Gann Analysis

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http://gannmasterforex.blogspot.com/
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For fan of Gann in MT4
http://ta.mql4.com/linestudies/gann_fan
Angles are not recorded correct

Does it mean that default Gann Fan on MT4 is crap?

Seb

I work with fan by default. Add only 1x2 and 2x1.

True angles used to calculate the true odds.

The default angle in mt4 is indeed crap.

euro scale is .0015 intraday and .002 daily

"
Gann was a proponent of “the squaring of price and time”, and the use of trend lines and various geometric angles to study price-time behavior. Gann also divided price action into eighths. Gann then assigned certain importance to markets moving along trendlines of some given angle. Gann also assigned importance to price retracements that were some multiple of one eigth of some prior price movement. For example, Gann referred to movement along the 45 degree line on a price-time chart as being significant. He also assigned great significance to 50% retracements in the price of a commodity. The question is, “A 45 degree angle measured relative to what?” “A 50% retracement relative to what prior price?”
These angle or retracement measurements are made relative to Gann’s square of price and time. Gann’s square acted as a coordinate system or reference frame from which price movement could be measured. The problem is that as the price of a commodity changes in time, so must the reference frame we are using to gauge it. How should the square of price and time (the reference frame) be changed so that angles and retracements are measured consistently? This question is one of the key frustrations in trying to implement Gann’s methods. One could argue that Gann recognized the fractal nature of market prices changing in time. Gann’s squaring of price and time, however, did not provide an objective way of quantifying these market price movements.
If one could construct a consistent reference frame that allowed price movement to be measured objectively at all price-time scales, then one could implement Gann’s methods more effectively. This is exactly what Murrey Math has accomplished.
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http://tradinglib.com/indicators/murrey-math

This is euro chart scale .002 seems to conform to this chart with great precision from anywhere

euro 240 .0015 scale

eur/usd daily
scale = 244 pips / 16 day = 15,25 pips/day

you may find greater hits with 1x1 2x3 1x2 1x4 1x8 1x11 1x16 the stuff inbetween is just market noise

Levels of important angles for Wednesday
eur/usd H4

I'm not sure Murrey gets it right either. After years of study, experimentation, trading, winning, and losing, I've come to the conclusion that the standard way almost every piece of software, book, or indicator I've seen that deals with the square overlay and "squaring price to time " gets it wrong. That is why the standard measurement rarely has the exact hits mine gets. I believe Gann did this on purpose as he did a lot of things on purpose to throw people off the scent and make them work things out for themselves. He always gives you the correct way but not always in a direct way. Patrick Mikula talks about this quite a few times in his writings on Gann as well.

The typical usage of squaring is based on the price and then measures out the bars. That is not the same as squaring price to time. Or adjusting the price scaling to fit to time. It's squaring price to whatever the bar time value is.

But that is still wrong because it's trying to rectify two unrelated units of measurement. If space = time and price = time then the unit of measure must be unified. Moreover, static scaling doesn't account for the dynamic nature of price movement. This is because a price chart is a 2D representation of a 4D phenomena.

Below is a chart where I've mathematically squared price to time using a formula that essentially unifies price and time as a common unit of measure. The square is essentially the first octave of the cycle in both price and time. If it's correct, then every division internally should be a turn. I've highlighted the 5 equal divisions and each was a turn almost to the bar. The circles are directly related through price/time. Doing it this way means I can change time frames and the measurements will still work. This is only possible because the square isn't measured in bars. It's measured by time. The other workaround would be if you had a charting package that you could set each bar = to x. So you'd have 30.62 unit bars. (notice I said unit and not minutes/hours/days).

http://www.forexfactory.com/attachme...7&d=1313067789

My predictions are based not on the square. I try to apply the rule of all angles.

Rule of All Angles: Another important guideline is what Gann called the Rule of All Angles. When a market breaks an angle, it will move toward the next angle. This is because as time passes, an angle’s importance weakens and the market eventually breaks through. Therefore a market breaking the 2 x 1 angle will begin to move toward the 1 x 1 angle; just as a market breaking the 1 x 1 angle will eventually reach the 1 x 2 angle. Conversely, in an up move, an angle that holds the 1 x 2 angle is likely to rally to the 1 x 1, just as overtaking the 1 x 1 is likely to lead to a rally to the 2 x 1.

Animated graphic

eur/usd daily
This is animated graphic, please click on it.

This is the same angle
This is animated graphic, please click on it.

support price chart M5

support price must close H4 bar above line