Original Gann Swing Chart Rules [AlgoFuego]

24 Mac

🔵 Original Gann Swing Chart Rules [AlgoFuego]

An advanced indicator built on W.D. Gann’s original rules, enhanced with innovative mechanical trend-following methods.

🔹 Description

• This indicator functions by balancing short-term adaptability with long-term trend analysis.
  
• The indicator incorporates Gann’s principles alongside mechanical trend-following techniques to offer a structured method for analyzing trends and detecting potential market reversals.
  
• Golden Rule: Non-trend bars are excluded from analysis, and each new bar is compared with the previous trend bar, it highlights significant swing points with greater clarity.
  

🔸 The core concept behind the golden rule on which this indicator is built.[Basic principles]

The person watching the tide coming, wanting to pinpoint the exact spot that signals the high tide, places a stick in the sand at the points where the incoming waves reach until the stick reaches a position where the waves no longer rise, and eventually recedes enough to show that the tide has shifted.
This method is effective for monitoring and identifying tides and floods in the stock market.

🔸Rule 1: The trend bar is everything.

→It is a bar that forms a new high, low, or both.

🔸Rule 2: The professional traders track new highs and lows.[All cases]

🔸Rule 3: The hidden bar is nothing.

→It is a bar that does not form a new high, low, or both.

🔸Rule 4: The sea has a wavy nature, and the market as well.

🔸Rule 5: The slope is the immediate direction of the swing.

Downward slope
→The downslope is the descending slope of a swing, shows a decline, reflecting a bearish price trend.

Upward slope
→The upslope is the ascending slope of a swing, shows an incline, reflecting a bullish price trend.

🔸Rule 6: The start and end of the movement are the swing points.

→The lowest or highest price of the last bar in the direction of the slope represents the swing point after the slopes direction changes.

Valley
→It is the lowest price of the last bar in a downslope before the market turns to a upslope.
End=> Downward slope and Start=> Upward slope

Peak
→It is the highest price of the last bar in a upslope before the market turns to an downslope.
End=> Upward slope and Start=> Downward slope

🔸Rule 7: The Golden Rule: Ignore all no-trend bars and compare the new bar with the previous trend bar.

→Applying the golden rule in upward slope

→Applying the golden rule in downward slope

🔸 Related content: Personal words of W.D Gann from the book Wall Street Stock Selector. [Page 15]

→"This was only one month's reaction the same as March 1925. The market held in a dull narrow range for about 2 months while accumulation was taking place and in June the main trend turned up again."

→The beginning of the main trend and the formation of the Valley.

→The beginning of the main trend and the formation of the Peak.

🔸 Rule 8: The Closing Price of the Bar to Understand Movement Direction.

Sequence is important
→ Downward bar [Open -> High -> Low -> Close]
→ Upward bar [Open -> Low -> High -> Close]

🔸 Outside Bar Rules

→Explanation of rules and calculations.

🔸 How does a trend start?

Upward trend
Trend change from Downward to Upward.
Prices must take out the nearest 'Peak' and the Trend was previously Downward.
A breakout above the previous peak signals a bullish reversal.

→ Model 1 - Dropping Valley Reversal
The market forms a dropping valley, followed by a breakout above the previous peak.
→ Model 2 - Equal Valley Reversal
The market forms an equal valley, followed by a breakout above the previous peak.
→ Model 3 - Rising Valley Reversal
The market forms a rising valley, followed by a breakout above the previous peak.


Downward trend
Trend change from Upward to Downward.
Prices must take out the nearest ‘Valley' and the Trend was previously Upward.
A breakdown below the previous valley signals a bearish reversal.

→ Model 1 - Rising Peak Reversal
The market forms a rising peak, followed by a breakdown below the previous valley.
→ Model 2 - Equal Peak Reversal
The market forms an equal peak, followed by a breakdown below the previous valley.
→ Model 3 - Dropping Peak Reversal
The market forms a dropping peak, followed by a breakdown below the previous valley.

🔸 The fractal nature of markets

Rising wave
→ The rising wave is the entire bull market between turning points
High point [Rising wave] : When the Main trend turns from upward to downward, the peak of the primary trend is formed.


Dropping wave
→ The Dropping wave is the entire bear market between turning points.
Low point [Dropping wave]: When the Main trend turns from downward to upward, the primary trend valley is formed.


Fractal nature application.
Everything in one picture.

🔹 Features

• Strict adherence to the rules: Follows the Original Gann Swing Chart Rules to detect swing points.
  
• Fractal analysis: Uses trend bars and fractal analysis to identify swing points.
  
• Robust functionality: Engineered to handle complex market conditions with advanced logic.
  
• Custom alerts: Alerts for peak/valley completion, main and primary trend reversals & continuations.
  
• Golden rule application: Filters out non-trend bars by comparing only with the last trend bar.
  
• Reversal & trend detection: Applies eight outside bar rules to detect trend reversals and continuations.
  
• Dynamic customization: Fully customizable settings.
  

🔹 Settings overview

Fine-tune the indicator to match your unique trading strategy by adjusting trend settings, customizing alerts, and modifying visualization options.

1. Main trend settings

• Hide/Show Main trend options: Instantly hide all main trend options (alerts remain separate).
  
• Main trendline display & alerts: Toggle trendline visibility and set alerts for peaks and valleys.
  
• Trendline customization: Adjust styles, colors, and slopes for upward/downward trends.
  
• Peaks & Valleys markers: Show/hide points and customize their color and size.
  
• Opposite Main trend turning points: Enable alerts and modify style, width, color, and offset.
  
• Breakout/Breakdown points: Set alerts and customize their appearance.
  

2. Primary trend settings

• Hide/Show primary trend options: Instantly hide all primary trend options (alerts remain separate).
  
• Primary trendline display & alerts: Toggle trendline visibility and set alerts for peaks and valleys.
  
• Trendline customization: Adjust styles, colors, and slopes for upward/downward trends.
  
• Peaks & Valleys markers: Show/hide points and customize their color and size.
  
• Opposite primary trend turning points: Enable alerts and modify style, width, color, and offset.
  
• Breakout/Breakdown points: Set alerts and customize their appearance.
  

3. Additional options

• Tooltips display: Control tooltip visibility for labels and languages.
  
• Candle/Bar coloring: Customize candle and bar colors based on algorithm-selected trends.
  

🔸 Additional features

🔹Custom reading of bars.

The arrow represents the direction of the slope, the dot is the type of trend, and the line is the closing price.

🔹 Advanced Moving Average Activator

The Advanced Moving Average Activator, this setting calculates the average closing prices of trend bars only, which are the only bars considered by Gann.

The advantage of this method is that it helps avoid hidden bars that are not accounted for, making the difference more evident in a ranging market. The values are updated only when new highs or lows occur.

Additionally, you can set alerts when the price closes above or below the moving average.

🔹 Bar Counter

After a trend change, you can see exactly when the shift occurred and customize the type of trend you want to track.

For example, by conducting your own research on the assets you trade, based on historical data, you might discover valuable insights, such as the primary trend possibly lasting longer than 20 bars!
You can use these insights to refine your trading strategy and make more data-driven decisions.

🔹 How to use [for beginners]

Step 1: Configure the settings and choose your trading approach
Adjust the indicator settings to match your trading style and market conditions.
Effectively using the indicator starts with selecting your preferred trading style.
You can trade in alignment with the primary trend, capitalize on market reversals, or take advantage of breakouts.

• Trading with the primary trend: Best for traders who prefer longer-term positions with higher stability.
  
• Trading reversals: Ideal for those looking to enter at potential turning points but requires additional confirmation.
  
• Trading breakouts: Suitable for traders targeting strong price movements after key level breakouts.
  
• Adapting to market volatility: Monitor changing volatility and adjust your strategy accordingly for optimal results.

Step 2: Analyze the chart
Apply the indicator to your TradingView chart and interpret swing signals for informed decisions.

• Carefully study the chart patterns to detect subtle signals.
  
• Check if similar signals worked well in past market conditions.
  
• Use multi-timeframe analysis for a broader perspective.

Step 3: Trade with the primary trend
Utilize trend direction to align trades with prevailing market movements.

• Always trade in the direction of the primary trend.
  
• Confirm the trend direction using multiple indicators or by relying on the primary trend as confirmation!.
  
• Avoid trading against strong market momentum.

Step 4: Identify entry signals
Use indicator signals to identify ideal trade entry points.

• Look for confirmation before entering a trade.
  
• Wait for clear signals to avoid false entries.
  
• Practice on a demo account to build confidence in your entry strategy.

Step 5: Apply risk management
Define stop-loss and take-profit levels to protect your capital effectively.

• Set stop-loss orders at strategic levels to limit potential losses.
  
• Risk only a small percentage of your capital per trade.
  
• Adjust risk levels based on your overall portfolio performance.

Step 6: Confirm with trend analysis
Validate trends using additional indicators for a higher probability of success.

• Use complementary tools to confirm trend direction.
  
• Monitor trend changes to adjust your strategy promptly.
  
• Keep an eye on volume indicators for added confirmation.

Step 7: Execute the trade
Enter trades based on confirmed signals and predefined strategy rules.

• Ensure all your criteria are met before executing a trade.
  
• Stay disciplined and stick to your strategy.
  
• Review market conditions right before execution.

Step 8: Monitor the trade
Track trade performance and make adjustments as necessary.

• Keep an eye on market conditions throughout the trade.
  
• Be ready to adjust your strategy if unexpected events occur.
  
• Use trailing stops to secure profits while allowing for gains.

Step 9: Implement exit strategy
Close trades strategically based on your pre-established exit plan.

• Plan your exit strategy in advance and adhere to it.
  
• Consider partial exits to secure profits along the way.
  
• Avoid emotional decisions when closing trades.

Step 10: Review performance
Analyze past trades to continuously refine and improve your strategy.

• Regularly review and document your trades for insights.
  
• Identify patterns in both your successes and mistakes.
  
• Update your strategy based on comprehensive performance reviews.

🔹 Disclosure

While this script is useful and provides insight into market tops, bottoms, and trend trading, it's critical to understand that past performance is not necessarily indicative of future results and there are many more factors that go into being a profitable trader.

1 Apr

Nota Keluaran

🔹 ATR Activator

The Average True Trend Activator calculates the volatility based on the Moving Average Activator.

Simply put, it functions similarly to a Super Trend but is based on moving average data that ignores non-trend bars.

The advantage of this approach is that it helps reduce false signals generated by the Moving Average Activator.

In a ranging market, this difference becomes more noticeable.

This setting is influenced by the Moving Average Activator data.

Additionally, you can set up alerts for both upward and downward movements.

6 hari lalu

Nota Keluaran

🔹 Current Bar Mark

This feature summarizes all the rules for the current bar, enabling you to focus on the ultimate outcome of the code’s functionality and quickly understand the market. [It serves as a summary of the current bar's operations].

The feature identifies the last bar and interprets it based on the trend condition and the methodology applied to determine both the primary and main directions, in addition to the Moving Average Activator and the ATR Activator.

Its uses are not limited to simply summarizing the code in a straightforward manner; you can also develop a system based on the alignment of movements with the trends.

For instance, you might clearly state: This bar is characterized by its upward trend: it is above the Moving Average Activator and the ATR Activator, and it belongs to an ascending wave in both the primary and main directions. [Simple enough].

6 hari lalu

Nota Keluaran

Fixed the bug of hiding the current bar mark, and added more customization.

3 hari lalu

Nota Keluaran

🔹Trend Bar - Mark

These settings allow you to show or hide the tracking of the last trend bar.

The only bar Gann considered significant.

When the high or low of this bar is broken, the peak or valley of the main trend is formed and the slope direction changes.

🔹ATR Activator - Tabel

Multi-timeframe analysis of the ATR Activator.
You can control how all the details are displayed.

ATR Activator calculated based on Moving Average Activator.
Moving average calculated based on trend bars only.

🔹Moving Average Activator - Tabel

Multi-timeframe analysis of the Moving Average Activator.
You can control how all the details are displayed.
Moving average calculated based on trend bars only.

3 hari lalu

Nota Keluaran

The Trend Bar Marker bug has been fixed, and more customization options have been added, including additional controls for positioning the Fibonacci levels on the trend bar.