Lines
Trend by angle
A trend line that shows its angle, useful for comparing how steep different trends are.
The idea in plain words
A trend that gets steeper is accelerating; one that flattens is tiring. Seeing the angle as a number makes comparisons easy.
How it is calculated
Draw like a trend line; the angle is measured on the screen (it changes if you zoom).
angle = arctangent(vertical distance ÷ horizontal distance) on screenHow to use it
- Compare the steepness of successive legs of a trend.
- Very steep angles are rarely sustainable.
Drawing conclusions
- Angles depend on the zoom level: compare them only at the same zoom.
Example
The first leg of a rally is drawn at 35°, the second at 55°: the trend has accelerated, which often comes near the end.
Prices in examples are illustrative.
Watch out for
- Screen angles are not a property of the market itself.
A little history
Angle-based analysis is associated with W. D. Gann's work in the early 20th century.
Educational content only. No indicator or pattern predicts the future, and nothing here is investment advice.