Quad Candle System

I had put in a Trade for the EURAUD it is a continuation from my last trade of the same pair! Going to the Upside!

Jeff.......

Thank you and good job with the trade!

Hi Masterrmind I Like to know more about The Square of Nine according to what you make of it

Thank you,
Jeff.......

Further from Post 3128 and Post 3175.

Price is 'respecting' the Gann Lines of the DownTrend Gann Grid both ascending and descending angles.

As price enters into an 'Open Zone' price may reverse back to test recent Gann lines and if a bounce occurs expect price to accelerate to the next Gann line.

The Master Octive indicator can plot several different Gann Grid configurations but it makes no semse to use any of them unless you know what each represents and how it should be applied.

Above all else in the use of a Gann Grid is the ability of the trader to observe PA on any given chart and take note of Gann levels being respected.

The more price respects the Gann lines the higher the level of confidence in applying Gann analysis.

Take the time to study this chart of AUDUSD [D1 TF] and notice the small pullbacks that retest the Gann lines followed by an acceleration of price in the opposite direction.

The intersecting Gann lines allow for some aggressive PA to unfold in much the same way as price becomes tighter and tighter closer to the pointy end of a triangular formation until finally price breaks out more times than it does not in a powerful manner.

Gann timing is important in these types of setups because generally speaking price takes off rather fast at these times.

To get a feel for the momentum of PA simply break the D1 bar down into multiple M5 bars to get a clearer view of the unfolding PA.

Notice at what market times the greater acceleration in PA occurs.

Masterrmind............

Start with this ....

Indicators that compare how price has moved from 1 swing to another probably already exist.

Generally speaking a good eye for observation is enough to tell when price is accelerating away from a level.

However, it is discretionary to an extent as to how many bars are included in such an observation including whether or not to consider any pullbacks in PA that occur within the trajectory of price.

For example, does one look at the full move or break a swing down into two or more sections.

In any case the information presented here is to give a simple example of price movement.

Then at zones of intersecting Gann lines if its a single bar accelerating out of an apex its very easy to see as shown on the AU D1 chart.

From a trading point of view what we want to do over the shorter term (typically) is anticipate such a move by offering up some risk (smaller than usual) and place a pending order within the Gann zone.

Looks easy on a chart where the action has already unfolded but before the fact trading is another story.

I will provide a live trading example of a before the fact anticipated Gann move so other traders can observe it.

The idea though is to start with a chart where PA has shown great respect for the Gann Grid levels and then time the entry as well as one can under the prevailing conditions.

Prevailing conditions can include the major market opens, during a cross-over news event and other such 'riskier' trading times.

The less price respects the Gann Grid and the Master Octive Grid then the lower the risk I will apply.

Keeping trading simple.

ps. Yes consolidation of price between octives can easily be compared to when price rapidly races through several octive zones.

Masterrmind..............

You mention: "
The Master Octive indicator can plot several different Gann Grid configurations but it makes no semse to use any of them unless you know what each represents and how it should be applied."

so I guess we can ignore the GannGrid Up or Down in the settings, no?

Also in the AUD/USD we now expect price will go up on the Gann Grid? From my basic understanding the price should switch from a Gann down line to a Up line in their intersection? The acceleration is a way to confirm that the Line is validated and it should hold, no?

Sorry if these are elementary questions.

Post 3184 is a good introduction to what I'm looking at when trading on a Gann Grid.

Its important to note the following:

1. The Gann Grid setup especially the settings are unique to my own interpretations on Gann;
2. This means that there is probably no-where out in the internet space that applies the GG in exactly the same way that I do;
3. As far as price action respecting the GG lines there are many sources that use the same or similar concept;
4. The Master Octive indicator has been released in beta which means that many features are currently locked whilst others require additional coding to complete (this is so that traders do not take on too much information too quickly because it will lead to information overload IMHO);
5. The Master Octive indicator also contains monthly Moon phase data which will form part of the QCS methodology by offering adjustments to the Gann Grid chart positioning based on new significant highs and lows being created;
6. The Gann Grid should be used as an additional source of confluence in your trading including consideration of SL, Entry and Target zones in combination with the Master Octive Grid;
7. Note that the Gann Grid contains static angled lines of reference whilst the Master Octive contains dynamic horizontal lines of reference;
8. A future release of the Master Octive indicator will contain dynamic angled lines of reference.

AUDUSD [D1::64]

Something to think about is forming an expectation of where price is likely to go under the current prevailing conditions.

I have only provided 2 paths on the AU pair both favoring the long side but there is also a downside path to be considered.

What would 2 examples of a downward path trajectory of price on the AU pair look like based on Chart Structure, Gann Grid and the Master Octive ?
Based on a fundamental and technical analysis of the AU pair which path trajectory is more likely to unfold ?

More than 1 path should be shown on the chart because its a given that no trader will get the direction of PA correct every time !

Masterrmind............

AUDUSD [D1::64; UpTrend Gann Grid]

Perhaps now you start to see the power of making a well timed entry when applying both the Gann Grid (in QCS mode) and the Master Octive .

Its certainly possible to trade one of these setups as a sort of intraday type trade and simply close out later in NY if preferred.

ps. pay careful attention to how I have drawn the Gann Grid (it is default), very unorthodox wouldn't you agree ?

Masterrmind...........

AUDUSD [D1::64; Combo Grid]

Self explanatory.

Next step is to provide a live example on a real trading account !

Masterrmind...........

Square of Nine (SQ9)

The SQ9 is basically Gann's Square Root Calculator.

Starting with the number 1 in the center and moving to the left (number 2) then clockwise around the spiral of the first loop completes at number 9 (lower left corner at 315 degrees).

Projecting from the center through #2,11,28,... corresponds to the 0/360 deg line.
Projecting from the center through #3,13,31,... corresponds to the 45 degree line.
Projecting from the center through #4,15,34,... corresponds to the 90 degree line.
Projecting from the center through #5,17,37,... corresponds to the 135 degree line.
Projecting from the center through #6,19,40,... corresponds to the 180 degree line.
Projecting from the center through #7,21,43,... corresponds to the 225 degree line.
Projecting from the center through #8,23,46,... corresponds to the 270 degree line.
Projecting from the center through #9,25,49,... corresponds to the 315 degree line.
Support and Resistance levels are shown by the Cardinal and Ordinal crosses on the screenshot following:

Rotations of 360 degreees can also be calculated using the expression [SQRT(X)+2]^2.
Rotations of 180 degreees can also be calculated using the expression [SQRT(X)+1]^2.

Example,

360 deg
Choosing 19 we wish to find the number 360 degrees around the Gann wheel
[SQRT(X)+2]^2 = [SQRT(19)+2]^2 = 40.4 or ~40

180 deg
Choosing 19 we wish to find the number 180 degrees around the Gann wheel
[SQRT(X)+1]^2 = [SQRT(19)+1]^2 = 28.7 or ~28

90 deg use 0.5 (just understand that 90 deg is an important angle in Gann analysis).

Exercise for the keen students:

Design an SQ9 for either the EURUSD or the GBPUSD by applying the current Bid price or another relevant value as the 'center' start value which will replace number '1'.

Complete 3 full loops of calculations (in the default SQ9 that starts at 1 this would mean continuing until 49 has been entered).

This exercise can be completed either manually or using Excel (preferred).

Hints:

1. Use the 'adding' angle factors (360 deg = 2, 180 deg = 1, 90 deg = 0.5 and so on) above to formulate 45 deg, 90 deg, 135 deg, 180 deg, 225 deg, 270 deg, 315 deg and 360 deg (also known as 0 deg) to populate the first square within the circle;
2. You might find that a simple step function can be used to add one number to the next until the desired 3 loops have been completed;
3. If you use EURUSD I would want to see a value somewhere around 1140 as the center value in the SQ9;
4. If you use GBPUSD I would want to see a value somewhere around 1320 as the center value in the SQ9.

After at least 1 trader has had a go at producing a reasonable SQ9 then I will elaborate on how we will use it for significant Highs and Lows, followed thereafter by forecasting turning points in time.

It is important to at least know that the SQ9 has multiple uses in trading but I will focus primarily on what is relevant in the QCS methodology which means S&R, Potential turning zones in price and the ever elusive and grossly misunderstood Gann Time Cycles.

Good luck !

Masterrmind............

SQ9 Example Setup.

Now with Master Octive and Gann Grid overlay

Note its an example here so after the fact.

Masterrmind............

Possible obstacles to the progress of price up the chart worthy of keeping a close watch over.

ps. Note I am not in this trade by the way just using it as an example.

Masterrmind...........

The values for Entry, SL and Target on the AUDUSD setup were identified in the following SQ9.

The SQ9 can be a very powerful tool if applied the way it was meant too however, it is just a tool and certainly many other factors should be considered before such a trade is attempted.

No matter how convinced a trader might be about a particular trade setup never risk the whole farm on it.

The market will surely take that opportunity to prove you wrong.

Gann proclaims to never have risked more than 10% of his account on a trade.

I suggest your risk range should be more along the lines of 1% to 2% initially and once you prove yourself to be consistently profitable over at least a year of solid trading then up to 5% should be about where your risk starts to max out !

Masterrmind.............

Quad Candle Dashboard

Lets take a closer look firstly at the CADCHF pair.

Notice how the Gann Grid by default indicator settings misses the significant high.

We make an adjustment in the indicator settings for such a case as follows:

1. Set "Override_YRD_Range" to true;
2. Count the additional number of bars required to cover the 'significant' high (in this case 2 extra bars will cover that high);
3. In the parameter "YRD_GannGridDN_BarsAdj" (since we have the DownTrend GG active) change the value from "0" to "2";
4. Click "OK" then "close" the indicator settings.

The chart will update as follows:

Now the Gann Grid starts from the 'significant' high.

Often for a few bars of very little additional range the difference is very minor however, on other setups it can be rather significant.

We always want to capture a significant high or significant low as the case may be so make sure you are aware of the PA on the chartof interest.

Much more to come in the Gann Grid settings.

Masterrmind............

try using google.

Hi Masterrmind,
I have done a study based on what You have posted... so I like to post a possible end result: I have a screenshot here and trying to understand GANN SQ of 9....
I Love the spreadsheet you posted and that you have entered the "current" numbers of the AUD/USD and the S/R show up quite nicely in the diagonal line

Thank you Very much for this post in my further studies here!

Jeff....

All I want to show traders in terms of the SQ9 is that it is a simple additional tool we can use (or not use) to enter trades in the market.

A tool that produces a sequence of 'possible' price levels of interest which may or may not prove to be strong areas of support or resistance.

The most important word apart from 'risk' that I repeatedly mention here is 'confluence'.

Once you understand the S&R part of the SQ9 then just use the levels as areas of potential interest, a level you should be aware of especially as price nears it in the case of a SL level or a target level.

If the trade has made lets say at least a 1to1 RR and you notice price stalling or consolidating around an SQ9 S or R level as the case may be then you may want to take the pips offered up or carefully watch PA closer to the zone of interest to see if price looks likely to drive on through it or reverse on you, then you can make the choice to let the trade run on or as I said close it for a minimum 1to1 RR profit.

Note 1: S&R is only 1 simple use that the SQ9 has but there are many more of which I will explain a little later.

Note 2: Hopefully a trader can generate the SQ9 required from a previous task I have set, then we can move on.

Masterrmind...........

On the AUDUSD pair look left and find an area where PA made an aggressive reversal near the 72 handle.

Now look at where current price has been and is currently trading, it pays to know your charts historical moves well.

Gann tells us that what has happened before will happen again, this is why being able to read the PA on any chart of interest is important.

Since human nature never really changes in terms of fear, greed, euphoria etc then the waves that price makes over time will always occur.

Repeating patterns are an important technique to understand very well, so I suggest all traders practise in recognizing historically repeating patterns.

Masterrmind............

Quad Shorts

GBPAUD

GBPNZD

Positive swap to the short side on both pairs.

Note that the Gann settings involve a reducing or increasing factor on either of the Upward or Downward GG's of a factor of 2 relative to the octive.

Note that current functionality only allows for manual input and that the Gann scaling is actually a function of the octive gap.

Note that this is a static type Gann Grid however, later I may release an automatic dynamically adjusted GG perhaps in the EA.

Note that I have only given out a few parameters regarding Gann Grid settings, however, in the automated dynamic versions the complete algorithm will not be revealed.

Masterrmind........

Hi Masterrmind! Thank you for the input! Yesterday I placed a Trade based on the SQ9 and Great explanation from you. I am a Newbie at all the W.D. Gann methodology. Even the MML understanding is real good thanks to you! About the tool you used: SQ9...this there a file I can download? Also...when I look at the SQ9 and see the number "1" in the center...does this mean that I add that "1 " followed by a decimal point then whatever current price that is on the Gann SQ9 ?

Thank you

Jeff