Basics of Gann Analysis
Gann 50 percent retracement Level
Of all the retracement levels used by Gann, Gann regarded the 50 percent lev-
el as the most important retracement level. The 50 percent retracement level is
psychologically significant and therefore attractive to the majority of market par-
ticipants, and many investment decisions are based on the violation of this level.
Figure 19.10 shows copper finding support at the 50 percent level (shown as the
four‐eighth level).
Figure 19.11 shows the stock price of Caterpillar Inc. finding support at the
50 percent level, as well as at various other one‐eighth retracement levels as seen
at Points 1 to 3. Note that the levels are not valid after the time line associatedfiGure 19.9 Price Reacting at Gann One‐Third Retracement Levels on the Weekly
Chart of Soybean.
Source: MetaTrader 4fiGure 19.10 Price Reacting at 50 Percent Retracement Level on the Continuous
Daily Chart of Copper.
Courtesy of Stockcharts.com