Trading Roadmap | Gann · Lesson 03 — The Gann FanEthereum / TetherUSBINANCE:ETHUSDTBigBelugaLesson 03 - The Gann Fan Difficulty: (Intermediate) The Square of Nine produced levels that sit still. The fan produces levels that move. It is a set of lines drawn from one pivot, each rising at a fixed amount of price for a fixed amount of time — so what they measure is not where price is, but how fast it is getting there. This lesson covers what the ratios mean, how price tends to travel between them, and the two mistakes that make a fan useless before it has drawn a single line. One pivot, five rates. The centre line is 1×1 — one unit of price for one unit of time. Above it are the steeper rates, below it the shallower ones. Here price is advancing faster than 1×1 and each pullback is finding support exactly on it. 🔵 QUICK RECAP FROM LESSON 02 Lesson 02 built the Square of Nine and reduced it to one line of arithmetic on square roots. The levels it produces are fixed: once you choose a pivot, they sit at the same price forever. This lesson covers the other half of Gann's toolkit — levels that change as time passes. 🔵 1. WHAT A FAN ACTUALLY IS A fan is a set of straight lines drawn from a single significant high or low. Each line rises or falls at its own constant rate. - Every line represents a rate of advance, not a price - The line a market is riding says how fast the trend is travelling - As time passes, each line asks for a higher price to stay above it That last point is the whole idea. A horizontal support level asks the same thing of price a year from now as it asks today. A fan line asks for more every bar. 🐳 Pro Tip: Think of a fan line as a moving requirement rather than a level. A trend that keeps pace with it is behaving differently from one that keeps falling behind it. 🔵 2. WHAT THE RATIOS MEAN This is where most of the confusion lives, so it is worth stating plainly. The notation is price units × time units. The three main rates on a grid of equal cells. 1×1 rises one cell per cell. 2×1 rises two cells of price for one cell of time, so it is steeper. 1×2 rises one cell of price over two cells of time, so it is shallower. The names are a description of the slope, not a ranking. - 1×1 — one unit of price per one unit of time, the reference rate - 2×1 and 4×1 — two and four units of price per unit of time, steeper than the reference - 1×2 and 1×4 — one unit of price over two and four units of time, shallower So 2×1 is the fast one and 1×2 is the slow one, and reading them the other way around is the single most common error with this tool. 🐳 Pro Tip: Say it out loud the first few times — "two of price, one of time" — until the notation stops needing translation. 🔵 3. HOW PRICE MOVES BETWEEN THE ANGLES The observation Gann built the fan around is that price tends to travel from one angle to the next rather than stopping between them. Price riding the 1×1 line, then breaking below it. The decline does not stop halfway — it continues until it meets 1×2, the next rate down, where it finds support. The break is marked where the decline actually crosses the line. - Losing a line often means travelling toward the next one below it - Regaining a line often means travelling toward the next one above it - The lines can then act as moving support and resistance in the usual way This is a tendency, not a rule, and it can fail like any other tendency. What makes it useful is that it gives a specific expectation: if 1×1 is lost, you already know where the next reference sits. 🐳 Pro Tip: The break matters more than the touch. Price brushing a line and holding is the line doing its job; price closing through it is the information. 🔵 4. THE ANCHOR HAS TO BE EXACT A fan is drawn from one point, and every line in it inherits whatever error is in that point. Here is the arithmetic, because it makes the point better than a picture. Suppose a 1×1 line rises one point per bar from a low at 100. Anchor it on the low and it reads 120 twenty bars later. Anchor it four bars late — on a bar that has already traded up to 104 — and the same line reads 124 at that same moment. Every pullback the market makes to 120 now sits four points under a line that was supposed to catch it, and the error never shrinks: it is carried, unchanged, for as long as the fan is on the chart. - Anchor on the exact high or low, not near it - Use a pivot the market clearly respected, not a minor swing - Draw from a low for an advance and from a high for a decline - Once anchored, do not move it because the lines stopped working That last point is the discipline. A fan that gets re-anchored whenever it fails is a drawing exercise, not a measurement. 🐳 Pro Tip: If you cannot decide which of two pivots to anchor to, the fan is probably not the tool for that chart right now. Ambiguity at the anchor becomes ambiguity everywhere. 🔵 5. THE SCALING PROBLEM, AGAIN Lesson 01 warned that the 45-degree angle is a property of chart scaling rather than of markets. The fan makes that warning practical. - A fan line is defined by price per bar, and that only has meaning once you fix what one unit of each is - Changing the vertical zoom changes how the fan looks while changing nothing about the relationship - Switching between linear and logarithmic scale changes the lines themselves, not just their appearance - Different instruments need different units, because a unit that suits one price range suits no other The practical version: pick a scale setting and a timeframe, and keep both fixed for the instrument you are measuring. A fan compared against itself across different settings is comparing nothing. 🐳 Pro Tip: Write your unit down next to the instrument. If you cannot say what one unit of price and one unit of time are on the chart in front of you, the fan on it is decorative. 🔵 6. WHAT THE FAN IS ACTUALLY GOOD AT Used properly, the fan answers a question that most tools do not ask. Two advances going the same way at different rates. On the left price is holding above 1×1. On the right it has settled onto 1×2 and is making the same progress over twice the time. Direction alone cannot tell these apart. - It measures rate, and rate is the part of a move that price levels cannot describe - A trend that keeps stepping down through the angles is decelerating, whatever its direction - A trend that regains a steeper angle after a pause is accelerating - Comparing which angle successive legs ride is a way of tracking that change over time 🐳 Pro Tip: Note which angle each leg of a trend rides. A sequence that goes 2×1, then 1×1, then 1×2 describes a trend running out of energy without a single indicator on the chart. 🔵 7. WHEN IT STOPS HELPING The honest limits, and they are real. A fan drawn across a sideways market. The angles keep rising while price goes nowhere, so the lines simply cut through the range at arbitrary heights. There is no rate of advance here for the fan to measure. - Sideways markets — the tool measures rate, and a range has none - After a gap or a violent break — the old anchor rarely survives that kind of event - Too many fans — one from every swing turns the chart into a grid that explains anything - Very long horizons — a steep line from years ago eventually asks for a price that is out of reach 🐳 Pro Tip: If the fan is asking for prices far outside where the market trades, it has expired. Anchors have a useful life and the lines do not tell you when it ends. 🔵 8. A DISCIPLINED WAY TO USE IT - One fan per trend, from the pivot that started it - Anchored exactly on the extreme, and left there - Fixed scale and timeframe for that instrument - 1×1 as the reference, and the others read relative to it - Breaks, not touches, treated as information - Removed when the trend that produced it is over Read this way, the fan is a speedometer rather than a map. It is poor at telling you where price is going and good at telling you how quickly it is going there. 🐳 Pro Tip: Combine it with a level tool rather than with another rate tool. The fan and the Square of Nine answer different questions, which is exactly why they are worth having together. 🔵 COMMON MISTAKES - Reading 2×1 as the shallow angle and 1×2 as the steep one - Anchoring near the pivot instead of on it - Re-anchoring whenever the lines stop working - Changing the price scale between readings and comparing the results - Drawing a fan across a range and looking for meaning in the crossings - Stacking fans from every swing until the chart is a grid - Treating a touch as a signal when the break is the actual event 🔵 QUICK SELF-CHECK - Find the clearest low on your chart and anchor a single fan to it - Ask which angle the current advance is riding, and which it was riding a month ago - Find a place where price lost one angle — did it travel to the next one down? - Change your vertical zoom and watch the fan change shape, then set it back - Count the fans on your chart, and remove every one whose trend has ended 🔵 WHAT IS NEXT Lesson 04 stays with one line and takes it seriously: the 1×1 angle — why Gann treated it as the most important line on any chart, what it says about trend strength, and how to set the units so that it means the same thing on every instrument you use it on. Worth sitting with before then: direction is the easy half of a trend to describe. Rate is the half that changes first. Full Trading Roadmap | Gann Course Trading Roadmap | Gann · Lesson 01 — Price and Time Trading Roadmap | Gann · Lesson 02 — The Square of Nine Best Regards, BigBeluga 🐳