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 in Level II classical methods and Level III integrated short answers.
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