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.
FIGURE 01
FIGURE 02
FIGURE 03
FIGURE 04
FIGURE 05
FIGURE 06
Refer this blog post to a friend or colleague…
