﻿ Gann Double And Triple Tops Or Bottoms by Webtrading.com

# Double And Triple Tops Or Bottoms

Angles Crossing Each Other: When there is a double bottom several days,-weeks or months apart, you draw angles from these bottoms, which are near the same price level. Example: From the first bottom draw a 45° angle and from the second bottom draw an angle of 2x1. When these angles cross each other, it will be an important point for a change in trend. Note on chart marked "Form #6" that I have drawn the 45° angle from the first bottom "1B" and the angle of 2x1 on the right-hand side of the 45° angle. Then, from the second bottom "2B", I have drawn a 45° angle and the angle of 2x1, which gains 2¢ per day, week or month, on the left‑hand side or bull side of the 45°. You will note that the angle of 2x1 from the second bottom crosses the angle of 2x1 on the bear side from the first bottom at 48, and that when the price breaks under these angles, a change in trend takes place and it goes lower.

Note that the angle of 2x1 from the third bottom "3B" crossed the angle of 2x1 on the bear side from the first bottom at 53½, and crosses the 45° angle from the second bottom at 58. This would be a point to watch for change in trend. I have placed a circle where these angles from the different bottoms come together.

Apply this rule to double tops and triple tops in the same way. It is not necessary for the tops or bottoms to be exactly at the same price level, but near the same level. Remember, always draw 45° angles from all important tops and bottoms.

## Parallel Angles

Parallel angles or lines run from important tops and bottoms. As previously explained, the 45° angle is the most important and should be drawn from all important tops and bottoms. If an option starts advancing, we draw a 45° angle from the bottom. Then, if the option makes tops, declines and makes a higher bottom, advances and makes a higher top, draw a 45° from the first top, running the line up. This will give the oscillation or width of fluctuation in a parallel between the 45° angle from the bottom and the 45° angle running up from the top. Often an option will advance to the 45° from the first top, fail to cross it, then decline and rest on the 45° from the first bottom. Advance again working up for a prolonged bull campaign between these parallel angles.

When the angles are very far apart, you can draw another 45° angle equal distance between them, which is often a strong support angle from which the option will rally, but when it breaks under, it declines to the bottom parallel.

Parallels can form between the angles of 2x1 or 4x1 just the same as between 45° angles, which often occurs in a slow-moving market.

## Geometrical Angles Of Moving Trend Lines Drawn From “0"

When the price reaches bottom and starts up, you have been instructed to draw angles from this exact low point which shows the support in time periods, but there are other angles that later on will be just as important and sometimes more important than the angles drawn from the bottom. These are the angles that begin at "0" or zero, and move up at the same rate they move up from the bottom. The starting point must be on the same line that the bottom is made on, as the time period begins from this bottom, but the angles move up from 0. These angles should be started every time an option makes a bottom, especially on weekly movements on the daily chart. Example: See chart marked "Form #7."

If an option makes low at 20, as shown on the chart, starting the 45° angle from 0, when will this angle reach 20? Answer: It will reach 20 in 20-days, 20-weeks or 20 months from the bottom or its starting point. In other words, in 20-days, 20-weeks or 20 months, it will be up 20 from 0, and at the price where the option made bottom. Then, the angle will continue on up at the same rate, and later, when the price breaks under the 45° angle from the actual bottom made at 20, and breaks the other support angles drawn from the actual bottom at 20, the next important point for support will be the angle of 45° moving up from 0. When this angle is broken, it is in the weakest possible position, and indicates much lower prices, but this depends on how high the option is selling and how much it has declined at the time it breaks the 45° angle from 0. These angles drawn from 0, especially the 45° angle, proves when price and time are balancing, or when the price is squaring out from its bottom.

## "0" Angles Starting At The Time Top Is Made

When an option reaches extreme top on a daily, weekly or monthly chart, and the trend turns down, you should start an angle of 45° from 0 moving up from the exact space and date that the top is made. This will prove the square of the time period. It is very important when this angle is reached and indicates a change in trend. It is the last strong support and, when broken, it will indicate much lower prices.

I have instructed you in each case to first draw the 45° angle from the bottom, top and 0 at bottom and top, but this does not mean than you must not use the other angles. All of the other angles can be used from 0, but the 45° angle is the first and most important. After this angle is broken, you can use the other angles. It is not necessary to carry all of them along until you need them, but on the monthly chart, after a long series of years, these other angles should be carried along when the price begins to approach the levels where they would be broken, or where the price would rest on them and receive support.

45° from "0" to Top and Bottom: When a 45° angle moving up from 0 reaches the line or price of the bottom, it is very important. Then, again when it reaches the point of the extreme high price, it is very important for a change in trend.

You should carry 45° angles and other angles up from 0 from all-important first, second and third higher bottoms, especially those where very much time has elapsed between these bottoms. You should also start the angle of 45° up from 0 from the first, second and third lower tops, especially those which show much time period elapsed. These angles are the most important to be carried on the weekly and monthly charts.

Never overlook keeping up the angles from 0 because they will tell you when time is squaring out with price from tops and bottoms, and will locate support angles or moving trend lines at a point on the bear side, after the first 45° angle from a bottom is broken. You could not locate this support point in any other way except by the angles from 0.

You should go back over past records and bring up these angles and square out different tops and bottoms so that you can prove to yourself the great value of using these angles.

## Angles From Tops Down To "0" And Up Again

A 45° angle starting down from any important top on a monthly or weekly chart should be continued down until it reaches 0, and then started up again at the same rate. After a long number of years, between important tops and bottoms, this angle coming down and going up again is important. A 45° angle can also be continued down from any important bottom to 0, and then started up again. This will show the squaring of price with time from either top or bottom. Also, some angles can be moved to base on lowest price, and then up again.