Gann Fans are a popular tool in technical analysis, named after the legendary trader and analyst W.D. Gann. Gann Fans are used to identify potential support and resistance levels, as well as to gauge the strength and direction of a trend. They are created by drawing a series of trendlines at different angles from a specific starting point, usually a significant pivot or turning point in the price chart.

Here’s how you can construct a Gann Fan:

1. **Select a Pivot Point:** Choose a significant high or low point on the chart where you believe a trend reversal or significant move has occurred.

2. **Draw the Initial Line:** Draw a trendline from the chosen pivot point to a subsequent high or low.

3. **Add Gann Angles:** Draw additional trendlines from the same pivot point, but this time at different angles. The most common angles are the 1×1 (45 degrees), 1×2 (26.25 degrees), and 2×1 (63.75 degrees). These angles represent the relationship between price and time that W.D. Gann emphasized.

The resulting pattern resembles a fan, hence the name “Gann Fan.” The lines act as potential areas of support or resistance, and the angles are believed to represent key price and time relationships.

Here are some key points about Gann Fans:

– **Support and Resistance:** The lines of the Gann Fan can act as support or resistance levels. In an uptrend, the lines are potential support, while in a downtrend, they may act as resistance.

– **Trend Identification:** The angle of the Gann Fan lines can provide insights into the strength and direction of the trend. Steeper angles may indicate a stronger trend.

– **Time and Price Relationships:** Gann Fans are based on the idea that price and time move in specific geometric relationships. The angles are meant to capture these relationships and help identify key turning points.

It’s essential to note that Gann Fans, like other technical analysis tools, are subjective and not foolproof. Traders often use Gann Fans in conjunction with other technical indicators and analysis methods to make more informed trading decisions. As with any trading tool, it’s recommended to practice and gain experience to understand how to effectively incorporate Gann Fans into your trading strategy.