WD Gann Trading Theory

 


The Gann tools are usually a standard set of tools available with most default charting packages. On repère sur la courbe des cours une période correspondant à un cycle significatif de tendance et l'on trace une droite reliant le plus haut et le plus bas ou inversement de cette période. Ouvrez votre plateforme de trading et choisissez un graphique des prix Forex. We will go through setting entry and exit points on the chart based on Gann Fan signals. Please remember these are volatile instruments and there is a high risk of losing your initial investment on each individual transaction.

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The thick black line is the base movement we take for our grid. At the beginning and the end of the plotted black line, we have the two bottoms that form the base. As you see, the size of the black line equals the size of each side in the blue rectangles. As you see, the price action interacts with the gird in a similar way as illustrated earlier with the Gann Fan. We also have breakouts in the levels, which can signal potential price moves in the direction of the breakout.

Now that you are familiar with the way the Gann Fan and the Gann Grid work, we will now proceed with discussing potential trading strategies using each of these tools. The first Gann trading method we will discuss revolves around the fan. We will go through setting entry and exit points on the chart based on Gann Fan signals. Also, we will implement some rules around how you can manage your stop loss when trading with the Gann fan. There are two alternatives to open trades with the Gann Fan.

The first one is to trade breakouts, and the second one is to anticipate bounces from the diagonal lines. Gann Fan Line Breakouts — If you spot a breakout through one of the nine Gann Fan lines, then you should open a trade in the direction of the breakout.

Sometimes the interactions with the levels are not always so accurate. In this manner, it is better to wait for a candle to close beyond a Gann line and then to wait for a second confirmation candle which breaks beyond the initial breakout candle. Gann Fan Line Bounces — Whenever the price bounces from a Gann line, you can use this opportunity to open a trade.

The same as with the Gann Fan Line Breakouts, after you spot a bounce you should confirm it with an additional candle. In any type of leveraged trading, you should use a stop loss in order to protect your account. Here are some ideas to consider for placing stop loss orders when trading with Gann Line Breakouts and Bounces. Now that you know when to open Gann trades and how to protect them, we will discuss some trade management ideas.

The blue thick line on the image shows the base we use which will calculate the Gann Fan lines at varying degrees. The black lines on the image illustrate the moments when trades should be opened per our rules. The red lines are the locations of the stop loss orders for each trade. The green circles show the moments when profits should be taken on the trade. Our Gann analysis leads to three trades on this chart.

The candle which closes above the breakout candle creates a buy signal on the chart. The stop loss should be placed near the bottom that was created prior the breakout. A short trade should be opened when a candle breaks the support area created prior to the bounce.

The stop loss should be located above the top created just before the downward bounce. This trade should be held until the price breaks the same diagonal line in the bullish direction.

Notice, the take profit signal comes approximately around the same level as the initial sell signal, which makes this trade a scratch. The stop loss in this trade should be placed below the bottom created prior the breakout.

The trade should be held until the price action reaches the next resistance line. The fan lines are automatically plotted. In the simplest of illustrations we buy on the break and retest of the Gann trend line, marked on the chart. After a break and retest of the main trend line, a long position was taken, with stops at the previous low while targeting the most immediate trend line to the upside.

Gann Trading Methods — A complex forecasting tool. The above methods illustrated in this article are merely scratching the surface of the Gann trading methods. However, this method requires years if not decades of dedicated practice in order to master the techniques of W. Improve Your Trading Skills - Don't miss our new posts! Trading Forex, Binary Options - high level of risk. Please remember these are volatile instruments and there is a high risk of losing your initial investment on each individual transaction.

In the MT4 platform, the Gann tools can be accessed from: When we zoom into the chart, we can see how price reacts to the Gann grid lines.

After plotting the Gann Grid indicator, we look for break of trend line and a retest for short positions. We find a trend line break at point 1. A short term support is found, so we wait for a retest of the trend line at point 3 After price retraces back to this resistance level and fails to break out higher than the down sloping trend line, it is a confirmation of short bias.

Short position is taken on a pullback, with stops at the previous failed high and target taken at the support formed previously. Alternatively, stops could be trailed along the most immediate down sloping trend line. Le concept de l'angle de Gann est de représenter sur une seule ligne le passé, le présent et l'avenir. S'il est utilisé correctement le trader peut déterminer où se situait le marché, où il se trouve désormais et quel sera le prix futur de l'action.

Aujourd'hui, bien évidemment, les traders n'ont pas besoin de tracer les angles de Gann à la main sur leurs graphiques forex. Il existe de nombreux logiciels capables de le faire automatiquement. Beaucoup de traders cependant, en raison de la facilité avec laquelle ils peuvent être tracés, ne s'embêtent pas à analyser et utiliser les angles de Gann car ils les assimilent aux lignes de tendance.

Il ne s'agit pourtant pas de la même chose. L'angle de Gann est comme une ligne de tendance car c'est une ligne diagonale mais contrairement à celle ci, la ligne de Gann se déplace à vitesse constante.

Comme vous pouvez le voir sur ce graphique de prix, les angles de Gann montrent les niveaux de support et de résistance. Sur le graphique les flèches bleues indiquent lorsque les angles de Gann agissent comme niveau de support et les flèches rouges montrent lorsque l'angle indique un niveau de résistance.