0Introduction to Gann Degree Numbers
If we study any chart of stock/index or any other asset class that is traded on stock exchanges, we will find that it moves from one specific number to another particular number. We can call those numbers as supports and resistances. Is there is any relation between these numbers or it is just a random move?
If we could find a relation between these numbers, then we can predict from a particular value where that asset is going to move. Gann Degree Numbers or Degree Gann Numbers (DGN) is precisely a concept that assigns a specific set of numbers to a particular asset(stock/index/commodity/currency).
So where we will get these Gann Degree Numbers?
Gann Degree Numbers - Where to Find them?
W. D. Gann talked about the concept of Square of Nine. We get our Degree Gann Numbers from this table. Lines are passing through midpoint (shown in yellow colour) that identifies numbers falling on particular degrees.
So we have eight significant degrees 45/90/135/180/225/270/325/360. Degree 45 and 225 falls in the same line. So for simplicity, we consider all numbers under 45 and 225 degrees as 45-degree nos. Same we apply to other pairs. So now we get 4 degrees of numbers, 45/90/135/180.
So numbers belong to 45-degree are 1-3-7-13 and so on. We can expand these much higher numbers for index.
Next, we will discuss how to apply these degree numbers to assets.
Applying Gann Degree Numbers to Asset
Now you have 4 degrees and numbers associated with each of this degree. So far, the question is how to use them on an asset to help us trade that asset?
Study chart of stock/index/commodity you want to apply for degree numbers. Find out names from a degree where this asset takes to support or resistance more often. Apply that degree to that asset. Here I am attaching the chart Auropharma that follows135-degree numbers.
Now you found a degree for stock and applied numbers to chart. What Next?
Use of Degree Numbers on Asset
We got a chart of stock ready with Gann Degree Numbers. These numbers can be used for finding targets for the trade, as a reference point for Stop Loss / Trailing Stop Loss.
Suppose we found that a stock of 135-degree is taking support at 289 (289 is itself particular Gann No) level then we can look for up-move target-1 as 325 and target-2 as 361 as these are next numbers in 135-degree after 289. Here is a chart of AXISBANK, who perfectly followed Gann Degree Numbers.
It could be of some help in trading as you have a better understanding of possible targets.
It is just a fundamental understanding of Gann Degree Numbers. There is much more to it. The same asset class can have 3-digit/4-digit/5-digit separate Gann Degree Numbers if it is highly-priced and also we can use it differently for intraday or positional trade.
Gann Methods
The Gann Degree Numbers is just a small concept in the universe of Gann methods. Gann Angles is one of the most powerful tools that give us an edge in trading. Gann gave more importance to time, and hence Gann's concept of Price Time Square is one of the most exciting concepts traders fraternity is curious about.
I have researched on Gann Angles for four years to find how I can use them to find an impulsive move (I trade in Futures and options and hence look for fast trade). The Gann methods help in finding an excellent deal set up with a good risk-reward ratio.
