Gann144_Method

8/7/2019 Gann144_Method

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Gann144 MethodREVISED 6/4/10 mk

Monumental kudos to Subashr for offering this method, indicator, and lots of time answering our questions.

Chart Setup: 1m or 5m

Set up two charts per pair, one for long indi, one for short. When you first place the indicator onthe chart, it will pick a swing high or low you can move it to any point by double clicking thearrow (you know you got it when there is a box around the arrow). Then you drag the arrow tothe new point. The indicator will repaint at the next tick, as either a short (red) or a long(blue)automatically, depending on where your set it. Alternatively, you can change the timeframe, thenback, which will force a repaint of the indicator.

For 4 digit broker, no adjustment need to be taken. If the broker is 5 digits, just change the 'prices'value to 3600. The vertical (time) lines are the same for both type of broker.

Indicator INPUTS:, set red, blue, powder blue, and Lime to FALSE. (I did this on the attachedindi, as well as set the price to 3600 for a 5 digit broker) . This will eliminate those lines from thechart. You will only see Yellow Green line now. (you can set this YellowGreen line width to 2 or 3if you want a BOLD line.) The other lines are not in use here. I have modified an indicator toeliminate unnecessary lines (on a Black background chart), and make the arrows easier to seeand drag.

It is important to identify the peaks at which to place the indicator. (Well, Peaks for shortindicator (highs), and valleys for Long indicator (lows).) For simplicity, I will say Peaks , but willmean either way.

Moving the indicator from one Peak to the next will be referred to as Migrating the indicator.

ZIGZAG: One can use a ZigZag indicator to show the Peaks. Yes, the ZigZag repaints, but inthis case, we WANT that!!! If a new high or low is set, we want to Migrate the indicator to thatnew Peak At some point, the market will reverse, and leave that Peak in place, with theassociated indicator. Then, we hit the Entry line

Using the NonLagZigZag, settings of 2/30/4 for the one minute, and 2/10/4 for the 5m areconservative. Reducing the middle number will allow for more peaks, more trades.

TRADE LOGIC (refer to Example1 and Example2 screenshots)

Entries:Enter at break of Yellow-green line, which starts at Level 18, and slopes slightly toward themarket price.

NOTE: Once you have an entry, you should NOT move the indicator, until the trade is

closed out. (The opposite side, however, continues to move until it hits an entry SeeREVERSALS following.)

Exits:There are only two ways of exiting a trade (besides the TakeProfits):

1. Hit the SL, (below)2. Have a reversal signal before the StopLoss is hit. (Reversals are covered later)


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TP/SL :First blue line is first TP1 (level 36, blue line), Yellow line is the TP2 (level is the yellow linebetween 36 and 54 ).SL is set just outside of swing high/low, where the arrow is placed, Level 0.Can manage SL as you want, move to BE at TP1, etc.

Time Lines:The 54 and 72 timelines are noted on the screenshot below. A unique aspect of this system isthat there are BOTH price and time considerations represented by the indicator. Time Level 54 isa heads up to tighten up the SL, and be ready to exit if TP1 is not approached. If by TimeLevel72 we have not yet hit TP1, then close the trade. (As you can see, there is some discretion here.The price was close, so let it run a bit, and in this case, it hit TP1).

EXAMPLE SCREENSHOTS FOR THE BASIC LOGIC ABOVE:

Example 1: See notes tagged to the LETTERS below the screenshot:

A: Blue arrow set below a swing low indicates a long indicator.B: Entry at the YellowGreen Line. (a little bit more aggressive, as it hits before the 18 level.)C: Entry possible at the Level 18 line. (more conservative)


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D: TP1 Take profit Level.E: TP2 Level. (this trade did not reach TP2)F: 54 Time line. Start to tighten up SL, be ready to close position, if TP1 not hit yet.G: 72 Time line Want to close positions if TP not close by now.H: Level 0: This is the point at which the indicator is applied. SL to be set 3-5 pips outside.

Example2 (straight win..)


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Example 3: Short, with Re-Entry:


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Example 4: Basic trade to TP1,


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Example 5: Similar trade, TP1, eye towards TP2

Money Management:There are two foundational ways to trade this:

Single entry, full exit at TP1. Double Entry, exit half at TP1, remaining half at TP2, move SL to BE at TP1.

NOTE: There are several three and four position entry/exit advanced techniques which maybe presented later.

Trade a standard 3% risk based upon the indicator StopLoss.This risk can be split for the two position entry, 1.5% risk per position.

Scalping :Usual Entry, exit at fixed pips, say 10p. Can do this with a FixedTP option, 0 to disable.Some people are exiting at the first silver line, way before TP1.

Re -Entries : (see example 2 above, green notes)A re-entry will add a position if the market drops below the initial entry, then re-breaks in thedirection of the original trade.


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You can re-enter if the price retraces back beyond level 18, then a re-break in the original tradedirection, as long as the SL is not hit, and we do not hit a Reversal exit.

Pyramiding:A Pyramid adds positions if the market is beyond the initial entry level. This is an advancedtechnique, and requires that you migrate the Indicator differently than the Basic method.

To Pyramid, you continue to move the indicator for the direction you have an open trade. Say wehave a long trade open. The basic method is to leave the indicator in place while the tradedevelops, until it hits the TP level(s), or exits (SL or Reversal). Once it exits, you re-set the longindicator to the latest ZigZag low valley. Here, you move the indicator for each new low peak, ofcourse, leaving the initial entry TP/SL numbers in place.

If the market hits the entry for the Long indicator in its new position, you ADD a position at thatpoint, with its associated SL and new TP level(s). As your initial entries hit their Take profits,your Pryamid entry will remain in place, and if the market continues your way, you will add yetmore entries as you continue to migrate the long indicator, and get additional breaks.

Reversals: refer to LongShortExample screenshots following.Reversals are VERY important, and are one of the two ways a trade will exit for a loss. That said,it may minimize the loss, and gain a win, if the market continues in the Reversal direction.

To track a Reversal, continue to migrate the opposite Indicator. If we hit a Long trade, we leavethe Long indicator static (Basic Method), and continue to migrate the Short indicator to each newpeak.

If in a Long trade, and we see an Entry on the Short chart, we have a Reversal. At that point,we EXIT the Long trade and ENTER the Short trade. This is a typical Stop & Reverse logic.

(of course, opposite for Short trade and a Long reversal..)

(screenshot examples on next page)


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Reversal Example 1:

Reversal Example2:

Documents

Gann144_Method