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Tuesday, 24 March 2026

                                            

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Dynamic Fair Value (Gann Angle Concept)

Understanding Moving Fair Value in Trending Markets


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What is Dynamic Fair Value?

In the previous section, fair value was explained using horizontal candle division. That method works well when price is moving in a range.

But in a trending market, price does not move horizontally. It moves in a direction — upward or downward.

In trending markets, fair value is not flat. It becomes dynamic and moves along with the trend.

Role of Gann Angles

Gann angles help us understand direction and structure of price movement.

  • They show the slope of the trend
  • They act as dynamic support and resistance
  • They represent moving fair value zones
Gann angle can be treated as a moving fair value line.

Understanding Price Behavior

In a downtrend, price continuously forms lower highs and lower lows.

In an uptrend, price forms higher highs and higher lows.

Price often returns to the Gann angle before continuing the trend.

Dynamic Fair Value Logic

  • Uptrend → Price returns to lower Gann angle (discount zone)
  • Downtrend → Price returns to upper Gann angle (premium zone)
This return to the angle is the dynamic fair value zone.

Comparison: Horizontal vs Dynamic

Type Structure Usage
Horizontal Fair Value Flat (candle-based) Range markets
Dynamic Fair Value Sloping (Gann angle) Trending markets

Simple Trade Model

  1. Identify trend direction
  2. Draw Gann angle from swing
  3. Wait for price to return to angle
  4. Look for rejection
  5. Enter in trend direction
Do not chase price. Wait for return to dynamic fair value.

Common Mistakes

  • Drawing angles incorrectly
  • Ignoring trend direction
  • Entering without confirmation

Next Page: Combining ICT, Fair Value, and Gann for Precision Entry

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