BarroMetrics Views: How to Draw Angles of Ascent
Peter said: ” I follow the principle but can’t figure out how you calculate the angle measurements – can you possibly elaborate how you calculate them.”
Pete, thank you for your question.
At first brush, the answer seems simple enough. The 12:00 is straight up, so 12:15 would be 90%. Since we are looking at 12:05, 12:10 etc i.e. a circle, 12:05 would be 30% (360/12) and 12:10 would be 60%.
But on reflection there is a problem: the problem is the angle of ascent will depend on the scale of the chart.
So I reviewed what I do using Market-Analyst 6. Here’s the process – not exactly rocket science but I do get a good feel for the strength of a trend and the likelihood of continuation.
- Figure 01. After charting the instrument, I check the scale range by unclicking the auto range. In this case, for the Nifty it’s 3147.90
- Figure 02. I select from Gann Tools, the Gann Angles.
- Figure 03. I place the Gann Angles on the chart.
- Figure 04. I then shift the decimal point of the price unit two or three places so that the angles reflect the data. In this case, I shifted the decimal point 3 places to 3.147. (Figure 06 shows what the angles would look like if I shifted it only two places). I use 1×2 for the 60 degrees and 2×1 of the 30.
- Figure 05 shows the Gann Angles in degrees. The angles I drew represent 63.75 and 26.25 degrees (green lines; the red line is the 1×1 = 45 degrees) – so they are a little off. But by drawing it in this way, I get a pretty good idea of the angle of ascent in the context of the scale of the chart.