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Pattern: In Gann Theory, pattern is defined as the study of market swings. Swing charts determine trend changes. For example, a trend changes to up when the market crosses swing tops, and it changes to down when the market crosses swing bottoms. The trader can also gain information from swing charts about the size and duration of market movements. This how price, which is size, and time, which is duration, are linked to a pattern. In addition, the trader can learn about specific characteristics of a market by analyzing the patterns formed by the swing charts. For example, the charts delineate a market’s tendency to form double tops and bottoms, signal tops and bottoms, and the tendency to balance previous moves.
Percentage Retracement Points: Just as Gann angles offer the trader price levels that move with time, percentage retracement points provide support and resistance that remain fixed as long as the market remains in a price range.
Gann is commonly acknowledged to have formulated the percentage retracement rule, which states that most price moves will correct to 50 percent. Other percentage divisions are 25 percent and 75 percent, with the 50 percent level occurring the most frequently.
Price: In Gann Theory, price analysis consists of swing-chart price targets, angles, and percentage retracement points.
