Gann PVS (Price vibration System) Trading

Hi guys,

I know a little bit about Gann and his trading systems.
I like to contribute to this because it has potential.

Let me know what you need.

Cheers.

Welcome to the thread. Suggest that if you haven't already done so work your way through the thread to get a flavor of where we are up to.

Reading between the lines the majority of the contributors on this thread would like it to reach its full potential. Some of the contributors (they know they are) have done really well on the thread. it makes you want to shake their hand.

Presently though we have come to a temporary quiet period! LOL

I guess its because of time issues and also we need to learn how to get positive results from WD Gann techniques and feel confident about it in our trading experiences.

You have said that you know a little bit about Gann and his trading systems.

"We value your contribution Ilovepippin"

Thank you Zingers.

Problem with Gann is that he did sooo much that how are you going to trade all that?

Well, I can boil it down to one thing: Gann was a trend follower. Shocking right?

He had 1000 techniques to determine a change in trend, but the important thing is that he traded the trend! Which is what we want to do, trading. We are not in the business of forecasting.

So how did he do that?
Well, he used tools such as the square of 9 and his Gann lines.
It is not so important to know how he got them, all we need to know is if it works or not. I'll shoot is straight up here, Gann used astro, but all this astro stuff boils down to mathematics which is easily drawn on a chart.
Just like fibonacci numbers really. He said that: " In the end there are only mathematical points of force"

Basically the trend is determined by the Gann lines, if price is following the line it is following the trend. On a break the trend changes.
The Gann grid has very specific settings, but is not necessary for trading.
What you want to do is determine the trend, if trend is up, buy the dips, if trend is down, sell the highs. Simple right? For that we need the lines and the square of 9. The SQ9 is a function of price, so that is easy. No hocus pocus required.

To determine a change in trend we can use a simple oscillator. To calculate a future price point we can use the pythagoras theoreum.

Then we need a dashboard to tell us how strong the trend is.
Most important we need a solid money management system.

I have a system in place that I trade manually. We can improve on that. I have a few indicators that we can combine into one to make it easy.

That is really all it is. Gann was a very good swing trader and his method was simple.

Cheers!

Hi, Ilovepippin

So have you then discovered the technique that Gann used in the Trading Pits that up until recently have been generally shrouded in mystery?
Also is this a technique that we can get positive results from and confidently use in our own trading?

Trust me, there is no mortal soul on this planet that knows all the secrets of Gann.
When Gann passed away he left truckloads of writings behind. Most of it purchased by the people from wdgann.com.
But lots of his writings were lost.
On top of that we can only know what he wrote down for us to decipher, which may not be everything he knew.

However, it is not necessary to know everything to be a trader.
Gann left us some plain and simple instructions and rules for successfull trading, not shrouded in any mysteries at all.

Now, part 2 of your question. It is up to the trader to be successful. You need to be able to follow rules. No system is without losses. Gann lost trades as well. Traders are not all alike. One can have a system that works 100% for one person, and totally not work for another person.

Yes I did read an article once that not only did he make the usual trading losses but also lost money in brokerage firms that went bankrupt.

What we are hoping for though on this thread are Gann Charts and simple instructions from "active Gann traders", using the Gann PVS (Price vibration System) but what we have generally found so far are that Gann traders appear to be secretive about such things. So it is refreshing to hear that you know a little bit about Gann and his trading systems and are willing to share with us.

Hi All,

I must say that to see additional interested parties on this thread gladdens my heart.

At times trying to get others to join in and take part in Moneydeeps interesting thread was like watching paint dry, very, very boring.

I am hoping that this will be permanent and that we can now get discussion on the aspects of Gann applicable to this thread going.
We already have with Moneydeeps .xls306 excel program and Brookys indicator, a means of determining S/R lines. I have shown in my post 137 on April 5th that relationships exist in timing. I myself, because I trade on the 15m TF have shown that the relationship exists at all levels and Brooky is also looking to produce an indicator which will help us all, this is ofcourse subject to time constaints as he is a very busy trader.

Disappointingly nobody has yet posted to confirm my research or to refute it.

Gann as has been said was a very prolific writer and I am not sure that all that is being posted by the vested interest is correct. Although I won't go into the detail here, there is published scientific papers that say that the planets have little influence on the markets, if you want to know more get searching.

As far as I am concerned Moneydeeps S/R lines and if we can tie it down Timing are the main concepts we are looking at.
Can I persuade those that are interested to do research on these aspects and help advance these concepts to achieve a workable solution.

Allonso

Hi Allonso,

You are on the right track. The "secret" in tehse cycles is to find the right anchoring point. Because, how do you know which one is next? You don't.
What we can do is program a bunch of know cycles and see which one works. Maybe an indicator that has some preprogrammed cycles which you can plot by selecting them (true/false).

You say you want 15 m charts. That is indeed a very good TF for short term turns.

What do you think?

Okay, the "Law of Vibration" what is that? Do we need to know what it is?
We really don't, all we need to know is how we can apply it to trading.

Ganns fundamental setup were his Gann lines. The basis of all his trading were these Gann lines which he used for trend determination.
Now, there are 8 of them as there are 8 octaves in music. Thats a bit of the veiled language for you.
The ones that are important are the 2x1, 1x1 and 1x2 for Forex.

He drew these charts based upon a cycle. The cycle he used was 1 day for 1 cent.
So, on a 4 digit platform that is 24h for 100 pips (for 5 digits multiply by 10). This is the 1x1 line.
The 2x1 line is 100 pips for 12 hours and 1x2 is 100 pips for 36 hours.
Draw these from a low ang high point.
Above these lines, trend is up, below these line trend is down. Simple as that.

It looks like this:

So Ilovepippin this sounds like the "dashboard" you mentioned above. OK thanks we understand that.

Now if you would kindly show us the "simple oscillator", "pythagoras theoreum", and the "indicators" that you previously mentioned.

Zingers

One thing I haven't figured out is the optimum setting for Brooky's indicator

A part of me feels like the proper utilization would be to manually determine the high and low points (by dragging the red control bar). My reasoning is that significant hi and low points may not fall on the same day/bar?

Or if someone is using the Auto hi-lo option, have you changed settings from the default?

What do you guys think?

One step at the time Zinger...
This is a process.

========================================================
...So, on a 4 digit platform that is 24h for 24 pips (for 5 digits multiply by 10). This is the 1x1 line.....

"Hey, take as long as you want Ilovepippi... - We will still value your contribution"

Really appreciate Ilovepippin and Zinger reviving this thread.
Also really appreciate Brooky for the indicators.

See a lot of potential in Gann PVS

The simple indi is the MACD or any oscillator that can detect divergence.
If we can signal a divergence coming in the indi together with the Gann lines, we are well on our way.
This is a good indicator of a direction change.
Gann said to confirm the change of trend, this is one way.

Next I'll post about cycles.

Gann angles - a powerful tool for generating profits ...
The method by which the analysis is based forex trading by using Gann angles, is one of the most popular, but at the same time challenging. But, despite this, the theory is often used to assess and predict the currency market. All indicators and methodological developments in the forex has its own characteristics. Forex Analysis according to the theory is no exception. Very often one can observe that the Gann angles mistaken for a trend line. And they are really very similar. Market fluctuations are clothed in a certain range. The top of the angles is the starting point of the incident trends, fluctuations in the base - the starting point of a growing trend.
But in fact this is not the case and there are some differences. Gann Line represents a dynamic line that has the ability to move both on the horizontal axis and the vertical. This is not so obvious difference, but it's still there. Can be analyzed with the help of Forex charts, with the result that we can identify certain angle fluctuations of the stock, according to which we can define the limits of the speakers. But it is necessary to take into account that, if used to analyze too many corners, it can be confusing.
On the whole theory of the Gann based on the following postulates, which are taken as a basis:
A. Price, time and range of fluctuations in foreign exchange market
Two. There is a certain geometric construction market, which is analyzed, it is possible to come to the conclusion that its subsequent motion
Three. Markets are characterized by cyclical
Gann believed that the market is a reflection of human nature, which is constant, so over time by analyzing past events, we can build based on their vision of the future.
Using Gann angles, in practice,
According to Gann's theories, the analysis of forex should be built on three models to help predict the behavior of the market in the future:
A. The study. It is taken as the basis of historically recurring dates
Two. Price range. It uses support and resistance lines, as well as the pivot point.
Three. The plan of analysis.
The application of this theory into practice requires a great deal of experience and knowledge, so here we noted the most important points to remember if you are using in their practice, such analysis forex.
Decide which model you use in your trading. The most common models are the models 1, 2, and 1x2. Between these angles there is a definite difference in the slope of the lines. Overall, Gunn singled out a lot more angles. They are:
- 1 x 1 - 45 degrees
- 1 x 2 - 63.75 degrees
- 1 x 3 - 71.25 degrees
- 1 x 4 - 75 degrees
- 1 x 8 - 82.5 degrees
- 2 x 1 - 26.25 degrees
- 4 x 1 - 15 degrees
- 8 x 1 - 1.5 degrees
In this case, the first variable is a unit of time, the second - a unit price. That is, according to the formula determined by the ratio between price and time interval.
The value of the line 45 degrees
According to Gann, this line is a line of long-term trend, it does not matter - ascending or descending. It is believed that if the price is above the ascending line, then the market is bullish mood. If the price is below the descending line, it is considered that the market holds a bearish mood. The intersection of the price of any of the lines will be talking about what is planned to change the trend. It should be noted that this line is a balance between price range and time. Quite often one can observe that when the price approaches the line, then the market is the balance of time and money. In addition, the chart can cause the channel, which should be placed parallel to the main trend line at a considerable distance from the extremes of the market.
Under this line of the next line, which is based on the ratio of 2x1 shows that the two units of time has changed the price of one unit. In this case, line 4x1 will be even more shallow than line 2x 1.
Gann Theory has some similarities with the fan-like lines, which are based on Fibonacci ratios. As the market moves up or down to adjust the angles to the existing tendency to form support and resistance levels.
One notable method that is based on the theory of Gann - cardinal square, or "fundamental square method." This method is based on the concept of market analysis by reference to a certain size from as low as the price of the stock. This index can be calculated by conducting analysis of forex extended period of time, from several years to several decades. On the basis of such an operation is possible with a high probability to predict the location of support and resistance lines, which may appear in the future. The initial price is placed at the center of the square, then the correction as it is amended in a clockwise direction. Gradually, the horizontal and vertical lines form a cross in the center of the square. And the data that form the intersection is used as the likely support and resistance levels.

Hi lotos7,

Who or what is Corners Hannah?
What has it to do with Gann?
Where can we see the original transcipt?

Sorry to say that I do not understand most of what you have written, more detail needed and some example of what is meant.

Allonso

Hi Ilovepippin,

Can't say that I have ever been a fan of Gann fans. LOL. As they always seem to move from the original setting if you zoom or change TF's, unless you use a specially written program, they are around but costly.

You seem to be taking a different road to timing, but it will be interesting to follow your process.

Allonso

Loto7 is correct. It is not a simple trendline.
I worked out the angles on mt4 because we cannot square the chart. The angles are as I said, 24 h for 100 pips for 1x1. Works like a charm.