The 1x1 Angle

Introduction

The 1x1 angle, also called the 45-degree angle, is the most important Gann angle. Gann said it represents a perfect balance between price and time. It is one of the easiest angles to draw and one of the most useful for finding the main trend.

What the 1x1 Angle Means

On a 1x1 angle, price moves one unit for every one unit of time. For example, if your scale is Rs 1 per day, the 1x1 angle rises Rs 1 every day from the starting low.

Gann's Rules for the 1x1 Angle

• As long as the price stays above the 1x1 angle drawn from a major bottom, the stock is in a strong position and the main trend is up.
• When the price breaks below the 1x1 angle from a bottom, the trend is weakening, and the price is likely to fall to the next angle below, the 1x2.
• When the price is below the 1x1 angle drawn down from a major top, the stock is in a weak position and the main trend is down.
• When the price crosses above the 1x1 angle from a top, the downtrend is likely ending.

Example: 1x1 from a Bottom (Illustrative)

Infosys makes a major low at Rs 1,400. Scale: Rs 2 per trading day.

• Day 20: 1x1 = 1,440. Infosys at Rs 1,480. Above the 1x1: strong.
• Day 40: 1x1 = 1,480. Infosys at Rs 1,530. Still strong.
• Day 55: 1x1 = 1,510. Infosys closes at Rs 1,500. The 1x1 is broken.
• Next support: the 1x2 angle = 1,400 + (1 x 55) = Rs 1,455.

A Gann trader would book profits or tighten stops when the 1x1 breaks.

Example: 1x1 from a Top (Illustrative)

A stock tops at Rs 900 and falls. Scale: Rs 3 per day. The 1x1 down angle falls Rs 3 per day.

• Day 20: 1x1 from top = 900 - 60 = Rs 840. Stock at Rs 800, below the angle: weak.
• Day 35: 1x1 = Rs 795. Stock rallies and closes at Rs 805, above the angle.
• Gann's reading: the downtrend may be over. Watch for a buy setup.

Choosing the Right Scale

Gann used 1 point per day, week or month for the US stocks of his time. For Indian stocks, choose a scale that fits the stock's normal movement. A practical approach is to use a scale roughly equal to the stock's average daily move in a trending phase. Test your scale on past charts: the correct scale is the one where the 1x1 angle has repeatedly acted as support or resistance.

Weekly and Monthly 1x1 Angles

You can also draw the 1x1 angle on weekly or monthly charts. A 1x1 from a major monthly bottom of Nifty can guide the long-term trend for years.

Track the 1x1 with GoPocket

On the GoPocket app, mark the major bottom of a stock in your watchlist. Each week, calculate the new 1x1 value and write it down. If the stock closes below it, review your position and consider moving your stop-loss or booking profit.

Frequently Asked Questions

Does the 1x1 angle always hold?

No. It is a guide. When it breaks, Gann expected a move to the next angle.

Should I use trading days or calendar days?

Gann used both. Many traders use trading days for daily charts. Be consistent.

Key Takeaways

• Above the 1x1 from a bottom = strong trend.
• A break of the 1x1 often leads to the next angle.
• Crossing above the 1x1 from a top signals a trend change up.

Disclaimer: Illustrative example only.