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How to calculate degree factor?
As per the W.D.Gann principle 180 degree’s factor is 1. Hence the degree factor associated with all trend lines in the up move and down move can be calculated by dividing the degree with 180.
| Up move |
Degree |
Degree Factor |
Down Degree |
Degree Factor |
| 16X1 |
86.25 |
0.47917 |
3.75 |
0.02083 |
| 8X1 |
82.5 |
0.45833 |
7.5 |
0.04166 |
| 4X1 |
75 |
0.41667 |
15 |
0.08333 |
| 3X1 |
71.25 |
0.39583 |
18.75 |
0.10416 |
| 2X1 |
63.75 |
0.35416 |
26.25 |
0.14583 |
| 1X1 |
45 |
0.25 |
45 |
0.25 |
| 1X2 |
26.25 |
0.14583 |
63.75 |
0.35416 |
| 1X3 |
18.75 |
0.10416 |
71.25 |
0.39583 |
| 1X4 |
15 |
0.08333 |
75 |
0.41666 |
| 1X8 |
7.5 |
0.04166 |
82.5 |
0.45833 |
| 1X16 |
3.75 |
0.02083 |
86.25 |
0.47916 |
Formula for calculating the support and resistance price ranges:
| a |
Support price Range= |
(Price range - Degree factor)^2 |
| b |
Support price Range = |
(Price range + Degree factor)^2 |
Example 2: in the Example 1 we have calculated the price range as 86.25 now we will calculate the resistance price range and support price range.
If I wish to calculate the 16X1 trend line support and resistance price range then I need to do in the following way.
a. 1X2 trend line drawn from the low (i.e. resistance trend line) makes 26.25 degrees with X axis and drawn from high (i.e. support trend line) makes 63.75 degrees. The degree factor for 26.25 degree = 26.25/180=0.14583and degree factor for 63.75 degree = 63.75/180=0.35416.
b. Resistance price range of 1X2 trend line = Sqrt(86.25)+0.14583)^2= 88.9799
c. Support price Range of 1X2 trend line = (Sqrt(86.25)-0.35416)^2= 79.7972
Below table calculates the support and resistance price range of all 11 trend lines.
Price
range |
|
|
86.25 |
|
86.25 |
|
|
| |
Degree |
Degree
Factor |
Resistance
price
range |
|
|
Degree
Factor |
support
price
range |
| 16X1 |
86.25 |
0.479 |
95.37 |
1X16 |
86.25 |
0.479 |
77.5794 |
| 8X1 |
82.5 |
0.458 |
94.97 |
1X8 |
82.5 |
0.458 |
77.9469 |
| 4X1 |
75 |
0.416 |
94.16 |
1X4 |
75 |
0.416 |
78.6843 |
| 3X1 |
71.25 |
0.395 |
93.79 |
1X3 |
71.25 |
0.395 |
79.0544 |
| 2X1 |
63.75 |
0.354 |
92.95 |
1X2 |
63.75 |
0.354 |
79.7970 |
| 1X1 |
45 |
0.25 |
90.95 |
1X1 |
45 |
0.25 |
81.6689 |
| 1X2 |
26.25 |
0.145 |
88.98 |
2X1 |
26.25 |
0.145 |
83.5625 |
| 1X3 |
18.75 |
0.104 |
88.19 |
3X1 |
18.75 |
0.104 |
84.3260 |
| 1X4 |
15 |
0.083 |
87.80 |
4X1 |
15 |
0.083 |
84.7090 |
| 1X8 |
7.5 |
0.041 |
87.025 |
8X1 |
7.5 |
0.041 |
85.4778 |
| 1X16 |
3.75 |
0.020 |
86.63 |
16X1 |
3.75 |
0.020 |
85.8634 |
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