Gann fans are a form of technical analysis based on the idea that the market is geometric and cyclical in nature. A Gann fan consists of a series of lines called Gann angles. These angles are superimposed over a price chart to show potential support and resistance levels. The primary purpose of this charting technique is to identify potential swing highs and lows for traders who use this approach.If you ask any Gann fan if they're an expert, they'll probably tell you yes. They are experts at reading charts, finding out where support and resistance levels lie and drawing lines based on this information. They have hundreds of charts that tell them when to buy and sell stocks.Diagram of Gann FanThese angles were developed by William Gann, who developed a pattern recognition system based on fractal geometry. Gann fans aren't just a bunch of nerds with terminal cases of neckbeard; they are an extremely effective form of technical analysis for finding support and resistance levels and setting trading ranges. For a full review, I recommend reading this fantastic article on the subject.Technical analysis is one of the oldest and most utilized methodologies in trading. It can be used on stocks, commodities and forex markets. Technical analysis is based on the idea that price follows a typical trajectory: it rises and falls to form a ratio between supply and demand; ideally at a minimum loss or maximum gain.
