Gann Price Trading Plan

Introduction

You have now learned all of Gann's main price tools: angles, eighths, thirds, natural levels, the number 9, the Square of Nine and the Hexagon chart. In this final lesson of the course, you will combine them into one practical plan for finding high-probability support and resistance zones.

Step 1: Identify Major Tops and Bottoms

On the GoPocket app, open the monthly and weekly charts of your stock. Note the most important high and low of the last 1 to 3 years, and the latest swing high and low.

Step 2: Calculate Gann Retracement Levels

For each important move, calculate the 1/8, 1/4, 1/3, 3/8, 1/2, 5/8, 2/3, 3/4 and 7/8 levels.

Step 3: Add Natural and Square of Nine Levels

Add nearby round numbers (such as Rs 500 or Rs 1,000), 1/4 and 1/2 points, and Square of Nine levels calculated from the major low or high.

Step 4: Calculate Angle Values for Today

Calculate the 1x1 and 2x1 angles from the major bottom, and the 1x1 angle from the major top.

Step 5: Find the Confluence Zone

Where 3 or more levels fall close together, you have a strong Gann zone.

Complete Example (Illustrative)

HDFC Bank: major low Rs 1,400; recent high Rs 1,800; today it has fallen to around Rs 1,610.

• 50% retracement of 1,400 to 1,800 = Rs 1,600.
• Natural level: Rs 1,600 (round number).
• Square of Nine: square root of 1,800 = 42.43; minus 1 (180 degrees) = 41.43; squared = about Rs 1,716. Minus 2 (360 degrees) = 40.43; squared = about Rs 1,634. From the low 1,400 (root 37.42), plus 2 = 39.42, squared = about Rs 1,554.
• 1x1 angle from the low (Rs 2 per day, 100 days) = Rs 1,600.

Confluence zone: Rs 1,600 to Rs 1,634. This is a strong support area.

Step 6: Plan the Trade

• Wait for a bullish reversal candle in the zone, confirmed by a close.
• Entry: about Rs 1,615.
• Stop-loss: Rs 1,585 (below the 50% level and the 1x1 angle).
• Targets: Rs 1,716 (180-degree level), then Rs 1,750 (7/8 retracement back up is Rs 1,750).
• Risk Rs 30, reward Rs 100 or more. Excellent risk-reward.

Step 7: Place Orders on GoPocket

• Place a Delivery Limit buy order near Rs 1,615, or an AMO if planning after market hours.
• After execution, place a Stop-Loss sell order at Rs 1,585.
• Place a Limit sell order at the first target and trail the stop-loss for the rest.

Step 8: Respect the Stop

If the confluence zone breaks on a closing basis, Gann's rule says the next level will be reached. Exit without hesitation.

What Comes Next

Price tells you where the market may turn. The next course, Gann Time Cycles, teaches you when it may turn. Gann considered time the most important factor of all.

Frequently Asked Questions

How many levels are enough for confluence?

Three or more levels within about 1% to 2% of each other form a strong zone.

Should I update levels regularly?

Yes. Update angles daily or weekly, and retracements after every new major swing.

Key Takeaways

• Combine retracements, natural levels, Square of Nine and angles.
• Trade confluence zones with confirmation and a stop-loss.
• Use GoPocket's Limit, AMO and Stop-Loss orders to execute.

Disclaimer: Illustrative prices, not recommendations. Investments in the securities market are subject to market risks. Read all related documents carefully before investing.