Gann Swings XVI Indicator

William Delbert Gann is one of the most famous traders in history who developed various methods for the analysis of price and time like the Gann angles, Gann Square of Nine, WD Gann Box, etc.

Wd Gann trading systems are still widely used today and the Gann Swing indicator is also based on one very popular trading strategy.

In this trading system, two Gann Swings indicators are plotted to identify the correct direction and timing of the trade.

Let’s try to understand the working of this trading system.

Gann Swings XVI Indicator Overview

Gann Swings XVI Indicator Overview

Gann Swing Charts remove unnecessary price action, displaying only the important turning points that make decision-making a more objective and straightforward process.

This not only makes chart analysis easier, but it also helps to identify the peaks and troughs pattern with more clarity. It is the ​ easiest way to determine whether markets are in trends or not.

The objective of this indicator is to identify the major trend and monitor trends on the charts and hence Dual Gann Swing indicators are used.

Swings that are marked by red Color are major swings that decide the direction of the market. It is a major trend and trades should trade in direction of the major trend only.

If red swings are forming higher high and higher low patterns then traders should look for long trades and if red swings are forming lower high lower low patterns then trades should take short trades.

Gann Swings XVI Indicator Explanation

Gann Swings XVI Indicator Explanation

Yellow color swings only identify the minor pattern on the price chart and hence those are useful for taking entries and exits when the direction of the trend is up.

Then we should do the long trades if we get breakout confirmation on the minor trend indicator. When the direction of the trend is down , then traders should do short trades after breakdown confirmation on the minor trend indicator.

Also Read: Parabolic Sar MTF Indicator

Gann Swings: Buy Conditions

Gann Swings Buy Parameters
  • Gann major trend indicator with red color should from the higher high and higher low structure.
  • Gann monitor trend indicator with yellow color should give Structure breakout in favor of uptrend.
  • Traders can hold the trade till the time up trending structure is valid on the minor trend charts.

Gann Swings: Sell conditions

Gann Swings Sell Parameters
  • Gann’s major trend indicator with red color should form a lower high and lower low structure.
  • Gann monitor trend indicator with yellow color should give Structure breakdown in favor of downtrend.
  • Traders can hold the trade till the time down-trending structure is valid on the minor trend charts.
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I have been actively trading stocks and currencies since April 2012. Besides trading with my personal money I am a technical analyst in a mutual fund which has Rs. 1 billion in assets under management. At my leisure, I love attending live music, traveling, and partying with friends.

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