. Our technique is derived from the work of W.D.Gann one of the greatest technical analysts and traders of all time. Gann observed that prices tended to move up or down along trajectories. The strongest trend was a 45 degree angle. If prices moved from this trajectory they would tend to move twice as fast or twice as slow. At FX Concepts we have expressed these trajectories as points per day and optimized them to find the best fit for each currency pair and interest rate contract.

The advantage of this technique is that it allows us another way of forecasting the likely paths the market will take. It also allows us to time the market. The trajectories are generally not visible to the naked eye. One must compute the points per day. As few people employ this technique we observe that our levels suffer fewer false breaks.

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