Gann Line represents a line drawn at the angle of 45 degrees.
This line is also called "one to one" (1x1) what means one change of
the price within one unit of time.
According to Gann’s concept, the line having the slope of
forty-five degrees represents a
long-term trendline (ascending or descending).
While prices are above the ascending line, the market holds bull directions.
If prices hold below the descending line, the market is characterized as a
bear one. Intersection of Gann Line usually signals of the basic trend break.
When prices go down to this line during an ascending trend, time and price
become fully balanced. The further intersection of Gann Line is the evidence
of breaking of this balance and possible changing the
trend.
It is necessary to define two points for building a Gann Line.
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