How to use Ganzi line correctly

Hello, Ganzi Line is a set of technical analysis theories created by Gann, the general trend of stock analysis, which is formed by combining percentage principle and geometric angle principle. Ganzi line starts from a point and draws many straight lines backwards at a certain angle, so it can also be called angle line.

How to use Ganzi line

Ganzi line can be divided into upward Ganzi line and downward Ganzi line. We draw the Ganzi corner line from the starting point of a rising market and the Ganzi corner line from the apex of a falling market, so each corner line will form support and pressure on the stock price. When the stock price runs above the angle line, the lower line will form support, while if the stock price runs below the angle line, the upper line will produce pressure.

Usually, when the stock price runs above the middle line, that is, the 45th line, the stock price is strong, and vice versa. The median line is equivalent to 45, also called 1× 1 line, while the line above it is equivalent to 64, also called 1×2 line, and the line below it is equivalent to 26, also called 2× 1 line. The number before the multiplication symbol represents the time, and the number after it represents the moving speed. For example, the line 1× 1 represents that the stock price ran a distance at a time, and the line 1×2 represents that the stock price ran two distances at a time.

What's wrong with Ganzi Line?

This problem is the angle line of Ganzi line. If different scales are used when drawing, the graphs of the same number in different scales will look different. These problems are the places where Ganzi's theory needs to be further improved. However, this problem does not hinder us too much. This is because: First, Ganzi Line provides many lines, not just a straight line. When the east is not bright and the west is bright, there is almost always a straight line that can play a very important role. Secondly, Ganzi line is not a function of circular arc, and it is often used in combination with other tangents such as percentile line, which can change the overall effect and avoid some obvious mistakes.

Risk disclosure: This information does not constitute any investment advice. Investors should not use this information to replace their independent judgment, or make decisions only based on this information. If they operate by themselves, please pay attention to position control and risk control.