Gann grids are one popular tool used by traders to analyze strength of trends and to predict trend changes. Gann grid is used for squaring up time and price and is based on the most famous Gann line, the 45 degree or 1:1 Gann line which shows a strong long-term trend. It is an easy to follow indicator helpful for investors, long-term traders and swing traders.
Gann grind is a set of 45 degree lines plotted over a price chart for an instrument. Whenever the price stays above one of these ascending lines (better if it touches it in one or more points) the instrument is on a strong bullish movement. And whenever the price stays below one of these descending lines the instrument is on a bearish movement. When intersection of one line occurs it is considered that the basic trend is broken, and when the price intersects more than one line it is considered as the beginning of a new trend.