Gann is the Man Indicators
Thank you for this wonderful post fxbaja... I am always curious regarding Gann and his trading systems but however, I never manage to understand most of them.. do you have much experience with the Gann trading methods?
Greetings bossxero,
I am not a Gann expert at all, but always wanted the application of his theories simplified. That has always been the chief barrier to using Gann, not being able to fully understand his many techniques and theories.
I've been waiting a long time for technology to catch up. Therefore, it is quite exciting for me to see some early stage indicators, such as the 2 attached here, created for MT4.
I had "kicked the tires" on Gann with another software program during 2004, but saw that we needed to basically get a 4-year degree on the subject just to have a fighting chance.
One of his key points is to have a properly scaled chart, in order to measure the angles, such as the 45-degree (1X1).
The breadth of his studies, theories, and application, left most overwhelmed. Adding mystery to the entire situation made it difficult to replicate over the years since his era.
All I can do is monitor a handful of Gann indicators that come out to measure its effectiveness viz-a-viz my trading style. I guess one can classify my style as being heavily weighted toward support and resistance.
Therefore, breakout and S&R indicators/tools are of high interest. Applying leading indicators/tools is obviously the goal. This is the crux of Gann, to be able to predict future price action.
One of Gann's techniques/theories was based on starting with an all-time low price. The subsequent major highs are multiples of low. He also recognized significant lows with this analysis.
I recently played with that idea on EUR/USD. Attached is the pair on a daily chart. I plotted a trend line from the significant low of June 7th.
The yellow numbers are perfect squared numbers I used to plot number of days from Low. We can see that on the 81st day (Sept 10th), pair registered a significant low pivot that corresponds with the trend line.
The red and pink numbers above the yellow 100 are squared numbers denoting distance in time (number of days) from other significant high points. No significant turning point occurred at this cluster.
The other yellow squared numbers did a O.K. job of identifying turning points. Gann always had a window of 2-3 days for his predictions. I'm sure there are others that can do better than this very quick analysis.
The vertical yellow line with 169 (square of 13) represents the next squared number after 144. The 169th day is Dec 18th. This is an example of the kind of projections Gann made. Relationship with price and time.
I'll post more freebie stuff on Gann, including interesting articles that may simplify things for all of us.
The last example did not use Gann's Square of Nine, except noting the 81st day after low was indeed a significant pivot.
Here is a Square of Nine free calculator at this site, which I do not have any connection with, nor do I endorse whatever it is selling:
https://www.mql5.com/go?link=http://www.xmlworks.com/gann/javascript/
The calculator has 3 inputs:
Start Number - I used 13000, eliminating the decimal on EUR/USD price.
Start Date - I used 11/30/2010
Levels - I used 10.
Out spits a Gann Wheel with squared numbers AND dates highlighted in yellow. Play with the decimal point.
Might as well post 2 Gann indicators that aren't new but can be useful for those trading this style:
1) Gann HiLo Activator SSL - attached here as couldn’t locate one posted before.
This plots a line for buy and sell.
2) Gann HiLo Activator Bars - attached
This acts like candlesticks.
You can increase the thickness of the bars for better viewing. Acts like the HAS candles in that it can take away the smaller fluctuations. Provides entry signal when color changes, and when candle crosses line.
One way to use it is to marry it with a breakout, such as breakout of Asian high or low. Stay in trade as long as bars are the same color. Exit after first opposite color bar closes, or per fib extension targets.
Or enter at change of color or cross of line, near tops or bottoms according to other indicators or tools.
Good for trend markets/periods. Try on 15-minute chart.
Attached is a pdf on how to use the Gann Square of Nine Wheel, manually.
I will post a Gann time indicator as soon as I understand it.
Here is the indicator Gann_Box_144
Support & Resistance. I'll post any instructions I can find.
Here are 2 more Gann indicators.
1) SQ9 (Price) It plots the angles of 22.5 and 45-degree only. The difference with this one is that the horizontal lines stay on the chart, and we can also see past price interaction.
The newer indicator posted earlier, Gann_SQ9 is dynamic in that it adjusts as time advances, using the zig-zag to identify swings.
Must input a low or high price, and whether you want up or down projections.
2) SQ9 (Time) Plots vertical lines denoting possible turning points in the future. Must input start date/time and price.
As an experiment, we input on the daily EUR/USD chart, picking a low pivot:
Time = 2010.08.24 00:00
Price = 1.2587
SquareDays = true
All other Square periods must be false.
Projection means how many line you want going forward.
The result are sets of vertical lines, dotted and solid lines. I haven't figured out the difference yet.
I've worked with a few indicators that plot vertical lines into the future, including fib time projection, and astro tools. The consistency just wasn't there, at least for Forex.
So, we'll spend some time analyzing and researching the effectiveness of the Gann SQ9 Time.[ATTACH]7379[/ATTACH]
Double click the small blue arrow to instruct the indicator of the starting point for the box.
For EUR/USD, move the small blue arrow to Dec 1st 04:00 candle on the 15-min chart.
A Gann fan is part of box, and starts on lower left hand corner. The center red fan line is the 45-degree line, which Gann considered the most important, also known as the 1X1 line.
If price breaks this fan line, it denotes a change of trend and will reach the next fan line.
The other lines are for support and resistance, and are fractions such as 1/3, etc.
i have tried to understand gann's too. will love more informations on his trading pattern
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Here are a couple of interesting indicators from W.D. Gann (aren't they all?), as well as a link to his bio.
W.D Gann Methods , Time and Price & Trading Experts
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Gann also studied and applied astrology to trading. Therefore, also included are a couple of astro indicators that wasn't available for MT4 until recently.
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Gann_SQ9
We are still monitoring and not expert about Gann, but respect how this indicator projects support & resistance, even in advance. Based on Gann's belief with angles. We found settings, as follows pretty decent. Changing the settings below doesn't mean the default is bad. It just makes for easier viewing. If you want the extra S&R level, leave it on default.
1-Hour and 4-Hour Chart
Angle: change from default of 22.5 to 45.0
kol_lev: change from default of 8 to 32
Daily Chart
Angle: change from default 22.5 to 90
Kol_lev: change from default to 32
5-Min Chart and 15-Min Chart
Angle: leave on default 22.5
kov_level: have at least 16. Increase in multiples of 8.
Attached is a 4-Hour chart with the Gann_SQ9 indicator. We anticipated support at the 360-degree level price of 1.3319 on EUR/USD - in advance.
PAMA GannGrid_indv4.3
Make sure you drop the template one into your template folder.
Turn on GridMarix and GannGrid.
Indicator plots trend lines, then arrow appears at break, usually after candle closes. As with trend line philosophy, take breaks after longer trends.
Does not repaint as far as we can tell. Should use with trend indicator, and have exit strategy.