Mikula Forecasting Company

MarketWarrior: The Price x Time Angles

MarketWarrior has two indicators for drawing price time angles. These are named "Gann Angle Fan" and "Gann 1x1 Angles".

A valuable analysis tool is to draw angles on a chart that have a slope measured in a ratio between chart price units and time units. The diagram below shows a simple chart with a price scale that has increments of 10 and a time scale with increments of 1 month. The angle that slopes up from the bottom left has a slope that moves up 1 price unit for each time unit. This is a 1 x 1 slope. It is possible to have a line that slopes up at any price to time radio, such as 1x2, 1x3 and so on.



The chart below is an example of using a price x time line. This chart is a daily chart for the S&P500 symbol ^GSPC. The price unit used on this chart is 2 price units for each daily bar. The price unit must be set by the trader based on the time frame of the chart. The price unit used on intraday time frames such a 5 minute chart will need to be smaller than the price unit used on a long term chart such as a monthly chart. Starting from the bottom labeled "A1" I have drawn a 1x1 angle upward. Starting from the bottom labeled "B2" I have drawn a 2x1 angle upward. At the top right side of this chart I have circled a major change in trend. Notice that the change in trend top was on top of both the 1x1 angle and the 2x1 angle. It is a very common occurance for tops and bottoms to form on price x time ratio lines which start from previous tops or bottoms.




Here is an example of using 1x1 price x time angles on a real-time 1 minute chart for Apple computer symbol AAPL. The chart is setup with a price increment of 5 cents or .0.5. The 1x1 angles therefor have a slope of 5 cents per bar. On the first chart below "T1" is a top that has formed right on a 1x1 line that is moving up from a bottom that is off screen. You will see that not every top and bottom form on a 1x1 line but many of them do.



On the next Apple chart there is 1x1 angle drawn downward from top T1. The bottom B2 formed on this 1x1 angle.



Our final 1 minute chart for Apple shows the top T3 formed on a 1x1 angle which started from a previous bottom. As you watch the real-time markets throughout the day you will see several tops and bottoms forming on 1x1 angles. Not every top and bottom will form on a 1x1 angle but several tops and bottoms will form on 1x1 angles every day.



The next example for using the 1x1 price time angle is the long term weekly chart below. This is a weekly chart for the S&P500. The chart is a fixed price and time chart with the price scale locked to 5 points per bar. The price time angles on this chart also are using a price unit of 5 points per bar. Starting from the low in 2006 I have drawn the standard 2x1, 1x1 and 1x2 angles up from the low. The chart shows the top in 2007 formed on the 1x1 price x time angle.