To use this technique you require 3 inputs. GAV stands for Gann angle and volatility trade technique.

a. Daily volatility (DV) of the instrument (the instrument is either equity or future or commodity not the option)

b. Opening price of the instrument

c. Previous closing price of the instrument.

Trader need to calculate the price range
Price range calculation formula

Price Range = Daily volatility * previous closing price.
If the daily volatility is in the percentage form then do not forgot to divide the result by 100.
Example 1: Nifty on 18th March 2015 open at 8775, its daily volatility is 0.96 and previous close is 8740.
Price range = (8775 *0.96)/100=84.25

Understand the 11 Gann trend lines
Now the 11 sets of trend lines from a lower price point towards the higher price point are as follows

1X1, 1X2, 2X1, 1X3, 3X1, 1X4, 4X1, 1X8, 8X1, 1X16 and 16X1.

The geometrical angle made by these trend lines with the X axis in an up move

(i.e. if the trident line will be drawn from a major low or intraday low)

corresponding to 2X1= 63.75 degrees, 1X2= 26.25 degrees, 1X1= 45 degrees, 1X3= 18.75 degrees, 3X1= 71.25

degrees, 4X1= 75 degrees, 1X4= 15 degrees, 8X1= 82.5 degrees, 1X8= 7.5 degrees, 1X16= 3.75 degrees, 16X1= 86.25 degrees.

The geometrical angle made by these trend lines with the X axis in a down move

(i.e. if the trident line will be drawn from a major high or intraday high)

corresponding to 1X2= 63.75 degrees, 2X1= 26.25 degrees, 1X1= 45 degrees, 3X1= 18.75 degrees, 1X3= 71.25 degrees, 1X4= 75 degrees, 4X1= 15 degrees, 1X8= 82.5 degrees, 8X1= 7.5 degrees, 16X1= 3.75 degrees, 1X16= 86.25 degrees.

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.

 Pricerange 86.25 86.25 Degree DegreeFactor Resistancepricerange DegreeFactor supportpricerange 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

GAV Formula for calculating the support and resistance:

 Support = Opening price -  Support price range  (i.e. associated with the actual trend line)* degree factor Resistance= Opening price +  Support price range (i.e. associated with the actual trend line)* degree factor
Example 3:   In Example2 we have calculated 1X2 trend line support and resistance price range in example 1 I have mentioned the opening price of nifty was 8775. Now we will calculate the 1X2 trend line resistance and support. 1X2 trend line support = 8775-79.7972*0.35416=8746.7390 1X2 trend line resistance   = 8775+88.9799* 0.14583= 8787.9759 Below table has the resistance and support calculation of all GAV trend lines.
 Price Enter Price range 86.25 8775.00 86.25 Degree Degree Factor Resistance Degree Factor support 16X1 86.25 0.48 95.38 8820.70 1X16 86.25 0.48 77.58 8737.83 8X1 82.5 0.46 94.97 8818.53 1X8 82.5 0.46 77.95 8739.27 4X1 75 0.42 94.16 8814.23 1X4 75 0.42 78.68 8742.21 3X1 71.25 0.40 93.76 8812.11 1X3 71.25 0.40 79.05 8743.71 2X1 63.75 0.35 92.95 8807.92 1X2 63.75 0.35 79.80 8746.74 1X1 45 0.25 90.96 8797.94 1X1 45 0.25 81.67 8754.58 1X2 26.25 0.15 88.98 8787.98 2X1 26.25 0.15 83.56 8762.81 1X3 18.75 0.10 88.20 8784.19 3X1 18.75 0.10 84.33 8766.22 1X4 15 0.08 87.80 8782.32 4X1 15 0.08 84.71 8767.94 1X8 7.5 0.04 87.03 8778.63 8X1 7.5 0.04 85.48 8771.44 1X16 3.75 0.02 86.64 8776.80 16X1 3.75 0.02 85.86 8773.21

Buy sell decision? If the current price is above 1X4 trend line i.e. 8767.94 in the above table then trade will sell for target of 1X1 trend line i.e. 8797.75 and final target 1X16 trend line i.e. 8820.70. If the current price is below 4X1 trend line i.e. 8782.32 in the above table then trade will buy for target of 1X1 trend line i.e. 8754.58 and final target 1X16 trend line i.e. 8737.83 What the trader will do if all targets are achieved? In This case the trader have to derive the price reference for 2nd cycle by changing the opening price with the final target price of the 1X16 or 16X1 trend line . Below table explains the 2nd cycle price points for uptrend and downtrend.

Second cycle uptrend

 Price PriceRange 86.25 8820.70 86.25 Degree DegreeFactor Resistance Degree Factor 16X1 86.25 0.48 95.38 8866.40 1X16 86.25 0.48 77.58 8783.53 8X1 82.5 0.46 94.97 8864.23 1X8 82.5 0.46 77.95 8784.97 4X1 75 0.42 94.16 8859.93 1X4 75 0.42 78.68 8787.91 3X1 71.25 0.40 93.76 8857.81 1X3 71.25 0.40 79.05 8789.41 2X1 63.75 0.35 92.95 8853.62 1X2 63.75 0.35 79.80 8792.44 1X1 45 0.25 90.96 8843.44 1X1 45 0.25 81.67 8800.28 1X2 26.25 0.15 88.98 8833.68 2X1 26.25 0.15 83.56 8808.51 1X3 18.75 0.10 88.20 8829.89 3X1 18.75 0.10 84.33 8811.92 1X4 15 0.08 87.80 8828.02 4X1 15 0.08 84.71 8813.64 1X8 7.5 0.04 87.03 8824.33 8X1 7.5 0.04 85.48 8817.14 1X16 3.75 0.02 86.64 8822.50 16X1 3.75 0.02 85.86 8818.91

Second cycle downtrend

 Price Price Range 86.25 8737.83 86.25 Degree Degree Factor Resistance Degree Factor 16X1 86.25 0.48 95.38 8783.53 1X16 86.25 0.48 77.58 8700.66 8X1 82.5 0.46 94.97 8781.36 1X8 82.5 0.46 77.95 8702.10 4X1 75 0.42 94.16 8777.06 1X4 75 0.42 78.68 8705.04 3X1 71.25 0.40 93.76 8774.94 1X3 71.25 0.40 79.05 8706.54 2X1 63.75 0.35 92.95 8770.75 1X2 63.75 0.35 79.80 8709.57 1X1 45 0.25 90.96 8760.57 1X1 45 0.25 81.67 8717.41 1X2 26.25 0.15 88.98 8750.81 2X1 26.25 0.15 83.56 8725.64 1X3 18.75 0.10 88.20 8747.02 3X1 18.75 0.10 84.33 8729.05 1X4 15 0.08 87.80 8745.15 4X1 15 0.08 84.71 8730.77 1X8 7.5 0.04 87.03 8741.46 8X1 7.5 0.04 85.48 8734.27 1X16 3.75 0.02 86.64 8739.63 16X1 3.75 0.02 85.86 8736.04 The above example is being taken from the 18th March 2015 nifty future data. This is also the proof of the success of this trade.