Gann Theory on the CMT Exam
W.D. Gann's work on geometric and time-based analysis represents some of the most unique concepts in technical analysis. Gann theory is tested on CMT Level 2 (Classical Methods) and Level 3 (integration essays).
For the full curriculum breakdown, see the CMT Exam Guide 2026.
Core Gann Principles
Price-Time Relationship
Gann believed price and time are interrelated. The most important balance occurs when price and time are equal — the "squaring" of price and time.
The 1×1 Angle (45-Degree Line)
The foundational Gann angle: a 1:1 ratio of price to time. One unit of price moves in one unit of time.
- Above the 1×1: Bullish — price is rising faster than time
- Below the 1×1: Bearish — price is falling behind time
Gann Angles
| Angle | Ratio | Interpretation |
|---|---|---|
| 1×8 | 82.5° | Very steep — extremely bullish/bearish |
| 1×4 | 75° | Steep — strong movement |
| 1×3 | 71.25° | Strong trend |
| 1×2 | 63.75° | Above-average momentum |
| 1×1 | 45° | Balanced — key angle |
| 2×1 | 26.25° | Below-average momentum |
| 3×1 | 18.75° | Weak movement |
| 4×1 | 15° | Very weak — near horizontal |
Each angle provides potential support or resistance levels.
Gann Fan
The Gann Fan deploys multiple angles from a significant high or low:
- Acts as a system of trendlines radiating from one point
- Price finding support on a lower angle after breaking a higher one follows the fan principle
- Similar in concept to Fibonacci fan lines
Square of Nine
The Square of Nine is a spiral calculator mapping price levels geometrically:
- Numbers spiral outward from the center in a square pattern
- Key relationships occur at 90°, 180°, 270°, and 360° from a given number
- Used to find price targets and support/resistance levels
Time Cycles
Gann identified recurring time intervals where major market turns occur:
- Key Gann dates: March 21, June 21, September 21, December 21 (seasonal quarters)
- Anniversary dates: Markets tend to reverse near anniversary dates of prior major highs/lows
- Fibonacci time relationships overlap with Gann's work (see market cycles)
Gann vs. Other Methods
| Feature | Gann Theory | Elliott Wave | Fibonacci |
|---|---|---|---|
| Focus | Geometry + time | Wave structure | Ratios |
| Time analysis | Primary | Secondary | Limited |
| Price targets | Angles + squares | Wave projections | Retracements |
| Complexity | High | High | Moderate |
| Subjectivity | Moderate | High | Low |
CMT Exam Tips
- Know the key Gann angles and their degree equivalents
- Understand the 1×1 line as the most important angle
- Be able to explain price-time squaring conceptually
- For Level 3: discuss Gann's methods critically alongside modern approaches like statistical analysis
Practice Gann Theory questions in our test bank. Full guide: CMT Exam 2026.
Gann Angles — Price-Time Relationship
The 1×1 (45°) angle represents balanced price-time movement